Document:

exv10w1

 

Exhibit 10.01

Execution Copy

STOCK PURCHASE AGREEMENT

by and among

MITCHAM INDUSTRIES, INC.

(“BUYER”)

and

MARK WELKER, TOMOKO WELKER,

CHEW KOK LEE PINNINGTON, MICHAEL PINNINGTON,

TIMOTHY PINNINGTON AND PHILLIP BULL

(“SEAMAP SHAREHOLDERS”)

July 1, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I

DEFINITIONS

	 	 	 
	 	 	 	 
	1.1	 	Certain Definitions
	 	 	5	 
	 	 	 
	 	 	 	 
	ARTICLE II

PURCHASE AND SALE; CLOSING

	 	 	 
	 	 	 	 
	2.1	 	Transfer of Parent Company Shares
	 	 	5	 
	2.2	 	Purchase Price
	 	 	6	 
	2.3	 	Deliveries at Closing
	 	 	6	 
	 	 	 
	 	 	 	 
	ARTICLE III

EARN-OUT PAYMENTS

	 	 	 
	 	 	 	 
	3.1	 	Earn-Out Payments Procedures
	 	 	6	 
	3.2	 	Earn-Out Payment Limitations
	 	 	7	 
	3.3	 	Definitions
	 	 	8	 
	3.4	 	Delinquent Earn-Out Payments
	 	 	9	 
	3.5	 	Buyer’s Covenants
	 	 	9	 
	 	 	 
	 	 	 	 
	ARTICLE IV

REPRESENTATIONS AND WARRANTIES RELATING

TO THE SEAMAP SHAREHOLDERS

	 	 	 
	 	 	 	 
	4.1	 	Authority; Enforceability
	 	 	9	 
	4.2	 	Consents; Absence of Conflicts
	 	 	10	 
	4.3	 	Ownership
	 	 	10	 
	4.4	 	Brokers’ Fees
	 	 	10	 
	 	 	 
	 	 	 	 
	ARTICLE V

REPRESENTATIONS AND WARRANTIES

RELATING TO THE SEAMAP COMPANIES

	 	 	 
	 	 	 	 
	5.1	 	Organization
	 	 	10	 
	5.2	 	Qualification; Power
	 	 	11	 
	5.3	 	Consents; Absence of Conflicts
	 	 	11	 
	5.4	 	Capitalization
	 	 	11	 
	5.5	 	Subsidiaries
	 	 	12	 
	5.6	 	Absence of Changes
	 	 	12	 
	5.7	 	Affiliate Transactions
	 	 	13	 
	5.8	 	Real Property
	 	 	14	 
	5.9	 	Personal Property
	 	 	15	 
	5.10	 	Permits
	 	 	16	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	5.11	 	Contracts
	 	 	16	 
	5.12	 	Intellectual Property
	 	 	18	 
	5.13	 	Accounts Receivable
	 	 	19	 
	5.14	 	Brokers’ Fees
	 	 	19	 
	5.15	 	Financial Statements
	 	 	19	 
	5.16	 	No Undisclosed Liabilities
	 	 	20	 
	5.17	 	Legal Compliance
	 	 	20	 
	5.18	 	Taxes
	 	 	20	 
	5.19	 	Inventory
	 	 	21	 
	5.20	 	Litigation
	 	 	21	 
	5.21	 	Product and Service Warranty
	 	 	21	 
	5.22	 	Employees; Employee Relations
	 	 	22	 
	5.23	 	Employee Benefit Matters
	 	 	24	 
	5.24	 	Environmental Matters
	 	 	25	 
	5.25	 	Customers, Vendors and Suppliers
	 	 	26	 
	5.26	 	Bank Accounts; Powers of Attorney
	 	 	26	 
	5.27	 	Insurance
	 	 	27	 
	5.28	 	Books and Records
	 	 	27	 
	5.29	 	Certain Payments
	 	 	27	 
	 	 	 
	 	 	 	 
	ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF BUYER

	 	 	 
	 	 	 	 
	6.1	 	Organization
	 	 	28	 
	6.2	 	Authority; Enforceability
	 	 	28	 
	6.3	 	Absence of Conflicts
	 	 	28	 
	6.4	 	Brokers’ Fees
	 	 	28	 
	 	 	 
	 	 	 	 
	ARTICLE VII

COVENANTS

	 	 	 
	 	 	 	 
	7.1	 	Releases and Termination
	 	 	28	 
	7.2	 	Non-Competition
	 	 	29	 
	7.3	 	Use of Name
	 	 	30	 
	7.4	 	Further Assurances
	 	 	31	 
	7.5	 	Confidentiality
	 	 	31	 
	7.6	 	Books and Records
	 	 	31	 
	7.7	 	Publicity
	 	 	31	 
	7.8	 	338 Election
	 	 	31	 
	 	 	 
	 	 	 	 
	ARTICLE VIII

CLOSING; CLOSING DELIVERIES

	 	 	 
	 	 	 	 
	8.1	 	Closing
	 	 	32	 
	8.2	 	Seller Deliveries
	 	 	32	 
	8.3	 	Buyer Deliveries
	 	 	32	 

 ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE IX

INDEMNIFICATION

	 	 	 
	 	 	 	 
	9.1	 	Indemnities of the Sellers
	 	 	33	 
	9.2	 	Indemnities of Buyer
	 	 	34	 
	9.3	 	Claim Procedures
	 	 	34	 
	9.4	 	Calculation, Timing, Manner and Characterization of Indemnification Payments
	 	 	35	 
	9.5	 	Survival
	 	 	35	 
	9.6	 	Reliance
	 	 	35	 
	9.7	 	Control of Third-Party Claims
	 	 	35	 
	9.8	 	Offset Rights and Limitations
	 	 	36	 
	9.9	 	Express Negligence
	 	 	36	 
	9.10	 	Exclusive Remedy
	 	 	37	 
	 	 	 
	 	 	 	 
	ARTICLE X

MISCELLANEOUS

	 	 	 
	 	 	 	 
	10.1	 	Assignment
	 	 	37	 
	10.2	 	Notices
	 	 	37	 
	10.3	 	Choice of Law
	 	 	38	 
	10.4	 	Entire Agreement; Amendments and Waivers
	 	 	38	 
	10.5	 	Multiple Counterparts
	 	 	38	 
	10.6	 	Expenses
	 	 	38	 
	10.7	 	Invalidity
	 	 	38	 
	10.8	 	References; Headings; Interpretation
	 	 	39	 
	10.9	 	No Third Party Beneficiaries
	 	 	39	 
	10.10	 	No Presumption Against Any Party
	 	 	39	 
	10.11	 	Specific Performance
	 	 	39	 

	 	 	 
	Exhibits	 	 
	Exhibit A

	 	Defined Terms
	Exhibit B

	 	Promissory Notes
	Exhibit C

	 	Pledge Agreement

iii

 

Schedules

Schedule 2.2(a)(i) — Cash Amount; Sellers Wire Transfer Instructions

Schedule 2.2(a)(ii) — Principal Promissory Notes Amounts

Schedule 3.1(a) — Earn-Out Notice

Schedule 3.3(a) — Sellers’ Proportionate Amount of Earn-Out Payments

Schedule 4.2 — Conflicts; Absence of Conflicts

Schedule 4.3 — Ownership

Schedule 5.2 — SeaMap Companies Jurisdiction Qualifications

Schedule 5.3 — Consents; Conflicts (SeaMap Companies)

Schedule 5.4 — Capitalization

Schedule 5.5 — Subsidiaries

Schedule 5.6 — Absence of Changes

Schedule 5.6(a)(11) — Repayment of Seller Loans

Schedule 5.7 — Affiliate Transactions

Schedule 5.8(b) — Scheduled Leases

Schedule 5.8(c) — Facilities

Schedule 5.9(a) — Leased Equipment

Schedule 5.9(b) — Scheduled Personal Property

Schedule 5.9(c) — Title to Personal Property

Schedule 5.10 — Scheduled Permits

Schedule 5.11 — Material Contracts

Schedule 5.12 — SeaMap Intellectual Property

Schedule 5.13 — Accounts Receivable

Schedule 5.14 — Brokers’ Fees

Schedule 5.15(a) — Financial Statements (SeaMap Companies)

Schedule 5.16 — Undisclosed Liabilities

Schedule 5.18 — Taxes

Schedule 5.19 — Inventory

Schedule 5.20 — Litigation

Schedule 5.21 — Warranty Claims

Schedule 5.22(a) — Employees; Employee Relations

Schedule 5.22(b) — Bonuses

Schedule 5.22(c) — Collective Bargaining

Schedule 5.22(d) — Employment, etc. Contracts

Schedule 5.23 — Employee Benefits

Schedule 5.24 — Environmental Matters

Schedule 5.25 —Customers; Suppliers

Schedule 5.26 — Bank Accounts; Powers of Attorney

Schedule 5.27 — Insurance

Schedule 5.29 — Certain Payments

Schedule 7.2 — Non-Competition

Schedule 7.8 — Purchase Price Allocation

Schedule 8.2(e) — Resignations

iv

 

STOCK PURCHASE AGREEMENT

     This Stock Purchase Agreement (this “Agreement”) is entered into as of July 1, 2005, by and
among Mitcham Industries, Inc., a Texas corporation (the “Buyer”) and Mark Welker, Tomoko Welker,
Chew Kok Lee Pinnington, Michael Pinnington, Timothy Pinnington and Phillip Bull (each referred to
as a “SeaMap Shareholder” or a “Seller,” and collectively as the “SeaMap Shareholders” or the
“Sellers”).

R E C I T A L S:

     WHEREAS, the SeaMap Shareholders collectively own 100% of the issued and outstanding shares of
common stock of SeaMap International Holdings Pte. Ltd. (the “Parent Company”;

     WHEREAS, the Parent Company owns 100% of the issued and outstanding capital stock of SeaMap
(UK) Limited, a United Kingdom company (“SeaMap UK”), SeaMap, Inc., a Texas corporation (“SeaMap
US”) and SeaMap Pte, Ltd., a Singapore company (“SeaMap Singapore” and along with SeaMap UK, SeaMap
US and the Parent Company, the “SeaMap Companies”)

     WHEREAS, Buyer desires to purchase from the Sellers, and the Sellers desire to sell to Buyer,
the issued and outstanding capital stock of the Parent Company (the “Parent Company Shares”),
subject to the terms and conditions contained herein;

     NOW, THEREFORE, in consideration of the premises, agreements and covenants contained herein,
and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged and in reliance upon the mutual representations and warranties contained herein, the
parties hereto agree as follows:

AGREEMENTS

ARTICLE I

DEFINITIONS

     1.1 Certain Definitions. Capitalized terms used in this Agreement but not defined in the
body hereof shall have the meanings ascribed to them in Exhibit A. Capitalized terms
defined in the body of this Agreement are listed in Exhibit A by location herein.

ARTICLE II

PURCHASE AND SALE; CLOSING

     2.1 Transfer of Parent Company Shares. Upon the terms and subject to the conditions of
this Agreement, at the Closing:

          (a) the Sellers shall sell, transfer, assign, convey and deliver to Buyer the Parent Company
Shares; and

          (b) Buyer shall purchase the Parent Company Shares.

5

 

     2.2 Purchase Price. (a) The total consideration (the “Purchase Price”) to be paid by
Buyer to the Sellers for the sale, transfer, assignment, conveyance and delivery of the Parent
Company Shares shall be as follows, subject to adjustment pursuant to Section 2.2(b) below and
Article III:

               (i) cash in the aggregate amount of $3,500,000 (the “Cash Amount”) to be paid by Buyer to the
Sellers at the Closing by wire transfer of immediately available funds in the amounts and in
accordance with the wire transfer instructions contained on Schedule 2.2(a)(i) or other
instructions provided by the respective Sellers to Buyer, in writing, at least two Business Days
prior to the Closing;

               (ii) promissory notes from the Buyer to the Sellers (“Promissory Notes”), such promissory
notes being in the aggregate principal amount of $3,000,000, being in the form of Exhibit B
attached hereto and being in the respective principal amounts as specified on Schedule
2.2(a)(ii); and

               (iii) The Earn-Out Payments to be paid in accordance with Article III.

          (b) The Buyer and the Sellers intend that the SeaMap Companies not have any Indebtedness for
Borrowed Monies outstanding at Closing. Accordingly, to the extent that any Indebtedness for
Borrowed Monies remains unpaid at Closing, the Cash Amount payable at Closing will be reduced by
the amount required to fully satisfy such obligations.

     2.3 Deliveries at Closing. At the Closing (a) the Sellers will deliver or cause to be
delivered to Buyer, certificates representing the Parent Company Shares endorsed in blank or
accompanied by blank stock powers and the various certificates, instruments and documents required
to be delivered by the Sellers pursuant to Article VIII and (b) Buyer will deliver, or cause to be
delivered to the Sellers the Cash Amounts, the Promissory Notes and various certificates,
instruments and documents required to be delivered by Buyer pursuant to Article VIII.

ARTICLE III

EARN-OUT PAYMENTS

     Buyer agrees to pay to Sellers certain contingent purchase price payments provided that
certain Earn-Out Earnings Thresholds and prerequisites are achieved, all as set forth in this
Article III.

     3.1 Earn-Out Payments Procedures.

          (a) No later than 90 days after the completion of each Annual Earn-Out Period, Buyer shall
deliver to the Sellers a certificate of its chief executive officer or its chief financial officer
setting forth in reasonable detail Buyer’s calculations of the Earn-Out Payment, if any, payable by
Buyer to each Seller for such Earn-Out Period (each, an “Earn-Out Notice”).
For a period of 15 days following the Sellers’ receipt of such Earn-Out Notice, the Sellers
may request from Buyer additional financial information or other supporting documentation for any
items reasonably relating to the calculations of such Earn-Out Payment. Buyer shall promptly
deliver such requested information and documentation to the Sellers not later than 15 days

6

 

following receipt of the Sellers’ request. The Sellers shall have the right within 30 days
following the later of the Sellers’ receipt of such Earn-Out Notice or Sellers’ receipt of the
additional information requested to object to Buyer’s calculation of such Earn-Out Payment as set
forth in such Earn-Out Notice. Any objection made by the Sellers shall be accompanied by materials
showing in reasonable detail the Sellers’ support for its position. The Sellers shall be deemed to
have waived any rights to object to Earn-Out Payments under this Agreement unless the Sellers
furnish written objections, together with supporting materials, to Buyer within such 30-day period.
Buyer and the Sellers shall meet to resolve any differences in their respective positions with
respect to Buyer’s calculation of such Earn-Out Payment as set forth in such Earn-Out Notice
delivered in accordance with this Section 3.1(a). If the parties are unable to agree upon such
Earn-Out Payment, Buyer or the Sellers may submit the matter to be resolved through an arbitration
procedure conducted in accordance with Schedule 3.1(a). If there is no timely objection as
provided above, Buyer’s calculation of such Earn-Out Payment as set forth in such Earn-Out Notice
shall be binding and final for purposes of this Agreement. If there is a timely objection as
provided above, such Earn-Out Payment set forth in such Earn-Out Notice as revised, if applicable,
by the agreement of Buyer and the Sellers or through arbitration as provided in Schedule
3.1(a), as applicable, shall be binding and final for purposes of this Agreement.

          (b) Following the final determination of the Earn-Out Payment for any Earn-Out Period in
accordance with Section 3.1(a), if there is an Earn-Out Payment owing to the Sellers with respect
to such Earn-Out Period, Buyer shall promptly (but in any event within five Business Days) (i) wire
transfer in immediately available funds to the Sellers, in accordance with the instructions set
forth on Schedule 2.2(a)(i) or to such other account as Sellers may specify in writing, an
amount equal to the Earn-Out Payment attributable to such Earn-Out Period as so finally determined.

