Document:

Loan and Security Agreement

 Exhibit 10.5 
  

  
 LOAN AND SECURITY
AGREEMENT 
  
 by and among 
  
 SEITEL, INC. 
  
 and 
  
 EACH OF ITS SUBSIDIARIES THAT ARE SIGNATORIES HERETO 
  
 as Borrowers 
  
 and 
  
 WELLS FARGO FOOTHILL, INC. 
  
 as Lender 
  
 Dated as of
April                     , 2004 
  

  

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

  
 1. DEFINITIONS AND CONSTRUCTION. 
  
 1.1 Definitions. As used in this Agreement, the following
terms shall have the following definitions: 
  
 “Account” means an account (as that term is defined in the Code), and any and all supporting obligations in respect thereof. 
  
 “Account Debtor” means any Person who is obligated under, with respect to, or on account of, an Account, chattel paper,
or a General Intangible. 
  
 “ACH
Transactions” means any cash management or related services (including the Automated Clearing House processing of electronic funds transfers through the direct Federal Reserve Fedline system) provided by a Bank Product Provider for the
account of Administrative Borrower or its Domestic Subsidiaries. 
  
 “Additional Documents” has the meaning set forth in Section 4.4(c). 
  
 “Administrative Borrower” has the meaning set forth in Section 16.11. 
  
 “Advances” has the meaning set forth in
Section 2.1(a). 
  
 “Affiliate” means, as applied to any Person, any other Person who, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person. For purposes of this
definition, “control” means the possession, directly or indirectly through one or more intermediaries, of the power to direct the management and policies of a Person, whether through the ownership of Stock, by contract, or otherwise;
provided, however, that, for purposes of the definition of Eligible Accounts and Section 7.13 hereof: (a) any Person which owns directly or indirectly 10% or more of the Stock having ordinary voting power for the election of directors
or other members of the governing body of a Person or 10% or more of the partnership or other ownership interests of a Person (other than as a limited partner of such Person) shall be deemed an Affiliate of such Person, (b) each director (or
comparable manager) of a Person shall be deemed to be an Affiliate of such Person, and (c) each partnership or joint venture in which a Person is a partner or fifty percent (50%) or greater-in-interest joint venturer shall be deemed an Affiliate of
such Person. 
  

 LOAN AND SECURITY AGREEMENT – Page 1 

 “Agreement” has the meaning set forth in the preamble to this Agreement.

  
 “Assignee” has the meaning
set forth in Section 14.1(a). 
  
 “Authorized Person” means any officer or employee of Administrative Borrower. 
  
 “Availability” means, as of any date of determination, the amount that Borrowers are entitled to borrow as Advances
hereunder (after giving effect to all then outstanding Obligations (other than Bank Product Obligations) and all sublimits and reserves then applicable hereunder). 
  
 “Bank Product” means any financial accommodation extended to Administrative Borrower or its
Domestic Subsidiaries by a Bank Product Provider (other than pursuant to this Agreement) including: (a) credit cards, (b) credit card processing services, (c) debit cards, (d) purchase cards, (e) ACH Transactions, (f) cash management, including
controlled disbursement, accounts or services, or (g) transactions under Hedge Agreements. 
  
 “Bank Product Agreements” means those agreements entered into from time to time by Administrative Borrower or its
Domestic Subsidiaries with a Bank Product Provider in connection with the obtaining of any of the Bank Products. 
  
 “Bank Product Obligations” means all obligations, liabilities, contingent reimbursement obligations, fees, and expenses
owing by Administrative Borrower or its Domestic Subsidiaries to any Bank Product Provider pursuant to or evidenced by the Bank Product Agreements and irrespective of whether for the payment of money, whether direct or indirect, absolute or
contingent, due or to become due, now existing or hereafter arising, and including all such amounts that Administrative Borrower or its Domestic Subsidiaries are obligated to reimburse to Lender as a result of Lender purchasing participations from,
or executing indemnities or reimbursement obligations to, a Bank Product Provider with respect to the Bank Products provided by such Bank Product Provider to Administrative Borrower or its Domestic Subsidiaries. 
  
 “Bank Product Provider” means Wells Fargo
or any of its Affiliates. 
  
 “Bank
Product Reserve” means, as of any date of determination, the amount of reserves that Lender has established (based upon the Bank Product Providers’ reasonable determination of the net credit exposure in respect of then extant Bank
Products) in respect of Bank Products then provided or outstanding. 
  
 “Bankruptcy Code” means United States Bankruptcy Code, 11 U.S.C. §§ 101, et seq., in effect as of the date hereof, together with all rules, regulations and interpretations
thereunder or related thereto, as amended, modified, supplemented or recodified from time to time. 
  
 “Bankruptcy Court” means the United States Bankruptcy Court for the District of Delaware. 
  

 LOAN AND SECURITY AGREEMENT – Page 2 

 “Base LIBOR Rate” means the rate per annum, determined by Lender in
accordance with its customary procedures, and utilizing such electronic or other quotation sources as it considers appropriate (rounded upwards, if necessary, to the next 1/100%), to be the rate at which Dollar deposits (for delivery on the first
day of the requested Interest Period) are offered to major banks in the London interbank market 2 Business Days prior to the commencement of the requested Interest Period, for a term and in an amount comparable to the Interest Period and the amount
of the LIBOR Rate Loan requested (whether as an initial LIBOR Rate Loan or as a continuation of an extant LIBOR Rate Loan or as a conversion of a Base Rate Loan to a LIBOR Rate Loan) by Administrative Borrower in accordance with this Agreement,
which determination shall be conclusive in the absence of manifest error. 
  
 “Base Rate” means the rate of interest announced, from time to time, within Wells Fargo at its principal office in San Francisco as its “prime rate”, with the understanding that the
“prime rate” is one of Wells Fargo’s base rates (not necessarily the lowest of such rates) and serves as the basis upon which effective rates of interest are calculated for those loans making reference thereto and is evidenced by the
recording thereof after its announcement in such internal publications as Wells Fargo may designate. 
  
 “Base Rate Loan” means the portion of the Advances that bears interest at a rate determined by reference to the Base
Rate. 
  
 “Base Rate Margin”
means, for each calendar month, the percentage points set forth below corresponding to the average daily balance of Advances during the immediately preceding calendar month, as determined by Lender: 
  

			
	 Daily Average Advances

	  	 Base Rate Margin—
 Number of Percentage Points

	 Less than $10,000,000:
	  	0.00
	 Equal to or greater than $10,000,000:
	  	0.50

  
 “Beneficial Ownership”, and all expressions and terms correlative and analogous thereto, have the meanings ascribed thereto in Rule 13d-3 under the Exchange Act. 
  
 “Benefit Plan” means a “defined
benefit plan” (as defined in Section 3(35) of ERISA) for which any Borrower or any Domestic Subsidiary or ERISA Affiliate of any Borrower has been an “employer” (as defined in Section 3(5) of ERISA) within the past six
years. 
  
 “Board of Directors”
means the board of directors (or comparable managers) of Parent or any committee thereof duly authorized to act on behalf of the board of directors (or comparable managers). 
  
 “Books” means all of Administrative Borrower’s and its Domestic Subsidiaries’ now
owned or hereafter acquired books and records, including all of their ledgers, Records indicating, summarizing, or evidencing their assets (including the Collateral) or liabilities, and all of Administrative Borrower’s and its Domestic
Subsidiaries’ Records relating to their business 

  

 LOAN AND SECURITY AGREEMENT – Page 3 

 
operations or financial condition, and all computer programs, disk or tape files, printouts, runs, or other computer prepared information. 
  
 “Borrower” and “Borrowers”
have the respective meanings set forth in the preamble to this Agreement. 
  
 “Borrower Collateral” means all of each Borrower’s now owned or hereafter acquired right, title, and interest in and to each of the following: 
  
 (a) all of its Accounts, 
  
 (b) all of its Books, 
  
 (c) all of its commercial tort claims, 
  
 (d) all of its Deposit Accounts, 
  
 (e) all of its Equipment, 
  
 (f) all of its General Intangibles, 
  
 (g) all of its Inventory, 
  
 (h) all of its Investment Property (including all of its
securities and Securities Accounts), 
  
 (i) all
of its Negotiable Collateral, 
  
 (j) money or
other assets of such Borrower that now or hereafter come into the possession, custody, or control of the Lender, and 
  
 (k) all of the Proceeds of any of the foregoing. 
  

“Borrowing” means a borrowing hereunder consisting of Advances. 
  
 “Borrowing Base” has the meaning set forth
in Section 2.1(b). 
  
 “Business
Day” means any day that is not a Saturday, Sunday, or other day on which banks are authorized or required to close in the State of California, except that, if a determination of a Business Day shall relate to a LIBOR Rate Loan, the term
“Business Day” also shall exclude any day on which banks are closed for dealings in Dollar deposits in the London interbank market. 
  
 “Capital Expenditures” means, with respect to any Person for any period, the sum of (a) the aggregate of all expenditures
by such Person and its Domestic Subsidiaries during such period that are capital expenditures as determined in accordance with GAAP, whether such expenditures are paid in cash or financed, and (b) to the extent not covered by clause (a), the
aggregate of all expenditures by such Person and its Domestic Subsidiaries during such period to 

  

 LOAN AND SECURITY AGREEMENT – Page 4 

 
acquire by purchase or otherwise the business or capitalized assets of, or the capital Stock of, any other Person. 
  
 “Capital Lease” means a lease that is
required to be capitalized for financial reporting purposes in accordance with GAAP. 
  
 “Capitalized Lease Obligation” means that portion of the obligations under a Capital Lease that is required to be
capitalized in accordance with GAAP. 
  
 “Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or issued by any agency thereof and backed by the full faith and credit of the United States, in each case
maturing within 1 year from the date of acquisition thereof, (b) marketable direct obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof maturing within 1 year from
the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from either Standard & Poor’s Rating Group (“S&P”) or Moody’s Investor Service, Inc.
(“Moody’s”), (c) commercial paper maturing no more than 270 days from the date of creation thereof and, at the time of acquisition, having a rating of at least A-1, from S&P or at least P-1 from Moody’s, (d)
certificates of deposit or bankers’ acceptances maturing within 1 year from the date of acquisition thereof issued by any bank organized under the laws of the United States or any state thereof having at the date of acquisition thereof combined
capital and surplus of not less than $250,000,000, (e) demand Deposit Accounts maintained with any bank organized under the laws of the United States or any state thereof, and (f) Investments in money market funds established by Federally insured
institutions or registered mutual funds substantially all of whose assets are invested in the types of assets described in clauses (a) through (e) above. 
  
 “Cash Management Account” has the meaning set forth in Section 2.7(a). 
  
 “Cash Management Agreements” means those
certain cash management agreements, in form and substance satisfactory to Lender in the exercise of its Permitted Discretion, each of which is among Administrative Borrower or one of its Domestic Subsidiaries, Lender, and one of the Cash Management
Banks. 
  
 “Cash Management
Bank” has the meaning set forth in Section 2.7(a). 
  
 “Cash Operating Income” means, for Borrowers on a consolidated basis (exclusive of amounts attributable to non-U.S. operations), cash revenue (derived primarily from seismic data acquisition revenue,
cash library licensing revenue, and solutions revenue, as such components of cash revenue are identified, measured, and set forth in the financial statements delivered to Lender pursuant to Section 6.3, below), less cost of sales and selling,
general and administrative expenses (in all cases, before depreciation and amortization expense, and further excluding the pre-petition restructuring charges that were included in selling, general, and administrative expenses in 2003), in each
instance, determined in accordance with GAAP. For purpose of determining Cash Operating Income, the following sources of revenue specifically are excluded: (i) non-monetary seismic exchanges, (ii) selections of seismic data, and (iii) deferral of
revenue. 
  

 LOAN AND SECURITY AGREEMENT – Page 5 

 “Change of Control” means that (a) any “person” or
“group” (within the meaning of Sections 13(d) and 14(d) of the Exchange Act), becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50.1%, or more, of the Stock of Parent having the
right to vote for the election of members of the Board of Directors, or (b) a majority of the members of the Board of Directors do not constitute Continuing Directors, or (c) any Borrower ceases to own, directly or indirectly, and control that
percentage of the outstanding Stock of each of its Domestic Subsidiaries, which owns assets in excess of $250,000, that such Borrower owns as of the Closing Date. 
  
 “Chapter 11 Case” means the jointly administered case under chapter 11 of the Bankruptcy
Code commenced by the Debtors in the Bankruptcy Court, identified as In re: Seitel, Inc., et al., Debtors, Case No. 03-12227 (PJW) (Jointly Administered). 
  
 “Claim” means a claim (as defined in section 101(5) of the Bankruptcy Code) against any of the Debtors, including, but
not limited to: (a) any right to payment from the Debtors, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured, or (b) any
right to an equitable remedy for breach of performance if such performance gives rise to a right of payment from the Debtors, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed,
undisputed, secured or unsecured. 
  
 “Class” means a classification of Claims or Equity Interests as set forth in Article III of the Plan. 
  
 “Closing Date” means the first date on which both (a) the Loan Documents are executed by the Borrowers, the Guarantors,
and any other applicable third party and (b) each of the conditions precedent set forth in Section 3.1 have been satisfied or have been waived in writing by Lender. 
  
 “Closing Date Business Plan” means the set of Projections of Borrowers for the period
through December 31, 2004. 
  
 “Closing
Fee” shall have the meaning set forth in Section 2.11(a). 
  
 “Code” means the California Uniform Commercial Code, as in effect from time to time. 
  
 “Collateral” means all assets and interests in assets and proceeds thereof now owned or hereafter acquired by
Administrative Borrower or its Domestic Subsidiaries in or upon which a Lien is granted under any of the Loan Documents. 
  
 “Collateral Access Agreement” means a landlord waiver, bailee letter, or acknowledgement agreement of any lessor,
warehouseman, processor, consignee, or other Person in possession of, having a Lien upon, or having rights or interests in any significant amount of Administrative Borrower’s or its Domestic Subsidiaries’ Books, Equipment or Inventory, in
each case, in form and substance satisfactory to Lender in the exercise of its Permitted Discretion. 
  

 LOAN AND SECURITY AGREEMENT – Page 6 

 “Collections” means all cash, checks, notes, instruments, and
other items of payment (including receivables, insurance proceeds, proceeds of cash sales, rental proceeds, proceeds of Collateral, and tax refunds). 
  
 “Commercial Tort Claim Assignment” has the meaning set forth in Section 4.4(b). 
  
 “Committee” means the Official Committee of
Equity Security Holders appointed in the Chapter 11 Case. 
  
 “Compliance Certificate” means a certificate substantially in the form of Exhibit C-1 delivered by the chief financial officer or the chief accounting officer (in such capacity, and not
individually) of Parent to Lender. 
  
 “Confirmation Date” means March 18, 2004, the date upon which the Confirmation Order was entered on the docket of the Bankruptcy Court in the Chapter 11 Case within the meaning of Bankruptcy Rules 5003 and 9021. 

 
 “Confirmation Order” means the Final
Order of the Bankruptcy Court confirming the Plan pursuant to Section 1129 of the Bankruptcy Code. 
  
 “Continuing Director” means (a) any member of the Board of Directors who was a director (or comparable manager) of Parent
on the Closing Date, and (b) any individual who becomes a member of the Board of Directors after the Closing Date if such individual was appointed or nominated for election to the Board of Directors by a majority of the Continuing Directors, but
excluding any such individual originally proposed for election in opposition to the Board of Directors in office at the Closing Date in an actual or threatened election contest relating to the election of the directors (or comparable managers) of
Parent and whose initial assumption of office resulted from such contest or the settlement thereof. 
  
 “Control Agreement” means a control agreement, in form and substance satisfactory to Lender in the exercise of its
Permitted Discretion, executed and delivered by Administrative Borrower or one of its Domestic Subsidiaries, Lender, and the applicable securities intermediary with respect to a Securities Account or a bank with respect to a Deposit Account.

  
 “Daily Balance” means, as of
any date of determination and with respect to any Obligation, the amount of such Obligation owed at the end of such day. 
  
 “Debtors” means the debtors in the Chapter 11 Case, consisting of Seitel, Inc. and various direct and indirect
subsidiaries. 
  
 “Default”
means an event, condition, or default that, with the giving of notice, the passage of time, or both, would be an Event of Default. 
  
 “Deposit Account” means any deposit account (as that term is defined in the Code), including any of Borrowers’ lock
box accounts, collection accounts, deposit accounts, 

  

 LOAN AND SECURITY AGREEMENT – Page 7 

 
concentration accounts, and asset sale accounts containing cash proceeds of the Collateral or Advances made to the Borrowers, all funds now or hereafter held
therein, and all present or future claims, demands, and choses in action in respect thereof, provided, however, that the term shall not include payroll accounts, medical disbursement accounts, the Travelers’ Collateral Account, or
the High Yield Note Account. 
  
 “Designated Account” means the Deposit Account of Administrative Borrower identified on Schedule D-1. 
  
 “Designated Account Bank” has the meaning ascribed thereto on Schedule D-1. 
  
 “DIP Financing Agreement” means the Loan
and Security Agreement dated as of June 24, 2003, by and among Borrowers and Lender, as amended, modified, supplemented or restated from time to time. 
  
 “Disbursement Letter” means an instructional letter executed and delivered by Administrative Borrower to Lender regarding
the extensions of credit to be made on the Closing Date, the form and substance of which is satisfactory to Lender. 
  
 “Disclosure Statement” means the Third Amended Disclosure Statement For Debtors’ Third Amended Joint Plan Of
Reorganization Under Chapter 11 Of the Bankruptcy Code, filed by the Debtors in the Chapter 11 Case. 
  
 “Dollars” or “$” means United States dollars. 
  
 “Domestic Subsidiary” means those
Subsidiaries of the Parent and the other Borrowers that are organized under the laws of a jurisdiction within the continental United States of America. The Domestic Subsidiaries, as of the Closing Date, are set forth on Exhibit D attached
hereto. 
  
 “Effective Date”
means the first Business Day after the Confirmation Date (or such date thereafter as is mutually acceptable to the Borrowers, the Committee and the Funding Guarantors) on which (a) no stay of the Confirmation Order is in effect, and (b) all
conditions specified in Section 9.1 of the Plan have been satisfied or waived pursuant to Section 9.2 of the Plan. 
  
 “Eligible Accounts” means those Accounts created by one of Borrowers in the ordinary course of its business, that arise
out of its sale of goods, lease or licensing of data, or rendition of services, that comply with each of the representations and warranties respecting Eligible Accounts made in the Loan Documents, and that are not excluded as ineligible by virtue of
one or more of the excluding criteria set forth below; provided, however, that such criteria may be revised from time to time by Lender in Lender’s Permitted Discretion to address the results of any audit performed by Lender from
time to time after the Closing Date. In determining the amount to be included, Eligible Accounts shall be calculated net of customer deposits and unapplied cash. Eligible Accounts shall not include the following: 
  
 (a) Accounts that the Account Debtor has failed to pay
within 90 days of original invoice date, 
  

 LOAN AND SECURITY AGREEMENT – Page 8 

 (b) Accounts owed by an Account Debtor (or its Affiliates) where 50% or more in dollar
amount of the aggregate Accounts owed by that Account Debtor and its Affiliates are deemed ineligible under clause (a) above, 
  
 (c) Accounts with respect to which the Account Debtor is an Affiliate of any Borrower or an employee or agent of any Borrower or any
Affiliate of any Borrower, 
  
 (d) Accounts
arising in a transaction wherein goods are placed on consignment or are sold pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and hold, or any other similar terms by reason of which the payment by the Account Debtor may be
conditional, 
  
 (e) Accounts that are not
payable in Dollars, 
  
 (f) Accounts with respect
to which the Account Debtor either (i) does not maintain its chief executive office in the United States, or (ii) is not organized under the laws of the United States or any State or Commonwealth thereof, or (iii) is the government of any foreign
country or sovereign state, or of any state, province, municipality, or other political subdivision thereof, or of any department, agency, public corporation, or other instrumentality thereof, unless (y) the Account is supported by an irrevocable
letter of credit satisfactory to Lender (as to form, substance, and issuer or domestic confirming bank) that has been delivered to Lender and is directly drawable by Lender, or (z) the Account is covered by credit insurance in form, substance, and
amount, and by an insurer, satisfactory to Lender, 
  
 (g) Accounts with respect to which the Account Debtor is either (i) the United States or any department, agency, or instrumentality of the United States (exclusive, however, of Accounts with respect to which the applicable Borrower has
complied, to the reasonable satisfaction of Lender, with the Assignment of Claims Act, 31 USC § 3727), or (ii) any state of the United States (exclusive, however, of Accounts with respect to which the applicable Borrower has complied, to the
satisfaction of Lender in the exercise of its Permitted Discretion, with all applicable state assignment-of-claims statutes), 
  
 (h) Accounts with respect to which the Account Debtor is a creditor of any Borrower, has or has asserted a right of setoff, or has
disputed its obligation to pay all or any portion of the Account, but only to the extent of the amount of such claim, right of setoff, or dispute, 
  
 (i) Accounts with respect to an Account Debtor whose total obligations owing to Borrowers exceed 10% (such percentage as applied to a
particular Account Debtor being subject to reduction by Lender in its Permitted Discretion if the creditworthiness of such Account Debtor deteriorates) of all Eligible Accounts, to the extent of the obligations owing by such Account Debtor in excess
of such percentage; provided, however, that, in each case, the amount of Eligible Accounts that are excluded because they exceed the foregoing percentage 

  

 LOAN AND SECURITY AGREEMENT – Page 9 

 
shall be determined by Lender based on all of the otherwise Eligible Accounts prior to giving effect to any eliminations based upon the foregoing
concentration limit, 
  
 (j) Accounts with
respect to which the Account Debtor is subject to an Insolvency Proceeding, is not Solvent, has gone out of business, or as to which a Borrower has received notice of an imminent Insolvency Proceeding or a material impairment of the financial
condition of such Account Debtor, 
  
 (k)
Accounts with respect to which the Account Debtor is located in a state or jurisdiction (e.g., New Jersey, Minnesota, and West Virginia) that requires, as a condition to access to the courts of such jurisdiction, that a creditor qualify to transact
business, file a business activities report or other report or form, or take one or more other actions, unless the applicable Borrower has so qualified, filed such reports or forms, or taken such actions (and, in each case, paid any required fees or
other charges), except to the extent that the applicable Borrower may qualify subsequently as a foreign entity authorized to transact business in such state or jurisdiction and gain access to such courts, without incurring any cost or penalty viewed
by Lender to be significant in amount, and such later qualification enables access to such courts to enforce payment of such Account, 
  
 (l) Accounts, the collection of which, Lender, in its Permitted Discretion, believes to be doubtful by reason of the Account Debtor’s
financial condition, 
  
 (m) Accounts that are
not subject to a valid and perfected first priority Lender’s Lien, 
  
 (n) Except for Accounts on which the Account Debtor is obligated to pay regardless of the failure of any subsequent performance, Accounts with respect to which (i) the goods giving rise to such Account have not been
shipped and billed to the Account Debtor, or (ii) the services giving rise to such Account have not been performed and billed to the Account Debtor, or 
  
 (o) Except for Accounts on which the Account Debtor is obligated to pay regardless of the failure of any subsequent performance, Accounts
that represent the right to receive progress payments or other advance billings that are due prior to the completion of performance by the applicable Borrower of the subject contract for goods or services. 
  
 “Eligible Short-Term Accounts” means those
Eligible Accounts that are not Eligible Long-Term Accounts and that are less than 90 days from original invoice date. 
  
 “Eligible Long-Term Accounts” means those Eligible Accounts that are contracts with terms providing for periods of
performance from 30 days to 18 months, where the Account Debtor is required to make specific payments over the term of the contract. 
  
 “Eligible Transferee” means (a) a commercial bank organized under the laws of the United States, or any state thereof,
and having total assets in excess of $250,000,000, (b) a commercial bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and Development or a political subdivision of any such 

  

 LOAN AND SECURITY AGREEMENT – Page 10 

 
country and which has total assets in excess of $250,000,000, provided that such bank is acting through a branch or agency located in the United States, (c)
a finance company, insurance company, or other financial institution or fund that is engaged in making, purchasing, or otherwise investing in commercial loans in the ordinary course of its business and having (together with its Affiliates) total
assets in excess of $250,000,000, (d) any Affiliate (other than individuals) of Lender, (e) so long as no Event of Default has occurred and is continuing, any other Person approved by Administrative Borrower (which approval of Administrative
Borrower shall not be unreasonably withheld, delayed, or conditioned), and (f) during the continuation of an Event of Default, any other Person approved by Lender. 
  
 “Enterprise Value” means the value of Borrowers, on a consolidated and debt-free basis when
sold on a non-marketable, controlling basis, in a less than optimal time period. “Less than optimal time period” is defined as 6 to 12 months. 
  
 “Environmental Actions” means any complaint, summons, citation, notice, directive, order, claim, litigation,
investigation, judicial or administrative proceeding, judgment, letter, or other communication from any Governmental Authority, or any third party involving violations of Environmental Laws or releases of Hazardous Materials (a) from any assets,
properties, or businesses of any Borrower, any Domestic Subsidiary of a Borrower, or any of their predecessors in interest, (b) from adjoining properties or businesses to or onto any property occupied by any Borrower or Domestic Subsidiary, or (c)
from or onto any facilities which received Hazardous Materials generated by any Borrower, any Domestic Subsidiary of a Borrower, or any of their predecessors in interest. 
  
 “Environmental Law” means any applicable federal, state, provincial, foreign or local
statute, law, rule, regulation, ordinance, code, binding and enforceable guideline, binding and enforceable written policy or rule of common law now or hereafter in effect and in each case as amended, or any judicial or administrative interpretation
thereof, including any judicial or administrative order, consent decree or judgment, to the extent binding on any Borrower or any Domestic Subsidiary of a Borrower, relating to the environment, employee health and safety, or Hazardous Materials,
including CERCLA; RCRA; the Federal Water Pollution Control Act, 33 USC § 1251 et seq.; the Toxic Substances Control Act, 15 USC, § 2601 et seq.; the Clean Air Act, 42 USC § 7401 et seq.; the
Safe Drinking Water Act, 42 USC. § 3803 et seq.; the Oil Pollution Act of 1990, 33 USC. § 2701 et seq.; the Emergency Planning and the Community Right-to-Know Act of 1986, 42 USC. § 11001 et
seq.; the Hazardous Material Transportation Act, 49 USC § 1801 et seq.; and the Occupational Safety and Health Act, 29 USC. §651 et seq. (to the extent it regulates occupational exposure to Hazardous
Materials); any state and local or foreign counterparts or equivalents, in each case as amended from time to time. 
  
 “Environmental Liabilities and Costs” means all liabilities, monetary obligations, Remedial Actions, losses, damages,
punitive damages, consequential damages, treble damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts, or consultants and costs of investigation and feasibility studies), fines, penalties,
sanctions, and interest incurred as a result of any claim or demand by any Governmental Authority or any third party, and which relate to any Environmental Action. 
  

 LOAN AND SECURITY AGREEMENT – Page 11 

 “Environmental Lien” means any Lien in favor of any Governmental
Authority for Environmental Liabilities and Costs. 
  
 “Equipment” means equipment (as that term is defined in the Code) and includes machinery, machine tools, motors, furniture, furnishings, fixtures, vehicles (including motor vehicles and trailers), computer hardware, tools,
parts, and goods (other than consumer goods, farm products, or Inventory), wherever located, including all attachments, accessories, accessions, replacements, substitutions, additions, and improvements to any of the foregoing. 
  
 “Equity Interest” means (a) all rights
(including unpaid dividends) arising from any equity security (as defined in section 101(16) of the Bankruptcy Code) of the Borrowers including Old Seitel Common Stock or any Old Subsidiary Equity Interest, and (b) the legal, equitable, contractual
or other rights of any person or entity to acquire or receive any of the foregoing or any right thereto or interest therein, including, but not limited to, all issued, unissued, authorized or outstanding shares of Old Seitel Common Stock, and any
options, rights and warrants therefor. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute thereto. 
  
 “ERISA Affiliate” means (a) any Person subject to ERISA whose employees are treated as employed by the same employer as
the employees of a Borrower or a Domestic Subsidiary of a Borrower under IRC Section 414(b), (b) any trade or business subject to ERISA whose employees are treated as employed by the same employer as the employees of a Borrower or a Domestic
Subsidiary of a Borrower under IRC Section 414(c), (c) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any organization subject to ERISA that is a member of an affiliated service group of which a Borrower or a Domestic
Subsidiary of a Borrower is a member under IRC Section 414(m), or (d) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any Person subject to ERISA that is a party to an arrangement with a Borrower or a Domestic Subsidiary of a
Borrower and whose employees are aggregated with the employees of a Borrower or a Domestic Subsidiary of a Borrower under IRC Section 414(o). 
  
 “Event of Default” has the meaning set forth in Section 8. 
  
 “Excess Availability” means, as of any date
of determination, the amount equal to Availability minus the aggregate amount, if any, of all trade payables of Borrowers and their Domestic Subsidiaries aged in excess of their historical levels with respect thereto and all book overdrafts
of Borrowers and their Domestic Subsidiaries in excess of their historical practices with respect thereto, in each case as determined by Lender in its Permitted Discretion. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as in effect from time to time.

  
 “Existing Lender” means
Harney Investment Trust, an affiliate of Berkshire Hathaway Inc. and the assignee of Heller Financial Leasing, Inc. 
  

 LOAN AND SECURITY AGREEMENT – Page 12 

 “FEIN” means Federal Employer Identification Number. 
  
 “Field Examination Fee” shall have the
meaning set forth in Section 2.11(d). 
  
 “Final Order” means an order issued by the Bankruptcy Court or another court of competent jurisdiction: (a) which has not been reversed, vacated, stayed or amended (unless otherwise consented to by Lender); (b) as to which
the time to appeal or to seek certiorari has expired; and (c) as to which no appeal or petition for certiorari has been timely taken or as to which any appeal that has been or may be taken or any petition for certiorari that has been or may be filed
has been resolved by the highest court to which the order was appealed or from which certiorari was sought (unless otherwise consented to by Lender). 
  