          (c) Buyer and the Sellers agree that they will, and that they will cause their respective
representatives to, cooperate and assist in the calculation of the Earn-Out Payment for each Annual
Earn-Out Period and in the conduct of the reviews referred to in the foregoing sections hereof,
including making available, to the extent necessary, books, records, work papers and personnel.
From and after the Closing, Buyer shall provide the Sellers with reasonable access (for the purpose
of examining) during normal business hours to the books, records and personnel of Buyer, to the
extent necessary to permit the Sellers to determine any matter relating to the rights and
obligations of the Sellers under this Section 3.1, and Buyer shall promptly provide any additional
information or materials reasonably requested by the Sellers in connection with the rights of the
Sellers under this Section 3.1 and any review or financial information (including the Earn-Out
Notice) delivered pursuant to this Article III.

     3.2 Earn-Out Payment Limitations. Notwithstanding anything to the contrary contained
herein, (a) the aggregate Earn-Out Payments payable to the Sellers, in the aggregate, for any
Annual Earn-Out Period shall in no
event exceed $1,000,000 and (b) the aggregate Earn-Out Payments payable to the Sellers, in the
aggregate, for all Earn-Out Periods shall in no event exceed $2,000,000. The obligation of Buyer
to make Earn-Out Payments pursuant to this Article III shall terminate and expire on the first to
occur of (a) April 30, 2010 (unless an Earn-Out Payment is due and owing for the Annual Earn-Out
Period ending on April 30, 2010) and (b) at such time as the Sellers have received an aggregate
$2,000,000 in Earn-Out Payments (“Earn-Out Period”).

7

 

     3.3 Definitions. The following terms used in this Article III shall have the following
meanings:

          (a) Earn-Out Payment means a contingent purchase price payment of $1,000,000 with respect to
an Annual Earn-Out Period which amount shall be due and payable by Buyer to the Sellers only if the
Earn-Out Revenues of the SeaMap Companies exceed the Earn-Out Earnings Threshold applicable to such
Annual Earn-Out Period. If the Earn-Out Revenues of the SeaMap Companies do not exceed the
applicable Earn-Out Earnings Threshold for a particular Annual Earn-Out Period, then no Earn-Out
Payment will be due and owing for such Annual Earn-Out Period. Each Seller’s proportionate amount
of each Earn-Out Payment shall be as reflected on Schedule 3.3(a).

          (b) Earn-Out Earnings Threshold, with respect to any Annual Earn-Out Period, shall mean the
following:

               (i) the Earn-Out Earnings Threshold applicable to the initial Annual Earn-Out Period shall
mean Earn-Out Revenues in excess of $8,000,000;

               (ii) The Earn-Out Earnings Threshold applicable to any Annual Earn-Out Period after the
initial Annual Earn-Out Period shall be as follows:

                    (1) if the Earn-Out Revenues in each of the prior Annual Earn-Out Periods were not in
excess of $8,000,000, then the Earn-Out Threshold applicable to such Annual Earn-Out Period
shall be $8,000,000;

                    (2) if the Earn-Out Revenues in any prior Annual Earn-Out Period was in excess of
$8,000,000 but less than $10,000,000, then the Earn-Out Threshold applicable to such Annual
Earn-Out Period shall be $10,000,000; and

                    (3) if the Earn-Out Revenues in any prior Annual Earn-Out Period was in excess of
$10,000,000, then the Earn-Out Threshold applicable to such Annual Earn-Out Period will be
$8,000,000.

          (c) Annual Earn-Out Period means a twelve-month period of operations of the SeaMap Companies
with the initial Annual Earn-Out Period being the twelve-month period commencing on May 1, 2005 and
ending April 30, 2006.

     (d) Earn-Out Revenues means actual revenues of the SeaMap Companies determined in accordance
with GAAP and applied consistently with the accounting policies utilized by Buyer except that in
calculating Earn-Out Revenues, any sales of SeaMap products from a SeaMap Company to Buyer or an Affiliate of Buyer shall be deemed to have been made at
the lowest price of a sale of such SeaMap products made on an arm’s-length basis by a SeaMap
Company to a third party which is not an Affiliate of Buyer within the applicable Annual Earn-Out
Period. For purposes of determining Earn-Out Revenues, foreign income statement accounts (revenues
and expenses) are converted to United States dollars based on the

8

 

“average exchange rate” for the
applicable Earn-Out Period. The “average exchange rate” is calculated as the sum of exchange
rates for each business day/total business days utilizing exchange rates published by the
University of British Columbia Sauder School of Business via their PACIFIC (Policy Analysis
Computing and Information Facility in Commerce) Exchange Rate Service website. If this source is
not available, then the Buyer will determine a comparable source for accessing reliable exchange
rate data.

     3.4 Delinquent Earn-Out Payments. If Buyer fails to timely pay any Earn-Out Payment
required to be paid hereunder after Sellers have provided at least twenty (20) days written notice
of such default to Buyer, and such Earn-Out Payment is not the subject of a resolution or
arbitration proceedings pursuant to Section 3.1(a), then Buyer will be required to pay interest
with respect to such delinquent Earn-Out Payment at the lesser of (i) the maximum nonusurious rate
permitted by law and (ii) rate of fifteen percent per annum commencing on the expiration of the
twenty (20) day default notice from Sellers and continuing until such Earn-Out Payment is paid.

     3.5 Buyer’s Covenants. Buyer covenants and agrees to use its commercially reasonable
efforts to manage and operate the business in the ordinary course during the Earn-Out Period.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES RELATING

TO THE SEAMAP SHAREHOLDERS

     Subject to the provisions of Article IX hereof, each SeaMap Shareholder severally [(except
that Mark Welker and Mrs. Mark Welker shall be jointly and severally liable for representations
made by Mrs. Mark Welker and Michael Pinnington and Chew Kok Lee Pinnington shall be jointly and
severally liable for representations made by Chew Kok Lee Pinnington)] hereby represents and
warrants to Buyer as of the Closing Date as follows. Each SeaMap Shareholder hereby acknowledges
that Buyer is relying on the following representations and warranties in entering into this
Agreement.

     4.1 Authority; Enforceability. The SeaMap Shareholder has all requisite corporate power
and authority to execute and deliver this Agreement and the other Transaction Documents to which it
is a party and to perform its obligations hereunder and thereunder. The execution and delivery of
this Agreement and the other Transaction Documents to which the SeaMap Shareholder is a party and
the performance of the transactions contemplated hereby and thereby have been duly and validly
approved by such action, necessary on behalf of the SeaMap Shareholder. This Agreement and each of
the Transaction Documents to which the SeaMap Shareholder is a party constitute the legal, valid
and binding obligations of the SeaMap Shareholder, enforceable against the SeaMap Shareholder in
accordance with their terms, subject to applicable bankruptcy, insolvency or other similar laws
relating to or affecting the enforcement of creditors’ rights generally and to general principles
of equity (such laws and principles being referred to herein as “Creditors’ Rights”). All other
documents required hereunder to be executed and delivered by the SeaMap Shareholder at the Closing
have been duly authorized, executed and delivered by the SeaMap Shareholder and constitute the
legal,

9

 

valid and binding obligations of the SeaMap Shareholder, enforceable against the SeaMap
Shareholder in accordance with their terms, subject to the Creditors’ Rights.

     4.2 Consents; Absence of Conflicts. Except as set forth on Schedule 4.2, neither
the execution and delivery of this Agreement or the other Transaction Documents by the SeaMap
Shareholder, nor the consummation of the transactions contemplated hereby and thereby will (a)
violate any provision of the Organizational Documents of the Seller or any SeaMap Company; (b)
violate or breach the terms of, cause a default under, conflict with, result in the loss by the
SeaMap Shareholders of any rights or benefits under, impose on the Seller or any SeaMap Company any
additional or greater burdens or obligations under, create in any party additional or greater
rights or benefits under, create in any party the right to accelerate, terminate, modify or cancel,
require any notice or consent or give rise to any preferential purchase or similar right under (i)
any applicable Legal Requirement or (ii) any Contract to which the Seller or any SeaMap Company is
a party or by which the Seller or any SeaMap Company, or any of their respective properties, is
bound; or (c) with the passage of time or the giving of notice or the taking of any action of any
third party have any of the effects set forth in clause (a) or (b) of this Section 4.2. Except as
set forth on Schedule 4.2, the Seller nor any SeaMap Company is required to obtain or
provide any consent or notice in connection with the consummation of the transactions contemplated
by this Agreement. All such consents or notices have been obtained or given and have been
furnished in writing to the Buyer.

     4.3 Ownership. The SeaMap Shareholder is the record and beneficial owner of the number of
shares of the Parent Company set forth on Schedule 4.3. The SeaMap Shareholder owns such
shares of the Parent Company free and clear of all Liens.

     4.4 Brokers’ Fees. The SeaMap Shareholder does not have any liability or obligation to pay
any fees or commissions to any broker, finder or agent with respect to the transactions
contemplated by this Agreement for which Buyer or its Affiliates (including the SeaMap Companies
after the Closing) could become liable or obligated.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

RELATING TO THE SEAMAP COMPANIES

     Subject to the provisions of Article IX hereof, the Sellers hereby, jointly and severally,
represent and warrant to Buyer as of the Closing Date as follows. The Sellers hereby
acknowledge that Buyer is relying on the following representations and warranties in entering
into this Agreement.

     5.1 Organization. Each of the Parent Company and SeaMap Singapore is a corporation duly
organized and validly existing under the laws of Singapore. SeaMap UK is a company duly organized,
validly existing and in good standing under the laws of United Kingdom. SeaMap US is a corporation
duly organized, validly existing and in good standing under the laws of the State of Texas. The
Sellers have delivered to Buyer true and complete copies of the Organizational Documents of each of
the SeaMap Companies, each as amended to date and presently in effect (collectively, the “SeaMap
Organizational Documents”). The Parent Company has, since its inception, been a holding company
which has only held the shares

10

 

of SeaMap Singapore, SeaMap UK and SeaMap US. Except for owning
such shares, the Parent Company has, since its inception, conducted no business and held no other
assets.

     5.2 Qualification; Power. Each SeaMap Company is duly qualified to do business as a
foreign corporation and is in good standing in each jurisdiction in which the nature of the
business as now conducted or the character of the property owned or leased by it makes such
qualification necessary, which jurisdictions (as applicable to each SeaMap Company) are listed on
Schedule 5.2. Each SeaMap Company has all requisite corporate power and authority to own
its properties and assets and to carry on its business as currently conducted.

     5.3 Consents; Absence of Conflicts. Except as set forth on Schedule 5.3, neither
the execution and delivery of this Agreement or the other Transaction Documents by the Sellers, nor
the consummation of the transactions contemplated hereby and thereby will (a) violate or breach the
terms of, cause a default under, conflict with, result in the loss by any SeaMap Company of any
rights or benefits under, impose on any SeaMap Company any additional or greater burdens or
obligations under, create in any party additional or greater rights or benefits under, create in
any party the right to accelerate, terminate, modify or cancel, require any notice or consent or
give rise to any preferential purchase or similar right under (i) any applicable Legal Requirement,
(ii) the SeaMap Organizational Documents or (iii) any Contract to which any SeaMap Company is a
party or by which any SeaMap Company, or any of its properties, is bound, including the Material
Contracts; (b) result in the creation or imposition of any Lien on any of the SeaMap Assets or the
Parent Company Shares; (c) result in the cancellation, forfeiture, revocation, suspension or
modification of any SeaMap Asset or any existing consent, approval, authorization, license, permit,
certificate or order of any Governmental Authority; or (d) with the passage of time or the giving
of notice or the taking of any action of any third party have any of the effects set forth in
clause (a), (b) or (c) of this Section 5.3. Except as set forth on Schedule 5.3, no SeaMap
Company is required to obtain or provide any consent or notice in connection with the consummation
of the transactions contemplated by this Agreement. All such consents or notices have been
obtained or given and have been furnished in writing to Buyer.

     5.4 Capitalization.

          (a) Schedule 5.4 sets forth a true and complete list that accurately reflects the
outstanding Interests in each SeaMap Company.

          (b) The issued and outstanding shares of capital stock of the SeaMap Companies (the “SeaMap
Company Shares”) have been duly authorized, are validly issued and are fully paid and
non-assessable and were not issued in violation of, and are not subject to, any preemptive rights,
rights of first refusal or other similar rights of any Person.

          (c) There are no shares of capital stock of any SeaMap Company outstanding other than as
reflected in Schedule 5.4. There are no Contracts (including, without limitation, options,
warrants, calls and preemptive rights) obligating Sellers or any SeaMap Company (i) to issue, sell,
pledge, dispose of or encumber any Interests in such SeaMap Company, (ii) to redeem, purchase or
acquire in any manner any Interests in such SeaMap Company or (iii) to make any dividend or
distribution of any kind with respect to any Interests in such SeaMap Company.

11

 

          (d) Except as set forth in Schedule 5.4, there are no outstanding or authorized stock
appreciation, phantom stock, profit participation, or similar rights affecting the Interests in any
SeaMap Company. There are no voting trusts, proxies, or other shareholder or similar agreements or
understandings with respect to the voting of the Interests in any of the SeaMap Companies.

          (e) Upon delivery of stock powers relating to the Parent Company Shares or certificates
representing the Parent Company Shares duly endorsed to Buyer, together with any other documents
reasonably requested by Buyer, the Sellers at Closing will transfer valid title thereto to Buyer,
free of any Lien.

     5.5 Subsidiaries. There are no, and there have not been any, Persons (including any joint
ventures) in which a SeaMap Company owns, or, except as disclosed on Schedule 5.5, has
owned during the past five years, of record or beneficially, any direct or indirect (through a
subsidiary or otherwise) Interest. There are no outstanding obligations of any SeaMap Company to
provide funds or make any investment (in either case, in the form of a loan, capital contribution,
purchase of an Interest (whether from the issuer or another Person) or otherwise) in, any other
Person.

     5.6 Absence of Changes.

          (a) Except as set forth on Schedule 5.6, since January 1, 2004:

               (1) there has not been any Material Adverse Effect;

               (2) the Business has been operated and maintained in the Ordinary Course of
Business;

               (3) there has not been any material damage, destruction or loss to any material
portion of the SeaMap Assets, whether covered by insurance or not;

               (4) there has been no merger or consolidation of any SeaMap Company with any
other Person or any acquisition by any SeaMap Company of the stock, material assets
or business of any other Person or any agreement with respect thereto;

               (5) there has been no (i) issuance of any Interests in any SeaMap Company, (ii)
any repurchase or redemption of any Interests in any SeaMap Company, or (iii) split,
combination or reclassification of any Interests in any SeaMap Company;

               (6) there has been no declaration or payment of any dividend or other payment
on the Interests in any SeaMap Company;

               (7) there has been no borrowing of funds, agreement to borrow funds, or
guaranty or agreement to maintain the financial position of any Person by any SeaMap
Company;

12

 

               (8) no SeaMap Company has entered into any employment, consulting, severance or
indemnification agreement or an agreement with respect to a retention bonus with any
of its employees or any other Person, nor has any SeaMap Company incurred or entered
into any collective bargaining agreement or other obligation to any labor
organization or employee;

               (9) there has been no actual, pending or, to the Knowledge of the Sellers,
threatened adverse change in a material respect in the relationship of any SeaMap
Company with any material customer, supplier, distributor or sales representative of
the Business;

               (10) there has been no material increase in the compensation or benefits of any
director, officer or employee of any SeaMap Company or the Business;

               (11) other than the repayment of Seller loans and other payment as scheduled on
Schedule 5.6(a)(11) there has been no payment by any SeaMap Company to any
director, officer, member, partner, employee or holder of any Interest in any SeaMap
Company, or any Affiliate of the foregoing (whether as a loan or otherwise) except
regular compensation, expense reimburements and usual benefits payments consistent
with past practices;

               (12) no SeaMap Company has entered into any contract agreement or arrangement
with any director, officer, member, partner, employee of or holder of any Interest
in any SeaMap Company or any Affiliate of the foregoing; and

               (13) there is no Contract to do any of the foregoing, except as expressly
permitted by this Agreement.

          (b) Except as set forth on Schedule 5.6, since January 1, 2004, no SeaMap Company has
sold or disposed of any of its assets (other than any such sales of products in the Ordinary Course
of Business).

     5.7 Affiliate Transactions. Schedule 5.7 describes all services and assets owned,
licensed to or otherwise held by any SeaMap Shareholder or any of their respective Affiliates
(other than a SeaMap Company), that are or were made available or provided to or used by a SeaMap
Company or the Business within the one-year period prior to the date of this Agreement or which may
be required to operate the Business from and after the Closing Date consistent with past practices
in the preceding year. Except as set forth in Schedule 5.7, (a) no SeaMap Company is
obligated to pay currently or in the future any amounts to any SeaMap Shareholder or any of their
respective Affiliates, and none of the SeaMap Shareholders nor any of their respective Affiliates
is obligated to pay currently or in the future any amounts to any SeaMap Company and (b) since
January 1, 2004, no SeaMap Company has purchased, transferred or leased any real or personal
property from or for the benefit of any SeaMap Shareholder or of their respective Affiliates and no
SeaMap Company has sold, transferred or leased any real or personal property to any SeaMap
Shareholder or of their respective Affiliates.

13

 

     5.8 Real Property.

          (a) No SeaMap Company owns any real property (beneficially or of record).

          (b) Schedule 5.8(b) lists all surface leases (and the lands covered thereby) pursuant
to which a SeaMap Company leases real property (all such listed leases collectively, the “Scheduled
Leases”), together with a general description of any improvements located thereon, in each case
specifying the name of the lessor, lessee, sublessor or sublessee and the date and term of each
lease. A true and complete copy of each of the Scheduled Leases, as amended to date, has been
furnished to Buyer. The Person identified on Schedule 5.8(b) as the lessee or sublessee
under any particular Scheduled Lease is the lessee or has succeeded to the rights of the lessee
under such Scheduled Lease and owns the leasehold interest created pursuant to such lease free and
clear of all Liens except Permitted Liens. Each Scheduled Lease is in full force and effect and
constitutes a binding obligation of each landlord, lessor or sublessor thereunder, enforceable
against such landlord, lessor or sublessor in accordance with its terms. No event has occurred
that constitutes, or that with the giving of notice or the passage of time or both would
constitute, a default under any Scheduled Lease by a SeaMap Company or by Buyer after the Closing
or, to the Knowledge of the Sellers, by any other party to any Scheduled Lease. Each Person
identified on Schedule 5.8(b) as the lessee or sublessee under any particular Scheduled
Lease either owns the improvements located on the lands covered by such lease or validly occupies
such improvements in accordance with the terms of such lease free and clear of all
Liens except Permitted Liens. All consents required under the Scheduled Leases in connection
with the transactions contemplated by this Agreement have been obtained and furnished in writing to
Buyer.

          (c) The real property leased pursuant to the Scheduled Leases constitutes all of the real
property (“Real Property”) which is used in connection with the ownership and operations of the
Business. The SeaMap Companies have full right and authority to use and operate all of the
improvements located on the Real Property, subject to applicable Legal Requirements and Permitted
Liens. To the Knowledge of the Sellers, such improvements are being used, occupied, and maintained
in all material respects by the SeaMap Companies in accordance with all applicable easements,
contracts, permits, insurance requirements, restrictions, building setback lines, covenants and
reservations. Certificates of occupancy and all other material licenses, permits, authorizations,
and approvals required by any Governmental Authority having jurisdiction over the Real Property
have been issued for the relevant SeaMap Company’s occupancy of each of such improvements and all
such certificates, licenses, permits, authorizations and approvals have been paid for and are in
full force and effect. To the Knowledge of the Sellers, there is no pending or threatened
condemnation, eminent domain, compulsory acquisition or similar proceeding or special assessment
affecting any of the Real Property, nor have the Sellers or any SeaMap Company received
notification that any such proceeding or assessment is contemplated. Except as set forth on
Schedule 5.8(c), to the Knowledge of the Sellers, the improvements located on the Real
Property (the “Facilities”) are free from material structural and mechanical defects (including
roofs) and have been used by the SeaMap Companies in the Ordinary Course of Business and remain as
of the date hereof in suitable and adequate condition for such continued use in all material
respects. The SeaMap Companies have not deferred maintenance of the Facilities in contemplation of
the transactions

14

 

contemplated by this Agreement. All of the Real Property has direct access to
public roads without the use of any easement, license or right of way.

          (d) The Sellers have furnished Buyer with true and complete copies of all deeds, leases, title
opinions, title insurance policies and surveys in its possession or in the possession of any of the
SeaMap Companies that relate to the Real Property, together with copies of all reports of any
engineers, environmental consultants or other consultants in their possession relating to any of
the Real Property.

          (e) All utilities (including, without limitation, water, sewer or septic, gas, electricity,
trash removal and telephone service) are available to the Real Property in sufficient quantities
and quality to adequately serve the Real Property in connection with the operation of the Business
conducted therefrom as such operations are currently conducted thereon.

     5.9 Personal Property.

          (a) Schedule 5.9(a) lists (i) each item of equipment, tools, machinery, parts,
materials, supplies, furniture, cars, trucks, trailers and other rolling stock and each other item
of tangible personal property used or held for use by the SeaMap Companies in connection with the
Business that is subject to a lease (the “Leased Equipment”) and (ii) the effective date, the
periodic payment and the original term of such Leased Equipment accounted for on the books and
records of the SeaMap Companies as an operating lease (each, an “Operating Equipment Lease”).

          (b) Unless listed on Schedule 5.9(a), Schedule 5.9(b) lists each item of
equipment, tools, machinery, parts, materials, supplies, furniture, cars, trucks, trailers and
other rolling stock and each other item of tangible personal property owned by a SeaMap Company and
used by a SeaMap Company or any of their Affiliates in connection with the Business having a fair
market value or book value of $1,000 or more (the “Scheduled Personal Property”).

          (c) The Leased Equipment and the Scheduled Personal Property (together, the “Personal
Property”) constitute all of the tangible personal property necessary for the continued ownership,
use and operation of the Business consistent in all material respects with the past practices of
SeaMap Companies since January 1, 2004 and with the practices of the SeaMap Companies as of the
date hereof. Except as set forth on Schedule 5.9(c), the SeaMap Companies have good and
marketable title to such Personal Property and all other tangible personal property used or held
for use by the SeaMap Companies or any of their Affiliates in connection with the Business, free
and clear of all Liens except Permitted Liens. Upon the consummation of the transactions
contemplated by this Agreement, the SeaMap Companies will have good title to the Personal Property
and such other tangible personal property free and clear of all Liens except Permitted Liens. Each
item of Personal Property is in good working order and repair in all material respects (taking its
age and ordinary wear and tear into account), has been operated and maintained in the Ordinary
Course of Business and remains in suitable and adequate condition in all material respects for use
consistent with its primary use since January 1, 2004 (or later acquisition date). The SeaMap
Companies and their Affiliates have not deferred maintenance of any such item in contemplation of
the transactions contemplated by this Agreement.

15

 

     5.10 Permits. Schedule 5.10 lists all permits, licenses, certificates,
authorizations and approvals granted by any Governmental Authority (each, a “Permit”) and used or
held by a SeaMap Company in connection with the ownership of the SeaMap Assets and used in the
Ordinary Course of Business of the SeaMap Companies (the “Scheduled Permits”). The Scheduled
Permits constitute all Permits necessary for the continued ownership, use and operation of the
Business consistent in all material respects with the past practices of the Business. Except as
set forth in Schedule 5.10, the Scheduled Permits are valid and in full force and effect
and no SeaMap Company is in default, and no condition exists that with notice or lapse of time or
both would constitute a default, under any of the Scheduled Permits.

5.11 Contracts.

          (a) Schedule 5.11 identifies each of the following Contracts used in connection with
the Business to which a SeaMap Company is a party or by which it or its properties is bound (each
such identified Contract, a “Material Contract”):

                    (1) any Contract or group of related Contracts that provides for the payment by a
SeaMap Company of more than $10,000 in any consecutive 12-month period or more than $50,000
over the remaining life of such Contract other than a Contract that (A) is terminable by any
party thereto giving notice of termination to the other party thereto not more than 30 days
in advance of the proposed termination date and (B) even if so terminable, contains no
post-termination obligations, termination penalties, buy-back obligations or similar
obligations;

                    (2) any Contract that constitutes a purchase order or other Contract relating to the
sale, purchase, lease or provision by a SeaMap Company of goods or services in excess of
$10,000 in any 12-month period;

                    (3) any Contract that grants any Person the right to sell products or provide services
within any geographical region other than a Contract that (A) is terminable by any party
thereto giving notice of termination to the other party thereto not more than 30 days in
advance of the proposed termination date and (B) even if so terminable, contains no
post-termination obligations, termination penalties, buy-back obligations or similar
obligations;

                    (4) any Contract that purports to limit the freedom of any SeaMap Company to compete in
any line of business or to conduct business in any geographic location;

                    (5) any Contract that is for the sale of goods or services and has not been
substantially completed by a SeaMap Company as of the Closing Date and which (A) was entered
into by such SeaMap Company on terms known at the time the Contract was entered into not to
be commercially reasonable or (B) was entered into with the expectation that such SeaMap
Company would incur a loss;

                    (6) any Contract that was entered into outside of the Ordinary Course of Business of
the SeaMap Companies;

16

 

                    (7) any Contract constituting a partnership, joint venture, strategic alliances or
other similar arrangement;

                    (8) any Contract relating to Indebtedness for Borrowed Money, any Contract creating a
capital lease obligation, any Contract for the sale of accounts receivable, any Contract
constituting a guarantee of debt of any third Person or any Contract requiring a SeaMap
Company to maintain the financial position of any other Person;

                    (9) any Contract in respect of Intellectual Property Rights granted to or by a SeaMap
Company;

                    (10) any lease (including any master lease covering multiple items of personal
property) of any item or items of personal property with a rental expense under such lease
(whether for a single item or multiple items) in excess of $10,000 in any consecutive
12-month period;

                    (11) any Contract providing for the deferred payment of any purchase price including
any “earn out” or other contingent fee arrangement;

                    (12) any Contract creating a Lien on any of the SeaMap Assets that will not be fully
discharged at or prior to the Closing;

                    (13) any Contract between a SeaMap Company, on the one hand, and any SeaMap Shareholder
or any Affiliate of a SeaMap Shareholder, on the other hand (including any Contract
providing for (i) compensation, the acceleration of benefits or the loss of any rights in
connection with the consummation of the transactions contemplated by this Agreement or (ii)
indemnification by a SeaMap Company);

                    (14) any Contract providing for the purchase or sale of real property;

                    (15) any Contract with any Governmental Authority;

                    (16) any Contract involving interest rate swaps, cap or collar agreements, commodity or
financial future or option contracts or similar derivative or hedging Contracts; and

                    (17) any Contract otherwise material to the SeaMap Companies.

          (b) True and complete copies (including all amendments) of each Material Contract have been
provided to Buyer if such Material Contract is in writing; if such Material Contract is oral, a
summary of the material terms of such Material Contract has been provided to Buyer and such
Material Contract has been identified as an oral Contract in Schedule 5.11. Except as
disclosed in Schedule 5.11: (i) each Material Contract is the legal, valid obligation of
the SeaMap Company which is a party thereto, and to the Knowledge of the Sellers, any other Person
party thereto, binding and enforceable against SeaMap Companies and, to the Knowledge of the
Sellers, any other Person party thereto, in accordance with its terms subject to Creditors’

17

 

Rights; (ii) each Material Contract has not been terminated, and neither the applicable SeaMap Companies
nor, to the Knowledge of the Sellers, any other Person is in breach or default thereunder, and to
the Knowledge of the Sellers no event has occurred that with notice or lapse of time, or both,
would constitute a breach or default, or permit termination, modification in any manner adverse to
the applicable SeaMap Companies or acceleration thereunder; (iii) to the Knowledge of the Sellers,
no party has asserted or has (except by operation of law) any right to offset, discount or
otherwise abate any amount owing under any Material Contract except as expressly set forth in such
Material Contract; and (iv) there are no Material Waivers regarding any Material Contract that have
not been disclosed in writing to Buyer.

     5.12 Intellectual Property.

          (a) Schedule 5.12 identifies all material Intellectual Property Rights owned or used
in the conduct of the Business (the “SeaMap Intellectual Property”). The SeaMap
Intellectual Property constitutes all Intellectual Property Rights necessary for the continued
operation of the Business consistent with the past practices of the Business in the preceding year.

          (b) The SeaMap Companies have ownership of, or valid licenses to use, all of the SeaMap
Intellectual Property, free and clear of all Liens other than Permitted Liens. All consents, if
any, required under the SeaMap Intellectual Property in connection with the transactions
contemplated by this Agreement have been obtained and furnished in writing to Buyer. Each item of
SeaMap Intellectual Property will continue to be held by the SeaMap Companies on identical terms
and conditions immediately following the consummation of the transactions contemplated by this
Agreement as are in effect immediately prior to such consummation.

          (c) Except as disclosed on Schedule 5.12, during the three-year period preceding the
date of this Agreement, no SeaMap Company has been a party to any judicial or administrative
proceeding alleging, and no SeaMap Company has been notified during such three-year period of any
allegation of, any infringement or misappropriation of any item of the SeaMap Intellectual
Property, whether owned by a SeaMap Company or any other Person. Except as disclosed on
Schedule 5.12, there has been no other material infringement or misappropriation by any
SeaMap Company of any Intellectual Property Rights of third persons or of any continuing material
infringement or misappropriation (or facts that are reasonably likely to give rise to a material
infringement or misappropriation) by any other Person of any of the SeaMap Intellectual Property.
No SeaMap Intellectual Property is subject to any outstanding order, judgment, decree, stipulation
or agreement restricting the use thereof by any SeaMap Company.

          (d) The SeaMap Companies have taken reasonable measures to protect the confidentiality of the
trade secrets and confidential information of the SeaMap Companies with respect to the Business.

          (e) Except as set forth on Schedule 5.12, all statutory obligations and all fees,
annuities and other payments which are due on or before the Closing Date for any of the SeaMap
Intellectual Property including, without limitation, all United States or foreign patents, patent

18

 

applications, trademark registrations, service mark registrations, copyright registrations and any
applications for any of the preceding, have been met or paid in full.

     5.13 Accounts Receivable. Except as disclosed in Schedule 5.13, each of the
Accounts Receivable arose in the Ordinary Course of Business of the SeaMap Companies and represents
the genuine, valid and legally enforceable indebtedness of the account debtor and no contra
account, set-off, defense, counterclaim, allowance or adjustment (other than discounts for prompt
payment shown on the invoice) has been asserted or, to the Knowledge of Seller, is threatened by
any of the account debtors of such Accounts Receivable. To the Knowledge of the Sellers, none of
the account debtors of the Accounts Receivable is involved in a bankruptcy or insolvency proceeding
or is generally unable to pay its debts as they become due except as disclosed in Schedule
5.13. The SeaMap Companies have good and valid title to the Accounts Receivable free and clear
of all Liens except Permitted Liens. No goods or services, the sale or provision of which gave
rise to any Accounts Receivable, have been returned or rejected by any account debtor or lost or damaged
prior to receipt thereby. Set forth on Schedule 5.13 is a listing of aged Accounts
Receivable as of a date no more than 7 days prior to the date hereof. The SeaMap Companies have
not written off any of its accounts receivable as uncollectible, except as set forth on
Schedule 5.13. All accounts receivable are fully collectible subject only to reserves
expressly provided on the unaudited balance sheet of the SeaMap Companies dated [April 30, 2005].