 “Funding Agreement” means that certain commitment letter (including all exhibits and attachments thereto), dated January
5, 2004, between the Debtors and the Funding Guarantors under which the Funding Guarantors, upon the terms and subject to the conditions therein, shall fund the Funding Guarantee. 
  
 “Funding Date” means the date on which a Borrowing occurs. 
  
 “Funding Guarantee” means the obligation of
the Funding Guarantors in accordance with, and subject to the terms and conditions of, the Funding Agreement, to purchase up to $75 million of the Offered Shares. 
  
 “Funding Guarantors” means, collectively, HBV and each other person or entity to which HBV
assigns an interest in the Funding Agreement, in accordance with and as permitted by the Funding Agreement. 
  
 “Funding Losses” has the meaning set forth in Section 2.13(b)(ii). 
  
 “GAAP” means generally accepted accounting
principles as in effect from time to time in the United States, consistently applied. 
  
 “General Intangibles” means general intangibles (as that term is defined in the Code), including payment intangibles,
contract rights, rights to payment, rights arising under common law, statutes, or regulations, choses or things in action, goodwill, patents, trade names, trade secrets, trademarks, servicemarks, copyrights, blueprints, drawings, purchase orders,
customer lists, monies due or recoverable from pension funds, route lists, rights to payment and other rights under any royalty or licensing agreements, infringement claims, computer programs, information contained on computer disks or tapes,
software, seismic data (to the extent not characterized as inventory), literature, reports, catalogs, insurance premium rebates, tax refunds, and tax refund claims, and any and all supporting obligations in respect thereof, and any other personal
property other than Accounts, Deposit Accounts, goods, Investment Property, and Negotiable Collateral. 
  
 “Governing Documents” means, with respect to any Person, the certificate or articles of incorporation, by-laws, or other
organizational documents of such Person. 
  

 LOAN AND SECURITY AGREEMENT – Page 13 

 “Governmental Authority” means any federal, state, local, or other
governmental or administrative body, instrumentality, department, or agency or any court, tribunal, administrative hearing body, commission, or other similar dispute-resolving panel or body acting under the authority of government. 
  
 “Guarantor” means each Domestic Subsidiary
that is not a Borrower. 
  
 “Guarantor
Security Agreement” means one or more security agreements executed and delivered by each Guarantor in favor of Lender, in each case, in form and substance satisfactory to Lender in the exercise of its Permitted Discretion. 
  
 “Guarantor Warrants” means those certain
warrants issued to the Funding Guarantors granting to them the right to purchase shares of Reorganized Seitel Common Stock, as provided in Section 5.9 of the Plan. 
  
 “Guaranty” means that certain general continuing guaranty executed and delivered by each
Guarantor in favor of Lender and the Bank Product Providers, in form and substance satisfactory to Lender in the exercise of its Permitted Discretion. 
  
 “Hazardous Materials” means (a) substances that are defined or listed in, or otherwise classified pursuant to, any
applicable laws or regulations as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances,” or any other formulation intended to define, list, or classify substances by reason of
deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity”, (b) oil, petroleum, or petroleum derived substances, natural gas, natural gas liquids, synthetic gas, drilling
fluids, produced waters, and other wastes associated with the exploration, development, or production of crude oil, natural gas, or geothermal resources, (c) any flammable substances or explosives or any radioactive materials, and (d) asbestos in
any form or electrical equipment that contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million. 
  
 “HBV” means Mellon HBV Alternative Strategies LLC or its designees. 
  
 “Hedge Agreement” means any and all
agreements or documents now existing or hereafter entered into by any Borrower that provide for an interest rate, credit, commodity or equity swap, cap, floor, collar, forward foreign exchange transaction, currency swap, cross currency rate swap,
currency option, or any combination of, or option with respect to, these or similar transactions, for the purpose of hedging any Borrower’s exposure to fluctuations in interest or exchange rates, loan, credit exchange, security or currency
valuations or commodity prices. 
  
 “High
Yield Note Account” means the escrow account(s) in which the proceeds of the High Yield Offering will be held pending the application of such proceeds to Claims and other obligations under the Plan, or the return thereof to the subject
investors in the event the High Yield Offering is not consummated. 
  

 LOAN AND SECURITY AGREEMENT – Page 14 

 “High Yield Offering” means that certain private placement by Parent
conducted pursuant to Section 4(2) of the Securities Act of Senior Notes for resale to “qualified institutional buyers” pursuant to Rule 144A under the Securities Act, with net proceeds to Parent of not less than $180 million. 

 
 “Indebtedness” means (a) all obligations
for borrowed money, (b) all obligations evidenced by bonds, debentures, notes, or other similar instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances, interest rate swaps, or other financial
products, (c) all obligations as a lessee under Capital Leases, (d) all obligations or liabilities of others secured by a Lien on any asset of a Person or its Domestic Subsidiaries, irrespective of whether such obligation or liability is assumed,
(e) all obligations to pay the deferred purchase price of assets (other than trade payables incurred in the ordinary course of business and repayable in accordance with customary trade practices), (f) all obligations owing under Hedge Agreements,
and (g) any obligation guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted, or sold with recourse) any obligation of any other Person that constitutes Indebtedness under any of clauses (a)
through (f) above. 
  
 “Indemnified
Liabilities” has the meaning set forth in Section 11.3. 
  
 “Indemnified Person” has the meaning set forth in Section 11.3. 
  
 “Insolvency Proceeding” means any proceeding commenced by or against any Person under any provision of the Bankruptcy
Code or under any other state or federal bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking reorganization, arrangement, or
other similar relief. 
  
 “Intercompany
Subordination Agreement” means a subordination agreement executed and delivered by Borrowers and each of their Domestic Subsidiaries and Lender, the form and substance of which is satisfactory to Lender in the exercise of its Permitted
Discretion. 
  
 “Interest
Expense” means, for any period, the aggregate of the interest expense of Parent and its Domestic Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP. 
  
 “Interest Period” means, with respect to
each LIBOR Rate Loan, a period commencing on the date of the making of such LIBOR Rate Loan (or the continuation of a LIBOR Rate Loan or the conversion of a Base Rate Loan to a LIBOR Rate Loan) and ending 1, 2, or 3 months thereafter;
provided, however, that (a) if any Interest Period would end on a day that is not a Business Day, such Interest Period shall be extended (subject to clauses (c)-(e) below) to the next succeeding Business Day, (b) interest shall accrue
at the applicable rate based upon the LIBOR Rate from and including the first day of each Interest Period to, but excluding, the day on which any Interest Period expires, (c) any Interest Period that would end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day, (d) with respect to an Interest Period that begins on
the last 

  

 LOAN AND SECURITY AGREEMENT – Page 15 

 
Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period),
the Interest Period shall end on the last Business Day of the calendar month that is 1, 2, or 3 months after the date on which the Interest Period began, as applicable, and (e) Borrowers (or Administrative Borrower on behalf thereof) may not elect
an Interest Period which will end after the Maturity Date. 
  
 “Inventory” means inventory (as that term is defined in the Code) (including seismic data to the extent the same is characterized as a good). 
  
 “Investment” means, with respect to any
Person, any investment by such Person in any other Person (including Affiliates) in the form of loans, guarantees, advances, or capital contributions (excluding (a) commission, travel, and similar advances to officers and employees of such Person
made in the ordinary course of business, and (b) bona fide Accounts arising in the ordinary course of business consistent with past practices), purchases or other acquisitions of Indebtedness, Stock, or all or substantially all of the assets
of such other Person (or of any division or business line of such other Person), and any other items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP. 
  
 “Investment Property” means investment
property (as that term is defined in the Code), and any and all supporting obligations in respect thereof. 
  
 “IRC” means the Internal Revenue Code of 1986, as in effect from time to time. 
  
 “L/C” has the meaning set forth in
Section 2.12(a). 
  
 “L/C
Disbursement” means a payment made by Lender pursuant to a Letter of Credit. 
  
 “L/C Undertaking” has the meaning set forth in Section 2.12(a). 
  
 “Lender” has the meaning set forth in the
preamble to this Agreement. 
  
 “Lender
Expenses” means all (a) costs or expenses (including taxes, and insurance premiums) required to be paid by a Borrower or its Domestic Subsidiaries under any of the Loan Documents that are paid, advanced, or incurred by Lender, (b) fees or
charges paid or incurred by Lender in connection with Lender’s transactions with Borrowers or their Domestic Subsidiaries, including, fees or charges for photocopying, notarization, couriers and messengers, telecommunication, public record
searches (including tax lien, litigation, and UCC searches and including searches with the patent and trademark office, the copyright office, or the department of motor vehicles), filing, recording, publication, appraisal (including periodic
collateral appraisals or business valuations to the extent of the fees and charges (and up to the amount of any limitation) contained in this Agreement, real estate surveys, real estate title policies and endorsements, and environmental audits, but
excluding Lender’s normal overhead expenses, (c) costs and expenses incurred by Lender in the disbursement of funds to or for the account of Borrowers (by wire transfer or otherwise), (d) charges paid or incurred by Lender resulting from the
dishonor of checks, (e) reasonable costs and expenses paid or incurred by Lender to correct any default or enforce any provision of the Loan Documents, or in gaining 

  

 LOAN AND SECURITY AGREEMENT – Page 16 

 
possession of, maintaining, handling, preserving, storing, shipping, selling, preparing for sale, or advertising to sell the Collateral, or any portion
thereof, irrespective of whether a sale is consummated, (f) audit fees and expenses of Lender related to audit examinations of the Books to the extent of the fees and charges (and up to the amount of any limitation) contained in this Agreement, (g)
reasonable costs and expenses of third party claims or any other suit paid or incurred by Lender in enforcing or defending the Loan Documents or in connection with the transactions contemplated by the Loan Documents or Lender’s relationship
with any Borrower or any Domestic Subsidiary of a Borrower, (h) Lender’s reasonable costs and expenses (including attorneys’ fees) incurred in advising, structuring, drafting, reviewing, administering, syndicating, or amending the Loan
Documents, but excluding Lender’s normal overhead expenses, and (i) Lender’s reasonable costs and expenses (including attorneys, accountants, consultants, and other advisors fees and expenses) incurred in terminating, enforcing (including
attorneys, accountants, consultants, and other advisors’ fees and expenses incurred in connection with a “workout,” a “restructuring,” or an Insolvency Proceeding concerning any Borrower or any Domestic Subsidiary of a
Borrower or in exercising rights or remedies under the Loan Documents), or defending the Loan Documents, irrespective of whether suit is brought, or in taking any Remedial Action concerning the Collateral. 
  
 “Lender-Related Person” means Lender,
together with its Affiliates, officers, directors, employees, attorneys, and agents. 
  
 “Lender’s Account” means the account identified on Schedule L-1. 
  
 “Lender’s Liens” means the Liens
granted by Borrowers or Guarantors to Lender under this Agreement or the other Loan Documents. 
  
 “Letter of Credit” means an L/C or an L/C Undertaking, as the context requires. 
  
 “Letter of Credit Usage” means, as of any
date of determination, the aggregate undrawn amount of all outstanding Letters of Credit. 
  
 “LIBOR Deadline” has the meaning set forth in Section 2.13(b)(i). 
  
 “LIBOR Notice” means a written notice in
the form of Exhibit L-1. 
  
 “LIBOR Option” has the meaning set forth in Section 2.13(a). 
  
 “LIBOR Rate” means, for each Interest Period for each LIBOR Rate Loan, the rate per annum determined by Lender (rounded
upwards, if necessary, to the next 1/100%) by dividing (a) the Base LIBOR Rate for such Interest Period, by (b) 100% minus the Reserve Percentage. The LIBOR Rate shall be adjusted on and as of the effective day of any change in the
Reserve Percentage. 
  
 “LIBOR Rate
Loan” means each portion of an Advance that bears interest at a rate determined by reference to the LIBOR Rate. 
  

 LOAN AND SECURITY AGREEMENT – Page 17 

 “LIBOR Rate Margin” means, with respect to any calendar month, the
number of percentage points set forth below that corresponds to the average daily amount of the outstanding Advances during such month, as determined by Lender, in the exercise of its Permitted Discretion: 
  

			
	 Daily Average Advances

	  	 LIBOR Rate Margin—
 Number of Percentage Points

	 Less than $10,000,000:
	  	2.75
		
	 Equal to or greater than $10,000,000:
	  	3.25

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

  
 “Loan Account” has the
meaning set forth in Section 2.10. 
  
 “Loan Documents” means this Agreement, the Bank Product Agreements, the Cash Management Agreements, the Control Agreements, the Disbursement Letter, the Guarantor Security Agreement, the Guaranty, the Intercompany
Subordination Agreement, the Letters of Credit, the Officers’ Certificate, the Stock Pledge Agreement, the Trademark Security Agreement, any note or notes executed by a Borrower in connection with this Agreement and payable to Lender, and any
other agreement entered into, now or in the future, by any Borrower and Lender in connection with this Agreement. 
  
 “Loan Parties” means each Borrower and each Guarantor. 
  
 “Material Adverse Change” means (a) a material adverse change in the business, prospects,
operations, results of operations, assets, liabilities or condition (financial or otherwise) of Borrowers and their Domestic Subsidiaries, taken as a whole, (b) a material impairment of a Borrower’s or a Domestic Subsidiary’s ability to
perform its obligations under the Loan Documents to which it is a party or of Lender’s ability to enforce the Obligations or realize upon the Collateral, or (c) a material impairment of the enforceability or priority of the Lender’s Liens
with respect to the Collateral as a result of an action or failure to act on the part of a Borrower or a Guarantor. 
  
 “Material Domestic Subsidiary” means each Domestic Subsidiary which is not a Non-Material Domestic Subsidiary.

  

 LOAN AND SECURITY AGREEMENT – Page 18 

 “Maturity Date” has the meaning set forth in Section 3.5.

  
 “Maximum Revolver Amount”
means Thirty Million Dollars ($30,000,000). 
  
 “Negotiable Collateral” means letters of credit, letter of credit rights, instruments, promissory notes, drafts, and chattel paper (including electronic chattel paper and tangible chattel paper), and any and all supporting
obligations in respect thereof. 
  
 “Non-Material Domestic Subsidiary” means each and any Domestic Subsidiary listed on Exhibit E attached hereto, together with such additional Domestic Subsidiaries as may be added hereto from time to time with the
prior written consent of Lender; provided, however, that except for DDD Energy, Inc., any Domestic Subsidiary shall cease to be a Non-Material Domestic Subsidiary in the event that, and at such time as, such Domestic Subsidiary owns
assets having a fair market value in excess of Seventy-Five Thousand Dollars ($75,000.00) (exclusive of assets constituting intercompany receivables, intercompany note payables, and similar intercompany balances). 
  
 “Obligations” means (a) all loans,
Advances, debts, principal, interest (including any interest that, but for the commencement of an Insolvency Proceeding, would have accrued), contingent reimbursement obligations with respect to outstanding Letters of Credit, premiums, liabilities
(including all amounts charged to Borrowers’ Loan Account pursuant hereto), obligations (including indemnification obligations), fees, charges, costs, Lender Expenses (including any fees or expenses that, but for the commencement of an
Insolvency Proceeding, would have accrued), guaranties, covenants, and duties of any kind and description owing by Borrowers to Lender pursuant to or evidenced by the Loan Documents and irrespective of whether for the payment of money, whether
direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all interest not paid when due and all Lender Expenses that Borrowers are required to pay or reimburse by the Loan Documents, by law,
or otherwise, and (b) all Bank Product Obligations. Any reference in this Agreement or in the Loan Documents to the Obligations shall include all extensions, modifications, renewals, or alterations thereof, both prior and subsequent to any
Insolvency Proceeding. 
  
 “Offered
Shares” means the Reorganized Seitel Common Stock issuable upon exercise of the Shareholder Warrants and upon purchase by the Funding Guarantors in accordance with the Funding Guarantee as provided in Article V of the Plan. 
  
 “Offered Shares Registration Statement”
means the registration statement on Form S-1 filed by Parent with the SEC under the Securities Act, which provides for the sale by Parent of the Offered Shares. 
  
 “Officers’ Certificate” means the representations and warranties of officers form
submitted by Lender to Administrative Borrower, together with Borrowers’ completed responses to the inquiries set forth therein, the form and substance of such responses to be satisfactory to Lender. 
  
 “Old Seitel Common Stock” means common
stock, $0.01 par value, of Parent issued and outstanding immediately before the Effective Date. 
  

 LOAN AND SECURITY AGREEMENT – Page 19 

 “Old Subsidiary Equity Interests” means the Equity Interests in each of
the Borrowers other than Parent that were issued and outstanding immediately prior to the Effective Date. 
  
 “Overadvance” has the meaning set forth in Section 2.5. 
  
 “Parent” has the meaning set forth in the
preamble to this Agreement. 
  
 “Participant” has the meaning set forth in Section 14.1(d). 
  
 “Pay-Off Letter” means a letter, in form and substance satisfactory to Lender in the exercise of its Permitted
Discretion, from Existing Lender to Lender respecting the amount necessary to repay in full all of the obligations of Borrowers and Guarantors owing to Existing Lender and obtain a release of all of the Liens existing in favor of Existing Lender in
and to the assets of Borrowers and Guarantors. 
  
 “Permitted Discretion” means a determination made in the exercise of reasonable (from the perspective of a secured asset-based lender) business judgment. 
  
 “Permitted Dispositions” means (a) sales or other dispositions of Equipment that is
substantially worn, damaged, or obsolete in the ordinary course of business, (b) sales of Inventory to buyers in the ordinary course of business (which, in the case of Borrowers, shall include seismic data exchanges consistent with past practice),
(c) the use or transfer of money or Cash Equivalents in a manner that is not prohibited by the terms of this Agreement or the other Loan Documents, and (d) the licensing, on a non-exclusive basis, of seismic data, patents, trademarks, copyrights,
and other intellectual property rights in the ordinary course of business. 
  
 “Permitted Investments” means (a) Investments in cash and Cash Equivalents, (b) Investments in negotiable instruments for collection, (c) advances made in connection with purchases of seismic data,
goods, or services in the ordinary course of business, and (d) Investments received in settlement of amounts due to a Borrower or any Subsidiary of a Borrower effected in the ordinary course of business or owing to a Borrower or any Subsidiary of a
Borrower as a result of Insolvency Proceedings involving an Account Debtor or upon the foreclosure or enforcement of any Lien in favor of a Borrower or any Subsidiary of a Borrower. 
  
 “Permitted Liens” means (a) Liens held by Lender, (b) Liens for unpaid taxes that either
(i) are not yet delinquent, or (ii) do not constitute an Event of Default hereunder and are the subject of Permitted Protests, (c) Liens set forth on Schedule P-1, (d) the interests of lessors under operating leases, (e) purchase money Liens
or the interests of lessors under Capital Leases to the extent that such Liens or interests secure Permitted Purchase Money Indebtedness and so long as such Lien attaches only to the asset purchased or acquired and the proceeds thereof, (f) Liens
arising by operation of law in favor of warehousemen, landlords, carriers, mechanics, materialmen, laborers, or suppliers, incurred in the ordinary course of Borrowers’ business and not in connection with the borrowing of money, and which Liens
either (i) are for sums not yet delinquent, or (ii) are the subject of Permitted Protests, (g) Liens arising from deposits made in connection with obtaining worker’s compensation or other unemployment insurance or in connection with social
security or other such programs, (h) Liens or deposits to secure 

  

 LOAN AND SECURITY AGREEMENT – Page 20 

 
performance of bids, tenders, or leases incurred in the ordinary course of business and not in connection with the borrowing of money, (i) Liens granted as
security for surety or appeal bonds in connection with obtaining such bonds in the ordinary course of business, (j) Liens resulting from any judgment or award that is not an Event of Default hereunder, (k) with respect to any Real Property,
easements, rights of way, and zoning restrictions that do not materially interfere with or impair the use or operation thereof, and (l) the Lien granted to Travelers on the Travelers’ Collateral Account. 
  
 “Permitted Protest” means the right of
Administrative Borrower or any of its Subsidiaries to protest any Lien (other than any Lien that secures the Obligations), taxes (other than payroll taxes or taxes that are the subject of a United States federal tax lien), or rental payment,
provided that (a) a reserve with respect to such obligation is established on the Books in such amount as is required under GAAP, (b) any such protest is instituted promptly and prosecuted diligently by Administrative Borrower or any of its
Subsidiaries, as applicable, in good faith, and (c) Lender is satisfied that, while any such protest is pending, there will be no impairment of the enforceability, validity, or priority of any of the Lender’s Liens. 
  
 “Permitted Purchase Money Indebtedness”
means, as of any date of determination, Purchase Money Indebtedness incurred after the Closing Date in an aggregate principal amount outstanding at any one time not in excess of Two Million Five Hundred Thousand Dollars ($2,500,000). 
  
 “Person” means natural persons,
corporations, limited liability companies, limited partnerships, general partnerships, limited liability partnerships, joint ventures, trusts, land trusts, business trusts, or other organizations, irrespective of whether they are legal entities, and
governments and agencies and political subdivisions thereof. 
  
 “Plan” means the Third Amended Joint Plan of Reorganization Under Chapter 11 of the Bankruptcy Code, filed with the Bankruptcy Court, in the Chapter 11 Case, as such plan of reorganization may be
altered, amended, modified, or supplemented from time to time in accordance with the Bankruptcy Code. 
  
 “Proceeds” means all proceeds (as that term is defined in the Code), including substitutions, replacements, additions,
accessions, proceeds, products to or of any of the Collateral, including, but not limited to, proceeds of insurance covering any of the Collateral, or any portion thereof, and any and all Accounts, General Intangibles, Negotiable Collateral,
Inventory, Equipment, Stock, Real Property, Deposit Accounts, money, or other tangible or intangible property resulting from the sale or other disposition of the Accounts, General Intangibles, Negotiable Collateral, Inventory, Equipment, Stock, Real
Property, Deposit Accounts, or any portion thereof or interest therein and the proceeds thereof. 
  
 “Projections” means Borrower’s forecasted (a) profit and loss statements, and (b) cash flow statements, all prepared
on a consistent basis with Parent’s historical financial statements, together with appropriate supporting details and a statement of underlying assumptions for the Parent’s 2004 fiscal year, all of which are attached hereto as Exhibit
A. In addition, the term “Projections” shall mean and refer to any other forecasted, profit and loss 

  

 LOAN AND SECURITY AGREEMENT – Page 21 

 
statements, and cash flow statements prepared by Borrowers for other fiscal years or periods of time and delivered to Lender pursuant to Section
6.3(d). 
  
 “Purchase Money
Indebtedness” means Indebtedness (other than the Obligations, but including Capitalized Lease Obligations) incurred at the time of, or within 20 days after, the acquisition of any fixed assets for the purpose of financing all or any part of
the acquisition cost thereof. 
  
 “Qualified Cash” means, as of any date of determination, the amount of unrestricted cash and Cash Equivalents of Borrowers and their Domestic Subsidiaries that is in Deposit Accounts or in Securities Accounts, or any
combination thereof, and which such Deposit Account or Securities Account is the subject of a Control Agreement and is maintained by a branch office of the bank or securities intermediary located within the United States. 
  
 “Real Property” means any estates or
ownership interests in real property now owned or hereafter acquired by any Borrower or a Domestic Subsidiary of any Borrower and the improvements thereto. 
  
 “Record” means information that is inscribed on a tangible medium or which is stored in an electronic or other medium and
is retrievable in perceivable form. 
  
 “Remedial Action” means all actions taken to (a) clean up, remove, remediate, contain, treat, monitor, assess, evaluate, or in any way address Hazardous Materials in the indoor or outdoor environment, (b) prevent or
minimize a release or threatened release of Hazardous Materials so they do not migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment, (c) perform any pre-remedial studies, investigations, or
post-remedial operation and maintenance activities, or (d) conduct any other actions authorized by 42 USC § 9601. 
  
 “Reorganized Seitel Common Stock” means the common stock, $0.01 par value, of Parent to be issued by Parent as provided
by Article V of the Plan. 
  
 “Reserve
Percentage” means, on any day, for Lender, the maximum percentage prescribed by the Board of Governors of the Federal Reserve System (or any successor Governmental Authority) for determining the reserve requirements (including any basic,
supplemental, marginal, or emergency reserves) that are in effect on such date with respect to eurocurrency funding (currently referred to as “eurocurrency liabilities”) of Lender, but so long as Lender is not required or directed under
applicable regulations to maintain such reserves, the Reserve Percentage shall be zero. 
  
 “Revolver Usage” means, as of any date of determination, the sum of (a) the then extant amount of outstanding Advances,
plus (b) the then extant amount of the Letter of Credit Usage. 
  
 “Revolving Credit Facility” means the senior secured revolving credit facility described in this Agreement and the Loan Documents. 
  

 LOAN AND SECURITY AGREEMENT – Page 22 

 “SEC” means the United States Securities and Exchange Commission and any
successor thereto. 
  
 “Securities
Account” means a “securities account” as that term is defined in the Code. 
  
 “Securities Act” means the Securities Act of 1933, as in effect from time to time. 
  
 “Senior Indenture” means the indenture
governing the Senior Notes. 
  
 “Senior
Notes” means the not less than $180 million of unsecured fixed term senior notes to be issued pursuant to the High Yield Offering. 
  
 “Servicing Fee” shall have the meaning set forth in Section 2.11(c). 
  
 “Shareholder Warrants” means those certain
warrants to be issued on the Effective Date granting to the Holders of shares of Old Seitel Common Stock the right to purchase shares of Reorganized Seitel Common Stock on the terms and subject to the conditions specified in Article V of the Plan.

  
 “Solvent” means, with
respect to any Person on a particular date, that, at fair valuations, the sum of such Person’s assets is greater than all of such Person’s debts. 
  
 “Stock” means all options, warrants, equity interests, equity participations, or other equivalents (regardless of how
designated) of or in a Person, whether voting or nonvoting, including common stock, preferred stock, or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under
the Exchange Act). 
  
 “Stock Pledge
Agreement” means a stock pledge agreement, in form and substance satisfactory to Lender in the exercise of its Permitted Discretion, executed and delivered by each Borrower that owns Stock of a Domestic Subsidiary of Parent. 
  
 “Subsidiary” of a Person means a
corporation, partnership, limited liability company, or other entity in which that Person directly or indirectly owns or controls the shares of Stock having ordinary voting power to elect a majority of the board of directors (or appoint other
comparable managers) of such corporation, partnership, limited liability company, or other entity. 
  
 “Taxes” has the meaning set forth in Section 16.5. 
  
 “Trademark Security Agreement” means a trademark security agreement executed and delivered
by each Borrower and Lender, the form and substance of which is satisfactory to Lender in the exercise of its Permitted Discretion. 
  
 “Travelers’ Collateral Account” means that certain Smith Barney Collateral Pledge Account (or any replacement
thereof), which has been established to provide cash collateral to Travelers Casualty and Surety Company of America (“Travelers”) in connection 

  

 LOAN AND SECURITY AGREEMENT – Page 23 

 
with the issuance and continuation of surety bonds in an amount not to exceed approximately $160,000, issued by Travelers on behalf of the Borrowers,
pursuant to one or more General Contracts of Indemnity between one or more of the Borrowers, as indemnitor(s), and Travelers, as indemnitee or surety. 
  
 “UCC Filing Authorization Letter” means a letter duly executed by each Borrower and each Guarantor authorizing Lender to
file appropriate financing statements on Form UCC-1 without the signature of such Borrower or Guarantor, as applicable, in such office or offices as may be necessary or, in the exercise of Lender’s Permitted Discretion, desirable to perfect the
security interests purported to be created by the Loan Documents. 
  
 “Underlying Issuer” means a third Person which is the beneficiary of an L/C Undertaking and which has issued a letter of credit at the request of Lender for the benefit of Borrowers. 
  
 “Underlying Letter of Credit” means a
letter of credit that has been issued by an Underlying Issuer. 
  
 “United States” means the United States of America. 
  
 “Unused Line Fee” shall have the meaning set forth in Section 2.11(b). 
  
 “US Seismic Library” shall mean the library
of onshore and offshore seismic data that Seitel Solutions, Ltd. offers for license to oil and gas companies, which library is maintained, warehoused, and stored in Houston, Texas. 
  
 “Voidable Transfer” has the meaning set forth in Section 16.8. 
  
 “Warrant Offering” means the offering of
the Offered Shares issuable upon exercise of the Shareholder Warrants made in accordance with the Plan. 
  
 “Wells Fargo” means Wells Fargo Bank, National Association, a national banking association. 
  
 1.2 Accounting Terms. All accounting terms not specifically
defined herein shall be construed in accordance with GAAP. When used herein, the term “financial statements” shall include the notes and schedules thereto. Whenever the term “Borrowers” or the term “Parent” is used in
respect of a financial covenant or a related definition, it shall be understood to mean Parent and its Domestic Subsidiaries on a consolidated basis unless the context clearly requires otherwise. 
  
 1.3 Code. Any terms used in this Agreement that are defined in
the Code shall be construed and defined as set forth in the Code unless otherwise defined herein. 
  
 1.4 Construction. Unless the context of this Agreement or any other Loan Document clearly requires otherwise, references to the plural
include the singular, references to the singular include the plural, the term “including” is not limiting, and the term “or” has, except 

  

 LOAN AND SECURITY AGREEMENT – Page 24 

 
where otherwise indicated, the inclusive meaning represented by the phrase “and/or.” The words “hereof,” “herein,”
“hereby,” “hereunder,” and similar terms in this Agreement or any other Loan Document refer to this Agreement or such other Loan Document, as the case may be, as a whole and not to any particular provision of this Agreement or
such other Loan Document, as the case may be. Section, subsection, clause, schedule, and exhibit references herein are to this Agreement unless otherwise specified. Any reference in this Agreement or in the other Loan Documents to any agreement,
instrument, or document shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such
alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements set forth herein). Any reference herein to the repayment in full of the Obligations shall mean the repayment in full in
cash of all Obligations other than contingent indemnification Obligations and other than any Bank Product Obligations that, at such time, are allowed by the applicable Bank Product Provider to remain outstanding and are not required to be repaid or
cash collateralized pursuant to the provisions of this Agreement. Any reference herein to any Person shall be construed to include such Person’s successors and assigns. Any requirement of a writing contained herein or in the other Loan
Documents shall be satisfied by the transmission of a Record and any Record transmitted shall constitute a representation and warranty as to the accuracy and completeness of the information contained therein. 
  
 1.5 Schedules and Exhibits. All of the schedules and exhibits
attached to this Agreement shall be deemed incorporated herein by reference. 
  
 2. LOAN AND TERMS OF PAYMENT. 
  
 2.1
Revolver Advances. 
  
 (a) Subject to
the terms and conditions of this Agreement, and during the term of this Agreement, Lender agrees to make advances (“Advances”) to Borrowers in an amount at any one time outstanding not to exceed an amount equal to the lesser
of (i) the Maximum Revolver Amount minus the Letter of Credit Usage, or (ii) the Borrowing Base minus the Letter of Credit Usage. 
  
 (b) “Borrowing Base” means, as of any date of determination, an amount equal to the least of the following:

  
 (1) Thirty Million Dollars ($30,000,000); or

  
 (2) three-quarters (0.75) times the
Borrowers’ Cash Operating Income as measured at any time and from time to time over the most recently ended period of twelve (12) calendar months for which the financial statements required by Section 6.3(b) have been received by Lender;
or 
  
 (3) the sum of the following: 

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

 LOAN AND SECURITY AGREEMENT – Page 25 

 (ii) Fifty percent (50%) of the amount of Eligible Long-Term Accounts;
plus, 
  
 (iii) Twenty Million
Dollars ($20,000,000); 
  
 less, in
all cases, the sum of 
  
 (A) the Bank Product
Reserve (if any), and 
  
 (B) the aggregate
amount of reserves, if any, established by Lender under Section 2.1(c). 
  
 (c) Anything to the contrary in this Section 2.1 notwithstanding, Lender shall have the right to establish reserves in such
amounts, and with respect to such matters, as Lender in its Permitted Discretion shall deem necessary or appropriate, against the Borrowing Base, including, without limitation, reserves with respect to (i) sums that Borrowers or their Subsidiaries
are required to pay (such as taxes, assessments, insurance premiums, or, in the case of leased assets, rents or other amounts payable under such leases) and have failed to pay under any Section of this Agreement or any other Loan Document, and (ii)
amounts owing by Borrowers or their Subsidiaries to any Person to the extent secured by a Lien on, or trust over, any of the Collateral (other than any existing Permitted Lien set forth on Schedule P-1 which is specifically identified thereon
as entitled to have priority over the Lender’s Liens), which Lien or trust, in the Permitted Discretion of Lender, likely would have a priority superior to the Lender’s Liens (such as Liens or trusts in favor of landlords, warehousemen,
carriers, mechanics, materialmen, laborers, or suppliers, or Liens or trusts for ad valorem, excise, sales, or other taxes where given priority under applicable law) in and to such item of the Collateral. 
  
 (d) Lender shall have no obligation to make additional
Advances hereunder to the extent such additional Advances would cause the Revolver Usage to exceed the Maximum Revolver Amount. 
  
 (e) Amounts borrowed pursuant to this Section 2.1 may be repaid and, subject to the terms and conditions of this Agreement,
reborrowed at any time during the term of this Agreement. 
  
 (f) The principal amount of all Advances shall be due and payable in full on the Maturity Date. 
  
 2.2 Intentionally Omitted. 
  
 2.3 Borrowing Procedures and Settlements. 
  
 (a) Procedure for Borrowing. Each Borrowing shall be made by an irrevocable written request by an Authorized Person delivered to
Lender (which notice must be received by Lender no later than 10:00 a.m. (California time) on a Business Day specifying (i) the amount of such Borrowing, and (ii) the requested Funding Date, which shall be a Business Day. At Lender’s election,
in lieu of delivering the above-described written request, any 

  

 LOAN AND SECURITY AGREEMENT – Page 26 

 
Authorized Person may give Lender telephonic notice of such request by the required time. In such circumstances, Borrowers agree that any such telephonic
notice will be confirmed in writing within one (1) Business Day of the giving of such notice and the failure to provide such written confirmation shall not affect the validity of the request. 
  
 (b) Making of Advances. If Lender has received a
timely request for a Borrowing in accordance with the provisions hereof, and subject to the satisfaction of the applicable terms and conditions set forth herein, Lender shall make the proceeds of such Advance available to Borrowers on the applicable
Funding Date by transferring available funds equal to such proceeds to the Designated Account. 
  
 2.4 Payments. 
  
 (a) Payments by Borrowers. Except as otherwise expressly provided herein, all payments by Borrowers shall be made to Lender’s Account for the account of Lender and shall be made in immediately available
funds, no later than 11:00 a.m. (California time) on the date specified herein. Any payment received by Lender later than 11:00 a.m. (California time), shall be deemed to have been received on the following Business Day and any applicable interest
or fee shall continue to accrue until such following Business Day. 
  
 (b) Application of Payments. 
  
 (i) All payments in respect of the Obligations shall be remitted to Lender and all such payments and all proceeds of Collateral received by Lender, shall be applied as follows: 
  
 A. first, to pay any Lender Expenses then due to
Lender under the Loan Documents, until paid in full, 
  
 B. second, to pay any fees then due to Lender under the Loan Documents until paid in full, 
  
 C. third, to pay interest due in respect of Advances until paid in full, 
  
 D. fourth, so long as no Event of Default has
occurred and is continuing, and at Lender’s election (which election Lender hereby agrees will not be made if an Overadvance would be created thereby), to pay amounts then due and owing by Administrative Borrower or its Domestic Subsidiaries in
respect of Bank Products, until paid in full, 
  
 E. fifth, so long as no Event of Default has occurred and is continuing, to pay the principal of all Advances (exclusive of LIBOR Rate Loans prior to the end of the applicable Interest Period if, and only if, Lender charges Borrowers
for a Funding Loss with respect to the prepayment of the LIBOR Rate Loan to which the payment is to be 

  

 LOAN AND SECURITY AGREEMENT – Page 27 

 
applied, except to the extent otherwise agreed by Administrative Borrower in writing) until paid in full, 
  
 F. sixth, if an Event of Default has occurred and is
continuing, ratably (i) to pay the principal of all Advances until paid in full, (ii) to Lender, to be held by Lender as cash collateral in an amount up to 105% of the then extant Letter of Credit Usage until paid in full, and (iii) to Lender, to be
held by Lender, for the benefit of the Bank Products Providers, as cash collateral in an amount up to the amount of the Bank Product Reserve established prior to the occurrence of, and not in contemplation of, the subject Event of Default, until
Borrowers’ and their Domestic Subsidiaries’ obligations in respect of the then extant Bank Products have been paid in full or the cash collateral amount has been exhausted, 
  
 G. seventh, to pay any other Obligations (including the provision of amounts to Lender, to be held
by Lender, for the benefit of the Bank Product Providers, as cash collateral in an amount up to the amount determined by Lender in its Permitted Discretion as the amount necessary to secure Borrowers’ and their Domestic Subsidiaries’
obligations in respect to the then extant Bank Products), and 
  
 H. eighth, to Borrowers (to be wired to the Designated Account) or such other Person entitled thereto under applicable law. 
  
 (ii) In each instance, so long as no Event of Default has occurred and is continuing, this Section
2.4(b) shall not be deemed to apply to any payment by Borrowers specified by Borrowers to be for the payment of specific Obligations then due and payable (or prepayable) under any provision of this Agreement. 
  
 (iii) For purposes of the foregoing, “paid in
full” means payment of all amounts owing under the Loan Documents according to the terms thereof, including loan fees, service fees, professional fees, interest (and specifically including interest accrued after the commencement of any
Insolvency Proceeding), default interest, interest on interest, and expense reimbursements, whether or not any of the foregoing would be allowed or disallowed in whole or in part in any Insolvency Proceeding. 
  
 (iv) In the event of a direct conflict between the priority
provisions of this Section 2.4 and other provisions contained in any other Loan Document, it is the intention of the parties hereto that such priority provisions in such documents shall be read together and construed, to the fullest extent
possible, to be in concert with each other. In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this Section 2.4 shall control and govern. 
  

 LOAN AND SECURITY AGREEMENT – Page 28 

 2.5 Overadvances. If, at any time or for any reason, the amount of Obligations (other than
Bank Product Obligations) owed by Borrowers to Lender pursuant to Section 2.1 or Section 2.12 is greater than either the Dollar or percentage limitations set forth in Section 2.1 or Section 2.12, as applicable (an
“Overadvance”), Borrowers immediately shall pay to Lender, in cash, the amount of such excess, which amount shall be used by Lender to reduce the Obligations in accordance with the priorities set forth in Section 2.4(b). In
addition, Borrowers hereby promise to pay the Obligations (including principal, interest, fees, costs, and expenses) in Dollars in full as and when due and payable under the terms of this Agreement and the other Loan Documents. 
  
 2.6 Interest Rates and Letter of Credit Fee: Rates, Payments, and
Calculations. 
  
 (a) Interest
Rates. Except as provided in clause (c) below, all Obligations (except for undrawn Letters of Credit and except for Bank Product Obligations) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest on the
Daily Balance thereof as follows: (i) if the relevant Obligation is an Advance that is a LIBOR Rate Loan, at a per annum rate equal to the LIBOR Rate plus the LIBOR Rate Margin, and (ii) otherwise, at a per annum rate equal to the Base Rate plus the
Base Rate Margin. 
  
 (b) Letter of Credit
Fee. Borrowers shall pay Lender monthly, in arrears, a Letter of Credit fee (in addition to the charges, commissions, fees, and costs set forth in Sections 2.12(d) and (e)) which shall accrue at a rate equal to three percent (3.00%) per
annum times the original “face” or stated amount of all issued but undrawn Letters of Credit. 
  
 (c) Default Rate. Upon the occurrence and during the continuation of an Event of Default, at the election of Lender, 
  
 (i) all Obligations (except for undrawn Letters of Credit
and except for Bank Product Obligations) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance thereof at a per annum rate equal to three (3) percentage points above the per annum rate
otherwise applicable hereunder, and 
  
 (ii) the
Letter of Credit fee provided for above shall be increased to three (3) percentage points above the per annum rate otherwise applicable hereunder. 
  
 (d) Payment. Except as provided to the contrary in Section 2.13(a), interest and all fees payable hereunder (other than
Letter of Credit fees) shall be due and payable, in arrears, on the first day of each month at any time that Obligations or obligation to extend credit hereunder are outstanding. Letter of Credit fees shall be due and payable, in advance, on the
first day of each month at any time that Obligations or obligation to extend credit hereunder are outstanding. Borrowers hereby authorize Lender, from time to time, without prior notice to Borrowers, to charge such interest and fees, all Lender
Expenses (as and when incurred), the charges, commissions, fees, and costs provided for in Section 2.12(e) (as and when accrued or incurred), the fees and costs provided for in Section 2.11 (as and when accrued or incurred), and all
other payments as and when due and payable under any Loan Document (including any 

  

 LOAN AND SECURITY AGREEMENT – Page 29 

 
amounts due and payable to the Bank Product Providers in respect of Bank Products up to the amount of the then extant Bank Products Reserve) to
Borrowers’ Loan Account, which amounts thereafter shall constitute Advances hereunder and shall accrue interest at the rate then applicable to Advances hereunder. Any interest not paid when due shall be compounded by being charged to
Borrowers’ Loan Account and shall thereafter constitute Advances hereunder and shall accrue interest at the rate then applicable to Advances that are Base Rate Loans hereunder. 
  
 (e) Computation. All interest and fees chargeable under the Loan Documents shall be computed on the
basis of a 360-day year for the actual number of days elapsed. In the event the Base Rate is changed from time to time hereafter, the rates of interest hereunder based upon the Base Rate automatically and immediately shall be increased or decreased
by an amount equal to such change in the Base Rate. 
  
 (f) Intent to Limit Charges to Maximum Lawful Rate. In no event shall the interest rate or rates payable under this Agreement, plus any other amounts paid in connection herewith, exceed the highest rate permissible under any law that
a court of competent jurisdiction shall, in a final determination, deem applicable. Borrowers and Lender, in executing and delivering this Agreement, intend legally to agree upon the rate or rates of interest and manner of payment stated within it;
provided, however, that, anything contained herein to the contrary notwithstanding, if said rate or rates of interest or manner of payment exceeds the maximum allowable under applicable law, then, ipso facto, as of the date of
this Agreement, Borrowers are and shall be liable only for the payment of such maximum as allowed by law, and payment received from or in respect of Borrowers in excess of such legal maximum, whenever received, shall be applied to reduce the
principal balance of the Obligations to the extent of such excess. 
  
 2.7 Cash Management. 
  
 (a) Borrowers shall and shall cause each of their Domestic Subsidiaries to (i) establish and maintain cash management services of a type and on terms satisfactory to Lender at one or more of the banks set forth on Schedule 2.7(a)
(each a “Cash Management Bank”), and shall request in writing and otherwise take such reasonable steps to direct that all of their and their Domestic Subsidiaries’ Account Debtors forward payment of the amounts owed by them
directly to such Cash Management Bank, and (ii) deposit or direct each applicable Cash Management Bank to deposit promptly, and in any event no later than the first Business Day after the date of receipt thereof, all of their Collections (including
those sent directly by their Account Debtors to a Cash Management Bank) into a bank account in Lender’s name (a “Cash Management Account”) at one of the Cash Management Banks. 
  
 (b) Each Cash Management Bank shall establish and maintain
Cash Management Agreements with Lender and Borrowers, in form and substance acceptable to Lender in the exercise of its Permitted Discretion. Each such Cash Management Agreement shall provide, among other things, that (i) all items of payment
deposited in such Cash Management Account and proceeds thereof are held by such Cash Management Bank on behalf of Lender as bailee-in-possession for Lender, (ii) the Cash Management Bank has no rights of setoff or recoupment or any other claim
against the applicable Cash Management Account, other than for payment of its service fees and other charges directly related to the administration of 

  

 LOAN AND SECURITY AGREEMENT – Page 30 

 
such Cash Management Account and for returned checks or other items of payment, and (iii) from and after the first Advance under the Revolving Credit
Facility resulting from a request for a Borrowing for purposes other than payment of Lender Expenses that have been outstanding and unpaid for less than thirty (30) days, the Cash Management Bank will immediately forward by daily sweep all amounts
in the applicable Cash Management Account to the Lender’s Account; the parties intending that requests for Borrowings solely to pay Lender Expenses, prior to other Advances under the Revolving Credit Facility, will not trigger the daily sweep
of amounts in the Cash Management Accounts, unless the Lender Expenses have remained unpaid for thirty (30) days after the due date thereof. 
  
 (c) So long as no Default or Event of Default has occurred and is continuing, Administrative Borrower may amend Schedule 2.7(a) to
add or replace a Cash Management Bank; provided, however, that (i) such prospective Cash Management Bank shall be satisfactory to Lender in the exercise of its Permitted Discretion and Lender shall have consented in writing (which
consent will not, in the exercise of Lender’s Permitted Discretion, be withheld, delayed or conditioned) in advance to the opening of a Cash Management Account with the prospective Cash Management Bank, and (ii) prior to the time of the opening
of such Cash Management Account, a Borrower or a Domestic Subsidiary of a Borrower, as applicable, and such prospective Cash Management Bank shall have executed and delivered to Lender a Cash Management Agreement. A Borrower or a Domestic Subsidiary
of a Borrower, as applicable, shall close any of their Cash Management Accounts (and establish replacement cash management accounts in accordance with the foregoing sentence) promptly and in any event within 30 days of notice from Lender that the
creditworthiness of any Cash Management Bank is no longer acceptable in Lender’s reasonable judgment, or as promptly as practicable and in any event within 60 days of notice from Lender that the operating performance, funds transfer, or
availability procedures or performance of the Cash Management Bank with respect to Cash Management Accounts or Lender’s liability under any Cash Management Agreement with such Cash Management Bank is no longer acceptable in Lender’s
reasonable judgment. 
  
 (d) The Cash Management
Accounts shall be cash collateral accounts, with all cash, checks and similar items of payment in such accounts securing payment of the Obligations, and in which Borrowers hereby grant a Lien to Lender. 
  
 2.8 Crediting Payments. The receipt of any payment item by
Lender (whether from transfers to Lender by the Cash Management Banks pursuant to the Cash Management Agreements or otherwise) shall not be considered a payment on account unless such payment item is a wire transfer of immediately available federal
funds made to the Lender’s Account or unless and until such payment item is honored when presented for payment. Should any payment item not be honored when presented for payment, then Borrowers shall be deemed not to have made such payment and
interest shall be calculated accordingly. Anything to the contrary contained herein notwithstanding, any payment item shall be deemed received by Lender only if it is received into the Lender’s Account on a Business Day on or before 11:00 a.m.
(California time). If any payment item is received into the Lender’s Account on a non-Business Day or after 11:00 a.m. (California time) on a Business Day, it shall be deemed to have been received by Lender as of the opening of business on the
immediately following Business Day. 
  

 LOAN AND SECURITY AGREEMENT – Page 31 

 2.9 Designated Account. Lender is authorized to make the Advances, and Lender is authorized
to issue the Letters of Credit, under this Agreement based upon telephonic or other instructions received from anyone purporting to be an Authorized Person, or without instructions if pursuant to Section 2.6(d). Administrative Borrower agrees
to establish and maintain the Designated Account with the Designated Account Bank for the purpose of receiving the proceeds of the Advances requested by Borrowers and made by Lender hereunder. Unless otherwise agreed by Lender and Administrative
Borrower, any Advance requested by Borrowers and made by Lender hereunder shall be made to the Designated Account. 
  
 2.10 Maintenance of Loan Account; Statements of Obligations. Lender shall maintain an account on its books in the name of Borrowers (the
“Loan Account”) on which Borrowers will be charged with all Advances made by Lender to Borrowers or for Borrowers’ account, the Letters of Credit issued by Lender for Borrowers’ account, and with all other payment
Obligations hereunder or under the other Loan Documents (except for Bank Product Obligations), including, accrued interest, fees, and Lender Expenses. In accordance with Section 2.8, the Loan Account will be credited with all payments
received by Lender from Borrowers or for Borrowers’ account, including all amounts received in the Lender’s Account from any Cash Management Bank. Lender shall, within 20 days after the close of each calendar month, render to
Administrative Borrower statements regarding all activities in the Loan Account during such month, including principal, interest, fees, and including an itemization of all charges and expenses constituting Lender Expenses owing, and such statements,
absent manifest error, shall be conclusively presumed to be correct and accurate and constitute an account stated between Borrowers and Lender unless, within 60 days after receipt thereof by Administrative Borrower, Administrative Borrower shall
deliver to Lender written objection thereto describing the error or errors contained in any such statements. 
  
 2.11 Fees. Borrowers shall pay to Lender the following fees and charges, which fees and charges shall be non-refundable when paid
(irrespective of whether this Agreement is terminated thereafter): 
  
 (a) Closing Fee. As a closing fee (the “Closing Fee”), the Borrowers shall pay to Lender a fee equal to three-quarters of one percent (0.75%) of the Maximum Revolver Amount, which Closing Fee
was fully earned upon Parent’s acceptance of the terms of the Commitment Letter, dated March 17, 2004, between Lender and Parent and entry by the Bankruptcy Court of the order authorizing Parent to enter into, and be bound by the terms and
conditions of the Commitment Letter. One-half (1/2) of the Closing Fee has been paid prior to the Closing Date, and the remaining one-half (1/2) of the Closing Fee shall be due and payable on the Closing Date. 
  
 (b) Unused Line Fee. As an unused line fee (the
“Unused Line Fee”), the Borrowers shall pay to Lender monthly, in arrears, for the previous month, on the first day of each calendar month following the Closing Date, and continuing during the remainder of the term of this
Agreement, a fee equal to three-eighths of one percent (0.375%) per annum times the result of (i) the Maximum Revolver Amount, minus (ii) the sum of (A) the average Daily Balance of Advances that were outstanding during the immediately preceding
month, plus (B) 

  

 LOAN AND SECURITY AGREEMENT – Page 32 

 
the average Daily Balance of the Letter of Credit Usage during the immediately preceding month. 
  
 (c) Servicing Fee. As a monthly servicing fee (the
“Servicing Fee”), the Borrowers shall pay to Lender monthly, in arrears, on the first day of each calendar month following the Closing Date, and continuing during the remainder of the term of this Agreement, a fee equal to Five Thousand
Dollars ($5,000) that shall be deemed fully earned as of the date it becomes due. 
  
 (d) Field Examination Fee. As a field examination fee (the “Field Examination Fee”), the Borrowers shall pay to
Lender on demand fees and charges as follows: (i) a fee of $850 per day, per analyst, plus reasonable out-of-pocket expenses for each financial audit of a Borrower performed by personnel employed by Lender, and for the establishment of electronic
collateral reporting systems performed by personnel employed by Lender, and (ii) the actual charges paid or incurred by Lender if it elects to employ the services of one or more third Persons to perform financial audits of Borrowers or their
Domestic Subsidiaries, to establish electronic collateral reporting systems, to appraise the Collateral, or any portion thereof, or to assess Borrowers’ and their Domestic Subsidiaries’ Enterprise Value; provided, however,
from and after the Closing Date, except for any such charges incurred during the continuance of an Event of Default, (A) Lender shall not seek reimbursement from Borrowers in respect of, and Borrowers shall not be required to pay for, appraisals of
Borrowers’ or Borrowers’ Domestic Subsidiaries’ Enterprise Value, and (B) Lender shall not seek reimbursement from Borrowers in respect of, and Borrowers shall not be required to pay for, more than two (2) financial audits during each
of the three successive 12-month periods from and after the Closing Date. Nothing in this Section 2.11(d) shall limit the number of audits or appraisals that may be conducted by Lender for its own account; provided, however, in
the event any such appraisal or audit shall result in the disclosure of a continuing Event of Default, or Borrowers shall disclose to Lender the continuance of an Event of Default during the pendency of an audit or appraisal, Borrowers shall
reimburse Lender for all costs associated with such audit or appraisal. 
  
 2.12 Letters of Credit. 
  
 (a) Generally. Subject to the terms and conditions of this Agreement, Lender agrees to issue letters of credit for the account of Borrowers (each, an “L/C”) or to purchase participations or execute indemnities or
reimbursement obligations (each such undertaking, an “L/C Undertaking”) with respect to letters of credit issued by an Underlying Issuer (as of the Closing Date, the prospective Underlying Issuer is to be Wells Fargo) for the
account of Borrowers. To request the issuance of an L/C or an L/C Undertaking (or the amendment, renewal, or extension of an outstanding L/C or L/C Undertaking), Administrative Borrower shall hand deliver or telecopy (or transmit by electronic
communication, if arrangements for doing so have been approved by Lender) to Lender (reasonably in advance of the requested date of issuance, amendment, renewal, or extension) a notice requesting the issuance of an L/C or L/C Undertaking, or
identifying the L/C or L/C Undertaking to be amended, renewed, or extended, the date of issuance, amendment, renewal, or extension, the date on which such L/C or L/C Undertaking is to expire, the amount of such L/C or L/C Undertaking, the name and
address of the beneficiary thereof (or of the Underlying Letter of Credit, as applicable), and such other 

  

 LOAN AND SECURITY AGREEMENT – Page 33 

 
information as shall be necessary to prepare, amend, renew, or extend such L/C or L/C Undertaking. If requested by Lender, Borrowers also shall be an
applicant under the application with respect to any Underlying Letter of Credit that is to be the subject of an L/C Undertaking. Lender shall have no obligation to issue a Letter of Credit if any of the following would result after giving effect to
the requested Letter of Credit: 
  
 (i) the
Letter of Credit Usage would exceed the Borrowing Base less the then extant amount of outstanding Advances, or 
  
 (ii) the Letter of Credit Usage would exceed Ten Million Dollars ($10,000,000), or 
  
 (iii) the Letter of Credit Usage would exceed the Maximum
Revolver Amount less the then extant amount of outstanding Advances. 
  
 Borrowers and Lender acknowledge and agree that certain Underlying Letters of Credit may be issued to support letters of credit that already are outstanding as of the Closing Date. Each Letter of Credit (and
corresponding Underlying Letter of Credit) shall be in form and substance acceptable to Lender (in the exercise of its Permitted Discretion), including the requirement that the amounts payable thereunder must be payable in Dollars. If Lender is
obligated to advance funds under a Letter of Credit, Borrowers immediately shall reimburse such L/C Disbursement to Lender by paying to Lender an amount equal to such L/C Disbursement not later than 11:00 a.m., California time, on the date that such
L/C Disbursement is made, if Administrative Borrower shall have received written or telephonic notice of such L/C Disbursement prior to 10:00 a.m., California time, on such date, or, if such notice has not been received by Administrative Borrower
prior to such time on such date, then not later than 11:00 a.m., California time, on (i) the Business Day that Administrative Borrower receives such notice, if such notice is received prior to 10:00 a.m., California time, on the date of receipt,
and, in the absence of such reimbursement, the L/C Disbursement immediately and automatically shall be deemed to be an Advance hereunder and, thereafter, shall bear interest at the rate then applicable to Advances that are Base Rate Loans under
Section 2.6. To the extent an L/C Disbursement is deemed to be an Advance hereunder, Borrowers’ obligation to reimburse such L/C Disbursement shall be discharged and replaced by the resulting Advance. 
  
 (b) Indemnification. Each Borrower hereby agrees to
indemnify, save, defend, and hold Lender harmless from any loss, cost, expense, or liability, and reasonable attorneys fees incurred by Lender arising out of or in connection with any Letter of Credit; provided, however, that no
Borrower shall be obligated hereunder to indemnify for any loss, cost, expense, liability, or related attorneys’ fees, to the extent that it is caused by the gross negligence or willful misconduct of Lender. Each Borrower agrees to be bound by
the Underlying Issuer’s regulations and interpretations of any Underlying Letter of Credit or by Lender’s interpretations of any L/C issued by Lender to or for such Borrower’s account, even though this interpretation may be different
from such Borrower’s own, and each Borrower understands and agrees that Lender shall not be liable for any error, negligence, or mistake, whether of omission or commission, in following Borrowers’ instructions or those contained in the
Letter of Credit or any modifications, amendments, or supplements thereto. Each Borrower understands that the L/C Undertakings may require Lender to indemnify the Underlying Issuer 

  

 LOAN AND SECURITY AGREEMENT – Page 34 

 
for certain costs or liabilities arising out of claims by Borrowers against such Underlying Issuer. Each Borrower hereby agrees to indemnify, save, defend,
and hold Lender harmless with respect to any loss, cost, expense (including reasonable attorneys fees), or liability incurred by Lender under any L/C Undertaking as a result of Lender’s indemnification of any Underlying Issuer; provided,
however, that no Borrower shall be obligated hereunder to indemnify for any loss, cost, expense, liability, or related attorneys’ fees, to the extent that it is caused by the gross negligence or willful misconduct of Lender. 

 
 (c) Authorization to Underlying Issuer. Each
Borrower hereby authorizes and directs any Underlying Issuer to deliver to Lender all instruments, documents, and other writings and property received by such Underlying Issuer pursuant to such Underlying Letter of Credit and to accept and rely upon
Lender’s instructions with respect to all matters arising in connection with such Underlying Letter of Credit and the related application. 
  
 (d) Charges, Fees, and Costs. Any and all charges, commissions, fees, and costs incurred by Lender relating to Underlying Letters
of Credit shall be Lender Expenses for purposes of this Agreement and immediately shall be reimbursable by Borrowers to Lender for the account of Lender; it being acknowledged and agreed by each Borrower that, as of the Closing Date, the usage
charge imposed by the prospective Underlying Issuer is 0.825% per annum times the face amount of each Underlying Letter of Credit, that such issuance charge may be changed from time to time, and that the Underlying Issuer also imposes a schedule of
charges for amendments, extensions, drawings, and renewals. 
  
 (e) Changes in Law. If by reason of (i) any change after the Closing Date in any applicable law, treaty, rule, or regulation or any change in the interpretation or application thereof by any Governmental
Authority, or (ii) compliance by the Underlying Issuer or Lender with any direction, request, or requirement (irrespective of whether having the force of law) of any Governmental Authority or monetary authority including, Regulation D of the Federal
Reserve Board as from time to time in effect (and any successor thereto): 
  
 (i) any reserve, deposit, or similar requirement is or shall be imposed or modified in respect of any Letter of Credit issued hereunder, or 
  
 (ii) there shall be imposed on the Underlying Issuer or Lender any other condition regarding any Underlying
Letter of Credit or any Letter of Credit issued pursuant hereto; 
  
 and the
result of the foregoing is to increase, directly or indirectly, the cost to Lender of issuing, making, guaranteeing, or maintaining any Letter of Credit or to reduce the amount receivable in respect thereof by Lender, then, and in any such case,
Lender may, at any time within a reasonable period after the additional cost is incurred or the amount received is reduced, notify Administrative Borrower, and Borrowers shall pay on demand such amounts as Lender may specify to be necessary to
compensate Lender for such additional cost or reduced receipt, together with interest on such amount from the date of such demand until payment in full thereof at the rate then applicable to Base Rate Loans hereunder. The determination by Lender of
any amount due pursuant to this Section, as set forth in a certificate setting forth the calculation thereof in reasonable detail (which certificate shall, if requested by Administrative Borrower, 

  

 LOAN AND SECURITY AGREEMENT – Page 35 

 
shall be delivered within thirty (30) days after such request), shall, in the absence of manifest or demonstrable error, be final and conclusive and binding
on all of the parties hereto. 
  