     5.14 Brokers’ Fees. Except as set forth on Schedule 5.14, none of the SeaMap
Companies or any of their Affiliates has any liability or obligation to pay any fees or commissions
to any broker, finder, or agent with respect to the transactions contemplated by this Agreement for
which Buyer or its Affiliates (including any of the SeaMap Companies after the Closing) could
become liable or obligated.

     5.15 Financial Statements.

          (a) Attached hereto as Schedule 5.15(a) are copies of (i) the unaudited balance sheet
of the SeaMap Companies (on a consolidated basis) at December 31, 2004 and the related unaudited
statements of income for the year then ended and (ii) the unaudited balance sheet of the SeaMap
Companies (on a consolidated basis) at December 31, 2004 and the related unaudited statements of
income for the years then ended (collectively, the “Annual Financial Statements”), and the
unaudited balance sheet of the SeaMap Companies (on a consolidated basis) as of April 30, 2005 (the
"Interim Balance Sheet”) and the related unaudited statements of income for the four-month period
then ended (together with the Interim Balance Sheet, the “Interim Financial Statements”). The
Annual Financial Statements and the Interim Financial Statements are referred to collectively as
the “Financial Statements.” Except as set forth on Schedule 5.15(a), the Financial
Statements (i) have been prepared in accordance with Applicable Accounting Standards, consistently
applied throughout the periods covered thereby, (ii) fairly present, in all material respects, the
financial condition and results of operations of the SeaMap Companies as of the respective dates
thereof and for the respective periods covered thereby, subject, however, in the case of the
Interim Financial Statements, to normal non-material year-end adjustments and accruals and, in the
case of the Financial Statements, to the absence of notes and other textual disclosure, and (iii)
have been provided from, and are in accordance with, the books and records of the SeaMap Companies.

19

 

          (b) The April 30, 2005 balance sheet reflects the cash position of the SeaMap Companies as of
such date. Since April 30, 2005 and except as provided in Schedule 5.6(a)(11), the SeaMap
Companies have not made any cash payments or distributions to any of the Sellers or repaid any
loans or other obligations of the SeaMap Companies in favor of any of the Sellers or any of their
Affiliates.

     5.16 No Undisclosed Liabilities. Except as set forth on Schedule 5.16, none of the
SeaMap Companies nor the Business has any liability, other than (i) liabilities set forth on the
Interim Balance Sheet and (ii) liabilities which have arisen after the date of the Interim Balance
Sheet in the Ordinary Course of Business.

     5.17 Legal Compliance. Each SeaMap Company is in compliance in all material respects with
all applicable Legal Requirements. Notwithstanding the foregoing, no representation or warranty is
made in this Section 5.17 with respect to Employees, Employee Benefits, and Environmental Matters,
which are covered exclusively by Sections 4.22, 4.23, and 4.24, respectively.

     5.18 Taxes. Except as disclosed on Schedule 5.18 (i) all Tax Returns required to
be filed on or before the Closing Date by or with respect to the SeaMap Companies or with respect
to the income or operations of the SeaMap Companies or the SeaMap Assets have been duly and timely
filed with the appropriate Governmental Authority, (ii) all Tax Items required to be included in
each such Tax Return have been so included and all such Tax Items and any other information
provided in each such Tax Return are true, correct and complete in all material respects, (iii) all
Taxes owed by the SeaMap Companies or owed with respect to the income or operations of the SeaMap
Companies or the SeaMap Assets that are or have become due have been timely paid in full, (iv) no
penalty, interest or other charge is or will become due with respect to the late filing of any such
Tax Return or late payment of any such Tax, (v) all Tax withholding and deposit requirements
imposed with respect to the SeaMap Companies or their employees or with respect to the income or
operations of the SeaMap Companies have been satisfied in full, (vi) there are no Liens (other than
Permitted Liens) on any of the SeaMap Assets or the shares of any of the SeaMap Companies that
arose in connection with any failure (or alleged failure) to pay any Tax, (vii) there is no claim
pending or, to the Knowledge of the Sellers, threatened by any Governmental Authority in connection
with any such Tax, (viii) none of such Tax Returns is now under audit or examination by any
Governmental Authority, (ix) there are no agreements, waivers or other arrangements providing for
an extension of time with respect to the filing of any such Tax Return or the assessment or
collection of any such Tax, (x) no SeaMap Company is a party to any Tax indemnity agreement or
arrangement and has any obligation to indemnify or make a payment to any person in respect of any
Tax for any past, current or future period, (xi) to the Knowledge of the Sellers, no claim has ever
been made by a Governmental Authority in a jurisdiction in which a SeaMap Company does not file Tax
Returns that it is or may be required to file a Tax Return in that jurisdiction, (xii) none of the
SeaMap Assets is held in an arrangement that could be classified as a partnership for Tax purposes,
(xiii) the SeaMap Companies will not be required to include any amount in income for any taxable
period beginning after January 1, 2004 as a result of a change in accounting method for any taxable
period ending on or before the Closing Date or pursuant to any agreement with any Governmental
Authority with respect to any such taxable period, or to include in any period ending after the
Closing Date any income that accrued in a prior period but was not recognized

20

 

in the prior period
as a result of the installment method of accounting, the completed contract method of accounting,
or the long-term contract method of accounting, (xiv) none of the transactions contemplated by this
Agreement will result in any Tax liability or the recognition of any material item of income or
gain to a SeaMap Company, (xv) none of the SeaMap Assets are “tax-exempt use property” (within the
meaning of Section 168(h) of the Code) or “tax-exempt bond-financed property” (within the meaning
of Section 168(g)(5) of the Code) and (xvi) all of the material SeaMap Assets have been properly
listed and described on the property tax rolls for the taxing units in which the SeaMap Assets are
located. If the SeaMap Companies are required
to include in any period after the Closing Date income that accrued in a prior period but was not
recognized in the prior period as a result of a change in the cash method of accounting, such
income that is required to be included is specified on Schedule 5.18.

     5.19 Inventory. Each SeaMap Company owns its inventory free and clear of all Liens except
Permitted Liens. None of such inventory is covered by any financing statements except those filed
in connection with Permitted Liens. Except as disclosed on Schedule 5.19, such inventory
was acquired for sale in the Ordinary Course of Business and is in good and saleable condition and
is not obsolete, slow moving or damaged, except to the extent reflected in reserves set forth in
the Interim Balance Sheet. Such inventory is located at the locations as noted on Schedule
5.19 and none of such inventory is subject to any consignment, bailment, warehousing or similar
arrangement, except as set forth on Schedule 5.19.

     5.20 Litigation. Except as set forth on Schedule 5.20, there are no actions, suits
or proceedings pending or, to the Knowledge of the Sellers, threatened at law or in equity, or
before or by any Governmental Authority or before any arbitrator of any kind, against a SeaMap
Company or any of its Affiliates that affect or would affect the Business or the SeaMap Assets or
the consummation of the transactions contemplated hereby.

     5.21 Product and Service Warranty. (a) Schedule 5.21 identifies any warranty
claim asserted during the three year period prior to the date hereof from which a SeaMap Company or
any of its Affiliates has incurred costs in excess of $25,000.

          (b) Except as disclosed in Section 5.21 of the Disclosure Schedule, (i) there is no notice,
demand, claim, action, suit, inquiry, hearing, proceeding, notice of violation or investigation of
a civil, criminal or administrative nature before any court or governmental or other regulatory or
administrative agency, commission or authority against or involving any product, substance or
material (collectively, a “Product”), or class of claims or lawsuits involving the same or similar
SeaMap Product manufactured, produced, distributed or sold by or on behalf of any of the SeaMap
Companies which is pending or, to the Knowledge of the Sellers, threatened, resulting from an
alleged defect in design, manufacture, materials or workmanship of any SeaMap Product manufactured,
produced, distributed or sold by or on behalf of any of the SeaMap Companies, or any alleged
failure to warn, or from any breach of implied warranties or representations, (ii) to the Seller’s
Knowledge, there has not been any Occurrence (as defined below), and (iii) there has not been, nor
is there under consideration or investigation by the Companies, any Product recall, rework,
retrofit or post-sale warning (collectively “Recalls”) conducted by or on behalf of the SeaMap
Companies concerning any SeaMap Products manufactured, produced, distributed or sold by or on
behalf of the SeaMap Companies or, to the

21

 

Knowledge of the Sellers, any product recall conducted by
or on behalf of any entity as a result of any alleged defect in any SeaMap Product supplied by the
SeaMap Companies.

          (c) For purposes of this Section 5.21, the term “Occurrence” shall mean any accident,
happening or event which is caused or allegedly caused by any alleged hazard or alleged defect in
manufacture, design, materials or workmanship, including, without limitation, any alleged failure
to warn or breach of express or implied warranties or representations, with respect to, or any such
accident, happening or event otherwise involving a SeaMap Product (including any parts or
components) manufactured, produced, distributed or sold by or on behalf of the SeaMap Companies.

          (d) Except as set forth on Schedule 5.21, the SeaMap Companies do not offer or sell
insurance or consumer protection plans or other similar arrangements that could result in any
SeaMap Company being required to make any material payment to or perform any material service for
any person thereunder.

     5.22 Employees; Employee Relations.

          (a) Schedule 5.22(a) identifies for each SeaMap Company the following:

               (1) the name, job title, original hire date, service date, bonus, if any, paid
for calendar year 2004, and current annual salary (or rate of pay) of each of its
salaried employees and other compensation (including, without limitation, normal
bonus, profit-sharing, pension benefits and other compensation) now payable to each
of its salaried employees;

               (2) any increase currently planned to become effective after the date of this
Agreement in the total compensation or rate of total compensation (including,
without limitation, normal bonus, profit-sharing, pension benefits and other
compensation) payable to each of its employees, other than ordinarily scheduled
increases based on seniority in the Ordinary Course of Business;

               (3) all presently outstanding loans and advances (other than routine travel
advances to be repaid or formally accounted for within 60 days) made by any SeaMap
Company to, or made to any SeaMap Company by, any director, officer or employee of
any SeaMap Company;

               (4) all transactions outside of the Ordinary Course of Business between any
SeaMap Company and any of its directors, officers or employees since January 1,
2004; and

               (5) the name of each director and officer (including the title of any officer).

          (b) Except as set forth on Schedule 5.22(b) or to the extent accrued as a current
liability on the Interim Balance Sheet, all bonuses, if any, due and payable as of the Closing Date
to employees of the SeaMap Companies have been paid in full to such employees prior to Closing or
will be accrued as a liability on the Final Closing Date Balance Sheet. The

22

 

compensation and
benefits (including vacation benefits) paid or provided with respect to all
employees of the SeaMap Companies have been reflected in the Financial Statements for the
periods covered thereby. Except as set forth on Schedule 5.22(b), as of the date of this
Agreement, no current or former employee of a SeaMap Company is on a disability leave of absence,
is receiving disability benefits, or is in an elimination or other waiting period with respect to
his or her receipt of disability benefits.

          (c) Except as disclosed on Schedule 5.22(c), no SeaMap Company is a party to, or is
bound by, the terms of any collective bargaining agreement or any other Contract with any labor
union or representative of employees, and no such agreements are being negotiated. Except as set
forth on Schedule 5.22(c), there are no labor disputes existing or, to the Knowledge of the
Sellers, threatened involving, by way of example, strikes, work stoppages, slowdowns, picketing, or
any other interference with work or production and no SeaMap Company has experienced any labor
difficulties during the last year. No grievance or other legal action arising out of any such
collective bargaining agreement or relationship exists, or to the Knowledge of the Sellers, is
threatened.

          (d) The relationship of each SeaMap Company with its employees, as a group, is satisfactory
and, to the Knowledge of the Sellers, such employees have not indicated that they will not continue
in their employ following the Closing. Except as listed on Schedule 5.22(d), no SeaMap
Company is (i) a party to any employment, consulting, non-compete, management, severance,
termination pay or similar Contract with any individual or employee, either express or implied, or
(ii) currently negotiating, and does not have any outstanding offer with respect to, any such
agreement or matter.

          (e) No legal proceedings, charges, complaints, grievances or similar actions have been
commenced or, to the Knowledge of the Sellers, threatened, with respect to any SeaMap Company under
any Legal Requirement affecting the employment relationship, and to the Knowledge of the Sellers,
no facts or circumstances exist which would give rise to any such proceedings, charges, complaints,
or claims. No SeaMap Company is subject to any settlement or consent decree with any present or
former employee, employee representative or any Governmental Authority relating to claims of
discrimination or other claims in respect of employment practices and policies. No Governmental
Authority has issued a judgment, order, decree or finding with respect to the labor and employment
practices (including practices relating to discrimination) of any SeaMap Company.

          (f) To the Knowledge of the Sellers, each SeaMap Company is and has been in compliance with
all applicable Legal Requirements relating to the employment of labor, including but not limited to
employment and employment practices, terms and conditions of employment, wages and hours, payroll
documents, equal opportunity, occupational health and safety, severance, termination or discharge,
collective bargaining and the payment of employee welfare and retirement and other Taxes, and no
SeaMap Company is in violation of any Legal Requirements concerning retention of independent
contractors.

23

 

     5.23 Employee Benefit Matters.

          (a) Schedule 5.23 lists each of the following (collectively referred to as the
“Plans,” and individually referred to as a “Plan”) which is sponsored, maintained or contributed to
or by any SeaMap Company for the benefit of the current or former employees, officers or directors
of any SeaMap Company, or has been so sponsored, maintained or contributed to within six years
prior to the Closing Date:

                    (1) each “employee benefit plan,” as such term is defined in Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”), (including, but not
limited to, employee benefit plans, such as foreign plans, which are not subject to the
provisions of ERISA); and

                    (2) each personnel policy, stock option plan, collective bargaining agreement, bonus
plan or arrangement, incentive award plan or arrangement, vacation policy, severance pay
plan, policy or agreement, deferred compensation agreement or arrangement, executive
compensation or supplemental income arrangement, consulting agreement, employment agreement
and each other employee benefit plan, agreement, arrangement, program, practice or
understanding which is not described in Section 5.23(a)(1).

          (b) True, correct and complete copies of each of the Plans, and related trusts, if applicable,
including all amendments thereto, have been furnished or made available to Buyer. There has also
been furnished or made available to Buyer, with respect to each Plan and to the extent applicable:
(i) the most recent annual or other report filed with each Governmental Authority, (ii) the
insurance contract and other funding agreement, and all amendments thereto, and (iii) the most
recent summary plan description.

          (c) No SeaMap Company contributes to and has an obligation to contribute to, and has not at
any time within six years prior to the Closing Date contributed to or had an obligation to
contribute to, and no Plan is an employee pension benefit plan within the meaning of Section 3(2)
of ERISA (including a multiemployer plan, within the meaning of Section 3(37) of ERISA, or a plan
subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Code). No Plan is funded
through a trust that is intended to be exempt from federal income taxation pursuant to Section
501(c)(9) of the Code. Each Plan which is an “employee welfare benefit plan,” as such term is
defined in Section 3(1) of ERISA, may be unilaterally amended or terminated in its entirety without
liability except as to benefits accrued thereunder prior to such amendment or termination. Except
to the extent required pursuant to Section 4980B(f) of the Code and the corresponding provisions of
ERISA, no Plan or Contract listed on Schedule 5.22(d) provides retiree medical or retiree
life insurance benefits to any Person, and SeaMap Companies is not contractually or otherwise
obligated (whether or not in writing) to provide any Person with life insurance or medical benefits
upon retirement or termination of employment.