 2.13 LIBOR Option.

  
 (a) Interest and Interest Payment
Dates. In lieu of having interest charged at the rate based upon the Base Rate, Borrowers shall have the option (the “LIBOR Option”) to have interest on all or a portion of the Advances be charged at a rate of interest based
upon the LIBOR Rate. Interest on LIBOR Rate Loans shall be payable as follows: (i) on the last day of the Interest Period applicable thereto, or if an Interest Period is greater than 90 days, at the expiration of each 90-day period occurring within
the Interest Period as well as at the expiration of the Interest Period; (ii) upon the occurrence of an Event of Default in consequence of which Lender has elected to accelerate the maturity of all or any portion of the Obligations (provided,
that Lender shall not accelerate any LIBOR Rate Loans unless all Base Rate Loans are or have been accelerated); or (iii) upon termination of this Agreement pursuant to the terms hereof. On the last day of each applicable Interest Period, unless
Administrative Borrower properly has exercised the LIBOR Option with respect thereto, the interest rate applicable to such LIBOR Rate Loan automatically shall convert to the rate of interest then applicable to Base Rate Loans hereunder. At any time
that an Event of Default has occurred and is continuing, Borrowers no longer shall have the option to request that Advances bear interest at the LIBOR Rate and Lender shall have the right to convert the interest rate on all outstanding LIBOR Rate
Loans to the rate then applicable to Base Rate Loans hereunder. 
  
 (b) LIBOR Election. 
  
 (i) Administrative Borrower may, at any time and from time to time, so long as no Event of Default has occurred and is continuing, elect to exercise the LIBOR Option by notifying Lender prior to 11:00 a.m. (California
time) at least 3 Business Days prior to the commencement of the proposed Interest Period (the “LIBOR Deadline”). Notice of Administrative Borrower’s election of the LIBOR Option for a permitted portion of the Advances and an
Interest Period pursuant to this Section shall be made by delivery to Lender of a LIBOR Notice received by Lender before the LIBOR Deadline, or by telephonic notice received by Lender before the LIBOR Deadline (to be confirmed by delivery to Lender
of a LIBOR Notice received by Lender prior to 5:00 p.m. (California time) on the same day). 
  
 (ii) Each LIBOR Notice shall be irrevocable and binding on Borrowers. In connection with each LIBOR Rate Loan, each Borrower shall
indemnify, defend, and hold Lender harmless against any loss, cost, or expense incurred by Lender as a result of (a) the payment of any principal of any LIBOR Rate Loan other than on the last day of an Interest Period applicable thereto (including
as a result of an Event of Default), (b) the conversion of any LIBOR Rate Loan other than on the last day of the Interest Period applicable thereto, or (c) the failure to borrow, convert, continue or prepay any LIBOR Rate Loan on the date specified
in any LIBOR Notice delivered pursuant hereto (such losses, costs, and expenses, collectively, “Funding Losses”). Funding Losses shall, with 

  

 LOAN AND SECURITY AGREEMENT – Page 36 

 
respect to Lender, be deemed to equal the amount determined by Lender to be the excess, if any, of (i) the amount of interest that would have accrued on the
principal amount of such LIBOR Rate Loan had such event not occurred, at the LIBOR Rate that would have been applicable thereto, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case
of a failure to borrow, convert or continue, for the period that would have been the Interest Period therefor), minus (ii) the amount of interest that would accrue on such principal amount for such period at the interest rate which Lender
would be offered were it to be offered, at the commencement of such period, Dollar deposits of a comparable amount and period in the London interbank market. A certificate of Lender delivered to Administrative Borrower setting forth any amount or
amounts that Lender is entitled to receive pursuant to this Section shall be conclusive absent manifest error. 
  
 (iii) Borrowers shall have not more than five (5) LIBOR Rate Loans in effect at any given time. Borrowers only may exercise the LIBOR
Option for LIBOR Rate Loans of at least $1,000,000 and integral multiples of $500,000 in excess thereof. 
  
 (c) Prepayments. Borrowers may prepay LIBOR Rate Loans at any time; provided, however, that in the event that LIBOR
Rate Loans are prepaid on any date that is not the last day of the Interest Period applicable thereto, including as a result of any automatic prepayment through any required application by Lender of proceeds of Borrowers’ and their Domestic
Subsidiaries’ Collections in accordance with Section 2.4(b) or for any other reason (other than as described in Section 2.13(d)(ii)(y)), including early termination of the term of this Agreement or acceleration of all or any
portion of the Obligations pursuant to the terms hereof, each Borrower shall indemnify, defend, and hold Lender and its Participants harmless against any and all Funding Losses in accordance with clause (b) above. 
  
 (d) Special Provisions Applicable to LIBOR Rate.

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

  

 LOAN AND SECURITY AGREEMENT – Page 37 

 
such adjustment, or (z) repay the LIBOR Rate Loans with respect to which such adjustment is made (together with any amounts due under clause (b)(ii) above).

  
 (ii) In the event that any change in market
conditions or any law, regulation, treaty, or directive, or any change therein or in the interpretation of application thereof, shall at any time after the date hereof, in the reasonable opinion of Lender, make it unlawful or impractical for Lender
to fund or maintain LIBOR Advances or to continue such funding or maintaining, or to determine or charge interest rates at the LIBOR Rate, Lender shall give notice of such changed circumstances to Administrative Borrower and (y) in the case of any
LIBOR Rate Loans that are outstanding, the date specified in Lender’s notice shall be deemed to be the last day of the Interest Period of such LIBOR Rate Loans, and interest upon the LIBOR Rate Loans of Lender thereafter shall accrue interest
at the rate then applicable to Base Rate Loans, and (z) Borrowers shall not be entitled to elect the LIBOR Option until Lender determines that it would no longer be unlawful or impractical to do so. 
  
 (e) No Requirement of Matched Funding. Anything to
the contrary contained herein notwithstanding, neither Lender, nor any of its Participants, is required actually to acquire eurodollar deposits to fund or otherwise match fund any Obligation as to which interest accrues at the LIBOR Rate. The
provisions of this Section shall apply as if Lender or its Participants had match funded any Obligation as to which interest is accruing at the LIBOR Rate by acquiring eurodollar deposits for each Interest Period in the amount of the LIBOR Rate
Loans. 
  
 2.14 Capital Requirements. If, after the
date hereof, Lender determines that (i) the adoption of or change in any law, rule, regulation or guideline regarding capital requirements for banks or bank holding companies, or any change in the interpretation or application thereof by any
Governmental Authority charged with the administration thereof, or (ii) compliance by Lender or its parent bank holding company with any guideline, request or directive of any such entity regarding capital adequacy (whether or not having the force
of law), has the effect of reducing the return on Lender’s or such holding company’s capital as a consequence of Lender’s obligations hereunder to a level below that which Lender or such holding company could have achieved but for
such adoption, change, or compliance (taking into consideration Lender’s or such holding company’s then existing policies with respect to capital adequacy and assuming the full utilization of such entity’s capital) by any amount
deemed by Lender to be material, then Lender may notify Administrative Borrower thereof. Following receipt of such notice, Borrowers agree to pay Lender on demand the amount of such reduction of return of capital as and when such reduction is
determined, payable within 90 days after presentation by Lender of a statement of the amount and setting forth in reasonable detail Lender’s calculation thereof and the assumptions upon which such calculation was based (which statement shall be
deemed true and correct absent manifest error). In determining such amount, Lender may use any reasonable averaging and attribution methods. 
  

 LOAN AND SECURITY AGREEMENT – Page 38 

 2.15 Joint and Several Liability of Borrowers. 
  
 (a) Each Borrower is accepting joint and several liability
hereunder and under the other Loan Documents in consideration of the financial accommodations to be provided by Lender under this Agreement, for the mutual benefit, directly and indirectly, of each Borrower and in consideration of the undertakings
of the other Borrowers to accept joint and several liability for the Obligations. 
  
 (b) Each Borrower, jointly and severally, hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor,
joint and several liability with the other Borrowers, with respect to the payment and performance of all of the Obligations (including, without limitation, any Obligations arising under this Section 2.15), it being the intention of the
parties hereto that all the Obligations shall be the joint and several obligations of each Person composing Borrowers without preferences or distinction among them. 
  
 (c) If and to the extent that any of Borrowers shall fail to make any payment with respect to any of the
Obligations as and when due or to perform any of the Obligations in accordance with the terms thereof, then in each such event the other Persons composing Borrowers will make such payment with respect to, or perform, such Obligation. 
  
 (d) The Obligations of each Person composing Borrowers under
the provisions of this Section 2.15 constitute the absolute and unconditional, full recourse Obligations of each Person composing Borrowers enforceable against each such Borrower to the full extent of its properties and assets, irrespective
of the validity, regularity or enforceability of this Agreement as against any other Borrower(s) or any other circumstances whatsoever. 
  
 (e) Except as otherwise expressly provided in this Agreement, each Person composing Borrowers hereby waives notice of acceptance of its
joint and several liability, notice of any Advances or Letters of Credit issued under or pursuant to this Agreement, notice of the occurrence of any Default, Event of Default, or of any demand for any payment under this Agreement, notice of any
action at any time taken or omitted by Lender under or in respect of any of the Obligations, any requirement of diligence or to mitigate damages and, generally, to the extent permitted by applicable law, all demands, notices and other formalities of
every kind in connection with this Agreement (except as otherwise provided in this Agreement). Each Person composing Borrowers hereby assents to, and waives notice of, any extension or postponement of the time for the payment of any of the
Obligations, the acceptance of any payment of any of the Obligations, the acceptance of any partial payment thereon, any waiver, consent or other action or acquiescence by Lender at any time or times in respect of any default by any Person composing
Borrowers in the performance or satisfaction of any term, covenant, condition or provision of this Agreement, any and all other indulgences whatsoever by Lender in respect of any of the Obligations, and the taking, addition, substitution or release,
in whole or in part, at any time or times, of any security for any of the Obligations or the addition, substitution or release, in whole or in part, of any Person composing Borrowers. Without limiting the generality of the foregoing, each Borrower
assents to any other action or delay in acting or failure to act on the part of Lender with respect to the failure by any Person composing Borrowers to comply with any of its respective Obligations, including, without limitation, any failure
strictly or diligently to assert any right or to pursue any remedy or to comply fully with applicable laws or regulations 

  

 LOAN AND SECURITY AGREEMENT – Page 39 

 
thereunder, which might, but for the provisions of this Section 2.15, afford grounds for terminating, discharging or relieving any Person composing
Borrowers, in whole or in part, from any of its Obligations under this Section 2.15, it being the intention of each Person composing Borrowers that, so long as any of the Obligations hereunder remain unsatisfied, the Obligations of such
Person composing Borrowers under this Section 2.15 shall not be discharged except by performance and then only to the extent of such performance. The Obligations of each Person composing Borrowers under this Section 2.15 shall not be
diminished or rendered unenforceable by any winding up, reorganization, arrangement, liquidation, reconstruction or similar proceeding with respect to any Person composing Borrowers or Lender. The joint and several liability of the Persons composing
Borrowers hereunder shall continue in full force and effect notwithstanding any absorption, merger, amalgamation or any other change whatsoever in the name, constitution or place of formation of any of the Persons composing Borrowers or Lender.

  
 (f) Each Person composing Borrowers
represents and warrants to Lender that such Borrower is currently informed of the financial condition of Borrowers and of all other circumstances which a diligent inquiry would reveal and which bear upon the risk of nonpayment of the Obligations.
Each Person composing Borrowers further represents and warrants to Lender that such Borrower has read and understands the terms and conditions of the Loan Documents. Each Person composing Borrowers hereby covenants that such Borrower will continue
to keep informed of Borrowers’ financial condition, the financial condition of other guarantors, if any, and of all other circumstances which bear upon the risk of nonpayment or nonperformance of the Obligations. 
  
 (g) Each of the Persons composing Borrowers waives all
rights and defenses arising out of an election of remedies by Lender, even though that election of remedies, such as a nonjudicial foreclosure with respect to security for a guaranteed obligation, has destroyed Lender’s rights of subrogation
and reimbursement against such Borrower by the operation of Section 580(d) of the California Code of Civil Procedure or otherwise. 
  
 (h) The provisions of this Section 2.15 are made for the benefit of Lender and its successors and Assignees, and may be enforced by
it or them from time to time against any or all of the Persons composing Borrowers as often as occasion therefor may arise and without requirement on the part of Lender, successor, or assign first to marshal any of its or their claims or to exercise
any of its or their rights against any of the other Persons composing Borrowers or to exhaust any remedies available to it or them against any of the other Persons composing Borrowers or to resort to any other source or means of obtaining payment of
any of the Obligations hereunder or to elect any other remedy. The provisions of this Section 2.15 shall remain in effect until all of the Obligations shall have been paid in full or otherwise fully satisfied. If at any time, any payment, or
any part thereof, made in respect of any of the Obligations, is rescinded or must otherwise be restored or returned by Lender upon the insolvency, bankruptcy or reorganization of any of the Persons composing Borrowers, or otherwise, the provisions
of this Section 2.15 will forthwith be reinstated in effect, as though such payment had not been made. 
  
 (i) Each of the Persons composing Borrowers hereby agrees that it will not enforce any of its rights of contribution or subrogation
against the other Persons composing 

  

 LOAN AND SECURITY AGREEMENT – Page 40 

 
Borrowers with respect to any liability incurred by it hereunder or under any of the other Loan Documents, any payments made by it to Lender with respect to
any of the Obligations or any collateral security therefor until such time as all of the Obligations have been paid in full in cash. Any claim which any Borrower may have against any other Borrower with respect to any payments to Lender hereunder or
under any other Loan Documents are hereby expressly made subordinate and junior in right of payment, without limitation as to any increases in the Obligations arising hereunder or thereunder, to the prior payment in full in cash of the Obligations
and, in the event of any insolvency, bankruptcy, receivership, liquidation, reorganization or other similar proceeding under the laws of any jurisdiction relating to any Borrower, its debts or its assets, whether voluntary or involuntary, all such
Obligations shall be paid in full in cash before any payment or distribution of any character, whether in cash, securities or other property, shall be made to any other Borrower therefor. 
  
 (j) Each of the Persons composing Borrowers hereby agrees
that, after the occurrence and during the continuance of any Event of Default, the payment of any amounts due with respect to the indebtedness owing by any Borrower to any other Borrower is hereby subordinated to the prior payment in full in cash of
the Obligations. Each Borrower hereby agrees that after the occurrence and during the continuance of any Event of Default, such Borrower will not demand, sue for or otherwise attempt to collect any indebtedness of any other Borrower owing to such
Borrower until the Obligations shall have been paid in full in cash. If, notwithstanding the foregoing sentence, such Borrower shall collect, enforce or receive any amounts in respect of such indebtedness, such amounts shall be collected, enforced
and received by such Borrower as trustee for the Lender, and such Borrower shall deliver any such amounts to Lender for application to the Obligations in accordance with Section 2.4(b). 
  
 3. CONDITIONS; TERM OF AGREEMENT. 
  
 3.1 Conditions Precedent to the Effectiveness of this
Agreement. The obligation of Lender to be bound under the terms of this Agreement from and after its execution and delivery is subject to the fulfillment, to the satisfaction of Lender, of each of the conditions precedent set forth below:

  
 (a) the Confirmation Order shall have become
a Final Order; 
  
 (b) Borrowers shall have paid
the Closing Fee pursuant to the terms set forth in Section 2.11(a); 
  
 (c) the High Yield Offering shall have been consummated in accordance with the Plan, with net proceeds therefrom to Parent of not less than One Hundred Eighty Million Dollars ($180,000,000), and the Senior Notes
issued in the High Yield Offering shall (i) not mature, by their terms until at least the seventh anniversary date of the original issuance date thereof, (ii) be optionally redeemable by Parent in whole or in part after the fourth anniversary of the
original issuance date thereof and up to thirty-five percent (35%) will be optionally redeemable until the third anniversary of the original issuance date thereof from the proceeds of certain equity offerings, (iii) be issued by the Parent and may
be guaranteed by the Domestic Subsidiaries, (iv) be general unsecured obligations of Parent and each Guarantor, (v) be effectively, but not contractually subordinated to all indebtedness and other obligations owing 

  

 LOAN AND SECURITY AGREEMENT – Page 41 

 
under the Loan Documents to the extent of the value of the assets and the other collateral securing the Indebtedness and Obligations under the Loan
Documents, (vi) be in form and substance reasonably satisfactory to Lender and its counsel, and (vii) evidence thereof, reasonably satisfactory to Lender, shall have been delivered to Lender; 
  
 (d) either (i) the Offered Shares Registration Statement
shall have been declared effective by order of the SEC in respect of which no “stop order” in respect thereof shall be in effect, or (ii) an opinion of Parent’s counsel shall have been issued in form and substance reasonably
acceptable to the Committee and the Funding Guarantors dated the Effective Date, to the effect that the Offered Shares may be offered, sold and issued without registration under the Exchange Act, pursuant to the exemption therefrom provided in
Section 1145(a) of the Bankruptcy Code; and in the applicable cases, evidence thereof, reasonably satisfactory to Lender, shall have been delivered to Lender; 
  

(e) the new Board of Directors of Parent shall have been appointed in accordance with the Plan and all directors shall have agreed to
serve, and evidence thereof, reasonably satisfactory to Lender, shall have been delivered to Lender; 
  
 (f) Borrowers shall have cash or Cash Equivalents of not less than Thirty-Five Million Dollars ($35,000,000) in hand as of the Effective
Date and available to satisfy Claims, and evidence thereof, reasonably satisfactory to Lender, shall have been delivered to Lender; 
  
 (g) Lender shall have received a UCC Filing Authorization Letter, duly executed by each Borrower and each Guarantor, together with
appropriate financing statements on Form UCC-1 duly filed in such office or offices as may be necessary or, in the Permitted Discretion of Lender, desirable to perfect the Lender’s Liens in and to the Collateral, and Lender shall have received
searches reflecting the filing of all such financing statements; 
  
 (h) Lender shall have received each of the following documents, in form and substance satisfactory to Lender in the exercise of its Permitted Discretion, duly executed, and each such document shall be in full force
and effect: 
  
 (i) the Cash Management
Agreements, 
  
 (ii) the Control Agreements,

  
 (iii) the Disbursement Letter with respect to
any Advance to be borrowed on the Closing Date, 
  
 (iv) the Guarantor Security Agreement, 
  
 (v) the Guaranty, 
  
 (vi) the
Intercompany Subordination Agreement, 
  
 (vii)
the Officers’ Certificate, 
  

 LOAN AND SECURITY AGREEMENT – Page 42 

 (viii) the Stock Pledge Agreement, together with all certificates representing the shares
of Stock pledged thereunder, as well as Stock powers with respect thereto endorsed in blank, and 
  
 (ix) the Trademark Security Agreement; 
  
 (i) Lender shall have received a certificate from the Secretary or an Assistant Secretary of each Borrower attesting to the resolutions of
such Borrower’s board of directors authorizing its execution, delivery, and performance of this Agreement and the other Loan Documents to which such Borrower is a party and authorizing specific officers of such Borrower to execute the same;

  
 (j) Lender shall have received copies of each
Borrower’s Governing Documents, as amended, modified, or supplemented to the Closing Date, certified by the Secretary or an Assistant Secretary of such Borrower; 
  
 (k) Lender shall have received a certificate of status with respect to each Borrower, dated within 30 days
of the Closing Date, such certificate to be issued by the appropriate officer of the jurisdiction of organization of such Borrower, which certificate shall indicate that such Borrower is in good standing in such jurisdiction; 
  
 (l) Lender shall have received certificates of status with
respect to each Borrower, each dated within 30 days of the Closing Date, such certificates to be issued by the appropriate officer of the jurisdictions (other than the jurisdiction of organization of such Borrower) in which its failure to be duly
qualified would constitute a Material Adverse Change, which certificates shall indicate that such Borrower is in good standing in such jurisdictions; 
  
 (m) Lender shall have received a certificate from the Secretary or an Assistant Secretary of each Guarantor attesting to the resolutions
of such Guarantor’s Board of Directors authorizing its execution, delivery, and performance of the Loan Documents to which such Guarantor is a party and authorizing specific officers of such Guarantor to execute the same; 
  
 (n) Lender shall have received copies of each
Guarantor’s Governing Documents, as amended, modified, or supplemented to the Closing Date, certified by the Secretary or an Assistant Secretary of such Guarantor; 
  
 (o) Lender shall have received a certificate of status with respect to each Guarantor, dated within 30 days
of the Closing Date, such certificate to be issued by the appropriate officer of the jurisdiction of organization of such Guarantor, which certificate shall indicate that such Guarantor is in good standing in such jurisdiction; 
  
 (p) Lender shall have received certificates of status with
respect to each Guarantor, each dated within 30 days of the Closing Date, such certificates to be issued by the appropriate officer of the jurisdictions (other than the jurisdiction of organization of such Guarantor) in which its failure to be duly
qualified would constitute a Material Adverse Change, which certificates shall indicate that such Guarantor is in good standing in such jurisdictions; 
  

 LOAN AND SECURITY AGREEMENT – Page 43 

 (q) Lender shall have received a certificate of insurance, together with the endorsements
thereto, as are required by Section 6.8, the form and substance of which shall be satisfactory to Lender; 
  
 (r) Lender shall have received opinions of Borrowers’ counsel in form and substance satisfactory to Lender in the exercise of its
Permitted Discretion; 
  
 (s) Lender shall have
received satisfactory evidence (including a certificate of the chief accounting officer of Parent) that all tax returns required to be filed by Borrowers and their Domestic Subsidiaries have been timely filed and all taxes upon Borrowers and their
Domestic Subsidiaries or their properties, assets, income, and franchises (including Real Property taxes, sales taxes, and payroll taxes) have been paid prior to delinquency, except such taxes that are the subject of Permitted Protests; 

 
 (t) Lender shall have received completed reference checks
with respect to Borrowers’ Chief Executive Officer, Randall D. Stilley, the results of which are satisfactory to Lender in its Permitted Discretion; 
  
 (u) Borrowers shall have paid all Lender Expenses theretofore incurred and invoiced in connection with the transactions evidenced by this
Agreement; 
  
 (v) Borrowers and each of their
Domestic Subsidiaries shall have received all licenses, approvals or evidence of other actions (if any) required by any Governmental Authority in connection with the execution and delivery by Borrowers or their Domestic Subsidiaries of the Loan
Documents or with the consummation of the transactions contemplated thereby; 
  
 (w) no Material Adverse Change shall have occurred between September 30, 2003 and the Closing Date and be continuing, as determined by Lender in its Permitted Discretion; 
  
 (x) there shall not have occurred between September 30, 2003
and the Closing Date, (i) any law or regulation which prevents or prohibits Lender from funding or maintaining the Revolving Credit Facility, or (ii) any other matter which could reasonably be expected to have a material adverse effect on the
Debtors, financial or otherwise, or on the businesses or industries in which the Debtors operate; 
  
 (y) Lender shall be satisfied that it has been granted a perfected, first priority lien on the Collateral (subject to Permitted Liens) and
shall have received UCC, tax and judgment lien searches and other appropriate evidence evidencing the absence of any other liens on the Collateral, subject to Permitted Liens and other liens acceptable to Lender in the exercise of its Permitted
Discretion; 
  
 (z) Lender shall be satisfied in
its sole discretion and acceptable to Lender’s senior credit committee, with results of 
  
 (i) a review of the Borrowers’ Books and Records, 
  

 LOAN AND SECURITY AGREEMENT – Page 44 

 (ii) a review of the Borrowers’ most recent seventeen (17)-week cash receipts and
disbursement forecast and Closing Date Business Plan, and 
  
 (iii) a review of the Debtors’ material contracts and confirmation that the Debtors have all required licenses and permits to conduct their business; 
  
 (aa) Lender shall have completed its legal due diligence, including without limitation, with respect to
ERISA, environmental, tax, labor, bankruptcy, pension and accounting matters, with results satisfactory to Lender; 
  
 (bb) Borrowers shall have complied in all material respects, as determined by Lender, in its Permitted Discretion, with the terms and
conditions of the Plan; 
  
 (cc) the capital
structure of the Borrowers shall be as projected and set forth in the Plan; 
  
 (dd) no default, event of default or event that, with notice or the passage of time or both, would constitute a default or event of default under the DIP Financing Agreement; 
  
 (ee) Lender shall have received, on or before the Closing
Date, payment in full of any and all amounts due and owing under the DIP Financing Agreement and the documents executed in connection therewith; 
  
 (ff) Lender shall have received any waivers and consents of third parties, as it may request (including, without limitation, subordination
agreements from Affiliates to which the Borrowers are indebted, warehouseman’s agreements, consents from equipment lessors, and the like, but expressly excluding landlord and mortgagee waivers and consents, which are separately addressed in
Section 3.3, below); and 
  
 (gg) all
other documents and legal matters in connection with the transactions contemplated by this Agreement shall have been delivered, executed, or recorded (as appropriate) and shall be in form and substance satisfactory to Lender in the exercise of its
Permitted Discretion. 
  
 3.2 Conditions Precedent to the
Initial Extension of Credit. The obligation of Lender to make the initial Advance (or otherwise to extend any credit provided for hereunder), is subject to the fulfillment, to the satisfaction of Lender, of each of the conditions precedent
set forth below: 
  
 (a) satisfaction of the
conditions precedent set forth in Section 3.1 above; and 
  
 (b) Lender shall have received each of the following documents, in form and substance satisfactory to Lender in the exercise of its Permitted Discretion, duly executed, and each such document shall be in full force
and effect: 
  
 (i) the Pay-Off Letter from the
Existing Lender; and 
  

 LOAN AND SECURITY AGREEMENT – Page 45 

 (ii) UCC termination statements and other documentation evidencing the termination by
Existing Lender of its Liens in and to the properties and assets of Borrowers and their Domestic Subsidiaries. 
  
 3.3 Conditions Subsequent to the Initial Extension of Credit. The obligation of Lender to continue to make Advances (or otherwise extend
credit hereunder) is subject to the fulfillment, on or before the date applicable thereto, of the conditions subsequent set forth below (the failure by Borrowers to so perform or cause to be performed constituting an Event of Default): 

 
 (a) consummation of the High Yield Offering in accordance
with the Plan; 
  
 (b) if the proceeds of the
High Yield Offering are escrowed pursuant to Section 7.1 of the Plan, then within three (3) Business Days of the Effective Date, HBV shall have either (i) obtained an irrevocable stand-by letter of credit securing HBV’s performance obligations
under the Funding Guarantee, with a copy of the letter of credit delivered to Lender, or (ii) advanced into escrow the amount of all of HBV’s performance obligations under the Funding Guarantee, with notice of such advance delivered to Lender;

  
 (c) a determination of the Enterprise Value
of the Borrowers’ business, reasonably satisfactory to Lender in its Permitted Discretion, to be completed within 90 days of the Closing Date; 
  
 (d) the result of a field survey and audit and appraisal of the Collateral by Lender’s auditors and examiners, satisfactory to Lender
in its sole discretion, to be completed within 60 days of the Closing Date; 
  
 (e) delivery to Lender of certified copies of the insurance policies required by Section 6.8, below, within 60 days of the Closing Date; 
  
 (f) the use of Borrowers’ reasonable commercial efforts to effect the delivery to Lender, within 90
days of the Closing Date, of a Collateral Access Agreement with respect to the following location: 10811 S. Westview Circle, Building C, Suite 100, Houston, Texas 77043; provided, that Borrowers will not be required to make any material
payment or incur any material obligation or make any material concession in order to obtain such Collateral Access Agreement; 
  
 (g) receipt by Parent on or before the Guarantee Performance Date (as defined in the Plan) of not less than Seventy-Five Million Dollars
($75,000,000.00) in the aggregate from (i) the Shareholder Warrants and/or (ii) the Funding Guarantors (in accordance with the terms of the Funding Agreement), with evidence of receipt of such aggregate amount delivered to Lender within five (5)
Business Days of the Guarantee Performance Date; and 
  
 (h) Parent’s filing of its revised Governing Documents with the appropriate Governmental Authority on or before the Effective Date in accordance with the Plan, with certified copies of Parent’s revised Governing Documents as filed
delivered to Lender within five (5) Business Days of the Effective Date. 
  

 LOAN AND SECURITY AGREEMENT – Page 46 

 3.4 Conditions Precedent to all Extensions of Credit. The obligation of Lender to make any
Advances hereunder at any time (or to extend any other credit hereunder) shall be subject to the following conditions precedent: 
  
 (a) the representations and warranties contained in this Agreement and the other Loan Documents shall be true and correct in all material
respects on and as of the date of such extension of credit, as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier date, and except for changes in the ordinary course of
business not otherwise constituting an Event of Default); 
  
 (b) no Default or Event of Default shall have occurred and be continuing on the date of such extension of credit, nor shall either result from the making thereof; 
  
 (c) no injunction, writ, restraining order, or other
judicial or administrative order restricting or prohibiting, directly or indirectly, the extending of such credit shall have been issued and remain in force by any Governmental Authority against any Borrower, Lender, or any of their Affiliates; and

  
 (d) no Material Adverse Change shall have
occurred and be continuing. 
  
 3.5 Term. This
Agreement shall continue in full force and effect for a term ending on the date (the “Maturity Date”) that is thirty-six (36) months from the Closing Date. 
  
 The foregoing notwithstanding, Lender shall have the right to terminate its obligations under this Agreement
immediately and without notice upon the occurrence and during the continuation of an Event of Default. Lender also shall have the right to terminate its obligations under this Agreement immediately and without notice upon the occurrence and during
the continuation of any failure of the parties to satisfy any of the conditions set forth in Section 3.1. 
  
 3.6 Effect of Termination. On the date of termination of this Agreement, all Obligations (including contingent reimbursement obligations of
Borrowers with respect to any outstanding Letters of Credit and including all Bank Products Obligations) immediately shall become due and payable without notice or demand (including (a) either (i) providing cash collateral to be held by Lender in an
amount equal to 105% of the then extant Letter of Credit Usage, or (ii) causing the original Letters of Credit to be returned to Lender, and (b) providing cash collateral (in an amount determined by Lender in the exercise of its Permitted Discretion
as sufficient to satisfy the reasonably estimated credit exposure) to be held by Lender for the benefit of the Bank Product Providers with respect to the then extant Bank Products Obligations). No termination of this Agreement, however, shall
relieve or discharge Borrowers or their Domestic Subsidiaries of their duties, Obligations, or covenants hereunder and the Lender’s Liens in the Collateral shall remain in effect until all Obligations have been paid in full and Lender’s
obligations to provide additional credit hereunder have been terminated. When this Agreement has been terminated and all of the Obligations have been paid in full and Lender’s obligations to provide additional credit under the Loan Documents
have been terminated irrevocably, Lender will, at Borrowers’ sole expense, execute and deliver any lien releases, mortgage releases, re-assignments of trademarks, discharges of security interests, and other similar discharge or release 

  

 LOAN AND SECURITY AGREEMENT – Page 47 

 
documents (and, if applicable, in recordable form) as are reasonably necessary to release, as of record, the Lender’s Liens and all notices of security
interests and liens previously filed by Lender with respect to the Obligations, and authorize Borrowers and Guarantors to file, at their expense, UCC termination statements in respect of Code filings made by Lender in respect of the Loan Parties.

  
 3.7 Early Termination by Borrowers. Borrowers
have the option, at any time upon thirty (30) days prior written notice by Administrative Borrower to Lender, to terminate this Agreement by paying to Lender, in cash, the Obligations (including (a) either (i) providing cash collateral to be held by
Lender in an amount equal to 105% of the then extant Letter of Credit Usage, or (ii) causing the original Letters of Credit to be returned to Lender; and (b) providing cash collateral (in an amount determined by Lender in the exercise of its
Permitted Discretion as sufficient to satisfy the reasonably estimated credit exposure) to be held by Lender for the benefit of the Bank Product Providers with respect to the then extant Bank Products Obligations), in full. If Administrative
Borrower has sent a notice of termination pursuant to the provisions of this Section, then Lender’s obligations to extend credit hereunder shall terminate and Borrowers shall be obligated to repay the Obligations (including (a) either (i)
providing cash collateral to be held by Lender in an amount equal to 105% of the then extant Letter of Credit Usage, or (ii) causing the original Letters of Credit to be returned to Lender; and (b) providing cash collateral (in an amount determined
by Lender in the exercise of its Permitted Discretion as sufficient to satisfy the reasonably estimated credit exposure) to be held by Lender for the benefit of the Bank Product Providers with respect to the then extant Bank Products Obligations),
in full, on the date set forth as the date of termination of this Agreement in such notice. 
  
 4. CREATION OF SECURITY INTEREST 
  
 4.1 Grant of Security Interest. Each Borrower hereby grants to Lender for the benefit of Lender and the Bank Product Providers a continuing security interest in all of its right, title, and interest in
all currently existing and hereafter acquired or arising Collateral, as security for the repayment of any and all of the Obligations in accordance with the terms and conditions of the Loan Documents and in order to secure prompt performance by
Borrowers of each of their covenants and duties under the Loan Documents. The Lender’s Liens in and to the Collateral shall attach to all Borrower Collateral without further act on the part of Lender or Borrowers pursuant to the Plan and shall
have the relative priorities specified in such Plan, which shall be a first-priority lien on all of the assets. Anything contained in this Agreement or any other Loan Document to the contrary notwithstanding, except for the use of cash in the
ordinary course of business and for the purposes permitted under this Agreement, and except for Permitted Dispositions, Borrowers and their Domestic Subsidiaries have no authority, express or implied, to dispose of any item or portion of the
Collateral. 
  
 4.2 Negotiable Collateral. In the
event that any Borrower Collateral, including proceeds, is evidenced by or consists of Negotiable Collateral, and if and to the extent that Lender determines that perfection or priority of Lender’s security interest is dependent on or enhanced
by possession, the applicable Borrower, immediately upon the request of Lender, shall endorse and deliver physical possession of such Negotiable Collateral to Lender. 
  

 LOAN AND SECURITY AGREEMENT – Page 48 

 4.3 Collection of Accounts, General Intangibles, and Negotiable Collateral. At any time
after the occurrence and during the continuation of an Event of Default, Lender or Lender’s designee may (a) notify Account Debtors of Borrowers that Borrowers’ Accounts, chattel paper, or General Intangibles have been assigned to Lender
or that Lender has a security interest therein, or (b) collect Borrowers’ Accounts, chattel paper, or General Intangibles directly and charge the reasonable collection costs and expenses to the Loan Account. Each Borrower agrees that it will
hold in trust for Lender, as Lender’s trustee, any of its or its Domestic Subsidiaries’ Collections that it receives and immediately will deliver such Collections to Lender or a Cash Management Bank in their original form as received by
such Borrower or its Domestic Subsidiaries. 
  
 4.4 Filing
of Financing Statements; Commercial Tort Claims; Delivery of Additional Documentation Required. (a) Borrowers authorize Lender to file any financing statement necessary or, in the exercise of Lender’s Permitted Discretion, desirable to
effectuate the transactions contemplated by the Loan Documents, and any continuation statement or amendment with respect thereto, in any appropriate filing office without the signature of Borrowers where permitted by applicable law. Borrowers hereby
ratify the filing of any financing statements filed prior to the date hereof and described on Schedule 4.4 hereof. 
  
 (b) If Borrowers or their Domestic Subsidiaries acquire any commercial tort claims after the date hereof, Borrowers shall promptly (but in
any event within five (5) Business Days after such acquisition) deliver to Lender a written description of such commercial tort claim and shall deliver a written agreement, in form and substance satisfactory to Lender in the exercise of its
Permitted Discretion, pursuant to which the applicable Borrower or its Domestic Subsidiary shall pledge and collaterally assign all of its right, title and interest in and to such commercial tort claim to Lender, as security for the Obligations (a
“Commercial Tort Claim Assignment”). 
  
 (c) At any time upon the request of Lender, Borrowers shall execute or deliver to Lender and shall cause their Domestic Subsidiaries to execute or deliver to Lender any and all financing statements, original financing statements in lieu of
continuation statements, fixture filings, security agreements, pledges, assignments, Commercial Tort Claim Assignments, endorsements of certificates of title, and all other documents (collectively, the “Additional Documents”) that
Lender may request in its Permitted Discretion, in form and substance satisfactory to Lender in the exercise of its Permitted Discretion, to create, perfect and continue perfected or to better perfect the Lender’s Liens in the assets of
Borrowers and their Domestic Subsidiaries (whether now owned or hereafter arising or acquired, tangible or intangible, real or personal), to create and perfect Liens in favor of Lender in any Real Property acquired after the Closing Date, and in
order to fully consummate all of the transactions contemplated hereby and under the other Loan Documents. To the maximum extent permitted by applicable law, each Borrower authorizes Lender to execute any such Additional Documents in the applicable
Borrower’s name and authorize Lender to file such executed Additional Documents in any appropriate filing office to the extent relating to the perfection or continued perfection of Lender’s Liens. In addition, on such periodic basis as
Lender shall require in the exercise of its Permitted Discretion, Borrowers shall (i) provide Lender with a report of all new material patentable, copyrightable, or trademarkable materials acquired or generated by Borrowers or 

  

 LOAN AND SECURITY AGREEMENT – Page 49 

 
their Domestic Subsidiaries during the prior period, (ii) cause all material patents, copyrights, and trademarks acquired or generated by Borrowers or their
Domestic Subsidiaries that are not already the subject of a registration with the appropriate filing office (or an application therefor diligently prosecuted) to be registered with such appropriate filing office in a manner sufficient to impart
constructive notice of a Borrower’s or a Domestic Subsidiary of a Borrower’s ownership thereof, and (iii) cause to be prepared, executed, and delivered to Lender supplemental schedules to the applicable Loan Documents to identify such
patents, copyrights, and trademarks as being subject to the security interests created thereunder. 
  
 4.5 Power of Attorney. Each Borrower hereby irrevocably makes, constitutes, and appoints Lender (and any of Lender’s officers, or
employees) as such Borrower’s true and lawful attorney, with power to (a) if such Borrower refuses to, or fails timely to execute and deliver any of the documents described in Section 4.4, sign the name of such Borrower on any of the
documents described in Section 4.4, (b) at any time that an Event of Default has occurred and is continuing, sign such Borrower’s name on any invoice or bill of lading relating to the Borrower Collateral, drafts against Account Debtors,
or notices to Account Debtors, (c) send requests for verification of Borrowers’ or their Domestic Subsidiaries’ Accounts, (d) endorse such Borrower’s name on any of its payment items (including all of its Collections) that may come
into Lender’s possession, (e) at any time that an Event of Default has occurred and is continuing, make, settle, and adjust all claims under such Borrower’s policies of insurance and make all determinations and decisions with respect to
such policies of insurance, in each case in the exercise of Lender’s Permitted Discretion, and (f) at any time that an Event of Default has occurred and is continuing, settle and adjust disputes and claims respecting Borrowers’ or their
Domestic Subsidiaries’ Accounts, chattel paper, or General Intangibles directly with Account Debtors, for amounts and upon terms that Lender determines to be reasonable in the exercise of Lender’s Permitted Discretion, and Lender may cause
to be executed and delivered any documents and releases that Lender determines to be necessary for such purpose. The appointment of Lender as each Borrower’s attorney, and each and every one of its rights and powers, being coupled with an
interest, is irrevocable until all of the Obligations have been fully and finally repaid and performed and Lender’s obligations to extend credit hereunder are terminated. 
  
 4.6 Right to Inspect. Lender (through any of its officers, employees, or agents) shall have the right, from
time to time hereafter, to inspect the Books and make copies or abstracts thereof and to check, test, and appraise the Collateral, or any portion thereof, in order to verify Borrowers’ and their Domestic Subsidiaries’ financial condition
or the amount, quality, value, condition of, or any other matter relating to, the Collateral, subject to the limitations set forth in Section 2.11(d) with respect to chargeable expenses. 
  
 4.7 Control Agreements. Borrowers agree that they will not, and
will not permit their Domestic Subsidiaries to, transfer assets out of any of their Deposit Accounts or Securities Accounts; provided, however, that so long as no Event of Default has occurred and is continuing or would result therefrom, Borrowers
and their Domestic Subsidiaries may use such assets (and the proceeds thereof) to the extent not prohibited by this Agreement or the other Loan Documents and, if the transfer is to another bank or securities intermediary, so long as the applicable
Borrower or Domestic Subsidiary, Lender, and the substitute bank or securities 

  

 LOAN AND SECURITY AGREEMENT – Page 50 

 
intermediary have entered into a Control Agreement. Borrowers agree that they will and will cause their Domestic Subsidiaries to take any or all reasonable
steps that Lender requests in order for Lender to obtain control in accordance with Sections 9-104, 9-105, 9-106, and 9-107 of the Code with respect to any of its or their Securities Accounts, Deposit Accounts, electronic chattel paper, Investment
Property, and letter-of-credit rights, except for Borrowers’ payroll accounts, medical disbursement accounts, the Travelers’ Collateral Account, and the High Yield Note Account. No arrangement contemplated hereby or by any Control
Agreement in respect of any Securities Accounts or other Investment Property shall be modified by Borrowers without the prior written consent of Lender. Upon the occurrence and during the continuance of an Event of Default, Lender may notify any
bank or securities intermediary to liquidate the applicable Deposit Account or Securities Account or any related Investment Property maintained or held thereby and remit the proceeds thereof to the Lender’s Account. 
  
 5. REPRESENTATIONS AND WARRANTIES. 
  
 In order to induce Lender to enter into this Agreement, each Borrower makes
the following representations and warranties to Lender which shall be true, correct, and complete, in all material respects, as of the date hereof, and shall be true, correct, and complete, in all material respects, as of the Closing Date, and at
and as of the date of the making of each Advance (or other extension of credit) made thereafter, as though made on and as of the date of such Advance (or other extension of credit) (except to the extent that such representations and warranties
relate solely to an earlier date, and except for changes in the ordinary course of business not otherwise constituting an Event of Default) and such representations and warranties shall survive the execution and delivery of this Agreement:

  
 5.1 No Encumbrances. Each Borrower and its
Domestic Subsidiaries has good and indefeasible title to their assets (other than leased assets), in each case free and clear of Liens except for Permitted Liens. 
  
 5.2 Eligible Accounts. The Eligible Accounts are bona fide existing payment obligations of Account Debtors
created by the leasing or licensing of seismic data, the sale and delivery of Inventory or the rendition of services to such Account Debtors in the ordinary course of Borrowers’ business, owed to Borrowers without any known defenses, disputes,
offsets, counterclaims, or rights of return or cancellation, except to the extent deducted in the calculation of the Borrowing Base. As to each Account that is identified by Administrative Borrower as an Eligible Account in a borrowing base report
submitted to Lender, such Account is not excluded as ineligible by virtue of one or more of the excluding criteria set forth in the definition of Eligible Accounts. 
  
 5.3 [Intentionally Deleted]. 
  

5.4 Equipment. All of the Equipment of Borrowers and their Domestic Subsidiaries is used or held for use in their business and is in
operating condition, reasonable wear and tear excepted. 
  
 5.5
Location of Inventory and Equipment. The Inventory and Equipment of Borrowers and their Domestic Subsidiaries are not stored with a bailee, warehouseman, or 

  

 LOAN AND SECURITY AGREEMENT – Page 51 

 
similar party and are located only at, or in-transit between, the locations identified on Schedule 5.5 (as such Schedule may be updated pursuant to
Section 6.9). 
  
 5.6 Inventory Records. Each
Borrower keeps correct and accurate records itemizing and describing the type, quality, and quantity of its and its Domestic Subsidiaries’ Inventory and the book value thereof. 
  
 5.7 State of Incorporation; Location of Chief Executive Office; FEIN; Organizational ID Number; Commercial Tort
Claims 
  
 (a) The jurisdiction of
organization of each Borrower and each of its Domestic Subsidiaries is set forth on Schedule 5.7(a). 
  
 (b) The chief executive office of each Borrower and each of its Domestic Subsidiaries is located at the address indicated on Schedule
5.7 (b) (as such Schedule may be updated pursuant to Section 6.9). 
  
 (c) Each Borrower’s and each of its Domestic Subsidiaries’ FEIN and organizational identification number issued by its jurisdiction of organization, if any, are identified on Schedule 5.7(c).

  
 (d) As of the date of this Agreement,
Borrowers and their Domestic Subsidiaries do not hold any commercial tort claims, except as set forth on Schedule 5.7(d). 
  
 5.8 Due Organization and Qualification; Domestic Subsidiaries 
  
 (a) Each Borrower is duly organized and existing and in good standing under the laws of the jurisdiction of
its organization and qualified to do business in any state where the failure to be so qualified reasonably could be expected to have a Material Adverse Change. 
  

(b) Set forth on Schedule 5.8(b), is a complete and accurate description of the authorized capital Stock of each Borrower, by
class, and, as of the Closing Date, a description of the number of shares of each such class that are issued and outstanding. Other than the Shareholder Warrants, the Guarantor Warrants and as described on Schedule 5.8(b), there are no
subscriptions, options, warrants, or calls relating to any shares of each Borrower’s capital Stock, including any right of conversion or exchange under any outstanding security or other instrument. No Borrower is subject to any obligation
(contingent or otherwise) to repurchase or otherwise acquire or retire any shares of its capital Stock or any security convertible into or exchangeable for any of its capital Stock. 
  
 (c) Set forth on Schedule 5.8(c), is a complete and accurate list of each Borrower’s direct and
indirect Domestic Subsidiaries, showing: (i) the jurisdiction of their organization; (ii) the number of shares of each class of common and preferred Stock authorized for each of such Domestic Subsidiaries; and (iii) the number and the percentage of
the outstanding shares of each such class owned directly or indirectly by the applicable Borrower. All of the outstanding capital Stock of each such Domestic Subsidiary has been validly issued and is fully paid and non-assessable. 
  

 LOAN AND SECURITY AGREEMENT – Page 52 

 (d) Except as set forth on Schedule 5.8(c), there are no subscriptions, options,
warrants, or calls relating to any shares of any Borrower’s Domestic Subsidiaries’ capital Stock, including any right of conversion or exchange under any outstanding security or other instrument. No Borrower or any of its respective
Domestic Subsidiaries is subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of any Borrower’s Domestic Subsidiaries’ capital Stock or any security convertible into or exchangeable
for any such capital Stock. 
  
 5.9 Due Authorization; No
Conflict 
  
 (a) As to each Borrower, the
execution, delivery, and performance by such Borrower of this Agreement and the other Loan Documents to which it is a party have been duly authorized by all necessary action on the part of such Borrower. 
  
 (b) As to each Borrower, the execution, delivery, and
performance by such Borrower of this Agreement and the other Loan Documents to which it is a party do not and will not (i) violate any provision of federal, state, or local law or regulation applicable to any Borrower, the Governing Documents of any
Borrower, or any order, judgment, or decree of any court or other Governmental Authority binding on any Borrower, (ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any material
contractual obligation of any Borrower, (iii) result in or require the creation or imposition of any Lien of any nature whatsoever upon any properties or assets of Borrower, other than Permitted Liens, or (iv) require any approval of any
Borrower’s interest holders or any approval or consent of any Person under any material contractual obligation of any Borrower, other than consents or approvals that have been obtained and that are still in force and effect. 
  
 (c) Other than the filing of financing statements, the
execution, delivery, and performance by each Borrower of this Agreement and the other Loan Documents to which such Borrower is a party do not and will not require any registration with, consent, or approval of, or notice to, or other action with or
by, any Governmental Authority, other than consents or approvals that have been obtained and that are still in force and effect. 
  
 (d) As to each Borrower, this Agreement and the other Loan Documents to which such Borrower is a party, and all other documents
contemplated hereby and thereby, when executed and delivered by such Borrower, will be the legally valid and binding obligations of such Borrower, enforceable against such Borrower in accordance with their respective terms, except as enforcement may
be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally. 
  
 (e) The Lender’s Liens are validly created, perfected, and first priority Liens, subject only to
Permitted Liens. 
  
 (f) The execution, delivery,
and performance by each Guarantor of the Loan Documents to which it is a party have been duly authorized by all necessary action on the part of such Guarantor. 
  

 LOAN AND SECURITY AGREEMENT – Page 53 

 (g) The execution, delivery, and performance by each Guarantor of the Loan Documents to
which it is a party do not and will not (i) violate any provision of federal, state, or local law or regulation applicable to such Guarantor, the Governing Documents of such Guarantor, or any order, judgment, or decree of any court or other
Governmental Authority binding on such Guarantor, (ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any material contractual obligation of such Guarantor, (iii) result in or require
the creation or imposition of any Lien of any nature whatsoever upon any properties or assets of such Guarantor, other than Permitted Liens, or (iv) require any approval of such Guarantor’s interest holders or any approval or consent of any
Person under any material contractual obligation of such Guarantor, other than consents or approvals that have been obtained and that are still in force and effect. 
  
 (h) Other than the filing of financing statements, the execution, delivery, and performance by each
Guarantor of the Loan Documents to which such Guarantor is a party do not and will not require any registration with, consent, or approval of, or notice to, or other action with or by, any Governmental Authority, other than consents or approvals
that have been obtained and that are still in force and effect. 
  
 (i) The Loan Documents to which each Guarantor is a party, and all other documents contemplated hereby and thereby, when executed and delivered by such Guarantor, will be the legally valid and binding obligations of
such Guarantor, enforceable against such Guarantor in accordance with their respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or
limiting creditors’ rights generally. 
  
 5.10
Litigation. Other than those matters disclosed on Schedule 5.10, there are no actions, suits, or proceedings pending or, to the best knowledge of Borrowers, threatened against Borrowers, or any of their Domestic Subsidiaries, as
applicable, except for (a) matters that are fully covered by insurance (subject to customary deductibles), and (b) matters arising after the date of this Agreement that, if decided adversely to Borrowers, or any of their Domestic Subsidiaries, as
applicable, reasonably could not be expected to result in a Material Adverse Change. 
  
 5.11 No Material Adverse Change. All financial statements relating to Borrowers and their Domestic Subsidiaries that have been delivered by Borrowers to Lender have been prepared in accordance with GAAP
(except, in the case of unaudited financial statements, for the lack of footnotes and being subject to year-end audit adjustments) and present fairly in all material respects, Borrowers’ and their Domestic Subsidiaries’ financial condition
as of the date thereof and results of operations for the period then ended. There has not been a Material Adverse Change with respect to Borrowers and their Domestic Subsidiaries (or Guarantors, as applicable) since the date of the latest financial
statements submitted to Lender on or before the Closing Date. 
  
 5.12 Fraudulent Transfer. No transfer of property is being made by any Borrower or any Domestic Subsidiary of a Borrower and no obligation is being incurred by any Borrower or any Domestic Subsidiary of a Borrower in
connection with the transactions contemplated by this 

  

 LOAN AND SECURITY AGREEMENT – Page 54 

 
Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or future creditors of Borrowers or their Subsidiaries.

  
 5.13 Employee Benefits. Except as set forth on
Schedule 5.13, none of Borrowers, any of their Domestic Subsidiaries, or any of their ERISA Affiliates maintains or contributes to any Benefit Plan. 
  
 5.14 Environmental Condition. Except as set forth on Schedule 5.14, (a) to Borrowers’ knowledge, none of Borrowers’ or
their Subsidiaries’ properties or assets has ever been used by Borrowers, their Subsidiaries, or by previous owners or operators in the disposal of, or to produce, store, handle, treat, release, or transport, any Hazardous Materials, where such
production, storage, handling, treatment, release or transport was in violation, in any material respect, of applicable Environmental Law, (b) to Borrowers’ knowledge, none of Borrowers’ or their Subsidiaries’ properties or assets has
ever been designated or identified in any manner pursuant to any environmental protection statute as a Hazardous Materials disposal site, (c) none of Borrowers or any of their Subsidiaries have received notice that a Lien arising under any
Environmental Law has attached to any revenues or to any Real Property owned or operated by Borrowers or their Subsidiaries, and (d) none of Borrowers or any of their Subsidiaries have received a summons, citation, notice, or directive from the
Environmental Protection Agency or any other federal or state governmental agency concerning any action or omission by any Borrower or any Subsidiary of a Borrower resulting in the releasing or disposing of Hazardous Materials into the environment.

  
 5.15 Brokerage Fees. Borrowers and their
Domestic Subsidiaries have not utilized the services of any broker or finder in connection with obtaining financing from Lender under this Agreement and no brokerage commission or finder’s fee is payable by Borrowers or their Domestic
Subsidiaries in connection herewith. 
  
 5.16 Intellectual
Property. Each Borrower and each Domestic Subsidiary of a Borrower owns, or holds licenses in, all trademarks, trade names, copyrights, patents, patent rights, and licenses that are necessary to the conduct of its business as currently
conducted. Attached hereto as Schedule 5.16 (as updated from time to time) is a true, correct, and complete listing of all material patents, patent applications, trademarks, trademark applications, copyrights, and copyright registrations as
to which each Borrower or one of its Domestic Subsidiaries is the owner or is an exclusive licensee. 
  
 5.17 Leases. Borrowers and their Domestic Subsidiaries enjoy peaceful and undisturbed possession under all leases material to their business and to
which they are parties or under which they are operating. All of such leases are valid and subsisting and no material default by Borrowers or their Domestic Subsidiaries exists under any of them. 
  
 5.18 DDAs. Set forth on Schedule 5.18 are all of
Borrowers’ and their Domestic Subsidiaries’ Deposit Accounts and Securities Accounts, including, with respect to each bank or securities intermediary, (i) the name and address of such Person, and (ii) the account numbers of the Deposit
Accounts or Securities Accounts maintained with such Person. 
  

 LOAN AND SECURITY AGREEMENT – Page 55 

 5.19 Complete Disclosure. All factual information (taken as a whole) furnished by or on
behalf of Borrowers or their Subsidiaries in writing to Lender (including all information contained in the Schedules hereto or in the other Loan Documents) for purposes of or in connection with this Agreement, the other Loan Documents or any
transaction contemplated herein or therein is, and all other such factual information (taken as a whole) hereafter furnished by or on behalf of Borrowers or their Subsidiaries in writing to the Lender will be, true and accurate, in all material
respects, on the date as of which such information is dated or certified and not incomplete by omitting to state any fact necessary to make such information (taken as a whole) not misleading in any material respect at such time in light of the
circumstances under which such information was provided. 
  
 5.20 Indebtedness. Set forth on Schedule 5.20 is a true and complete list of all Indebtedness of each Borrower and each Domestic Subsidiary of a Borrower outstanding immediately prior to the Closing Date that is to
remain outstanding after the Closing Date and such Schedule accurately reflects the aggregate principal amount of such Indebtedness on the date of this Agreement and the principal terms thereof. 
  
 5.21 Final Order of Plan. The Final Order approving the Plan
has been duly entered, is valid, subsisting and continuing, and is not subject to any pending appeal or stay. 
  
 5.22 Projections. The Projections attached hereto as Exhibit A are a true, correct and complete monthly income statement providing
Borrowers’ projected revenue and expenses for each month from and after the Closing Date through December 31, 2004. 
  
 5.23 Compliance with Laws. Borrowers possess all necessary or appropriate licenses, permits and authorities to conduct their businesses as
presently conducted and are in compliance with all laws applicable to the Borrowers in the operation of their business and in the use and occupancy of their property, including, without limitation, federal, state, and local environmental and tax
laws and regulations and the Employee Retirement Income Security Act, as amended, and regulations thereunder except where the failure to hold any license or permit or any non-compliance would not reasonably be expected to result in a Material
Adverse Change. 
  
 5.24 Non-Material Domestic
Subsidiaries. None of the events permitted by the exceptions allowed for Non-Material Subsidiaries set forth in Sections 6.12, 7.3, 7.4, 7.10, 8.3, 8.5, 8.6, 8.7, 8.8, or 8.10 will cause a Material Adverse Change with respect to Borrowers
and their Material Domestic Subsidiaries (taken as a whole) since the date of the latest financial statements submitted to Lender on or before the Closing Date. Except for DDD Energy, Inc., and except for intercompany balances, none of the
Non-Material Domestic Subsidiaries owns any asset (including without limitation any patent, trademark, copyright, or other intellectual property), or is the licensee, permittee, or other authorized user or person under any license, permit, or other
similar agreement, the absence of which would create a Material Adverse Change to the business of Borrowers and their Material Domestic Subsidiaries (taken as a whole), as such business is presently conducted. Except for DDD Energy, Inc., and except
for intercompany balances, none of the Non-Material Domestic Subsidiaries is subject to any liability, after giving effect to the Plan, that would create a Material Adverse Change to the business of Borrowers and their Material Domestic Subsidiaries
(taken as a whole), as such business is presently conducted. 
  

 LOAN AND SECURITY AGREEMENT – Page 56 

 6. AFFIRMATIVE COVENANTS. 
  
 Each Borrower covenants and agrees that, so long as any credit hereunder shall be available and until payment in full of the
Obligations, Borrowers shall, and shall cause each of their respective Domestic Subsidiaries to, do all of the following: 
  
 6.1 Accounting System. Maintain a system of accounting that enables Borrowers to produce financial statements in accordance with GAAP and
maintain records pertaining to the Collateral that contain information as from time to time reasonably may be requested by Lender. 
  
 6.2 Collateral Reporting. Provide Lender with the following documents at the following times in form satisfactory to Lender: 
  

			
	 Monthly (not later than
  
 (i) the 30th day
after the end of each month that is not the last month of a calendar quarter, and
  
 (ii) the 45th day after the end of each calendar quarter)
	  	 (a) a Borrowing Base Certificate (including detail regarding those Accounts of Borrowers that are not Eligible
Accounts),
  
 (b) a summary aging, by vendor, of
Borrowers’ and their Domestic Subsidiaries’ accounts payable and any book overdraft, and
  
 (c) a detailed report regarding Borrowers’ and their Domestic Subsidiaries’ cash and Cash Equivalents including an indication of which
amounts constitute Qualified Cash.

	  
 Quarterly (not later than the 45th day after the end of each calendar quarter)
	  	  
 (d) a detailed list of each Borrower’s and
each Domestic Subsidiary of a Borrower’s customers, and
  
 (e) a report regarding each Borrower’s and each Domestic Subsidiary of a Borrower’s accrued, but unpaid, ad valorem taxes.

	  
 Promptly upon request by Lender, in the exercise of its Permitted
Discretion
	  	  
 (f) copies of invoices in connection with
Borrowers’ and their Domestic Subsidiaries’ Accounts, credit memos, remittance advices, deposit slips, shipping and delivery documents in connection with Borrowers’ and their Domestic Subsidiaries’ Accounts and, for Inventory and
Equipment acquired by Borrowers or their Domestic Subsidiaries, purchase orders and invoices, and
  
 (g) such other reports as to the Collateral, or the financial condition of Borrowers and their Domestic Subsidiaries, as Lender may request in the
exercise of its Permitted Discretion.

  

 LOAN AND SECURITY AGREEMENT – Page 57 

 In addition, each Borrower agrees to cooperate fully with Lender to facilitate and
implement a mutually agreeable system of electronic collateral reporting in order to provide electronic reporting of each of the items set forth above. 
  