          (d) Each SeaMap Company has substantially performed all obligations, whether arising by
operation of any Legal Requirement or by contract, required to be performed by it in connection
with the Plans, and each Plan has been administered in substantial compliance with its governing
documents and applicable Legal Requirements. There are no actions, suits or

24

 

claims pending (other
than routine claims for benefits) or, to the Knowledge of the Sellers, threatened against, or with
respect to, any of the Plans or their assets, and there is no matter
pending with respect to any of the Plans before any Governmental Authority. Except for the
Plans, there are no employee benefit plans, that are sponsored, maintained or contributed to, or
have been sponsored, maintained or contributed to within six years prior to the Closing Date, by
any SeaMap Company or any affiliate of a SeaMap Company.

          (e) In connection with the consummation of the transactions contemplated by this Agreement, no
payments of money or property, acceleration of benefits, or provisions of other rights have or will
be made hereunder, under the Plans or under any Contract listed on Schedule 5.22(d) which,
in the aggregate, would be reasonably likely to result in imposition of the sanctions imposed under
Sections 280G and 4999 of the Code, whether or not some other subsequent action or event would be
required to cause such payment, acceleration or provision to be triggered.

          (f) The SeaMap Companies have made all payments required to be made to the “central provident
funds” or any other similar labor funds established under Singapore Law.

     5.24 Environmental Matters.

          (a) Environmental Authorizations. Schedule 5.24 sets forth all Environmental
Authorizations required for operation of the Business. No additional Environmental Authorizations
are required for the sale and transfer of the Parent Company Shares to Buyer or are required to be
obtained by Buyer for the operation of the Business and use of the SeaMap Assets by Buyer as of the
Closing Date. Except as otherwise disclosed in Schedule 5.24, the Environmental
Authorizations described therein are in full force and effect. There are no proceedings pending or,
to the Knowledge of the Sellers, threatened which might affect (i) the validity of any
Environmental Authorization described in Schedule 5.24, (ii) the ability of any SeaMap
Company or Buyer to obtain prior to the Closing Date any Environmental Authorization described in
Schedule 5.24 which has not been obtained at the date of this Agreement, or (iii) the
ability of Buyer to obtain within the time specified by applicable Environmental Law any
Environmental Authorization described in Schedule 5.24, nor is there any basis for any such
proceeding.

          (b) Environmental Liens. None of the SeaMap Assets or other property used in the
Business is subject to any Lien imposed by or arising under any Environmental Law, and there are no
proceedings pending or, to the Knowledge of the Sellers, threatened for imposition of any such
Lien, nor is there any basis for any such Lien or proceeding.

          (c) Environmental Compliance. Except as set forth in Schedule 5.24, (i) each
SeaMap Company is, and at all times in the past within the applicable limitations period has been,
in material compliance with all Environmental Laws in connection with owning, using, maintaining,
or operating its business or assets; (ii) each location at which a SeaMap Company operates is, and
at all times in the past within the applicable limitations period has been, in material compliance
with all Environmental Laws; and (iii) to the Knowledge of the Sellers, there are no pending, or
any threaten allegations by any Person that a SeaMap Company’s
properties or assets is not, or that its businesses has not been conducted, in compliance with
all Environmental Laws.

25

 

          (d) Environmental Liabilities. There are no present or past actions, activities,
circumstances, conditions, events or incidents, including, without limitation, any Release of any
Hazardous Materials, with respect to the Business or the SeaMap Assets that could reasonably be
expected to form the basis for assertion of any Environmental Liability against any owner or
operator of the Business or the SeaMap Assets. There has been no Release of Hazardous Materials in
connection with the Business for which all clean-up, remediation and restoration actions required
under Environmental Laws have not been performed and completed to the satisfaction of the relevant
Environmental Authority. To the knowledge of Sellers, there is no asbestos contained in or forming
part of any equipment, property, building, building component, structure or office space used in
connection with the Business.

          (e) Environmental Proceedings. There are no proceedings pending or, to the Knowledge
of the Sellers, threatened against any SeaMap Company or any of its respective Affiliates or any
Predecessor with respect to operation of the Business, against the Business itself or any property
used therein, in which any violation of any Environmental Law is alleged or any Environmental
Liability is asserted, nor is there any basis for any such proceeding.

          (f) Environmental Reports. The Sellers have provided Buyer with all internal and
external environmental audits, assessments, reports, studies, documents, and correspondence on
environmental matters and compliance with Environmental Laws relating to operation of the Business
or use of the SeaMap Assets that are in the possession or control of the SeaMap Companies.

     5.25 Customers, Vendors and Suppliers. (a) Schedule 5.25 sets forth a complete
and correct list of (i) the 10 largest customers of each SeaMap Company during such SeaMap
Company’s last full fiscal year, (ii) each customer whose purchases exceed 5% of the aggregate net
sales of each SeaMap Company during such SeaMap Company’s last full fiscal year, (iii) the 10
largest suppliers by dollar volume of each of the SeaMap Companies and the aggregate dollar volume
of purchases by each of the SeaMap Companies from such suppliers for such fiscal year and (ix) all
customers or suppliers who have terminated, or delivered a formal notice or written allegation of a
default with respect to, any agreement, contract or other arrangement with any of the SeaMap
Companies since January 1, 2004 involving an amount in excess of $25,000 or with whom any of the
SeaMap Companies have terminated, or delivered a formal notice or written allegation of a default
with respect to, any agreement, contract or other arrangement since January 1, 2004, involving an
amount in excess of $25,000, in each case with or without cause, prior to the stated expiration
thereof.

          (b) To the Knowledge of the Sellers, there is no present intent of any significant customer,
vendor or supplier of the Business to discontinue or substantially alter its relationship as such
with the Business or Buyer upon consummation of the transactions contemplated hereby.

     5.26 Bank Accounts; Powers of Attorney. Schedule 5.26 sets forth each bank, savings institution and other financial institution
with which a SeaMap Company has an account

26

 

or safe deposit box and the names of all persons
authorized to draw thereon or to have access thereto. Except as disclosed on Schedule
5.26, no SeaMap Company has given any revocable or irrevocable powers of attorney or similar
grant of authority to any Person relating to its business for any purpose whatsoever.

     5.27 Insurance. Schedule 5.27 sets forth a true and complete list of all policies,
binders, and insurance contracts under which any SeaMap Company, the Business or any of the SeaMap
Assets is insured (the “Insurance Policies”). With respect to each Insurance Policy, Schedule
5.27 sets forth a true and correct description of (a) the scope of coverage, (b) the limits of
liability, (c) deductibles and other similar amounts, and (d) the aggregate limits and available
coverage (if less than the aggregate limits) as of the date hereof. Each of the Insurance Policies
is in full force and effect, there has been no written notice of any cancellation or any threatened
cancellation of any Insurance Policy.

     5.28 Books and Records. All books and records relating to the ownership and operation of
the Business and the SeaMap Assets are located at the premises of the Business to which such books
and records primarily relate, have been maintained substantially in accordance with applicable
Legal Requirements and comprise all of the material books and records relating to the ownership and
operation of the Business and the SeaMap Assets.

     5.29 Certain Payments. (a) Except as set forth in Schedule 5.29, no finder’s fee
or other payment has been, or will be, made by or on behalf of any of the SeaMap Companies in
respect of, or in connection with, any commitment to any Person which is not a party to such
commitment. Except as set forth in Schedule 5.29, no funds or assets of any of the SeaMap
Companies have been used for illegal purposes; no unrecorded funds or assets of any of the SeaMap
Companies have been established for any purpose; no accumulation or use of the SeaMap Companies’
corporate funds or assets has been made without being properly accounted for in the books and
records of such SeaMap Company; all payments by or on behalf of each of the SeaMap Companies have
been duly and properly recorded and accounted for in their respective books and records; no
fraudulent entry has been made in the books and records of any of the SeaMap Companies for any
reason; no payment has been made by or on behalf of any of the SeaMap Companies with the
understanding that any part of such payment is to be used for any purpose other than that described
in the documents supporting such payment; and none of the SeaMap Companies has made, directly or
indirectly, any illegal contributions to any political party or candidate, either domestic or
foreign.

          (b) Neither a SeaMap Company nor any director, officer, agent, employee or other person
associated with or acting on behalf of a SeaMap Company has made any direct or indirect unlawful
payment to any foreign or domestic governmental official or employee, or made any illegal bribe,
rebate, payoff, influence payment, kickback or other unlawful payment.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF BUYER

     Buyer represents and warrants to the Sellers as of the Closing Date as follows. Buyer hereby
acknowledges that the Sellers are relying on the following representations and warranties in
entering into this Agreement.

27

 

     6.1 Organization. Buyer is a corporation duly incorporated, validly existing and in good
standing under the laws of the State of Texas.

     6.2 Authority; Enforceability. Buyer has all requisite corporate power and authority to
execute and deliver this Agreement and any other Transaction Documents to which it is a party and
to perform its obligations hereunder and thereunder. The execution and delivery of this Agreement
and the other Transaction Documents to which Buyer is a party and the performance of its
obligations contemplated hereby and thereby have been duly and validly approved by all corporate
action necessary on behalf of Buyer. This Agreement and each of the Transaction Documents to which
Buyer is a party constitutes the legal, valid and binding obligations of Buyer, enforceable against
it in accordance with their terms, subject to Creditors’ Rights. All other documents required
hereunder to be executed and delivered by Buyer at the Closing have been duly authorized, executed
and delivered by such entity and constitute the legal, valid and binding obligations of Buyer,
enforceable against it in accordance with their terms, subject to the Creditors’ Rights.

     6.3 Absence of Conflicts. Neither the execution and delivery by Buyer of this Agreement or
the other Transaction Documents to which it is a party, nor the consummation of the transactions
contemplated hereby and thereby will (a) violate or breach the terms of, cause a default under,
conflict with, result in the acceleration of, create in any party the right to accelerate,
terminate, modify or cancel, require any notice or consent or give rise to any preferential
purchase or similar right under (i) any applicable Legal Requirement, or (ii) any material Contract
to which Buyer is a party or by which it, or any of its properties, is bound; (b) result in the
creation or imposition of any Lien (other than a Permitted Lien) on any of Buyer’s assets or
properties; (c) result in the cancellation, forfeiture, revocation, suspension or adverse
modification of any existing consent, approval, authorization, license, permit, certificate or
order of any Governmental Authority; or (d) with the passage of time or the giving of notice or the
taking of any action of any third party have any of the effects set forth in clause (a), (b) or (c)
of this Section 6.3.

     6.4 Brokers’ Fees. Buyer has no liability or obligation to pay any fees or commissions to
any broker, finder, or agent with respect to the transactions contemplated by this Agreement for
which the Sellers or their respective Affiliates could become liable or obligated.

ARTICLE VII

COVENANTS

     7.1 Releases and Termination. Each SeaMap Shareholder hereby releases and discharges Buyer
and its Affiliates (including each SeaMap Company after the Closing) and their respective
successors, heirs and assigns from any and all obligations (including indemnification obligations)
and Claims, known and unknown, that have accrued or may accrue and that relate to acts or omissions
prior to the Closing Date, including any and all Damages, whether such obligations, Claims or
Damages arise in tort, contract or statute, including without limitation obligations, Claims or
Damages (a) arising under SeaMap Organizational Documents or any Contract of any of the SeaMap
Companies and (b) relating to actions or omissions of such SeaMap Company, or any acts or omissions
of the directors, shareholders or officers (former or present) including those committed while
serving in their capacity as shareholders, directors,

28

 

officers, employees or similar capacities of
such SeaMap Company, and including in each case any and all Claims which the SeaMap Shareholder
does not know or suspect to exist in his, her or its favor as of the date hereof. Each SeaMap
Shareholder hereby waives any preemptive rights that he or it may have, or ever had, with respect
to any Interest in any SeaMap Company and waives any right he or it may have under the SeaMap
Organizational Documents or otherwise to acquire any Interest in any SeaMap Company being
transferred pursuant to, or as contemplated by, this Agreement or any transfer that occurred prior
to the date hereof. THE RELEASES CONTAINED IN THIS SECTION 7.1 APPLY TO ALL CLAIMS, AND EACH
SEAMAP SHAREHOLDER AGREES TO WAIVE THE BENEFITS OF ANY LAW (INCLUDING PRINCIPLES OF COMMON LAW) OF
ANY JURISDICTION OF THE UNITED STATES OR OF ANY JURISDICTION OUTSIDE OF THE UNITED STATES THAT
PROVIDES THAT A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CLAIMANT DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT.

     7.2 Non-Competition.

          (a) (i) Each SeaMap Shareholder (each a “Non-Competition Party” and collectively, the
“Non-Competition Parties”), in order to induce Buyer to enter into this Agreement, expressly
covenants and agrees that during the Prohibited Period (as defined below), (A) the Non-Competition
Party will not engage directly or indirectly in any business in which the Business is engaged (a
“Competing Business”) in the restricted area specified in Schedule 7.2 hereof (the
“Restricted Area”), (B) the Non-Competition Party will not, and will cause its Affiliates not to,
directly or indirectly, own, manage, operate, join, become an employee or consultant of, control or
participate in or be connected with, or loan money to or sell or lease equipment to, any business,
individual, partnership, firm, corporation or other entity, which engages in a Competing Business
in the Restricted Area and (C) the Non-Competition Party will not, and will cause its Affiliates
not to, sell or market, directly or through distributors, brokers or other intermediaries, any
SeaMap Products and the Non-Competition Party will not join, become an employee or consultant of,
control or participate in or be connected with, or loan money to or
sell or lease equipment to, any business, individual, partnership, firm, corporation or other
entity which sells any SeaMap Products, in each case in the Restricted Area in which SeaMap sells
or markets, directly or through distributors, brokers or other intermediaries, any SeaMap Products
as of the Closing Date. As used in this Section 7.2(a), “Business” shall refer to the services
provided by SeaMap in the operation of the Business during the 12-month period preceding the
Closing Date, or other services that are functionally equivalent. “Prohibited Period” shall mean
three years from and after the Closing Date. “SeaMap Products” shall mean the products provided by
the SeaMap Companies in the operation of the Business during the 12-month period preceding the
Closing Date, or other products that are functionally equivalent.

               (ii) Notwithstanding the restrictions contained in Section 7.2(a)(i), a Non-Competition Party
may own an aggregate of not more than 5% of the outstanding stock of any class of any corporation
engaged in a Competing Business, if such stock is listed on a national securities exchange or
regularly traded in the over-the-counter market by a member of a national securities exchange,
without violating the provisions of Section 7.2(a)(i), provided that neither the Non-Competition
Party nor its Affiliates have the power, directly or indirectly, to

29

 

control or direct the management or affairs of any such corporation and are not involved in the management of such
corporation.

               (iii) Each of the Non-Competition Parties further expressly covenants and agrees that during
the Prohibited Period, the Non-Competition Parties will not, and the Non-Competition Parties will
cause its Affiliates not to (1) engage or employ, or solicit or contact with a view to the
engagement or employment of any person who is an officer or employee of Buyer and its controlled
Affiliates (including the SeaMap Companies after the Closing) or (2) canvass, solicit, approach or
entice away or cause to be canvassed, solicited, approached or enticed away from Buyer and its
controlled Affiliates (including the SeaMap Companies after the Closing) any person who or which is
a customer of Buyer and its controlled Affiliates (including the SeaMap Companies after the
Closing).

               (iv) To the extent that any part of this Section 7.2(a) may be invalid, illegal or
unenforceable for any reason, it is intended that such part shall be enforceable to the extent that
a court of competent jurisdiction shall determine that such part, if more limited in scope, would
have been enforceable, and such part shall be deemed to have been so written and the remaining
parts shall as written be effective and enforceable in all events.

          (b) The Non-Competition Parties and Buyer agree and acknowledge that the limitations as to
time, geographical area and scope of activity to be restrained as set forth in Section 7.2(a) are
reasonable and do not impose any greater restraint than is necessary to protect the legitimate
business interests of Buyer. The Non-Competition Parties and Buyer further agree and acknowledge
that, in the event of a breach or threatened breach of any of the provisions of this Section 7.2,
Buyer shall be entitled to immediate injunctive relief, as any such breach would cause Buyer
irreparable injury for which it would have no adequate remedy at law. Nothing herein shall be
construed so as to prohibit Buyer from pursuing any other remedies available to it hereunder, at
law or in equity for any such breach or threatened breach.

          (c) The Non-Competition Parties hereby represent to Buyer that they have read and understand,
and agree to be bound by, the terms of this Section 7.2. The Non-Competition Parties acknowledge that the geographic scope and duration of the covenants
contained in this Section 7.2 are the result of arm’s-length bargaining and are fair and reasonable
in light of (i) the nature and wide geographic scope of the operations of the SeaMap Companies,
(ii) the fact that the Business is conducted throughout the geographic area where competition is
restricted by this Agreement, and (iii) the amount of consideration that the Non-Competition
Parties or their Affiliates are receiving in connection with the transactions contemplated by this
Agreement. It is the desire and intent of the parties that the provisions of this Agreement be
enforced to the fullest extent permitted under applicable Legal Requirements, whether now or
hereafter in effect and therefore, to the extent permitted by applicable Legal Requirements, the
parties hereto waive any provision of applicable Legal Requirements that would render any provision
of this Section 7.2 invalid or unenforceable.

     7.3 Use of Name. Except in the normal course of employment with Buyer or one of its
subsidiaries, from and after the Closing Date, no SeaMap Shareholder nor any of their Affiliates
will directly or indirectly use in any manner any trade name, trademark, service mark or logo used
by the SeaMap Companies or any word or logo that is similar in sound or appearance.

30

 

     7.4 Further Assurances. Each party hereto will, at the request of any other party hereto,
take such further actions as are requested and execute any additional documents, instruments or
conveyances of any kind which may be reasonably necessary to further effect the transactions
contemplated by this Agreement.

     7.5 Confidentiality. Each SeaMap Shareholder agrees that after the Closing Date any facts,
information, know-how, processes, trade secrets, customer lists or confidential matters that relate
in any way to the Business or a SeaMap Company shall be maintained in confidence and shall not be
divulged by the SeaMap Shareholder or any of its Affiliates to any party unless and until they
shall become public knowledge (other than by disclosure in breach of this Section 7.5) or as
required by applicable Legal Requirements; provided, before any SeaMap Shareholder or any
of its Affiliates discloses any of the foregoing as may be required by applicable Legal
Requirements, such Person shall give Buyer reasonable advance notice and take such reasonable
actions as Buyer may propose to minimize the required disclosure.

     7.6 Books and Records. The Sellers acknowledge and agree that from and after the Closing
Buyer will be entitled to the originals of all Books and Records. The Sellers will promptly
deliver to Buyer such originals or copies of all Books and Records. Buyer shall cooperate in all
reasonable respects with Sellers and will make available to the Seller, during normal business
hours, the Books and Records which relate to the period preceding the Closing Date and which are
necessary or useful in connection with any third-party tax inquiry, audit or similar investigation
or any dispute or litigation; provided, however, that prior to receiving access to
any of the Books and Records, the Sellers shall enter into a customary confidentiality agreement
binding on them and any other Person to whom the information may be disclosed; and provided
further, however, that Buyer shall be entitled to destroy Books and Records in accordance with a customary document retention
policy.

     7.7 Publicity. Except as required by a court of competent jurisdiction or applicable Legal
Requirements, including applicable securities laws and regulations, and except for disclosures
required to be made in the financial statements of Buyer or any of its Affiliates or in offering
documents, none of the parties hereto nor any of their respective Affiliates shall, without the
prior consent of the other parties (which shall not be unreasonably withheld), make any statement
or any public announcement or press release with respect to the transactions contemplated by this
Agreement.

     7.8 338 Election. The SeaMap Shareholders acknowledge that Buyer intends to make a Section
338(g) election with respect to the transactions contemplated by this Agreement. Nothing in this
Agreement shall prevent the Buyer from making an election to have the Code and similar provisions
of state law (“Section 338 Elections”) apply to the acquisition of any or all of the SeaMap
Companies. The allocation of the purchase price among the assets of the SeaMap Companies shall be
made in accordance with Code Sections 338 and 1060 and any comparable provisions of state, local or
foreign law, as appropriate. The Sellers shall accept the Buyer’s determination of the purchase
price allocations as set forth on Schedule 7.8 attached hereto and shall report, act, file
in all respects and for all purposes consistent with such determination of the Buyer.

31

 

ARTICLE VIII

CLOSING; CLOSING DELIVERIES

     8.1 Closing. The closing of the purchase and sale of the Parent Company Shares (the
“Closing”) shall take place at the offices of Vinson & Elkins L.L.P., 1001 Fannin, Houston, Texas
77002, commencing at 9:00 a.m., local time, on the date hereof (the “Closing Date”).

     8.2 Seller Deliveries. At the Closing, the Sellers shall deliver or cause to be delivered
to Buyer:

          (a) SeaMap Companies Share Certificates. Certificates representing the Parent Company
Shares, duly endorsed to Buyer or accompanied by separate powers sufficient for the transfer of all
of the Sellers’ right, title and interest in such Parent Company Shares to Buyer;

          (b) SeaMap Companies Secretary Certificates. Certificates, dated the Closing Date,
signed by the secretary of each SeaMap Company (i) attaching certified copies of the SeaMap
Organizational Documents applicable to such SeaMap Company, (ii) certifying that all director,
shareholder and other actions required to authorize and approve the execution and delivery of this
Agreement and the other documents and agreements provided for herein and the transactions
contemplated hereby and thereby have been taken and setting forth copies of such
actions and (ii) certifying the accuracy of the specimen signature(s) of the officer(s) of
SeaMap Company executing this Agreement and such other documents and agreements;

          (c) Approvals and Consents. Copies of all permits, consents or approvals of third
parties or Governmental Authorities, the granting of which are necessary for the consummation of
the transactions contemplated herein or for preventing the termination of any right, privilege,
license, permit, certificate or agreement of the SeaMap Companies upon the consummation of the
transactions contemplated herein;

          (d) Public Certificates. Copies of certificates of existence and good standing for
each of the SeaMap Companies issued by the appropriate public officials of Singapore, the United
Kingdom and the State of Texas (USA), as applicable, each dated as of a recent date;

          (e) Resignations. The written resignations of each director and officer of SeaMap
Companies set forth on Schedule 8.2(e); and

          (f) Other Documents. All other documents reasonably requested by Buyer to be
delivered by the Sellers in connection with the consummation of the transactions contemplated by
this Agreement.

     8.3 Buyer Deliveries. At the Closing, Buyer shall deliver or cause to be delivered:

          (a) Cash Amount. The Cash Amount to the Sellers pursuant to Section 2.2(a);

32

 

          (b) Promissory Notes. The Promissory Notes to the Sellers pursuant to Section 2.2(b).

          (c) Pledge of Shares. A Pledge Agreement, in the form of Exhibit C attached hereto,
wherein Buyer pledges the shares of the Parent Company for the benefit of the Sellers to secure
payment of the Promissory Notes and payment of Earn-Out Payments.

          (d) Buyer Secretary Certificate. A certificate, dated the Closing Date, signed by the
secretary of Buyer (i) certifying on behalf of Buyer that all corporate actions by Buyer required
to authorize and approve the execution and delivery of this Agreement and the other documents and
agreements provided for herein and the transactions contemplated hereby and thereby have been taken
and setting forth copies of such corporate actions and (ii) certifying the accuracy of the specimen
signature(s) of the officer(s) or other authorized representative(s) of Buyer executing this
Agreement and such other documents and agreements;

          (e) Approvals and Consents. Copies of all permits, consents or approvals of third
parties or Governmental Authorities, the granting of which are necessary for the consummation of
the transactions contemplated herein; and

          (f) Other Documents. All other documents reasonably requested by the Sellers to be
delivered by Buyer in connection with the consummation of the transactions contemplated by this
Agreement.

ARTICLE IX

INDEMNIFICATION

     9.1 Indemnities of the Sellers.

          (a) Seller Indemnified Liabilities. Subject to the provisions of this Article IX,
from and after the Closing, the Seller shall, jointly and severally, indemnify defend and hold
harmless Buyer, Buyer’s Affiliates, and their respective directors, stockholders, officers,
partners, successors, transferees and assignees (collectively, the “Buyer Indemnified Parties”)
from, against and in respect of any Damages or Claims that arise out of, relate to or result from
any of the following described matters (herein collectively referred to as the “Seller Indemnified
Liabilities,” and individually as a “Seller Indemnified Liability”): (i) any breach of any
representation or warranty made by the Sellers in this Agreement; (ii) any breach by the Sellers of
any covenant or obligation of the Sellers in this Agreement; and (iii) any pre-closing liability
which shall include any liabilities or obligations arising out of the operation of the business of
the SeaMap Companies prior to the Closing other than liabilities, obligation or Claims specifically
disclosed in the Disclosure Schedules attached to this Agreement or liabilities or obligations
which have arisen in the ordinary course of business since April 30, 2005 and do not individually
or in the aggregate materially and adversely impact the SeaMap Companies.

          (b) Time Limitations. Notwithstanding anything to the contrary in this Agreement, in
no event shall any of the Buyer Indemnified Parties be permitted to make any Claim under Section
9.1(a) unless such Claim is first made on or prior to the first anniversary of the Closing;
provided, however, that such one year survival period shall not apply to (i) any
Claim under Section 9.1(a)(i) relating to the breach of any representation or warranty contained

33

 

in Article IV or any representation or warranty regarding the title to the Parent Company Shares or to
any of the SeaMap Assets (which Claim, in any such case, may be asserted indefinitely), (ii) any
Claim under Section 9.1(a)(i) relating to the breach of any representation or warranty contained in
Section 5.18 or under Section 9.1(a)(iv) (which Claim, in any such case, may be asserted on or
before the date which is one month after the expiration of any applicable statutes of limitation),
or (iii) any Claim under Section 9.1(a)(ii) (which Claim may be asserted within one year after the
applicable breach of a covenant by the Seller).

          (c) Claim Limitations. Notwithstanding anything to the contrary herein and except for
Section 5.4, (i) Sellers shall not have liability for Seller Indemnified Liabilities pursuant to
Section 9.1 (excluding any breach of preclosing and post-closing covenants) until the aggregate
Claims exceed $100,000 and only to the extent such Claims exceed $100,000 and (ii) Sellers’ maximum
aggregate liability for Seller Indemnified Liabilities (post-closing covenants) shall not exceed
$1,000,000; provided the foregoing limitations shall not apply to a knowing breach by Sellers.

     9.2 Indemnities of Buyer.

          (a) Buyer Indemnified Liabilities. Subject to the provisions of this Article IX, from
and after the Closing, Buyer shall indemnify, defend and hold harmless the Sellers, (collectively,
the “Seller Indemnified Parties”) from, against and in respect of any Damages or Claims that arise
out of, relate to or result from any of the following described matters (herein collectively
referred to as the “Buyer Indemnified Liabilities”): (i) breach of any representation or warranty
made by Buyer in this Agreement or (ii) any breach by Buyer of any covenant or obligation of Buyer
in this Agreement.

          (b) Time Limitation. Notwithstanding anything to the contrary in this Agreement, in
no event shall any of the Seller Indemnified Parties be permitted to make any Claim under Section
9.2 unless such Claim is first made on or prior to the first anniversary of the Closing; provided,
however, that such one year survival period shall not apply to any Claim under Section 9.2(a)(ii)
(which Claim may be asserted within one year after the applicable breach of a covenant by Buyer).

     9.3 Claim Procedures. Each party that desires to make a Claim for indemnification pursuant
to this Article IX (an “Indemnified Party”) shall provide notice (a “Claim Notice”) thereof in
writing to Buyer (if the Indemnified Party is a Seller Indemnified Party) or to the Seller (if the
Indemnified Party is a Buyer Indemnified Party) (“Indemnifying Party”), specifying the nature and
basis for such claim and a copy of all papers served with respect to such claim (if any). For
purposes of this Section 9.3, receipt by a party of written notice of any Third-Party Claim which
gives rise to a Claim on behalf of such party shall require prompt delivery of a Claim Notice to
the Indemnifying Party of the receipt of such Third-Party Claim; provided, however,
that an Indemnified Party’s failure to send or delay in sending a Claim Notice shall not relieve an
Indemnifying Party from liability hereunder with respect to such Claim except to the extent and
only to the extent the Indemnifying Party is materially prejudiced by such failure or delay.

34

 

     9.4 Calculation, Timing, Manner and Characterization of Indemnification Payments.

          (a) Subject to the provisions hereof, payments of all amounts owing by an Indemnifying Party
as a result of a Third-Party Claim shall be made as and when damages with respect thereto are
incurred by the Indemnified Party and within five Business Days after the Indemnified Party makes
demand therefor to the Indemnifying Party. Payments of all amounts owing by an Indemnifying Party
other than as a result of a Third-Party Claim shall be made within five Business Days after the
later of (i) the date the Indemnifying Party is deemed liable therefor pursuant to this Article IX
or (ii) if disputed, the date of the adjudication of the Indemnifying Party’s liability to the
Indemnified Party under this Agreement. All amounts due and payable under this Article IX (x) with
respect to a Third-Party Claim, shall bear interest at the Past Due Rate from the date due and
payable hereunder until the date paid and (y) with
respect to a claim other than a Third-Party Claim, shall bear interest at the Past Due Rate
from the date the Indemnified Party suffers the damages until the date paid except that interest
payable with respect to any delinquent Earn-Out Payments shall be governed by Section 3.4.

          (b) Any indemnity payments made hereunder shall be treated for all Tax purposes as an
adjustment to the Purchase Price, unless otherwise required by applicable Legal Requirements.

     9.5 Survival. Except to the extent expressly limited by this Agreement, the
representations, warranties, covenants, and indemnities set forth in this Agreement shall survive
the Closing and delivery of the Transaction Documents.

     9.6 Reliance. The parties acknowledge and agree that any of the subsections of Section 9.1
may be relied upon independently of and without regard to any other of such subsections more
specifically or generally covering the same subject matter and without regard to the knowledge of
any party entitled to the benefits of the provisions of Article IX.

     9.7 Control of Third-Party Claims.

          (a) In the event of the assertion of any Third-Party Claim, the Indemnifying Party, at its
option, may assume (with legal counsel reasonably acceptable to the Indemnified Party) at its sole
cost and expense the defense of such Third-Party Claim if it acknowledges to the Indemnified Party
in writing its obligations to indemnify the Indemnified Party with respect to all elements of such
Third-Party Claim and may assert any defense of the Indemnified Party or the Indemnifying Party;
provided that the Indemnified Party shall have the right at its own expense to participate
jointly with the Indemnifying Party in the defense of any such Third-Party Claim. Counsel
representing both the Indemnifying Party and the Indemnified Party must acknowledge in writing its
obligation to act as counsel for all parties being represented and must acknowledge and respect
separate attorney-client privileges with respect to each party represented. If the Indemnifying
Party elects to undertake the defense of any Third-Party Claim hereunder, the Indemnified Party
shall cooperate with the Indemnifying Party in the defense or settlement of the Third-Party Claim,
including providing access to information, making documents available for inspection and copying,
and making employees available for interviews, depositions and trial. The Indemnifying Party shall
not be entitled to settle any Third-Party

35

 

Claim without the prior written consent of the
Indemnified Party, which consent shall not be unreasonably withheld or delayed.