 6.3 Financial Statements, Reports, Certificates. Deliver to Lender: 
  
 (a) as soon as available, but in any event within 30 days (45 days in the case of a month that is the end of
one of Parent’s fiscal quarters) after the end of each month during each of Parent’s fiscal years, 
  
 (i) a company-prepared consolidated balance sheet, income statement, and statement of cash flow covering Parent’s and its Domestic
Subsidiaries’ operations during such period, 
  
 (ii) a certificate signed on behalf of the Parent by the chief financial officer or, if the chief financial officer is not available, the chief accounting officer of Parent to the effect that: 
  
 A. the financial statements delivered hereunder have been
prepared in accordance with GAAP (except for the lack of footnotes and being subject to year-end audit adjustments) and fairly present in all material respects the financial condition of Parent and its Domestic Subsidiaries, 
  
 B. the representations and warranties of Borrowers
contained in this Agreement and the other Loan Documents are true and correct in all material respects on and as of the date of such certificate, as though made on and as of such date (except to the extent that such representations and warranties
relate solely to an earlier date, and except for changes in the ordinary course not otherwise constituting an Event of Default), and 
  
 C. there does not exist any condition or event that constitutes a Default or Event of Default (or, to the extent of any non-compliance,
describing such non-compliance as to which he or she may have knowledge and what action Borrowers have taken, are taking, or propose to take with respect thereto), and 
  
 (iii) for each month that is the date on which a financial covenant in Section 7.18 is to be tested,
a Compliance Certificate demonstrating, in reasonable detail, compliance at the end of such period with the applicable financial covenants contained in Section 7.18, 
  
 (b) as soon as available, but in any event within 45 days after the end of each quarter during each of
Parent’s fiscal years, 
  
 (i) a
company-prepared consolidating balance sheet and income statement covering Parent’s and its Domestic Subsidiaries’ operations during such 

  

 LOAN AND SECURITY AGREEMENT – Page 58 

 
period (the omission of a consolidating cash flow statement from this clause being intentional), 
  
 (ii) a certificate signed on behalf of the Parent by the
chief financial officer or, if the chief financial officer is not available, the chief accounting officer of Parent to the effect that: 
  
 A. the financial statements delivered hereunder have been prepared in accordance with GAAP (except for the lack of footnotes and being
subject to year-end audit adjustments) and fairly present in all material respects the financial condition of Parent and its Domestic Subsidiaries, 
  
 B. the representations and warranties of Borrowers contained in this Agreement and the other Loan Documents are true and correct in all
material respects on and as of the date of such certificate, as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier date, and except for changes in the ordinary course not
otherwise constituting an Event of Default), and 
  
 C. there does not exist any condition or event that constitutes a Default or Event of Default (or, to the extent of any non-compliance, describing such non-compliance as to which he or she may have knowledge and what action Borrowers have
taken, are taking, or propose to take with respect thereto), 
  
 (c) as soon as available, but in any event within 90 days after the end of each of Parent’s fiscal years, 
  
 (i) consolidated financial statements of Parent and its Subsidiaries for each such fiscal year, audited by independent certified public
accountants reasonably acceptable to Lender and certified, without any qualifications, by such accountants to have been prepared in accordance with GAAP (such audited financial statements to include a balance sheet, income statement, and statement
of cash flow and, if prepared, such accountants’ letter to management), and 
  
 (ii) a certificate of such accountants addressed to Lender stating that, in the course of performing their audit of the aforedescribed
annual financial statements, there did not come to the attention of such accountants the existence of any Default or Event of Default under Section 7.18 with respect to the subject fiscal year, 
  
 (d) as soon as available, but in any event within 30 days
after the start of each of Parent’s fiscal years, copies of Borrowers’ Projections, in form and substance (including as to scope and underlying assumptions) satisfactory to Lender, in its Permitted Discretion, for the forthcoming twelve
(12) months, month by month, certified by the chief financial officer or chief 

  

 LOAN AND SECURITY AGREEMENT – Page 59 

 
accounting officer of Parent as being such officer’s good faith best estimate of the financial performance of Parent and its Domestic Subsidiaries
during the period covered thereby, 
  
 (e) if and
when (or within five Business Days after) filed by any Borrower, 
  
 (i) notice of the filing of each Form 10-Q quarterly reports, Form 10-K annual reports, and Form 8-K current reports (it being contemplated that Lender will obtain the actual filings using Lender’s own
resources), 
  
 (ii) any other filings made by
such Borrower with the SEC, 
  
 (iii) copies of
Borrowers’ United States federal income tax returns, any Domestic Subsidiary’s United States federal partnership tax reports, and any amendments thereto, filed with the Internal Revenue Service, and 
  
 (iv) any other information that is provided by Parent to its
shareholders generally, 
  
 (f) if and when (or
within five Business Days after) sent or received by any Borrower, copies of any notices, demands, or notices of default from any Borrower to the holders of the Senior Notes or from any holder of the Senior Notes to any Borrower, 
  
 (g) if and when filed by any Borrower or any Domestic
Subsidiary of a Borrower and if requested by Lender, satisfactory evidence of payment of applicable excise taxes in each jurisdiction in which (i) any Borrower or any Domestic Subsidiary of a Borrower conducts business or is required to pay any such
excise tax, (ii) any Borrower’s or any Domestic Subsidiary of a Borrower’s failure to pay any such applicable excise tax would result in a Lien on the properties or assets of such Borrower or such Domestic Subsidiary, or (iii) any
Borrower’s and any Domestic Subsidiary of a Borrower’s failure to pay any such applicable excise tax reasonably could be expected to result in a Material Adverse Change, 
  
 (h) as soon as a Borrower has knowledge of any event or condition that constitutes a Default or an Event of
Default, notice thereof and a statement of the curative action that Borrowers are taking or propose to take with respect thereto, 
  
 (i) promptly after the commencement thereof, but in any event within 5 Business Days after the service of process with respect thereto on
any Borrower or any Domestic Subsidiary of a Borrower, notice of all actions, suits, or proceedings brought by or against any Borrower or any Domestic Subsidiary of a Borrower before any Governmental Authority which, if determined adversely to such
Borrower or such Domestic Subsidiary, reasonably could be expected to result in a Material Adverse Change, and 
  
 (j) promptly upon the request of Lender, any other report reasonably requested relating to the financial condition of Borrowers or their
Domestic Subsidiaries. 
  
 In addition to the financial statements
referred to above, Borrowers agree to deliver financial statements for the subject dates and periods prepared on both a consolidated and 

  

 LOAN AND SECURITY AGREEMENT – Page 60 

 
consolidating basis; provided, however, that the monthly financial statements provided pursuant to Section 6.3(a) and the annual,
audited financial statements provided pursuant to Section 6.3(c) need be only on a consolidated basis. Parent also agrees that no Domestic Subsidiary of Parent will have a fiscal year different from that of Parent. Borrowers agree to
cooperate with Lender to allow Lender to consult with their independent certified public accountants if Lender reasonably requests the right to do so and that, in such connection, their independent certified public accountants are authorized to
communicate with Lender and to release to Lender whatever financial information concerning Borrowers or their Subsidiaries that Lender reasonably may request; provided, however, that Borrowers make no assurance with respect to the
independent determinations of the accountants as to the nature or extent of their cooperation. 
  
 6.4 Guarantor Reports. Cause each Guarantor to deliver its annual unaudited financial statements at the time when Parent provides its audited financial statements to Lender, but only to the extent such
Guarantor’s financial statements are not consolidated with Parent’s financial statements, and copies of all of its federal income tax returns (unless filing consolidated returns with Parent) as soon as the same are available and in any
event no later than 30 days after the same are required to be filed by law (after giving effect to any properly filed extension). 
  
 6.5 [Intentionally Omitted.] 
  
 6.6 Maintenance of Properties. Maintain and preserve all of their properties which are necessary or useful in the proper conduct of their
business in good working order and condition, ordinary wear and tear excepted, and comply at all times with the provisions of all leases to which it is a party as lessee, so as to prevent any loss or forfeiture thereof or thereunder, if the loss or
forfeiture would cause a Material Adverse Change. 
  
 6.7
Taxes. Cause all assessments and taxes, whether real, personal, or otherwise, due or payable by, or imposed, levied, or assessed against Borrowers, their Subsidiaries, or any of their respective assets to be paid in full, before
delinquency or before the expiration of any extension period, except to the extent that the validity of such assessment or tax shall be the subject of a Permitted Protest. Borrowers will, and will cause their Subsidiaries to, make timely payment or
deposit of all tax payments and withholding taxes required of them by applicable laws, including those laws concerning F.I.C.A., F.U.T.A., state disability, and local, state, and federal income taxes, and will, upon request, furnish Lender with
proof satisfactory to Lender indicating that the applicable Borrower or Subsidiary of a Borrower has made such payments or deposits, except to the extent of any pending Permitted Protests in respect thereof. 
  
 6.8 Insurance 
  
 (a) At Borrowers’ expense, maintain insurance
respecting their and their Domestic Subsidiaries’ assets wherever located, covering loss or damage by fire, theft, explosion, and all other hazards and risks as ordinarily are insured against by other Persons engaged in the same or similar
businesses. Borrowers also shall maintain public liability and product liability insurance, as well as insurance against larceny, embezzlement, and criminal misappropriation. All such policies of insurance shall be in such amounts and with such
insurance companies as are reasonably satisfactory to Lender. Borrowers shall deliver copies of all such policies to Lender with a satisfactory lender’s loss payable endorsement (other than in 

  

 LOAN AND SECURITY AGREEMENT – Page 61 

 
respect of workers’ compensation insurance) naming Lender as loss payee (as its interests appear) or additional insured, as appropriate. Each policy of
insurance or endorsement shall contain a clause requiring the insurer to give not less than 30 days prior written notice to Lender in the event of cancellation of the policy for any reason whatsoever. 
  
 (b) Administrative Borrower shall give Lender prompt notice
of any loss covered by such insurance. Lender shall have the exclusive right to adjust any losses claimed under any such insurance policies in excess of $1,000,000 (or in any amount after the occurrence and during the continuation of an Event of
Default), without any liability to Borrowers whatsoever in respect of such adjustments absent gross negligence or willful misconduct by Lender. Any monies received as payment for any loss under any insurance policy mentioned above (other than
liability insurance policies) or as payment of any award or compensation for condemnation or taking by eminent domain, shall be paid over to Lender to be applied at the option of Lender either to the prepayment of the Obligations; provided, that in
the case of proceeds of casualty insurance involving a casualty where the proceeds are in an amount less than $1,000,000 and so long as no Event of Default shall then be continuing, then such proceeds shall be disbursed to Administrative Borrower
under staged payment terms reasonably satisfactory to Lender in the exercise of its Permitted Discretion for application to the cost of repairs, replacements, or restorations. Any such repairs, replacements, or restorations shall be effected with
reasonable promptness and shall be of a value at least equal to the value of the items or property destroyed prior to such damage or destruction. 
  
 (c) Borrowers shall not, and shall not suffer or permit their Domestic Subsidiaries to, take out separate insurance concurrent in form or
contributing in the event of loss with that required to be maintained under this Section 6.8, unless Lender is included thereon as named insured with the loss payable to Lender under a lender’s loss payable endorsement or its equivalent.
Administrative Borrower immediately shall notify Lender whenever such separate insurance is taken out, specifying the insurer thereunder and full particulars as to the policies evidencing the same, and copies of such policies promptly shall be
provided to Lender. 
  
 6.9 Location of Inventory and
Equipment. Keep Borrowers’ and their Domestic Subsidiaries’ Inventory and Equipment only at the locations identified on Schedule 5.5 and their chief executive offices only at the locations identified on Schedule
5.7(b); provided, however, that Administrative Borrower may amend Schedule 5.5 and Schedule 5.7(b) so long as such amendment occurs by written notice to Lender not less than 30 days prior to the date on which such
Inventory or Equipment is moved to such new location or such chief executive office is relocated, so long as such new location is within the continental United States, and so long as, at the time of such written notification, the applicable Borrower
provides to Lender a Collateral Access Agreement with respect thereto. 
  
 6.10 Compliance with Laws. Comply with the requirements of all applicable laws, rules, regulations, and orders of any Governmental Authority, including the Fair Labor Standards Act and the Americans With Disabilities Act,
other than laws, rules, regulations, and orders the non-compliance with which, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change. 
  

 LOAN AND SECURITY AGREEMENT – Page 62 

 6.11 Leases. Pay when due all rents and other amounts payable under any leases to which any
Borrower or any Domestic Subsidiary of a Borrower is a party or by which any Borrower’s or any Domestic Subsidiary of a Borrower’s properties and assets are bound, unless such payments are the subject of a Permitted Protest or, in the case
of any leases other than the Borrowers’ lease of the premises at 10811 S. Westview Circle, Houston, Texas (which premises are the storage site for the US Seismic Library), the loss or forfeiture of such lease would not cause a Material Adverse
Change. 
  
 6.12 Existence. At all times preserve
and keep in full force and effect each Borrower’s and each Domestic Subsidiary of a Borrower’s valid existence and good standing and any rights and franchises material to their businesses; provided, however, that nothing
herein contained shall be deemed to prohibit or limit any Non-Material Domestic Subsidiary from liquidating, winding up or dissolving, or merging or consolidating with or into a Borrower or another Domestic Subsidiary. 
  
 6.13 Environmental. 
  
 (a) Keep any property either owned or operated by any
Borrower or any Subsidiary of a Borrower free of any Environmental Liens or post bonds or other financial assurances sufficient to satisfy the obligations or liability evidenced by such Environmental Liens, (b) comply, in all material respects, with
Environmental Laws and provide to Lender documentation of such compliance which Lender reasonably requests, (c) notify Lender, promptly upon obtaining knowledge thereof, of any release of a Hazardous Material of any reportable quantity from or onto
property owned or operated by any Borrower or any Subsidiary of a Borrower and take any Remedial Actions required to abate said release or otherwise to come into compliance with applicable Environmental Law, and (d) promptly, but in any event within
5 days of its receipt thereof, provide Lender with written notice of any of the following: (i) notice that an Environmental Lien has been filed against any of the real or personal property of any Borrower or any Subsidiary of a Borrower, (ii)
commencement of any Environmental Action or notice that an Environmental Action will be filed against any Borrower or any Subsidiary of a Borrower, and (iii) notice of a violation, citation, or other administrative order which reasonably could be
expected to result in a Material Adverse Change. 
  
 6.14
Disclosure Updates. Promptly and in no event later than 5 Business Days after obtaining knowledge thereof, notify Lender if any written information, exhibit, or report furnished to Lender contained any untrue statement of a material fact
or omitted to state any material fact necessary to make the statements contained therein not misleading in light of the circumstances in which made. The foregoing to the contrary notwithstanding, any notification pursuant to the foregoing provision
will not cure or remedy the effect of the prior untrue statement of a material fact or omission of any material fact nor shall any such notification have the affect of amending or modifying this Agreement or any of the Schedules hereto. 

 
 6.15 Formation of Subsidiaries. At the time that any
Borrower or any Guarantor forms any direct or indirect Domestic Subsidiary or acquires any direct or indirect Domestic Subsidiary after the Closing Date, such Borrower or such Guarantor shall (a) cause such new Domestic Subsidiary to provide to
Lender a joinder to this Agreement or to the Guaranty and the Guarantor Security Agreement, together with such other security documents, as well as 

  

 LOAN AND SECURITY AGREEMENT – Page 63 

 
appropriate UCC-1 financing statements, all in form and substance satisfactory to Lender in the exercise of its Permitted Discretion (including being
sufficient to grant Lender a first priority Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Domestic Subsidiary), (b) provide to Lender a pledge agreement and appropriate certificates and powers or UCC-1
financing statements, hypothecating all of the direct or beneficial ownership interest owned by the subject Borrower or Guarantor in such new Domestic Subsidiary, in form and substance satisfactory to Lender in the exercise of its Permitted
Discretion, and (c) provide to Lender all other documentation, including one or more opinions of counsel satisfactory to Lender in the exercise of its Permitted Discretion, which in its Permitted Discretion is appropriate with respect to the
execution and delivery of the applicable documentation referred to above. Any document, agreement, or instrument executed or issued pursuant to this Section 6.15 shall be a Loan Document. 
  
 7. NEGATIVE COVENANTS. 
  
 Each Borrower covenants and agrees that, so long as any credit hereunder shall be available and until payment in full of the
Obligations, Borrowers will not and will not permit any of their respective Domestic Subsidiaries to do any of the following: 
  
 7.1 Indebtedness. Create, incur, assume, suffer to exist, guarantee, or otherwise become or remain, directly or indirectly, liable with
respect to any Indebtedness, except: 
  
 (a)
Indebtedness evidenced by this Agreement and the other Loan Documents, together with Indebtedness owed to Underlying Issuers with respect to Underlying Letters of Credit; 
  
 (b) Indebtedness set forth on Schedule 5.20 and guarantees thereof; 
  
 (c) Permitted Purchase Money Indebtedness; 
  
 (d) refinancings, renewals, or extensions of Indebtedness
permitted under clauses (b) and (c) of this Section 7.1 (and continuance or renewal of any Permitted Liens associated therewith) so long as: (i) the terms and conditions of such refinancings, renewals, or extensions do not, in Lender’s
Permitted Discretion, materially impair the prospects of repayment of the Obligations by Borrowers or materially impair Borrowers’ creditworthiness, (ii) such refinancings, renewals, or extensions do not result in an increase in the then extant
principal amount of, or interest rate with respect to, the Indebtedness so refinanced, renewed, or extended or add one or more Borrowers as liable with respect thereto if such additional Borrowers were not liable with respect to the original
Indebtedness, (iii) such refinancings, renewals, or extensions do not result in a shortening of the average weighted maturity of the Indebtedness so refinanced, renewed, or extended, nor are they on terms or conditions, that, taken as a whole, are
materially more burdensome or restrictive to the applicable Borrower, (iv) if the Indebtedness that is refinanced, renewed, or extended was subordinated in right of payment to the Obligations, then the terms and conditions of the refinancing,
renewal, or extension Indebtedness must be include subordination terms and conditions that, taken as a whole, are at least as favorable to Lender as those that were applicable to the refinanced, renewed, or extended Indebtedness, and (v) the
Indebtedness that is refinanced, renewed, or extended is not recourse to 

  

 LOAN AND SECURITY AGREEMENT – Page 64 

 
any Person that is liable on account of the Obligations other than those Persons which were obligated with respect to the Indebtedness that was refinanced,
renewed, or extended; 
  
 (e) endorsement of
instruments or other payment items for deposit; 
  
 (f) Indebtedness constituting Permitted Investments; and 
  
 (g) other Indebtedness in a principal amount not exceeding $1,000,000 at any time outstanding. 
  
 7.2 Liens. Create, incur, assume, or suffer to exist, directly or indirectly, any Lien on or with respect to any of its assets, of any kind,
whether now owned or hereafter acquired, or any income or profits therefrom, except for Permitted Liens (including Liens that are replacements of Permitted Liens to the extent that the original Indebtedness is refinanced, renewed, or extended under
Section 7.1(c) and so long as the replacement Liens only encumber those assets that secured the refinanced, renewed, or extended Indebtedness). 
  
 7.3 Restrictions on Fundamental Changes 
  
 (a) Except pursuant to the Plan, including, without limitation, any revisions to the Governing Documents of Parent pursuant to the Plan,
enter into any merger, consolidation, reorganization, or recapitalization, or reclassify its Stock; provided, however, that nothing herein contained shall be deemed to prohibit or limit any Non-Material Domestic Subsidiary from merging
or consolidating with or into a Borrower or another Domestic Subsidiary. 
  
 (b) Liquidate, wind up, or dissolve itself (or suffer any liquidation or dissolution); provided, however, that nothing herein contained shall be deemed to prohibit or limit any Non-Material Domestic
Subsidiary from liquidating, winding up or dissolving, or merging or consolidating with or into a Borrower or another Domestic Subsidiary. 
  
 (c) Other than Permitted Dispositions and transactions in the ordinary course of business consistent with past practices and the licensing
of the US Seismic Library in the ordinary course of business, convey, sell, lease, license, assign, transfer, or otherwise dispose of, in one transaction or a series of transactions, all or any substantial part of its assets; provided,
however, that nothing herein contained shall be deemed to prohibit or limit any Non-Material Domestic Subsidiary from liquidating, winding up or dissolving, or merging or consolidating with or into a Borrower or another Domestic Subsidiary.

  
 7.4 Disposal of Assets. Convey, sell, lease,
license, assign, transfer, or otherwise dispose of all or any substantial portion of the assets of any Borrower or any Domestic Subsidiary of a Borrower, other than the following: 
  
 (a) Permitted Dispositions, 
  
 (b) transactions in the ordinary course of business consistent with past practices, 
  
 (c) the licensing of the US Seismic Library in the ordinary
course of business, 
  

 LOAN AND SECURITY AGREEMENT – Page 65 

 (d) transactions by Non-Material Domestic Subsidiaries permitted pursuant to Section
7.3, 
  
 (e) the disposition of the assets of
DDD Energy, Inc., and 
  
 (f) the transfer to
SEIC L.L.C. by Seitel Data Ltd. of the surveys and data, which are described by name of program, location, and value as of December 31, 2003 on Schedule 7.4 attached hereto. 
  
 The use and transfer of money, Cash Equivalents, or any other asset or property by or from any of the Loan Parties to any Domestic
Subsidiary or Affiliate of a Loan Party that is not organized under the laws of a jurisdiction located in the continental United States of America expressly is prohibited by the terms of this Agreement. 
  
 7.5 Change Name. Change any Borrower’s or any Domestic
Subsidiary of a Borrower’s name, FEIN, organizational identification number, state of organization, or organizational identity; provided, however, that a Borrower or a Domestic Subsidiary of a Borrower may change its name upon at
least 30 days prior written notice by Administrative Borrower to Lender of such change and so long as, at the time of such written notification, such Borrower or such Domestic Subsidiary provides any financing statements or amendments necessary to
perfect and continue perfected Lender’s Liens. 
  
 7.6
Nature of Business. Make any change in the principal nature of their business. 
  
 7.7 Prepayments and Amendments. Except in connection with a refinancing permitted by Section 7.1(c), 
  
 (a) prepay, redeem, defease, purchase, or otherwise acquire any Indebtedness of any Borrower or any Domestic Subsidiary of a Borrower,
other than (i) the redemption of up to 35% of the Senior Notes out of the proceeds of equity offerings, in accordance with the terms of the Senior Notes as in effect on the Effective Date, and (ii) the Obligations in accordance with this Agreement,
or 
  
 (b) directly or indirectly, amend, modify,
alter, increase, or change any of the terms or conditions of any agreement, instrument, document, indenture, or other writing evidencing or concerning Indebtedness permitted under Section 7.1(b). 
  
 7.8 Change of Control. Cause, permit, or suffer, directly or
indirectly, any Change of Control, except for any Change in Control effected pursuant to, and expressly contemplated by and disclosed in, the Plan. 
  
 7.9 Consignments. Consign any of their Inventory or sell any of their Inventory on bill and hold, sale or return, sale on approval, or other
conditional terms of sale. 
  
 7.10 Distributions.
Other than distributions or declaration and payment of dividends by a Domestic Subsidiary or a Borrower to a Domestic Subsidiary or a Borrower (including, without limitation, liquidating distributions by Non-Material Domestic Subsidiaries) in the

  

 LOAN AND SECURITY AGREEMENT – Page 66 

 
ordinary course of business, or such distributions or declaration and payment of dividends not in the ordinary course of business which are deposited into a
Cash Management Account, make any distribution or declare or pay any distributions or dividends (in cash or other property) on any of its shares of capital Stock of any class, whether now or hereafter outstanding, or other ownership interests, or
purchase, redeem, cancel, acquire or retire any of its capital Stock or other ownership interests or capital Stock or other ownership interests of any of their Subsidiaries or any option, warrant, or other right to acquire such capital Stock or
other ownership interests, or apply or set apart any of their assets therefor, or make any distribution (by reduction of capital or otherwise) in respect of any such shares of capital Stock or other ownership interests or any such option, warrant or
other right. 
  
 7.11 Accounting Methods. Modify or
change their fiscal year or their method of accounting (other than as may be required to conform to GAAP) or enter into, modify, or terminate any agreement currently existing, or at any time hereafter entered into with any third party accounting
firm or service bureau for the preparation or storage of Borrowers’ or their Domestic Subsidiaries’ accounting records without said accounting firm or service bureau agreeing to provide Lender information regarding Borrowers’ and
their Domestic Subsidiaries’ financial condition. 
  
 7.12
Investments. Directly or indirectly, make or acquire any Investment, or incur any liabilities (including contingent obligations) for or in connection with any Investment, except for the following: 
  
 (a) Permitted Investments, 
  
 (b) existing Investments in direct and indirect Subsidiaries
of Parent, and 
  
 (c) investments in direct or
indirect Subsidiaries of Parent to the extent, but only to the extent, of inter-company accounts converted to equity of a Subsidiary (in the ordinary course of business on terms and conditions consistent with past practices of Parent and its
Subsidiaries) in order to meet equity capital requirements for such Subsidiaries under Canadian law; 
  
 provided, however, that Administrative Borrower and its Domestic Subsidiaries shall not have Permitted Investments (other than in the Cash Management Accounts) in Deposit Accounts or Securities Accounts
in an aggregate amount in excess of $50,000 outstanding at any one time unless Administrative Borrower or its Domestic Subsidiary, as applicable, and the applicable securities intermediary or bank have entered into Control Agreements or similar
arrangements governing such Permitted Investments in order to perfect (and further establish) the Lender’s Liens in such Permitted Investments. Subject to the foregoing proviso, Borrowers shall not and shall not permit their Domestic
Subsidiaries to establish or maintain any Deposit Account or Securities Account unless Lender shall have received a Control Agreement in respect of such Deposit Account or Securities Account. 
  
 7.13 Transactions with Affiliates. Directly or indirectly enter
into or permit to exist any transaction with any Affiliate of any Borrower except for transactions that are in the ordinary course of Borrowers’ business, upon fair and reasonable terms, that are fully disclosed to Lender, and that are no less
favorable to Borrowers than would be obtained in an arm’s length transaction 

  

 LOAN AND SECURITY AGREEMENT – Page 67 

 
with a non-Affiliate; provided, however, that, transactions in the ordinary course of Borrowers’ business include but are not limited to
the following types of recurring inter-company transactions, entered in the ordinary course of business on terms and conditions consistent with past practices of Parent and its Subsidiaries: 
  
 (a) royalty fees assessed on a quarterly basis, 

 
 (b) allocation of interest and taxes related to the lease
with Winthrop Resources Corp., as lessor, and Parent, as lessee, for the purchase of computer and data technology center furniture and equipment, and other corporate overhead, 
  
 (c) interest charged on inter-company balances, 
  
 (d) capitalization of certain inter-company loans as
described in Section 7.12, and 
  
 (e)
commission expenses and revenue net of brokers’ fees from certain data sales, 
  
 all of which are inter-company transactions with an Affiliate of Parent, which transactions are eliminated from the consolidated accounts of Parent and its Subsidiaries in accordance with GAAP. 
  
 7.14 Suspension. Suspend or go out of a substantial portion of
their business, unless such suspension or going out of a substantial portion of their business would not result in a Material Adverse Change. 
  
 7.15 [Intentionally Deleted.]. 
  
 7.16 Use of Proceeds. Use the proceeds of the Advances for any purpose other than, on the Closing Date, initially to replace the existing
Indebtedness of Borrowers to Existing Lender, if any, and thereafter, solely to fund Borrowers’ working capital needs and other general corporate and partnership purposes, all in the ordinary course of business, consistent with the terms and
conditions hereof, for its lawful and permitted purposes; provided that prior to either 
  
 (i) the receipt of Seventy-Five Million Dollars ($75,000,000) of proceeds from either the Shareholder Warrants and/or the Guarantor
Warrants, or, in lieu thereof, 
  
 (ii) delivery
into the escrow contemplated by the Plan of an irrevocable stand-by letter of credit in the amount of Seventy-Five Million Dollars ($75,000,000) (or such lesser amount as would reflect the receipt of any proceeds of the Warrant Offering by
Borrowers) on or before the third (3rd) Business Day after the Effective Date, 
  
 the proceeds of Advances will be available only for working capital needs of Borrowers and
payment of Claims under the Plan other than Class 3 Claims, and will not be available for the payment of Class 3 Claims under the Plan. Further, in no event will proceeds of the Revolving Credit Facility be used for the repurchase or redemption of
the Senior Notes, in whole or in part, without the prior written consent of Lender. 
  

 LOAN AND SECURITY AGREEMENT – Page 68 

 7.17 Inventory and Equipment with Bailees. Store the US Seismic Library at any time now or
hereafter with a bailee, warehouseman, or similar party without Lender’s prior written consent, or store any material amount of the Inventory or Equipment of Borrowers or their Domestic Subsidiaries (other than the US Seismic Library) at any
time now or hereafter with a bailee, warehouseman, or similar party, without providing to Lender a Collateral Access Agreement from such bailee, warehouseman, or similar party. 
  
 7.18 Financial Covenants. (a) Fail to maintain or achieve: 
  
 (i) Minimum Cash Operating Income. Cash Operating
Income, measured on a calendar quarter-end basis, of at least Sixty Million Dollars ($60,000,000.00) for the trailing twelve-month period ending as of the end of the quarter for which Cash Operating Income is then being measured; provided,
that such minimum shall be subject to adjustment with respect to periods ending subsequent to December 31, 2004, by the good faith negotiation of Lender and Borrowers based on then-current Projections, but if no agreement is reached based on such
good faith negotiation, then the minimum shall not be adjusted, and the then-existing covenant regarding minimum Cash Operating Income will continue to apply; 
  

(b) Make: 
  
 (i) Capital Expenditures. Capital expenditures (net of non-monetary exchanges of seismic data) in excess of Seventy-One Million
Five Hundred Thousand Dollars ($71,500,000.00) for the 2004 fiscal year; provided, that such maximum shall be subject to adjustment with respect to subsequent fiscal years by the good faith negotiation of Lender and Borrowers based on
then-current Projections, but if no agreement is reached based on such good faith negotiation, then the maximum shall not be adjusted, and the then-existing covenant regarding maximum Capital Expenditures will continue to apply. 
  