          (b) If the Indemnifying Party, by the 30th day after receipt of notice of any Third-Party
Claim (or, if earlier, by the tenth day preceding the day on which an answer or other pleading must
be served in order to prevent judgment by default in favor of the person asserting such Third-Party
Claim) does not assume actively and in good faith the defense of any such Third-Party Claim or
action resulting therefrom, the Indemnified Party may, at the Indemnifying
Party’s expense, defend against such claim or litigation, after giving notice of the same to
the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and the
Indemnifying Party shall be entitled to participate in (but not control) the defense of such
action, with its counsel and at its own expense. The Indemnified Party shall not settle or
compromise any Third-Party Claim for which it is entitled to indemnification hereunder, without the
prior written consent of the Indemnifying Party (which shall not be unreasonably withheld or
delayed).

          (c) Notwithstanding anything in this Section 9.7 to the contrary, Buyer shall in all cases be
entitled to control the defense of a Third-Party Claim if Buyer reasonably believes such
Third-Party Claim could adversely effect in any material respect Buyer or its Affiliates other than
as a result of money damages or if injunctive or other non-monetary relief has been sought against
Buyer or its Affiliates.

     9.8 Offset Rights and Limitations. If any amounts are owing to Buyer from Sellers in
accordance with the terms of this Agreement and such amounts are not paid to Buyer within the
appropriate time period specified in this Agreement, then, in any such case, Buyer may elect (but
shall not be required to elect and may pursue remedies directly against the Sellers) to:

                    (1) offset against the Promissory Notes any amounts owing by the Sellers under this
Agreement to Buyer; or

                    (2) offset against any cash Earn-Out Payments any amounts owing by the Sellers under
this Agreement to Buyer.

Buyer shall be entitled, in its sole discretion, to elect to offset any such amounts pursuant to
Section 9.8(a)(1) or Section 9.8(a)(2), or any combination thereof, and shall not be required to
elect any such offset in any particular amounts or any particular order.

     9.9 Express Negligence. THE PARTIES HERETO INTEND THAT THE INDEMNITIES SET FORTH IN THIS
ARTICLE IX BE CONSTRUED AND APPLIED AS WRITTEN ABOVE, NOTWITHSTANDING ANY RULE OF CONSTRUCTION TO
THE CONTRARY. WITHOUT LIMITING THE FOREGOING, BUT LIMITED TO THE EXTENT PROVIDED ABOVE, SUCH
INDEMNITIES SHALL APPLY NOTWITHSTANDING ANY STATE’S “EXPRESS NEGLIGENCE” OR SIMILAR RULE THAT WOULD
DENY COVERAGE BASED ON AN INDEMNIFIED PARTY’S SOLE OR CONCURRENT, ACTIVE OR PASSIVE NEGLIGENCE OR
GROSS NEGLIGENCE. IT IS THE INTENT OF THE PARTIES THAT, TO THE EXTENT PROVIDED ABOVE, THE
INDEMNITIES SET FORTH IN THIS ARTICLE IX SHALL APPLY TO AN INDEMNIFIED PARTY’S SOLE OR CONCURRENT,
ACTIVE OR

36

 

PASSIVE NEGLIGENCE OR GROSS NEGLIGENCE. THE PARTIES AGREE THAT THIS PROVISION IS
“CONSPICUOUS” FOR PURPOSES OF ALL STATE LAWS.

     9.10 Exclusive Remedy. In the absence of fraud, the indemnification provisions in this Article IX will be the sole and
exclusive remedy and recourse for any breach of this Agreement by Buyer or the Seller, except as
expressly provided herein, and except for Buyer’s breach of payment obligations under Section 2.2
or Article III hereof, in either event, Sellers shall be entitled to recovery of reasonable
attorneys’ fees and costs. In addition, (a) in the event of a breach or threatened breach by any
Seller of any of the provisions of Sections 7.2, 7.3 or 7.5, Buyer shall be entitled to immediate
injunctive relief, as the Sellers acknowledge and agree that any such breach would cause Buyer
irreparable injury for which they would have no adequate remedy at law; and (b) any party hereto
shall be entitled to seek specific performance against any other party hereto pursuant to Section
10.11.

ARTICLE X

MISCELLANEOUS

     10.1 Assignment. This Agreement and the rights hereunder may not be assigned by Buyer
without the prior written consent of the Seller; provided, however, that Buyer may
assign without the Seller’s consent the provisions and benefits of this Agreement to any transferee
of all or substantially all of the Business, and each of the Seller hereby consents to any such
assignment. This Agreement and the rights hereunder may not be assigned by any Seller without the
prior written consent of Buyer. Subject to the foregoing, this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns.

     10.2 Notices. Unless otherwise provided herein, any notice, request, consent, instruction
or other document to be given hereunder by any party hereto to another party hereto shall be in
writing and will be deemed given (a) when received if delivered personally or by courier; or (b) on
the date receipt is acknowledged if delivered by certified mail, postage prepaid, return receipt
requested or (c) one day after transmission if sent by facsimile transmission with confirmation of
transmission, as follows:

     If to any of the SeaMap Shareholders, addressed to:

_____________________

_____________________

_____________________

_____________________

     With a copy to:

_____________________

_____________________

_____________________

_____________________

37

 

     If to Buyer, addressed to:

Mitcham Industries, Inc.

8141 Hwy 75 South

Huntsville Texas 77340

     With a copy to:

_____________________

_____________________

_____________________

_____________________

or to such other place and with such other copies as either party may designate as to itself by
written notice to the others in accordance with this Section 10.2.

     10.3 Choice of Law. This Agreement shall be construed and interpreted and the rights of
the parties governed by the internal laws of Texas.

     10.4 Entire Agreement; Amendments and Waivers. This Agreement, together with all Exhibits,
Annexes and Schedules hereto, and the other Transaction Documents constitute the entire agreement
between the parties pertaining to the subject matter hereof and supersedes all prior and
contemporaneous agreements, understandings, negotiations and discussions, whether oral or written,
of the parties including the letter of intent dated October 11, 2004 and there are no other
warranties, representations or other agreements between the parties in connection with the subject
matter. No amendment, supplement, modification or waiver of this Agreement shall be binding unless
executed in writing by all parties hereto. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provision hereof (whether or not
similar), nor shall such waiver constitute a continuing waiver unless expressly agreed to in
writing by the affected party.

     10.5 Multiple Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument. Facsimile signature pages shall suffice for Closing with the agreement that
original pages shall be forthcoming.

     10.6 Expenses. Each party hereto will be responsible for its own legal fees and other
expenses incurred in connection with the negotiation, preparation, execution or performance of this
Agreement. Notwithstanding the foregoing, any stamp taxes or other transfer taxes or duties
payable upon transfer of the shares of the Parent Company from Sellers to Buyer shall be borne by
the Sellers.

     10.7 Invalidity. In the event that any one or more of the provisions contained in this
Agreement or in any other instrument referred to herein shall, for any reason, be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision of this Agreement or any other such instrument.

38

 

     10.8 References; Headings; Interpretation. All references in this Agreement to Annexes,
Exhibits, Schedules, Articles, Sections, subsections and other subdivisions refer to the
corresponding Annexes, Exhibits, Schedules, Articles, Sections, subsections and other subdivisions
of or to this Agreement unless expressly provided otherwise. Titles appearing at the beginning of
any Articles, Sections, subsections or other subdivisions of this Agreement are for convenience
only, do not constitute any part of this Agreement, and shall be disregarded in construing the
language hereof. The words “this Agreement,” “herein,” “hereby,” “hereunder” and “hereof” and
words of similar import refer to this Agreement as a whole and not to any particular subdivision
unless expressly so limited. The words “this Article,” “this Section” and “this subsection” and
words of similar import refer only to the Article, Section or subsection hereof in which such words
occur. The word “or” is not exclusive, and the word “including” (in its various forms) means
including without limitation. Pronouns in masculine, feminine or neuter genders shall be construed
to state and include any other gender, and words, terms and titles (including terms defined herein)
in the singular form shall be construed to include the plural and vice versa, unless the context
otherwise requires. All references to “$” or “dollars,” in the Agreement shall refer to the United
States dollars unless otherwise specifically noted.

     10.9 No Third Party Beneficiaries. This Agreement is solely for the benefit of the parties
hereto, the Buyer Indemnified Parties, the Seller Indemnified Parties and their successors and
assigns permitted under this Agreement, and no provisions of this Agreement shall be deemed to
confer upon any other Persons any remedy, claim, liability, reimbursement, cause of action or other
right except as expressly provided herein.

     10.10 No Presumption Against Any Party. Neither this Agreement nor any uncertainty or
ambiguity herein shall be construed or resolved against any party, whether under any rule of
construction or otherwise. On the contrary, this Agreement has been reviewed by each of the
parties and their counsel and shall be construed and interpreted according to the ordinary meaning
of the words used so as to fairly accomplish the purposes and intentions of all parties hereto.

     10.11 Specific Performance. Each of the parties hereto acknowledges and agrees that the
other parties hereto would be damaged irreparably in the event any of the provisions of this
Agreement are not performed in accordance with their specific terms or otherwise are breached.
Accordingly, each of the parties hereto agrees that the other parties hereto shall be entitled, to
an injunction or injunctions to
prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and
the terms and provisions hereof in any action instituted in any court of the United States or any
State thereof having jurisdiction over the parties hereto and the matter, in addition to any other
remedy to which they may be entitled, at law or in equity.

39

 

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first
above written.

	 	 	 	 	 
	 	“Buyer”

MITCHAM INDUSTRIES, INC.

 	 
	 	By:  	 	 
	 	 	Billy F. Mitcham, Jr. 	 
	 	 	President and Chief Executive Officer 	 
	 

	 	 	 
	 

	 	“SeaMap Shareholders”
	 
	 	 
	 
	 	 
	 
	 	 
	 

	 	 

	 

	 	MARK WELKER
	 
	 	 
	 

	 	 

	 

	 	TOMOKO WELKER
	 
	 	 
	 

	 	 

	 

	 	CHEW KOK LEE PINNINGTON
	 
	 	 
	 

	 	 

	 

	 	MICHAEL PINNINGTON
	 
	 	 
	 

	 	 

	 

	 	TIMOTHY PINNINGTON
	 
	 	 
	 

	 	 

	 

	 	PHILLIP BULL

[SIGNATURE PAGE TO STOCK PURCHASE AGREEMENT]

 

 

EXHIBIT A

DEFINED TERMS

     Accounts Receivable means all accounts and notes receivable from account, note and other
debtors of the SeaMap Companies outstanding as of the date hereof.

     Affiliate means with respect to any Person, any Person which, directly or indirectly,
controls, is controlled by, or is under a common control with, such Person. The term “control”
(including the terms “controlled by” and “under common control with”) as used in this definition
means the possession, directly or indirectly, of the power to direct or cause the direction of
management and policies of a Person, whether through the ownership of voting securities, by
contract, or otherwise. With respect to any natural person, the term “Affiliate” shall also mean
(1) the spouse of such Person; and any trust whose primary beneficiary is such Person, such
Person’s spouse, such Person’s siblings and/or one or more of such Person’s lineal descendants, (2)
the legal representative or guardian of such Person or of any such immediate family member in the
event such Person or any such immediate family member becomes mentally incompetent and (3) any
Person controlled by or under the common control with any one or more of such Person and the
Persons described in clauses (1) or (2) preceding.

     Agreement has the meaning set forth in the introductory paragraph.

     Annual Earn-Out Period has the meaning set forth in Section 3.3(c).

     Annual Financial Statements has the meaning set forth in Section 5.15.

     Applicable Accounting Standards means the accounting standards of the particular country in
which the SeaMap Companies are located.

     Books and Records means all books and records pertaining to the SeaMap Companies, the
Business, and the SeaMap Assets, including, but not limited to, all books of account, journals and
ledgers, files, correspondence, memoranda, maps, plats, customer lists, suppliers lists, personnel
records relating to the employees of the SeaMap Companies, catalogs, promotional materials, data
processing programs and other computer software, building and machinery diagrams and plans.

     Business means the business and operations as are currently being performed by the SeaMap
Companies, including the manufacture, sale and distribution of seismic, hydrographic and offshore
industry products.

     Business Day means any day other than a Saturday, Sunday or legal holiday under the laws of
the United States or the State of Texas.

     Buyer has the meaning set forth in the introductory paragraph.

     Buyer Indemnified Liabilities has the meaning set forth in Section 9.2(a).

     Buyer Indemnified Parties has the meaning set forth in Section 9.1(a).

ANNEX A-1

 

 

     Cash Amount has the meaning set forth in Section 2.2(a)(i).

     Claim means any and all claims, causes of action, demands, lawsuits, suits, proceedings,
governmental investigations or audits and administrative orders.

     Claim Notice has the meaning set forth in Section 9.3.

     Closing has the meaning set forth in Section 8.1.

     Closing Date has the meaning set forth in Section 8.1.

     Code means the Internal Revenue Code of 1986, as amended.

     Competing Business has the meaning set forth in Section 7.2(a)(i)(A).

     Contract means any contract, agreement, option, right to acquire, preferential purchase right,
preemptive right, warrant, indenture, debenture, note, bond, loan, loan agreement, collective
bargaining agreement, lease, mortgage, franchise, license, purchase order, bid, commitment, letter
of credit, guaranty, surety or any other legally binding arrangement, whether oral or written.

     Creditors’ Rights has the meaning set forth in Section 4.1.

     Current Assets means those assets known as “current assets” under Applicable Accounting
Standards.

     Current Liabilities means those liabilities known as “current liabilities” under Applicable
Accounting Standards.

     Damages means all debts, liabilities, obligations, losses, including diminution of value,
damages, loss of profits, cost and expenses, whether actual, consequential or punitive, interest
(including, without limitation, prejudgment interest), penalties, reasonable legal fees,
disbursements and costs of investigations, deficiencies, levies, duties and imposts.

     Earn-Out Earnings has the meaning set forth in Section 3.3(d).

     Earn-Out Earnings Threshold has the meaning set forth in Section 3.3(b).

     Earn-Out Notice has the meaning set forth in Section 3.1(a).

     Earn-Out Payment has the meaning set forth in Section 3.3(a).

     Earn-Out Period has the meaning set forth in Section 3.2(a).

     Environmental Authority means any department, agency, or other body or component of any
Governmental Authority that exercises any form of jurisdiction or authority under any Environmental
Law.

ANNEX A-2

 

 

     Environmental Authorization means any license, permit, order, approval, consent, notice,
registration, filing or other form of permission or action required under any Environmental Law.

     Environmental Laws means all federal, state, local and foreign laws and regulations relating
to pollution or protection of human health or the environment (including without limitation ambient
air, surface, water, ground water, land surface or subsurface strata), including without limitation
laws and regulations relating to emissions, discharges, Releases or threatened Releases of
Hazardous Materials or otherwise relating to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of Hazardous Materials.

     Environmental Liabilities means any and all obligations to pay the amount of any judgment or
settlement, the cost of complying with any settlement, judgment or order for injunctive or other
equitable relief, the cost of compliance or corrective action in response to any notice, demand or
request from an Environmental Authority, the cost of performing any remedial action required under
Environmental Laws in response to a Release of Hazardous Materials, the amount of any civil penalty
or criminal fine, and any court costs and reasonable amounts for attorneys’ fees, fees for
witnesses and experts, and costs of investigation and preparation for defense of any claim or
proceeding, regardless of whether such claim or proceeding is threatened, pending or completed,
that may be or have been asserted against or imposed upon any owner or operator of the Business, to
the extent any of the foregoing arise out of:

               (a) failure of a SeaMap Company or any of its Affiliates, any Predecessor, or the
Business to comply at any time before the Closing Date with all Environmental Laws;

               (b) presence of any Hazardous Materials on, in, under, at or in any way affecting any
property used in the Business at any time before the Closing Date;

               (c) a Release at any time before the Closing Date of any Hazardous Materials on, in,
at, under or in any way affecting the Business or any property used therein or at, on, in,
under or in any way affecting any adjacent site or facility;

               (d) identification of a SeaMap Company or any of its Affiliates or any Predecessor as a
potentially responsible party under any Environmental Law;

               (e) presence at any time before the Closing Date of any above-ground and/or underground
storage tanks, or any asbestos-containing material on, in, at, or under any property used in
connection with the Business; or

               (f) any and all claims for injury or damage to persons or property arising out of
exposure to Hazardous Materials originating at the Business or any adjoining property,
resulting from operation thereof, or located at the Business, where such exposure allegedly
occurred prior to the Closing Date.

     ERISA has the meaning set forth in Section 5.23(a)(1).

     Facilities has the meaning set forth in Section 5.8(c).

ANNEX A-3

 

 

     Financial Statements has the meaning set forth in Section 5.15.

     GAAP means generally accepted accounting principles in the United States.

     Governmental Authority means any governmental, quasi-governmental, state, county, city or
other political subdivision of the United States or any other country, or any agency, court or
instrumentality, foreign or domestic, or statutory or regulatory body thereof.

     Hazardous Materials shall mean chemicals, pollutants, contaminants, wastes and toxic
substances, including without limitation, materials designated as solid or hazardous waste,
hazardous substances or toxic substances.

     Indemnified Party has the meaning set forth in Section 9.3.

     Indebtedness for Borrowed Money, for a particular Person, means, without duplication,
indebtedness of such Person for borrowed money, including, without limitation, (i) the face amount
of any letter of credit supporting the repayment of indebtedness for borrowed money issued for the
account of such Person and obligations under letters of credit and agreements relating to the
issuance of letters of credit or acceptance financing; and (ii) obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments.

     Indemnifying Party has the meaning set forth in Section 9.3.

     Insurance Policies has the meaning set forth in Section 5.27.

     Intellectual Property Rights means all United States and foreign (i) patents, patent
applications, utility models or statutory invention registrations (whether or not filed), and
invention disclosures; (ii) trademarks, service marks, logos, designs, trade names, trade dress,
domain names and corporate names and registrations and applications for registration thereof
(whether or not filed) and the goodwill associated therewith; (iii) copyrights, whether registered
or unregistered, and registrations and applications for registration thereof (whether or not filed)
and other works of authorship, whether or not published; (iv) trade secrets, proprietary
information, know-how, inventions, customer lists and information, supplier lists, manufacturer
lists, manufacturing and production processes and techniques, blueprints, drawings, schematics,
manuals, software, firmware and databases; (v) the right to sue and collect damages for any past,
present, and future infringement, misappropriation, or other violation of any of the foregoing; and
(vi) rights relating to any of the foregoing.

     Interest means (a) capital stock, member interests, partnership interests, other equity
interests, rights to profits or revenue and any other similar interest, (b) any security or other
interest convertible into or exchangeable or exercisable for any of the foregoing and (c) any right
(contingent or otherwise) to acquire any of the foregoing.

     Interim Balance Sheet has the meaning set forth in Section 5.15.

     Interim Financial Statements has the meaning set forth in Section 5.15.

ANNEX A-4

 

 

     Knowledge of the Sellers means the knowledge of each of the Sellers after reasonable
investigation and the knowledge of any other director, officer or employee of any of the SeaMap
Companies having supervisory or management responsibilities as of the date hereof.

     Leased Equipment has the meaning set forth in Section 5.9(a).

     Legal Requirement means any law, statute, code, ordinance, order, rule, regulation, judgment,
decree, injunction, franchise, permit, certificate, license, authorization, or other directional
requirement (including, without limitation, any of the foregoing that relates to environmental
standards or controls, energy regulations and occupational, safety and health standards or controls
including those arising under Environmental Laws) of any Governmental Authority.

     Lien means any lien, pledge, condemnation award, claim, restriction, charge, preferential
purchase right, security interest, mortgage or encumbrance of any nature whatsoever including as a
statutory landlord lien.

     Material Adverse Effect means any material and adverse effect on the assets, liabilities,
financial condition, business, operations, affairs or prospects of any SeaMap Company or the
Business.

     Material Contract has the meaning set forth in Section 5.11(a).

     Material Waiver means a waiver by the relevant Party of a provision of a Material Contract
which waiver will result in Buyer or a SeaMap Company, as applicable, either (i) receiving less
consideration under the Material Contract than would have been received without the waiver, or (ii)
incurring greater liability under the Material Contract than would have been incurred without the
waiver.

     Non-Competition Parties has the meaning set forth in Section 7.2.

     Occurrence has the meaning set forth in Section 5.21(b).

     Operating Equipment Lease has the meaning set forth in Section 5.9(a).

     Ordinary Course of Business means, when used in reference to any Person, the ordinary course
of business consistent with past customs and practices of such Person.

     Organizational Documents means, with respect to a particular Person (other than a natural
person), the certificate or articles of incorporation, bylaws, partnership agreement, limited
liability company agreement, trust agreement or similar organizational document or agreement, as
applicable, of such Person.

     Parent Company has the meaning set forth in the recitals.

     Parent Company Shares has the meaning set forth in the recitals.

ANNEX A-5

 

 

     Past Due Rate means the lesser of (a) the maximum nonusurious rate permitted by law and (b)
fifteen percent (15%) per annum.

     Permit has the meaning set forth in Section 5.10.

     Permitted Liens means:

               (i) Liens for Taxes which are not yet due and payable; and

               (ii) inchoate Liens arising by operation of law, including materialman’s, mechanic’s,
repairman’s, laborer’s, warehousemen, carrier’s, employee’s, contractor’s and operator’s
Liens arising in the Ordinary Course of Business but only to the extent such liens secure
obligations that, as of the Closing, are not due and payable and are not being contested
unless being contested in good faith and a reserve or other appropriate provision, if any,
as required by GAAP is made therefor in the Final Closing Date Balance Sheet.

     Person means any natural person, firm, partnership, association, corporation, limited
liability company, company, trust, entity, public body or government.

     Personal Property has the meaning set forth in Section 5.9(c).

     Plan or Plans has the meaning set forth in Section 5.23(a).

     Predecessor shall mean any Person whose liabilities, including without limitation liabilities
arising under any Environmental Law, have or may have been retained or assumed by any Seller Party
or any of its Affiliates, either contractually or by operation of law.

     Product has the meaning set forth in Section 5.21(b).

     Prohibited Period has the meaning set forth in Section 7.2(a)(i).

     Promissory Notes(s) has the meaning set forth in Section 2(a)(ii).

     Purchase Price has the meaning set forth in Section 2.2.

     Real Property has the meaning set forth in Section 5.8(c).

     Recalls has the meaning set forth in Section 5.21(b).

     Release shall mean “release” as defined in any Environmental Law.

     Restricted Area has the meaning set forth in Section 7.2(a)(i)(A)

     SeaMap Assets means all of the assets, whether real, personal (tangible or intangible) or
mixed, owned (in fee or any lesser interest including leasehold interests) by the SeaMap Companies.

     SeaMap Intellectual Property has the meaning set forth in Section 5.12(a).

ANNEX A-6

 

 

     SeaMap Companies has the meaning set forth in the recitals

     SeaMap Organizational Documents has the meaning set forth in Section 5.1.

     SeaMap Products has the meaning set forth in Section 7.2(a)(i).

     SeaMap Shareholders has the meaning set forth in the introductory paragraph.

     SeaMap Singapore has the meaning set forth in the recitals.

     SeaMap UK has the meaning set forth in the recitals.

     SeaMap US has the meaning set forth in the recitals.

     Scheduled Leases has the meaning set forth in Section 5.8(b).

     Scheduled Permits has the meaning set forth in Section 5.10.

     Scheduled Personal Property has the meaning set forth in Section 5.9(b).

     Seller(s) has the meaning set forth in the introductory paragraph.

     Seller Indemnified Liabilities or Seller Indemnified Liability has the meaning set forth in
Section 9.1(a).

     Seller Indemnified Parties has the meaning set forth in Section 9.2(a).

     Tax or Taxes means any taxes, assessments, fees, unclaimed property and escheat obligations,
and other governmental charges imposed by any Governmental Authority, including income, profits,
gross receipts, net proceeds, alternative or add-on minimum, ad valorem, real property (including
assessments, fees or other charges imposed by any Governmental Authority that are based on the use
or ownership of real property) value added, turnover, sales, use, property, personal property
(tangible and intangible), environmental, stamp, leasing, lease, user, excise, duty, franchise,
capital stock, transfer, registration, license, withholding, social security (or similar),
unemployment, disability, payroll, employment, fuel, excess profits, occupational, premium,
windfall profit, severance, estimated, or other charge of any kind whatsoever, including any
interest, penalty, or addition thereto, whether disputed or not, including any item for which
liability arises by contract or as a transferee or successor.

     Tax Items means all items of income, gain, loss, deduction and credit and other tax items.

     Tax Return means any return, declaration, report, claim for refund, or information return or
statement relating to Taxes, including any schedule or attachment thereto, and including any
amendment thereof.

     Third Party Claim means a third party claim asserted against an Indemnified Party by a Person
other than (a) an Affiliate of such Indemnified Party or (b) any director, stockholder, officer,
member, partner or employee of any such Indemnified Party or its Affiliates.

     Transaction Documents means this Agreement and all agreements, conveyances, documents,
instruments and certificates delivered at the Closing pursuant to this Agreement.

ANNEX A-7exv10w1

 

Exhibit 10.1

PAYMENT AGREEMENT

IN THE EVENT OF A CHANGE OF CONTROL

This PAYMENT AGREEMENT IN THE EVENT OF A CHANGE OF CONTROL (the “Agreement”) is dated July 13,
2005, between W Holding Company, Inc. and Westernbank Puerto Rico (the “Company” and “Bank”) and
Mr. José M. Biaggi (the “Employee”).

     WHEREAS, the Employee is currently serving as the President and Chief Executive Officer of the
Bank; and

     WHEREAS, the Board believes that it is in the best interests of the Company and the Bank to
encourage the Employee’s continued employment with dedication to the Bank in the face of
potentially distracting circumstances arising from the remote possibility of a change in control of
the Company and or Bank, although no such change is now thought of or contemplated; and

     WHEREAS, the parties desire to enter into this Agreement setting forth the terms and
conditions for the payment of special compensation to the Employee in the event of a termination of
the Employee’s employment in connection with or as a result of a change in control;

     NOW THEREFORE, it is AGREED as follows:

	1.	 	Term. The initial term of this Agreement shall be for a two (2) year period
commencing on the date hereof. This Agreement shall be automatically renewed for one (1)
additional year on the first and each subsequent anniversary date of this Agreement, unless
the Company and or Bank gives contrary written notice to the Employee sixty (60) days prior to
such renewal date. References herein to the term of this Agreement shall include the initial
term and any additional years for which this Agreement is renewed.
	 
	2.	 	Termination of Employment in Connection with a Change in Control.

	 	(a)	 	If during the term of this Agreement there is a change in control of the Company and
or the Bank, the Employee shall be entitled to receive as a special compensation a lump
sum cash payment as provided for herein, in connection with or within one (1) year after a
“Change in Control” (as defined below) in the event the Employee’s employment is
terminated voluntarily by the Employee or involuntarily by the Company and or the Bank
without cause in connection with or within one (1) year after a change in control has
occurred. The amount of this payment shall be equal to three (3) times the annual base
compensation, year-end Christmas bonus, and special bonuses, if any, paid to the Employee
by the Company and or Bank during the calendar year preceding the year in which the Change
in Control occurs. Payment under this Section 2(a) shall be in lieu of any amount that
may be otherwise owed to the

 

 

	 	 	 	employee as damages for the loss of employment, in the event that such loss occurs.
Payment under this Section 2(a) shall not be reduced by any compensation which the
Employee may receive from other employment with another employer after termination of the
Employee’s employment with the Company and or Bank, if such termination occurs. No
payment hereunder shall affect the Employee’s entitlement to any vested benefits or other
compensation payments.
	 
	 	(b)	 	For purposes of this Agreement, a “Change in Control” shall be deemed to have
occurred if:

	 	(i)	 	Twenty-five (25) percent or more of ownership, control, power
to vote, or beneficial ownership of any class of voting securities of the
Company and or Bank is acquired by any person, either directly or indirectly
or acting through one or more other persons;
	 
	 	(ii)	 	any person (other than any person named as a proxy in
connection with any solicitation on behalf of the Board) holds revocable or
irrevocable proxies, as to the election or removal of three (3) or more
Directors of the Company and or Bank, for twenty-five (25) percent or more of
the total number of voting shares of the Company and or Bank;
	 
	 	(iii)	 	any person has received all applicable regulatory approvals
to acquire control of the Company and or Bank;
	 
	 	(iv)	 	any person has commenced a cash tender or exchange offer, or
entered into an agreement or received an option, to acquire beneficial
ownership of twenty-five (25) percent or more of the total number of voting
shares of the Company and or Bank, whether or not any requisite regulatory
approval for such acquisition has been received, provided that a Change in
Control will not be deemed to have occurred under this clause (iv) unless the
Board has made a determination that such action constitutes or will constitute
a Change in control; or
	 
	 	(v)	 	as the result of, or in connection with, any cash tender or
Exchange offer, merger, or other business combination, sale of assets or
contested election, or any combination of the foregoing transaction, (A) the
persons who were directors of the Company and or Bank before such transaction
shall cease to constitute at least a majority of the Board or its successor,
or (B) the persons who were stockholders of the Company and or Bank
immediately before such transaction do not own more than fifty (50) percent of
the outstanding voting stock of the Company and or Bank or its successor
immediately after such transaction.

 

 

	 	 	 	For purposes of this Section, a “person” includes an individual, corporation,
partnership, trust, association, joint venture, pool, syndicate,
unincorporated organization, joint-stock company or similar organization or
entity or group acting in concert. A person for these purposes shall be
deemed to be a “beneficial owner” as that term is used in Rule 13d-3 under the
Securities Exchange Act of 1934.

	3.	 	No Assignments. This Agreement is personal to each of the parties hereto. No party
may assign or delegate any rights or obligations hereunder without first obtaining the written
consent of the other party hereto. However, in the event of the death of the Employee, all
rights to receive payments hereunder shall become rights of the Employee’s estate claimable
within a twelve (12) month period following the date of death of the Employee.
	 
	4.	 	Amendments or Additions: Action by Board of Directors. No amendments or additions
to this Agreement shall be binding unless in writing and signed by both parties hereto. The
prior approval by a majority affirmative vote of the full Board shall be required in order for
the Bank to authorize any amendments or additions to this Agreement.
	 
	5.	 	Section Headings. The section headings used in this Agreement are included solely
for convenience and shall not affect, or be used in connection with, the interpretation of
this Agreement.
	 
	6.	 	Compensation. The special compensation to be received as agreed to herein shall not
exceed in any event $1.5 million.
	 
	7.	 	Governing Law. This Agreement shall be governed by the laws of the United States to
the extent applicable because of the Bank’s status as a federally insured financial
institution, and otherwise by the laws of the Commonwealth of Puerto Rico.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	WESTERNBANK Puerto Rico	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:

	 	/s/ César Ruiz
	 	By:
	 	/s/ Frank C. Stipes
	 	 
	

	 	 
	 	 	 	 	 	 
	

	 	     (Secretary)

     César Ruiz

W Holding Company, Inc.

Westernbank Puerto Rico
	 	 	 	(Chairman of the Board)

     Frank C. Stipes

W Holding Company, Inc.

Westernbank Puerto Rico	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Employee:	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	/s/ José M. Biaggi	 	 
	 	 	 	 	 	 	 
	

	 	 	 	 	 	José M. Biaggi

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]