 8. EVENTS OF DEFAULT. Any one or more of the following events shall constitute an
event of default (each, an “Event of Default”) under this Agreement: 
  
 8.1 If Borrowers fail to pay when due and payable or when declared due and payable, all or any portion of the Obligations (whether of principal, interest (including any interest which, but for the provisions of
the Bankruptcy Code, would have accrued on such amounts), fees and charges due Lender, reimbursement of Lender Expenses, or other amounts constituting Obligations); 
  
 8.2 If any Borrower 
  
 (a) fails to perform, keep, or observe any term, provision, covenant, or agreement contained in Sections 2.7, 3.1,
4.2, 4.4, 4.6, 6.8, 6.12, 6.15, and 7.1 through 7.18 of this Agreement; 
  

 LOAN AND SECURITY AGREEMENT – Page 69 

 (b) fails or neglects to perform, keep, or observe any term, provision, covenant, or
agreement contained in Sections 4.5, 6.2, 6.3, 6.6, 6.7, 6.9, 6.10, 6.11, and 6.14 of this Agreement and such failure continues for a period of five (5) Business Days; or 
  
 (c) fails or neglects to perform, keep, or observe any other
term, provision, covenant, or agreement contained in this Agreement, or in any of the other Loan Documents (giving effect to any grace periods, cure periods, or required notices, if any, expressly provided for in such Loan Documents); in each case,
other than any such term, provision, covenant, or agreement that is the subject of another provision of this Section 8 (in which event such other provision of this Section 8 shall govern), and such failure continues for a period of 10
Business Days; 
  
 provided that, during any period of time
that any such failure or neglect referred to in this paragraph exists, even if such failure or neglect is not yet an Event of Default, Lender shall be relieved of its obligation to extend credit hereunder; 
  
 8.3 If (a) any material portion of any Borrower’s or any Material
Domestic Subsidiary’s assets, or (b) an amount (measured on the basis of either book value or fair market value, whichever is greater, on an aggregate, cumulative basis for all Non-Material Domestic Subsidiaries, from the Closing Date through
any date of measurement) in excess of $75,000 (exclusive of intercompany balances) of one or more Non-Material Domestic Subsidiaries’ assets is attached, seized, subjected to a writ or distress warrant, levied upon, or comes into the possession
of any third Person, and the same is not discharged before the earlier of 30 days after the date it first arises or 5 days prior to the date on which such property or asset is subject to forfeiture by such Borrower, Material Domestic Subsidiary, or
Non-Material Domestic Subsidiaries; 
  
 8.4 If an
Insolvency Proceeding is commenced by any Borrower, any Material Domestic Subsidiary, or one or more Non-Material Domestic Subsidiaries that owns assets (exclusive of intercompany balances on the financial statements of any such Non-Material
Domestic Subsidiary) in excess of $75,000 (measured on the basis of book value or fair market value, whichever is greater, on an aggregate, cumulative basis for all such Non-Material Domestic Subsidiaries, from the Closing Date through any date of
measurement); 
  
 8.5 If an Insolvency Proceeding is
commenced against any Borrower, any Material Domestic Subsidiary, or one or more Non-Material Domestic Subsidiaries that owns assets (exclusive of intercompany balances on the financial statements of any such Non-Material Domestic Subsidiary) in
excess of $75,000 (measured on the basis of book value or fair market value, whichever is greater, on an aggregate, cumulative basis for all such Non-Material Domestic Subsidiaries, from the Closing Date through any date of measurement), and any of
the following events occur: (a) the applicable Borrower, Material Domestic Subsidiary, or Non-Material Domestic Subsidiary consents to the institution of the Insolvency Proceeding against it, (b) the petition commencing the Insolvency Proceeding is
not timely controverted; provided, however, that, during the pendency of such period, Lender shall be relieved of its obligations to extend credit hereunder, (c) the petition commencing the Insolvency Proceeding is not dismissed within
45 calendar days of the date of the filing thereof; provided, however, that, during the pendency of such period, Lender shall be relieved of its obligation to extend credit 

  

 LOAN AND SECURITY AGREEMENT – Page 70 

 
hereunder, (d) an interim trustee is appointed to take possession of all or any substantial portion of the properties or assets of, or to operate all or any
substantial portion of the business of, any Borrower, any Material Domestic Subsidiary, or one or more Non-Material Domestic Subsidiaries that owns assets (exclusive of intercompany balances on the financial statements of any such Non-Material
Domestic Subsidiary) in excess of $75,000 (measured on the basis of book value or fair market value, whichever is greater, on an aggregate, cumulative basis for all such Non-Material Domestic Subsidiaries, from the Closing Date through any date of
measurement), or (e) an order for relief shall have been entered therein; 
  
 8.6 If any Borrower, any Domestic Subsidiary, or one or more Non-Material Domestic Subsidiaries that owns assets (exclusive of intercompany balances on the financial statements of any such Non-Material Domestic
Subsidiary) in excess of $75,000 (measured on the basis of book value or fair market value, whichever is greater, on an aggregate, cumulative basis for all such Non-Material Domestic Subsidiaries, from the Closing Date through any date of
measurement) is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material part of its business affairs; 
  
 8.7 (a) If a notice of Lien is filed of record either (i) with respect to any Borrower’s or any Material Domestic Subsidiary’s assets, or
(ii) with respect to the assets of any one or more Non-Material Domestic Subsidiaries that owns assets (exclusive of intercompany balances) in excess of $75,000 (measured on the basis of book value or fair market value, whichever is greater, on an
aggregate, cumulative basis for all such Non-Material Domestic Subsidiaries, from the Closing Date through any date of measurement), by the United States or any department, agency, or instrumentality thereof (a “Federal Lien”), or
by any state, county, municipal, or governmental agency and such state, county, municipal, or governmental agency Lien has priority over the Liens of Lender in and to the Collateral or any portion thereof (a “Non-Federal Priority
Lien”); or 
  
 (b) If a notice of Lien
is filed of record either (i) with respect to any Borrower’s or any Material Domestic Subsidiary’s assets, or (ii) with respect to the assets of any one or more Non-Material Domestic Subsidiaries that owns assets (exclusive of intercompany
balances) in excess of $75,000 (measured on the basis of book value or fair market value, whichever is greater, on an aggregate, cumulative basis for all such Non-Material Domestic Subsidiaries, from the Closing Date through any date of
measurement), by any state, county, municipal, or governmental agency that is not a Non-Federal Priority Lien (a “Non-Federal Non-Priority Lien”); provided, however, that, if the aggregate amount claimed with respect
to any such Non-Federal Non-Priority Liens, or combination thereof, is less than $100,000, an Event of Default shall not occur under this subsection if the claims that are the subject of such Liens are the subject of Permitted Protests and if the
Liens are released, discharged, or bonded against within 30 days of each such Lien first being filed of record or, if earlier, at least 5 days prior to the date on which assets that are subject to such Liens are subject to being sold or forfeited
and, in any such case, Lender shall have the absolute right to establish and maintain a reserve against the Borrowing Base and the Maximum Revolver Amount in an amount equal to the aggregate amount of the underlying claims (determined by Lender, in
its Permitted Discretion, and irrespective of any Permitted Protests with respect thereto and including any penalties or interest that are estimated by Lender, in its Permitted Discretion, to arise in connection therewith); 
  

 LOAN AND SECURITY AGREEMENT – Page 71 

 8.8 If one or more judgments or other claims involving an aggregate amount of $250,000 or more, in
excess of the amount covered by insurance, becomes a Lien or encumbrance upon any material portion of the assets of any Borrower, any Material Domestic Subsidiary, or any Non-Material Domestic Subsidiary with intercompany receivables in excess of
$250,000, and the same is not released, discharged, bonded against, or stayed pending appeal before the earlier of 30 days after the date it first arises or 5 days prior to the date on which such asset is subject to being forfeited by such Borrower,
Material Domestic Subsidiary, or Non-Material Domestic Subsidiary; 
  
 8.9 (a) If there is a default in one or more agreements to which Borrower is a party with one or more third Persons relative to Borrower’s Indebtedness involving an aggregate amount of $250,000, or more, and such default (i)
occurs at the final maturity of obligations thereunder, or (ii) results in a right by such third Person(s), irrespective of whether exercised, to accelerate the maturity of Borrower’s obligations thereunder, or (b) if there is a default in any
other material agreement to which Borrower is a party with one or more third Persons and such default results in a right by such third Person(s), irrespective of whether exercised, to terminate such agreement; 
  
 8.10 If any Borrower, any Material Domestic Subsidiary, or one or more
Non-Material Domestic Subsidiaries that owns assets (exclusive of intercompany balances) in excess of $75,000 (measured on the basis of book value or fair market value, whichever is greater, on an aggregate, cumulative basis for all such
Non-Material Domestic Subsidiaries, from the Closing Date through any date of measurement) makes any payment on account of Indebtedness that has been contractually subordinated in right of payment to the payment of the Obligations, except to the
extent such payment is permitted by the terms of the subordination provisions applicable to such Indebtedness; 
  
 8.11 If any material misstatement or misrepresentation exists now or hereafter in any warranty, representation, statement, or Record made to Lender
by any Borrower, any Subsidiary of a Borrower, or any officer, employee, agent, or director of any Borrower or any Subsidiary of a Borrower; 
  
 8.12 If the obligation of any Guarantor under the Guaranty is limited or terminated by operation of law or by such Guarantor thereunder;

  
 8.13 If this Agreement or any other Loan Document that
purports to create a Lien, shall, for any reason (other than Lender’s acts or omissions), fail or cease to create a valid and perfected and, except to the extent permitted by the terms hereof or thereof, first priority Lien on or security
interest in the Collateral covered hereby or thereby; 
  
 8.14 Any provision of any Loan Document shall at any time for any reason be declared to be null and void by a court of competent jurisdiction, or the validity or enforceability thereof shall be contested by any Borrower or any
Domestic Subsidiary of a Borrower, or a proceeding shall be commenced by any Borrower or any Domestic Subsidiary of a Borrower, or by any Governmental Authority having jurisdiction over any Borrower or any Domestic Subsidiary of a Borrower, seeking
to establish the invalidity or unenforceability thereof, or any Borrower or any 

  

 LOAN AND SECURITY AGREEMENT – Page 72 

 
Domestic Subsidiary of a Borrower shall deny that it has any liability or obligation purported to be created under any Loan Document. 
  
 8.15 If any Borrower or any Guarantor violates or breaches in any
material respect (as determined in the Permitted Discretion of Lender) any of the terms of the Plan; 
  
 8.16 If any Borrower or any Guarantor fails to perform, keep, or observe any term, provision, condition, covenant, or agreement contained in this
Agreement or in any of the other Loan Documents, subject to any applicable cure periods (including cure periods provided in this Section 8); 
  
 8.17 If there shall occur the reversal, vacation, stay, amendment, supplementation, or other modification of the Plan in a manner that would, in
the Permitted Discretion of Lender, materially and adversely affect the rights of Lender under the Plan or materially and adversely affect the priority of any or all of Lender’s security interests, liens, or claims, or other protections granted
to Lender under the Plan; or 
  
 8.18 If there shall occur
any default under the Senior Notes or the Senior Indenture, which continues beyond any applicable grace period and/or cure period. 
  
 9. THE LENDER’S RIGHTS AND REMEDIES. 
  
 9.1 Rights and Remedies. Upon the occurrence, and during the continuation, of an Event of Default, Lender (at its election but without
notice of its election and without demand) may do any one or more of the following, all of which are authorized by Borrowers: 
  
 (a) Declare all Obligations, whether evidenced by this Agreement, by any of the other Loan Documents, or otherwise, immediately due and
payable; 
  
 (b) Cease advancing money or
extending credit to or for the benefit of Borrowers under this Agreement, under any of the Loan Documents, or under any other agreement between Borrowers and Lender; 
  
 (c) Terminate this Agreement and any of the other Loan Documents as to any future liability or obligation of
Lender, but without affecting any of the Lender’s Liens in the Collateral and without affecting the Obligations; 
  
 (d) Settle or adjust disputes and claims directly with Borrowers’ Account Debtors for amounts and upon terms which Lender considers
advisable in the exercise of its Permitted Discretion, and in such cases, Lender will credit the Loan Account with only the net amounts received by Lender in payment of such disputed Accounts after deducting all Lender Expenses incurred or expended
in connection therewith; 
  
 (e) Cause Borrowers
to hold all of their returned Inventory in trust for Lender, and segregate all such Inventory from all other assets of Borrowers or in Borrowers’ possession; 
  

 LOAN AND SECURITY AGREEMENT – Page 73 

 (f) Without notice to or demand upon any Borrower, make such payments and do such acts as
Lender considers necessary or reasonable in its Permitted Discretion to protect its security interests in the Collateral. Each Borrower agrees to assemble the Collateral if Lender so requires, and to make the Collateral available to Lender at a
place that Lender may designate which is reasonably convenient to both parties. Each Borrower authorizes Lender to enter the premises where the Collateral is located, to take and maintain possession of the Collateral, or any part of it, and to pay,
purchase, contest, or compromise any Lien that in Lender’s Permitted Discretion appears to conflict with the Lender’s Liens in and to the Collateral and to pay all reasonable expenses incurred in connection therewith and to charge
Borrowers’ Loan Account therefor. With respect to any of Borrowers’ owned or leased premises, each Borrower hereby grants Lender a license to enter into possession of such premises and to occupy the same, without charge, in order to
exercise any of Lender’s rights or remedies provided herein, at law, in equity, or otherwise; 
  
 (g) Without notice to any Borrower (such notice being expressly waived), and without constituting an acceptance of any collateral in full
or partial satisfaction of an obligation (within the meaning of the Code), set off and apply to the Obligations any and all (i) balances and deposits of any Borrower held by Lender (including any amounts received in the Cash Management Accounts), or
(ii) Indebtedness at any time owing to or for the credit or the account of any Borrower held by Lender; 
  
 (h) Hold, as cash collateral, any and all balances and deposits of any Borrower held by Lender, and any amounts received in the Cash
Management Accounts, to secure the full and final repayment of all of the Obligations; 
  
 (i) Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell (in the manner provided for
herein) the Borrower Collateral. Each Borrower hereby grants to Lender a license or other right to use, without charge, such Borrower’s labels, patents, copyrights, trade secrets, trade names, trademarks, service marks, and advertising matter,
or any property of a similar nature, as it pertains to the Borrower Collateral, in completing production of, advertising for sale, and selling any Borrower Collateral and such Borrower’s rights under all licenses and all franchise agreements
shall inure to Lender’s benefit; 
  
 (j)
Sell the Borrower Collateral at either a public or private sale, or both, by way of one or more contracts or transactions, for cash or on terms, in such manner and at such places (including Borrowers’ premises) as Lender, in the exercise of its
Permitted Discretion, determines is commercially reasonable. It is not necessary that the Borrower Collateral be present at any such sale; 
  
 (k) Lender shall give notice of the disposition of the Borrower Collateral as follows: 
  
 (i) Lender shall give Administrative Borrower (for the
benefit of the applicable Borrower) a notice in writing of the time and place of public sale, or, if the sale is a private sale or if some other disposition other than a public sale is to be made of the Borrower Collateral, the time on or after
which the private sale or other disposition is to be made; and 
  

 LOAN AND SECURITY AGREEMENT – Page 74 

 (ii) The notice shall be personally delivered or mailed, postage prepaid, to
Administrative Borrower as provided in Section 12, at least 10 days before the earliest time of disposition set forth in the notice; no notice needs to be given prior to the disposition of any portion of the Borrower Collateral that is
perishable or threatens to decline speedily in value or that is of a type customarily sold on a recognized market; 
  
 (l) Lender may credit bid and purchase at any public sale; 
  
 (m) Lender may seek the appointment of a receiver or keeper to take possession of all or any portion of the
Borrower Collateral or to operate same and, to the maximum extent permitted by law, may seek the appointment of such a receiver without the requirement of prior notice or a hearing; and 
  
 (n) Lender shall have all other rights and remedies available to it at law or in equity pursuant to any
other Loan Documents. 
  
 9.2 Remedies Cumulative.
The rights and remedies of Lender under this Agreement, the other Loan Documents, and all other agreements shall be cumulative. Lender shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in
equity. No exercise by Lender of one right or remedy shall be deemed an election, and no waiver by Lender of any Event of Default shall be deemed a continuing waiver. No delay by Lender shall constitute a waiver, election, or acquiescence by it.

  
 10. TAXES AND EXPENSES. 
  
 If any Borrower fails to pay any monies (whether taxes, assessments,
insurance premiums, or, in the case of leased properties or assets, rents or other amounts payable under such leases) due to third Persons, or fails to make any deposits or furnish any required proof of payment or deposit, all if, as, and to the
extent required under the terms of this Agreement, then, Lender, in its sole discretion and without prior notice to any Borrower, may do any or all of the following: (a) make payment of the same or any part thereof, (b) set up such reserves in
Borrowers’ Loan Account as Lender deems necessary to protect Lender from the exposure created by such failure, or (c) in the case of the failure to comply with Section 6.8 hereof, obtain and maintain insurance policies of the type
described in Section 6.8 and take any action with respect to such policies as Lender deems prudent in the exercise of its Permitted Discretion. Any such amounts paid by Lender shall constitute Lender Expenses and any such payments shall not
constitute an agreement by Lender to make similar payments in the future or a waiver by Lender of any Event of Default under this Agreement. Lender need not inquire as to, or contest the validity of, any such expense, tax, or Lien and the receipt of
the usual official notice for the payment thereof shall be conclusive evidence that the same was validly due and owing. 
  
 11. WAIVERS; INDEMNIFICATION. 
  
 11.1 Demand; Protest. Each Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and
nonpayment, nonpayment at maturity, release, compromise, settlement, extension, or renewal of documents, instruments, chattel paper, 

  

 LOAN AND SECURITY AGREEMENT – Page 75 

 
and guarantees at any time held by Lender on which any such Borrower may in any way be liable. 
  
 11.2 Lender’s Liability for Collateral. Each Borrower hereby agrees that: (a) so long as Lender complies
with its obligations, if any, under the Code, Lender shall not in any way or manner be liable or responsible for: (i) the safekeeping of the Borrower Collateral, (ii) any loss or damage thereto occurring or arising in any manner or fashion from any
cause, (iii) any diminution in the value thereof, or (iv) any act or default of any carrier, warehouseman, bailee, forwarding agency, or other Person (provided that, if such Person has been chosen by Lender, such choice was made in Lender’s
Permitted Discretion), and (b) all risk of loss, damage, or destruction of the Borrower Collateral shall be borne by Borrowers. 
  
 11.3 Indemnification. Each Borrower shall indemnify, defend, and hold the Lender-Related Persons and each Participant (each, an
“Indemnified Person”) harmless (to the fullest extent permitted by law) from and against any and all claims, demands, suits, actions, investigations, proceedings, and damages, and all reasonable attorneys fees and disbursements and
other costs and expenses actually incurred in connection therewith (as and when they are incurred and irrespective of whether suit is brought), at any time asserted against, imposed upon, or incurred by any of them (a) in connection with or as a
result of or related to the execution, delivery, enforcement, performance, or administration (including any restructuring or workout with respect hereto) of this Agreement, any of the other Loan Documents, or the transactions contemplated hereby or
thereby or the monitoring of Borrowers’ and their Domestic Subsidiaries’ compliance with the terms of the Loan Documents, and (b) with respect to any investigation, litigation, or proceeding related to this Agreement, any other Loan
Document, or the use of the proceeds of the credit provided hereunder (irrespective of whether any Indemnified Person is a party thereto), or any act, omission, event, or circumstance in any manner related thereto (all the foregoing, collectively,
the “Indemnified Liabilities”). The foregoing to the contrary notwithstanding, Borrowers shall have no obligation to any Indemnified Person under this Section 11.3 with respect to any Indemnified Liability that a court of
competent jurisdiction finally determines to have resulted from the gross negligence or willful misconduct of such Indemnified Person. This provision shall survive the termination of this Agreement and the repayment of the Obligations. If any
Indemnified Person makes any payment to any other Indemnified Person with respect to an Indemnified Liability as to which Borrowers were required to indemnify the Indemnified Person receiving such payment, the Indemnified Person making such payment
is entitled to be indemnified and reimbursed by Borrowers with respect thereto. WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR
ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON. 
  
 12. NOTICES. Unless otherwise provided in this Agreement, all notices or demands by Borrowers or Lender to the other relating to this Agreement or any other Loan Document shall be in writing and (except
for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by registered or certified mail (postage prepaid, return receipt requested), overnight courier,
electronic mail (at 

  

 LOAN AND SECURITY AGREEMENT – Page 76 

 
such email addresses as Administrative Borrower or Lender, as applicable, may designate to each other in accordance herewith), or telefacsimile to Borrowers
in care of Administrative Borrower or to Lender, as the case may be, at its address set forth below: 
  

			
	If to Administrative Borrower:	  	SEITEL, INC.
	 	  	10811 S. Westview Circle
	 	  	Building C, Suite 100
	 	  	Houston, Texas 77043
	 	  	Attn.: Randall D. Stilley
	 	  	Fax No. 713-881-8901
		
	with copies to:	  	Greenberg Traurig, LLP
	 	  	200 Park Avenue, 14th Floor
	 	  	New York, New York 10166
	 	  	Attn: Allen G. Kadish, Esq.
	 	  	Fax No. 212-801-6400
		
	If to Lender:	  	WELLS FARGO FOOTHILL, INC.
	 	  	2450 Colorado Avenue
	 	  	Suite 3000W
	 	  	Santa Monica, California 90404
	 	  	Attn: Specialty Finance Manager
	 	  	Fax No. 310-453-7442
		
	with copies to:	  	HUGHES & LUCE, LLP
	 	  	1717 Main Street, Suite 2800
	 	  	Dallas, Texas 75201
	 	  	Attn: David Weitman, Esq.
	 	  	Fax No. 214/939-5849

  
 Lender
and Borrowers may change the address at which they are to receive notices hereunder, by notice in writing in the foregoing manner given to the other party. All notices or demands sent in accordance with this Section 12, other than notices by
Lender in connection with enforcement rights against the Borrower Collateral under the provisions of the Code, shall be deemed received on the earlier of the date of actual receipt or 3 Business Days after the deposit thereof in the mail. Each
Borrower acknowledges and agrees that notices sent by Lender in connection with the exercise of enforcement rights against Borrower Collateral under the provisions of the Code shall be deemed sent when deposited in the mail or personally delivered,
or, where permitted by law, transmitted by telefacsimile or any other method set forth above. 
  
 13. CHOICE OF LAW; JURY TRIAL WAIVER. 
  
 (a) THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN
RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT 

  

 LOAN AND SECURITY AGREEMENT – Page 77 

 
HEREOF AND THEREOF, AND THE RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR
THERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. 
  
 (b) BORROWERS AND LENDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. BORROWERS AND LENDER REPRESENT THAT EACH HAS REVIEWED THIS
WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 
  
 (c) BORROWERS HEREBY AGREE THAT ALL ACTIONS OR
PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT SHALL BE TRIED AND DETERMINED ONLY IN THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, OR, AT THE SOLE OPTION OF LENDER, IN ANY OTHER COURT IN WHICH LENDER
SHALL INITIATE LEGAL OR EQUITABLE PROCEEDINGS AND WHICH HAS PERSONAL JURISDICTION OVER THE PARTIES AND SUBJECT MATTER JURISDICTION OVER THE MATTER IN CONTROVERSY. TO THE MAXIMUM EXTENT PERMITTED BY LAW, BORROWERS HEREBY EXPRESSLY WAIVE ANY RIGHT
THEY MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION. 
  

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

 LOAN AND SECURITY AGREEMENT – Page 78 

 (b) From and after the date that Lender provides Administrative Borrower with such
written notice and executed assignment and acceptance agreement, (i) the Assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such assignment and acceptance
agreement, shall have the rights and obligations of Lender under the Loan Documents, and (ii) Lender shall, to the extent that rights and obligations hereunder and under the other Loan Documents have been assigned by it pursuant to such assignment
and acceptance agreement, relinquish its rights (except with respect to Section 11.3 hereof) and be released from any future obligations under this Agreement (and in the case of an assignment and acceptance covering all or the remaining
portion of Lender’s rights and obligations under this Agreement and the other Loan Documents, Lender shall cease to be a party hereto and thereto), and such assignment shall effect a novation between Borrowers and the Assignee; provided,
however, that nothing contained herein shall release Lender from obligations that survive the termination of this Agreement, including Lender’s obligations under Section 16.9 of this Agreement. 
  
 (c) Immediately upon Borrower’s receipt of such fully
executed assignment and acceptance agreement, this Agreement shall be deemed to be amended to the extent, but only to the extent, necessary to reflect the addition of the Assignee and the resulting adjustment of the rights and duties of Lender
arising therefrom. 
  
 (d) Lender may at any time
sell to one or more commercial banks, financial institutions, or other Persons not Affiliates of Lender (a “Participant”) participating interests in Obligations and the other rights and interests of Lender hereunder and under the
other Loan Documents; provided, however, that (i) Lender shall remain the “Lender” for all purposes of this Agreement and the other Loan Documents and the Participant receiving the participating interest in the Obligations
and the other rights and interests of Lender hereunder shall not constitute a “Lender” hereunder or under the other Loan Documents and Lender’s obligations under this Agreement shall remain unchanged, (ii) Lender shall remain solely
responsible for the performance of such obligations, (iii) Borrowers and Lender shall continue to deal solely and directly with each other in connection with Lender’s rights and obligations under this Agreement and the other Loan Documents,
(iv) Lender shall not transfer or grant any participating interest under which the Participant has the right to approve any amendment to, or any consent or waiver with respect to, this Agreement or any other Loan Document, except to the extent such
amendment to, or consent or waiver with respect to this Agreement or of any other Loan Document would (A) extend the final maturity date of the Obligations hereunder in which such Participant is participating, (B) reduce the interest rate applicable
to the Obligations hereunder in which such Participant is participating, (C) release all or substantially all of the Collateral or guaranties (except to the extent expressly provided herein or in any of the Loan Documents) supporting the Obligations
hereunder in which such Participant is participating, (D) postpone the payment of, or reduce the amount of, the interest or fees payable to such Participant through Lender, or (E) change the amount or due dates of scheduled principal repayments or
prepayments or premiums, and (v) all amounts payable by Borrowers hereunder shall be determined as if Lender had not sold such participation, except that, if amounts outstanding under this Agreement are due and unpaid, or shall have been declared or
shall have become due and payable upon the occurrence of an Event of Default, each Participant shall be deemed to have the right of set-off in respect of its participating interest in amounts owing under this 

  

 LOAN AND SECURITY AGREEMENT – Page 79 

 
Agreement to the same extent as if the amount of its participating interest were owing directly to it as a Lender under this Agreement. The rights of any
Participant shall only be derivative through Lender and no Participant shall have any rights under this Agreement or the other Loan Documents or any direct rights as to Borrowers or Guarantors, the Collections of Borrowers or their Domestic
Subsidiaries, the Collateral, or otherwise in respect of the Obligations. No Participant shall have the right to participate directly in the making of decisions by Lender. 
  
 (e) In connection with any such assignment or participation or proposed assignment or participation, Lender
may, subject to the provisions of Section 16.9, disclose all documents and information which it now or hereafter may have relating to Borrowers and their Subsidiaries and their respective businesses. 
  
 (f) Any other provision in this Agreement notwithstanding,
Lender may at any time create a security interest in, or pledge, all or any portion of its rights under and interest in this Agreement in favor of any Federal Reserve Bank in accordance with Regulation A of the Federal Reserve Bank or U.S. Treasury
Regulation 31 CFR §203.24, and such Federal Reserve Bank may enforce such pledge or security interest in any manner permitted under applicable law. 
  
 14.2 Successors. This Agreement shall bind and inure to the benefit of the respective successors and Assignees of each of the parties;
provided, however, that Borrowers may not assign this Agreement or any rights or duties hereunder without Lender’s prior written consent and any prohibited assignment shall be absolutely void ab initio. No consent to
assignment by Lender shall release any Borrower from its Obligations. Lender may assign this Agreement and the other Loan Documents and its rights and duties hereunder and thereunder pursuant to Section 14.1 hereof and, except as expressly
required pursuant to Section 14.1 hereof, no consent or approval by any Borrower is required in connection with any such assignment. 
  
 15. AMENDMENTS; WAIVERS. 
  
 15.1 Amendments and Waivers. No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent with
respect to any departure by Borrowers therefrom, shall be effective unless the same shall be in writing and signed by Lender and Administrative Borrower (on behalf of all Borrowers) and then any such waiver or consent shall be effective only in the
specific instance and, if a specific purpose is set forth in such waiver or consent, for the specific purpose for which it was given. 
  
 15.2 No Waivers; Cumulative Remedies. No failure by any party to exercise any right, remedy, or option under this Agreement or any other
Loan Document, or delay in exercising the same, will operate as a waiver thereof. No waiver by any party will be effective unless it is in writing, and then only to the extent specifically stated. No waiver on any occasion shall affect or diminish
any party’s rights thereafter to require strict performance on any subsequent occasion of any provision of this Agreement. The parties’ rights under this Agreement and the other Loan Documents will be cumulative and not exclusive of any
other right or remedy that the parties may have. 
  

 LOAN AND SECURITY AGREEMENT – Page 80 

 16. GENERAL PROVISIONS. 
  

16.1 Effectiveness. This Agreement shall be binding and deemed effective when executed by Borrowers and Lender. 
  
 16.2 Section Headings. Section headings and numbers have been
set forth herein for convenience only. Unless the contrary is compelled by the context, everything contained in each Section applies equally to this entire Agreement. 
  
 16.3 Interpretation. Neither this Agreement nor any uncertainty or ambiguity herein shall be construed against
Lender or Borrowers, whether under any rule of construction or otherwise. On the contrary, this Agreement has been reviewed by all parties and shall be construed and interpreted according to the ordinary meaning of the words used so as to accomplish
fairly the purposes and intentions of all parties hereto. 
  
 16.4 Severability of Provisions. Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision. 

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

  

 LOAN AND SECURITY AGREEMENT – Page 81 

 
when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement.
Delivery of an executed counterpart of this Agreement by telefacsimile shall be equally as effective as delivery of an original executed counterpart of this Agreement. Any party delivering an executed counterpart of this Agreement by telefacsimile
also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Agreement. The foregoing shall apply to each
other Loan Document mutatis mutandis. 
  
 16.8
Revival and Reinstatement of Obligations. If the incurrence or payment of the Obligations by any Borrower or Guarantor or the transfer to Lender of any property in respect of the Obligations shall for any reason subsequently be declared
to be void or voidable under any state or federal law relating to creditors’ rights, including provisions of the Bankruptcy Code relating to fraudulent conveyances, preferences, or other voidable or recoverable payments of money or transfers of
property (collectively, a “Voidable Transfer”), and if Lender is required to repay or restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the reasonable advice of its counsel, then, as to any such
Voidable Transfer, or the amount thereof that Lender is required or elects to repay or restore, and as to all reasonable costs, expenses, and attorneys fees of Lender related thereto, the liability of Borrowers or Guarantor automatically shall be
revived, reinstated, and restored and shall exist as though such Voidable Transfer had never been made. 
  
 16.9 Confidentiality. Lender agrees that material, non-public information regarding Borrowers and their Subsidiaries and other Affiliates,
their operations, assets, and existing and contemplated business plans shall be treated by Lender in a confidential manner, and shall not be disclosed by Lender to Persons who are not parties to this Agreement, except: (a) to attorneys for and other
advisors, accountants, auditors, and consultants to Lender, (b) to Subsidiaries and Affiliates of Lender (including the Bank Product Providers), provided that any such Subsidiary or Affiliate shall have agreed to receive such information hereunder
subject to the terms of this Section 16.9, (c) as may be required by statute, decision, or judicial or administrative order, rule, or regulation, (d) as may be agreed to in advance by Administrative Borrower or as requested or required by any
Governmental Authority pursuant to any subpoena or other legal process, (e) as to any such information that is or becomes generally available to the public (other than as a result of prohibited disclosure by Lender or any of its Subsidiaries or
Affiliates), (f) in connection with any assignment, prospective assignment, sale, prospective sale, participation or prospective participations, or pledge or prospective pledge of Lender’s interest under this Agreement, provided that any such
assignee, prospective assignee, purchaser, prospective purchaser, participant, prospective participant, pledgee, or prospective pledgee shall have agreed in writing to receive such information hereunder subject to the terms of this Section
16.9, and (g) in connection with any litigation or other adversary proceeding involving parties hereto which such litigation or adversary proceeding involves claims related to the rights or duties of such parties under this Agreement or the
other Loan Documents. The provisions of this Section 16.9 shall survive for 2 years after the payment in full of the Obligations. Anything contained herein or in any other Loan Document to the contrary notwithstanding, the obligations of
confidentiality contained herein and therein, as they relate to the transactions contemplated hereby, shall not apply to the federal tax structure or federal tax treatment of such transactions, and each party 

  

 LOAN AND SECURITY AGREEMENT – Page 82 

 
hereto (and any employee, representative, or agent of any party hereto) may disclose to any and all Persons, without limitation of any kind, the federal tax
structure and federal tax treatment of such transactions (including all written materials related to such tax structure and tax treatment). The preceding sentence is intended to cause the transactions contemplated hereby to not be treated as having
been offered under conditions of confidentiality for purposes of Section 1.6011-4(b)(3) (or any successor provision) of the Treasury Regulations promulgated under Section 6011 of the IRC, and shall be construed in a manner consistent with such
purpose. In addition, each party hereto acknowledges that it has no proprietary or exclusive rights to the tax structure of the transactions contemplated hereby or any tax matter or tax idea related thereto. 
  
 16.10 Integration. This Agreement, together with the other Loan
Documents, reflects the entire understanding of the parties with respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof. 
  
 16.11 Parent as Agent for Borrowers. Each Borrower hereby
irrevocably appoints Parent as the borrowing agent and attorney-in-fact for all Borrowers (the “Administrative Borrower”) which appointment shall remain in full force and effect unless and until Lender shall have received prior
written notice signed by each Borrower that such appointment has been revoked and that another Borrower has been appointed Administrative Borrower. Each Borrower hereby irrevocably appoints and authorizes the Administrative Borrower (i) to provide
Lender with all notices with respect to Advances and Letters of Credit obtained for the benefit of any Borrower and all other notices and instructions under this Agreement and (ii) to take such action as the Administrative Borrower deems appropriate
on its behalf to obtain Advances and Letters of Credit and to exercise such other powers as are reasonably incidental thereto to carry out the purposes of this Agreement. It is understood that the handling of the Loan Account and Collateral of
Borrowers in a combined fashion, as more fully set forth herein, is done solely as an accommodation to Borrowers in order to utilize the collective borrowing powers of Borrowers in the most efficient and economical manner and at their request, and
that Lender shall not incur liability to any Borrower as a result hereof. Each Borrower expects to derive benefit, directly or indirectly, from the handling of the Loan Account and the Collateral in a combined fashion since the successful operation
of each Borrower is dependent on the continued successful performance of the integrated group. To induce Lender to do so, and in consideration thereof, each Borrower hereby jointly and severally agrees to indemnify Lender harmless against any and
all liability, expense, loss or claim of damage or injury, made against Lender by any Borrower or by any third party whosoever, arising from or incurred by reason of (a) the handling of the Loan Account and Collateral of Borrowers as herein
provided, (b) Lender’s relying on any instructions of the Administrative Borrower, or (c) any other action taken by Lender hereunder or under the other Loan Documents, except that Borrowers will have no liability to any Lender-Related Person
under this Section 16.11 with respect to any liability that has been finally determined by a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Lender-Related Person. 
  
 [Signature pages to follow.] 
  

 LOAN AND SECURITY AGREEMENT – Page 83 

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

			
	 SEITEL, INC.,
 a Delaware corporation

		
	 By:
	 	 /s/ Randall D. Stilley

	 	 	

	 	 	 Randall D. Stilley
 President and Chief Executive Officer

  

					
	 SEITEL DATA, LTD.,
 a Texas limited partnership

		
	 By:
	 	 Seitel Delaware, Inc.,
 a Delaware corporation, its general partner

			
	 	 	 By:
	 	 /s/ Randall D. Stilley

	 	 	 	 	

	 	 	 	 	 Randall D. Stilley
 Executive Vice President

  

			
	 SEITEL MANAGEMENT, INC.,
 a Delaware corporation

		
	 By:
	 	 /s/ Randall D. Stilley

	 	 	

	 	 	 Randall D. Stilley
 Executive Vice President

  

			
	 MATRIX GEOPHYSICAL, INC.,
 a Delaware corporation

		
	 By:
	 	 /s/ Randall D. Stilley

	 	 	

	 	 	 Randall D. Stilley
 Executive Vice President

  

 LOAN AND SECURITY AGREEMENT – Page 84 

					
	 SEITEL SOLUTIONS, LTD.,
 a Texas limited partnership

		
	 By:
	 	 Seitel Solutions, Inc.,
 a Delaware corporation, its general partner

			
	 	 	 By:
	 	 /s/ Randall D. Stilley

	 	 	 	 	

	 	 	 	 	 Randall D. Stilley
 Executive Vice President

  

			
	 WELLS FARGO FOOTHILL, INC.,
 a California corporation

		
	 By:
	 	 /s/ Daniel Morihiro

	 	 	

	 	 	 Daniel Morihiro, Vice President

  

 LOAN AND SECURITY AGREEMENT – Page 85 

 TABLE OF CONTENTS 
  

							
	1.	 	DEFINITIONS AND CONSTRUCTION	  	1
	 	 	1.1	  	Definitions	  	1
	 	 	1.2	  	Accounting Terms	  	24
	 	 	1.3	  	Code	  	24
	 	 	1.4	  	Construction	  	24
	 	 	1.5	  	Schedules and Exhibits	  	25
			
	2.	 	LOAN AND TERMS OF PAYMENT	  	25
	 	 	2.1	  	Revolver Advances	  	25
	 	 	2.2	  	Intentionally Omitted	  	26
	 	 	2.3	  	Borrowing Procedures and Settlements	  	26
	 	 	2.4	  	Payments	  	27
	 	 	2.5	  	Overadvances	  	29
	 	 	2.6	  	Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations	  	29
	 	 	2.7	  	Cash Management	  	30
	 	 	2.8	  	Crediting Payments; Float Charge	  	31
	 	 	2.9	  	Designated Account	  	32
	 	 	2.10	  	Maintenance of Loan Account; Statements of Obligations	  	32
	 	 	2.11	  	Fees	  	32
	 	 	2.12	  	Letters of Credit	  	33
	 	 	2.13	  	LIBOR Option	  	36
	 	 	2.14	  	Capital Requirements	  	38
	 	 	2.15	  	Joint and Several Liability of Borrowers	  	39
			
	3.	 	CONDITIONS; TERM OF AGREEMENT	  	41
	 	 	3.1	  	Conditions Precedent to the Effectiveness of this Agreement	  	41
	 	 	3.2	  	Conditions Precedent to the Initial Extension of Credit	  	45
	 	 	3.3	  	Conditions Subsequent to the Initial Extension of Credit	  	46
	 	 	3.4	  	Conditions Precedent to all Extensions of Credit	  	47
	 	 	3.5	  	Term	  	47
	 	 	3.6	  	Effect of Termination	  	47
	 	 	3.7	  	Early Termination by Borrowers	  	48
			
	4.	 	CREATION OF SECURITY INTEREST	  	48
	 	 	4.1	  	Grant of Security Interest	  	48
	 	 	4.2	  	Negotiable Collateral	  	48
	 	 	4.3	  	Collection of Accounts, General Intangibles, and Negotiable Collateral	  	49
	 	 	4.4	  	Filing of Financing Statements; Commercial Tort Claims; Delivery of Additional Documentation Required	  	49
	 	 	4.5	  	Power of Attorney	  	50
	 	 	4.6	  	Right to Inspect	  	50
	 	 	4.7	  	Control Agreements	  	50

  

 -i- 

							
	5.	 	REPRESENTATIONS AND WARRANTIES	  	51
	 	 	5.1	  	No Encumbrances	  	51
	 	 	5.2	  	Eligible Accounts	  	51
	 	 	5.3	  	[Intentionally Deleted]	  	51
	 	 	5.4	  	Equipment	  	51
	 	 	5.5	  	Location of Inventory and Equipment	  	51
	 	 	5.6	  	Inventory Records	  	52
	 	 	5.7	  	State of Incorporation; Location of Chief Executive Office; FEIN; Organizational ID Number; Commercial Tort Claims	  	52
	 	 	5.8	  	Due Organization and Qualification; Domestic Subsidiaries	  	52
	 	 	5.9	  	Due Authorization; No Conflict	  	53
	 	 	5.10	  	Litigation	  	54
	 	 	5.11	  	No Material Adverse Change	  	54
	 	 	5.12	  	Fraudulent Transfer	  	54
	 	 	5.13	  	Employee Benefits	  	55
	 	 	5.14	  	Environmental Condition	  	55
	 	 	5.15	  	Brokerage Fees	  	55
	 	 	5.16	  	Intellectual Property	  	55
	 	 	5.17	  	Leases	  	55
	 	 	5.18	  	DDAs	  	55
	 	 	5.19	  	Complete Disclosure	  	56
	 	 	5.20	  	Indebtedness	  	56
	 	 	5.21	  	Final Order of Plan	  	56
	 	 	5.22	  	Projections	  	56
	 	 	5.23	  	Compliance with Laws	  	56
	 	 	5.24	  	Non-Material Domestic Subsidiaries	  	56
			
	6.	 	AFFIRMATIVE COVENANTS	  	57
	 	 	6.1	  	Accounting System	  	57
	 	 	6.2	  	Collateral Reporting	  	57
	 	 	6.3	  	Financial Statements, Reports, Certificates	  	58
	 	 	6.4	  	Guarantor Reports	  	61
	 	 	6.5	  	[Intentionally Omitted.]	  	61
	 	 	6.6	  	Maintenance of Properties	  	61
	 	 	6.7	  	Taxes	  	61
	 	 	6.8	  	Insurance	  	61
	 	 	6.9	  	Location of Inventory and Equipment	  	62
	 	 	6.10	  	Compliance with Laws	  	62
	 	 	6.11	  	Leases	  	63
	 	 	6.12	  	Existence	  	63
	 	 	6.13	  	Environmental	  	63
	 	 	6.14	  	Disclosure Updates	  	63
	 	 	6.15	  	Formation of Subsidiaries	  	63
			
	7.	 	NEGATIVE COVENANTS	  	64
	 	 	7.1	  	Indebtedness	  	64
	 	 	7.2	  	Liens	  	65
	 	 	7.3	  	Restrictions on Fundamental Changes	  	65

  

 -ii- 

							
	 	 	7.4	  	Disposal of Assets	  	65
	 	 	7.5	  	Change Name	  	66
	 	 	7.6	  	Nature of Business	  	66
	 	 	7.7	  	Prepayments and Amendments	  	66
	 	 	7.8	  	Change of Control	  	66
	 	 	7.9	  	Consignments	  	66
	 	 	7.10	  	Distributions	  	66
	 	 	7.11	  	Accounting Methods	  	67
	 	 	7.12	  	Investments	  	67
	 	 	7.13	  	Transactions with Affiliates	  	67
	 	 	7.14	  	Suspension	  	68
	 	 	7.15	  	[Intentionally Deleted.]	  	68
	 	 	7.16	  	Use of Proceeds	  	68
	 	 	7.17	  	Inventory and Equipment with Bailees	  	69
	 	 	7.18	  	Financial Covenants	  	69
			
	8.	 	EVENTS OF DEFAULT	  	69
			
	9.	 	THE LENDER’S RIGHTS AND REMEDIES	  	73
	 	 	9.1	  	Rights and Remedies	  	73
	 	 	9.2	  	Remedies Cumulative	  	75
			
	10.	 	TAXES AND EXPENSES	  	75
			
	11.	 	WAIVERS; INDEMNIFICATION	  	75
	 	 	11.1	  	Demand; Protest	  	75
	 	 	11.2	  	Lender’s Liability for Collateral	  	76
	 	 	11.3	  	Indemnification	  	76
			
	12.	 	NOTICES	  	76
			
	13.	 	CHOICE OF LAW; JURY TRIAL WAIVER	  	77
			
	14.	 	ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS	  	78
	 	 	14.1	  	Assignments and Participations	  	78
	 	 	14.2	  	Successors	  	80
			
	15.	 	AMENDMENTS; WAIVERS	  	80
	 	 	15.1	  	Amendments and Waivers	  	80
	 	 	15.2	  	No Waivers; Cumulative Remedies	  	80
			
	16.	 	GENERAL PROVISIONS	  	81
	 	 	16.1	  	Effectiveness	  	81
	 	 	16.2	  	Section Headings	  	81
	 	 	16.3	  	Interpretation	  	81
	 	 	16.4	  	Severability of Provisions	  	81
	 	 	16.5	  	Withholding Taxes	  	81
	 	 	16.6	  	[Intentionally Deleted.]	  	81

  

 -iii- 

							
	 	 	16.7	  	Counterparts; Telefacsimile Execution	  	81
	 	 	16.8	  	Revival and Reinstatement of Obligations	  	82
	 	 	16.9	  	Confidentiality	  	82
	 	 	16.10	  	Integration	  	83
	 	 	16.11	  	Parent as Agent for Borrowers	  	83

  

 -iv- 

 EXHIBITS AND SCHEDULES 
  

			
	 Exhibits:
	  	 
		
	 Exhibit A
	  	Projections
	 Exhibit B
	  	Form of Borrowing Base Certificate
	 Exhibit C
	  	Form of Compliance Certificate
	 Exhibit D
	  	Domestic Subsidiaries
	 Exhibit E
	  	Non-Material Domestic Subsidiaries
	 Exhibit L-1
	  	Form of LIBOR Notice
		
	 Schedules:
	  	 
		
	 Schedule D-1
	  	Designated Account
	 Schedule L-1
	  	Lender’s Account
	 Schedule P-1
	  	Permitted Liens
	 Schedule 2.7(a)
	  	Cash Management Banks
	 Schedule 4.4
	  	Financing Statements
	 Schedule 5.5
	  	Locations of Inventory and Equipment
	 Schedule 5.7(a)
	  	States of Organization
	 Schedule 5.7(b)
	  	Chief Executive Offices
	 Schedule 5.7(c)
	  	FEINS
	 Schedule 5.7(d)
	  	Commercial Tort Claims
	 Schedule 5.8(b)
	  	Capitalization of Borrowers
	 Schedule 5.8(c)
	  	Capitalization of Borrowers’ Subsidiaries
	 Schedule 5.10
	  	Litigation
	 Schedule 5.13
	  	Employee Benefits
	 Schedule 5.14
	  	Environmental Matters
	 Schedule 5.16
	  	Intellectual Property
	 Schedule 5.18
	  	Deposit Accounts and Securities Accounts
	 Schedule 5.20
	  	Permitted Indebtedness
	 Schedule 7.4
	  	Data Programs for Transfer to Canada

  

 -v-Indenture Dated January 20,2004

  
 EXHIBIT 4.7 
  
 IMMUNOMEDICS, INC., 
  
 as Issuer 
  

  
 The Bank of New York, 
  
 as Trustee 
  

  
 Up to $13,000,000 Aggregate Principal Amount of 
  
 3.25% Convertible Senior Notes due 2006 
  

  
 INDENTURE 
  
 Dated as of January 20, 2004 
  

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 	  	ARTICLE I	  	 
			
	 	  	DEFINITIONS AND INCORPORATION BY REFERENCE	  	 
			
	 Section 1.1
	  	Definitions	  	1
	 Section 1.2
	  	Incorporation by Reference of Trust Indenture Act	  	8
	 Section 1.3
	  	Rules of Construction	  	8
	 Section 1.4
	  	Acts of Holders	  	8
	 	  	ARTICLE II	  	 
			
	 	  	THE SECURITIES	  	 
			
	 Section 2.1
	  	Form and Dating	  	10
	 Section 2.2
	  	Execution and Authentication	  	10
	 Section 2.3
	  	Registrar, Paying Agent and Conversion Agent	  	11
	 Section 2.4
	  	Paying Agent to Hold Cash and Securities in Trust	  	12
	 Section 2.5
	  	Holder Lists	  	12
	 Section 2.6
	  	Transfer and Exchange	  	13
	 Section 2.7
	  	Replacement Securities	  	13
	 Section 2.8
	  	Outstanding Securities; Determinations of Holders’ Action	  	14
	 Section 2.9
	  	Temporary Securities	  	15
	 Section 2.10
	  	Cancellation	  	15
	 Section 2.11
	  	Persons Deemed Owners	  	15
	 Section 2.12
	  	Additional Transfer and Exchange Requirements	  	16
	 Section 2.13
	  	CUSIP Numbers	  	18
	 Section 2.14
	  	Ranking	  	18

  
 ARTICLE III 

 
 [INTENTIONALLY OMITTED] 
  
 ARTICLE IV 
  
 [INTENTIONALLY OMITTED] 
  
 ARTICLE V 
  
 PURCHASE AT THE OPTION OF HOLDERS UPON A DESIGNATED EVENT 
  

					
	 Section 5.1
	  	Designated Event Put	  	18

  

 -i- 

					
	 Section 5.2
	  	 Effect of Designated Event Purchase Notice
	  	21
	 Section 5.3
	  	 Deposit of Designated Event Purchase Price
	  	21
	 Section 5.4
	  	 Securities Purchased in Part
	  	22
	 Section 5.5
	  	 Covenant to Comply with Securities Laws Upon Purchase of Securities
	  	22
	 Section 5.6
	  	 Repayment to the Company
	  	22
			
	 	  	ARTICLE VI	  	 
			
	 	  	COVENANTS	  	 
			
	 Section 6.1
	  	 Payment of Securities
	  	23
	 Section 6.2
	  	 SEC and Other Reports to the Trustee
	  	24
	 Section 6.3
	  	 Compliance Certificate
	  	25
	 Section 6.4
	  	 Further Instruments and Acts
	  	25
	 Section 6.5
	  	 Maintenance of Office or Agency of the Trustee, Registrar, Paying Agent and Conversion Agent
	  	25
	 Section 6.6
	  	 Delivery of Information Required Under Rule 144A
	  	25
	 Section 6.7
	  	 Waiver of Stay, Extension or Usury Laws
	  	26
	 Section 6.8
	  	 Statement by Officers as to Default
	  	26
			
	 	  	ARTICLE VII	  	 
			
	 	  	SUCCESSOR CORPORATION	  	 
			
	 Section 7.1
	  	 When Company May Merge or Transfer Assets
	  	26
			
	 	  	ARTICLE VIII	  	 
			
	 	  	DEFAULTS AND REMEDIES	  	 
			
	 Section 8.1
	  	 Events of Default
	  	27
	 Section 8.2
	  	 Acceleration
	  	29
	 Section 8.3
	  	 Other Remedies
	  	30
	 Section 8.4
	  	 Waiver of Past Defaults
	  	30
	 Section 8.5
	  	 Control by Majority
	  	30
	 Section 8.6
	  	 Limitation on Suits
	  	30
	 Section 8.7
	  	 Rights of Holders to Receive Payment or to Convert
	  	31
	 Section 8.8
	  	 Collection Suit by Trustee
	  	31
	 Section 8.9
	  	 Trustee May File Proofs of Claim
	  	31
	 Section 8.10
	  	 Priorities
	  	32
	 Section 8.11
	  	 Undertaking for Costs
	  	32

  

 -ii- 

					
	 	  	ARTICLE IX	  	 
			
	 	  	TRUSTEE	  	 
			
	 Section 9.1
	  	 Duties of Trustee
	  	33
	 Section 9.2
	  	 Rights of Trustee
	  	34
	 Section 9.3
	  	 Individual Rights of Trustee
	  	35
	 Section 9.4
	  	 Trustee’s Disclaimer
	  	35
	 Section 9.5
	  	 Notice of Defaults
	  	35
	 Section 9.6
	  	 Reports by Trustee to Holders
	  	36
	 Section 9.7
	  	 Compensation and Indemnity
	  	36
	 Section 9.8
	  	 Replacement of Trustee
	  	37
	 Section 9.9
	  	 Successor Trustee by Merger
	  	38
	 Section 9.10
	  	 Eligibility; Disqualification
	  	38
	 Section 9.11
	  	 Preferential Collection of Claims Against Company
	  	38
			
	 	  	ARTICLE X	  	 
			
	 	  	DISCHARGE OF INDENTURE	  	 
			
	 Section 10.1
	  	 Discharge of Liability on Securities
	  	38
	 Section 10.2
	  	 Repayment to the Company
	  	38
			
	 	  	ARTICLE XI	  	 
			
	 	  	AMENDMENTS	  	 
			
	 Section 11.1
	  	 Without Consent of Holders
	  	39
	 Section 11.2
	  	 With Consent of Holders
	  	40
	 Section 11.3
	  	 Compliance with Trust Indenture Act
	  	41
	 Section 11.4
	  	 Revocation and Effect of Consents, Waivers and Actions
	  	41
	 Section 11.5
	  	 Notation on or Exchange of Securities
	  	41
	 Section 11.6
	  	 Trustee to Sign Supplemental Indentures
	  	41
	 Section 11.7
	  	 Effect of Supplemental Indentures
	  	41
			
	 	  	ARTICLE XII	  	 
			
	 	  	CONVERSION	  	 
			
	 Section 12.1
	  	 Conversion Right
	  	42
	 Section 12.2
	  	 Conversion Procedures; Conversion Rate; Fractional Shares
	  	42
	 Section 12.3
	  	 Adjustment of Conversion Rate
	  	44
	 Section 12.4
	  	 Consolidation or Merger of the Company
	  	52
	 Section 12.5
	  	 Notice of Adjustment
	  	53
	 Section 12.6
	  	 Notice in Certain Events
	  	54
	 Section 12.7
	  	 Company to Reserve Stock: Registration; Listing
	  	54

  

 -iii- 

					
	 Section 12.8
	  	 Taxes on Conversion
	  	55
	 Section 12.9
	  	 Conversion After Regular Record Date
	  	55
	 Section 12.10
	  	 Company Determination Final
	  	56
	 Section 12.11
	  	 Responsibility of Trustee for Conversion Provisions
	  	56
	 Section 12.12
	  	 Unconditional Right of Holders to Convert
	  	56
			
	 	  	ARTICLE XIII	  	 
			
	 	  	MISCELLANEOUS	  	 
			
	 Section 13.1
	  	 Trust Indenture Act Controls
	  	56
	 Section 13.2
	  	 Notices
	  	56
	 Section 13.3
	  	 Communication by Holders with Other Holders
	  	57
	 Section 13.4
	  	 Certificate and Opinion as to Conditions Precedent
	  	57
	 Section 13.5
	  	 Statements Required in Certificate or Opinion
	  	58
	 Section 13.6
	  	 Separability Clause
	  	58
	 Section 13.7
	  	 Rules by Trustee, Paying Agent, Conversion Agent, Registrar
	  	58
	 Section 13.8
	  	 Legal Holidays
	  	58
	 Section 13.9
	  	 Governing Law; Submission to Jurisdiction; Service of Process
	  	58
	 Section 13.10
	  	 No Recourse Against Others
	  	59
	 Section 13.11
	  	 Successors
	  	59
	 Section 13.12
	  	 Multiple Originals
	  	59
			
	 EXHIBIT A
	  	 Form of Security
	  	 
	 EXHIBIT B
	  	Form of Certificate to be Delivered by Transferee in Connection with Transfers to Institutional Accredited Investors	  	 
	 EXHIBIT C
	  	 Form of Restrictive Legend for Common Stock Issues Upon Conversion
	  	 

  
  

 -iv- 

 INDENTURE, dated as of January 20, 2004, between IMMUNOMEDICS, INC., a Delaware corporation (the
“Company”), and The Bank of New York, a New York banking corporation, as Trustee (the “Trustee”). 
  
 Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Company’s 3.25%
Convertible Senior Notes due 2006: 
  
 ARTICLE I 

 
 DEFINITIONS AND INCORPORATION BY REFERENCE 
  
 Section 1.1 Definitions. 
  
 “Additional Interest” has the meaning set forth in the
Registration Rights Agreement. All references herein or in the Securities to interest accrued or payable as of any date shall include any Additional Interest accrued or payable as of such date as provided in the Registration Rights Agreement.

  
 “Additional Shares” has the meaning set forth
in the Registration Rights Agreement. 
  
 “Affiliate” of any specified person means any other person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified person. For the purposes of this definition,
“control” when used with respect to any specified person means the power to direct or cause the direction of the management and policies of such person, directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Applicable Stock” means (a) the Common Stock and (b) in the event of a merger, consolidation or other similar transaction involving the
Company that is otherwise permitted hereunder in which the Company is not the surviving corporation, the common stock of such surviving corporation or its direct or indirect, as applicable, parent corporation. 
  
 “Bankruptcy Law” means Title 11, United States Code, or any
similar Federal or State law for the relief of debtors. 
  
 “Board of Directors” means either the board of directors of the Company or any duly authorized committee of such board. 
  
 “Board Resolution” means a resolution of the Board of Directors. 
  
 “Business Day” means each day of the year other than a Saturday or a Sunday or other day on which banking
institutions in the City of New York are required or authorized by law, regulation or executive order to close. 

 “cash” means such coin or currency of the United States as at any time of payment is
legal tender for the payment of public and private debts. 
  
 “Closing Sale Price” of a share of Applicable Stock on any date means the closing per share sale price (or, if no closing sale price is reported, the average of the bid and ask prices or, if more than one in either case,
the average of the average bid and the average ask prices) on such date as reported by The Nasdaq National Market system or, if the shares of Applicable Stock are not quoted on The Nasdaq National Market system, as reported on a national securities
exchange. If the Applicable Stock is not listed for trading on a national securities exchange and not quoted by The Nasdaq National Market on the relevant date, the “Closing Sale Price” shall be the last quoted bid for the Applicable Stock
in the over-the-counter market on the relevant date as reported by the National Quotation Bureau or similar organization. If the Applicable Stock is not so quoted, the “Closing Sale Price” shall be the average of the midpoint of the last
bid and ask prices for the Applicable Stock on the relevant date from each of at least three nationally recognized independent investment banking firms selected by us for this purpose. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Common Stock” means the common stock, $0.01 par value per
share, of the Company as that stock exists on the date of this Indenture or any other shares of Equity Interest of the Company into which such Common Stock shall be reclassified or changed. 
  
 “Company” means the party named as the “Company”
in the first paragraph of this Indenture until a successor replaces it pursuant to the applicable provisions of this Indenture and, thereafter, means such successor. The foregoing sentence shall likewise apply to any subsequent successor or
successors to such successors. 
  
 “Company
Request” or “Company Order” means a written request or order signed in the name of the Company by any two Officers, at least one of whom is the Chief Executive Officer or the Chief Financial Officer. 
  
 “Conversion Agent” has the meaning set forth in Section 2.3.

  
 “Conversion Notice” has the meaning set forth
in Section 12.2(b). 
  
 “Conversion Price” means
$6.09. 
  
 “Conversion Rate” shall equal a
fraction, the numerator of which shall equal 1,000 and the denominator of which shall equal the Conversion Price. 
  
 “Corporate Trust Office” means the principal office of the Trustee at which at any time its corporate trust business shall be
administered, which office at the date hereof is located at 101 Barclay Street, Fl. 8W, New York, New York 10286, Attn: Corporate Trust Administration, or such other address as the Trustee may designate from time to time by notice to the Holders and
the Company, or the principal corporate trust office of any successor Trustee (or such other address as a successor Trustee may designate from time to time by notice to the Holders and the Company). 
  

 -2- 

 “Current Market Price” has the meaning set forth in Section 12.3(g). 
  
 “Custodian” means any receiver, trustee, assignee,
liquidator, custodian or similar official under any Bankruptcy Law. 
  
 “Default” means, when used with respect to the Securities, any event which is, or after notice or passage of time or both would be, an Event of Default. 
  
 “Designated Event” means the occurrence of any of the following events: (i) any “person” or
“group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a Person shall be deemed to have
beneficial ownership of all shares that such Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 50% of the total outstanding Voting Stock of the
Company; (ii) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors of the Company (together with any new directors whose election to such Board of Directors or whose
nomination for election by the stockholders of the Company, was approved by a vote of at least 66 2/3% of the
directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of such Board of Directors then in
office; (iii) the Company consolidates with or merges with or into any Person or conveys, transfers, sells or otherwise disposes of or leases all or substantially all of its assets to any Person, or any corporation consolidates with or merges into
or with the Company, in any such event pursuant to a transaction in which the outstanding Voting Stock of the Company is changed into or exchanged for cash, securities or other property, other than any such transaction where the outstanding Voting
Stock of the Company is not changed or exchanged at all (except to the extent necessary to reflect a change in the jurisdiction of incorporation of the Company) or where (A) the outstanding Voting Stock of the Company is changed into or exchanged
for cash, securities and other property (other than Equity Interest of the surviving corporation) and (B) the stockholders of the Company immediately before such transaction constituting a change of control own, directly or indirectly, immediately
following such transaction, more than 50% of the total outstanding Voting Stock of the surviving corporation; (iv) the Company or any Designated Subsidiary or any group of two or more Subsidiaries that, taken as a whole, would constitute a
Designated Subsidiary, is liquidated or dissolved or adopts a plan of liquidation or dissolution other than in a transaction which complies with the provisions described under Article VII; or (v) the Company’s Common Stock ceases to be quoted
on the Nasdaq National Market or listed on a national securities exchange or traded on an established automated over-the-counter trading market in the United States. 
  
 “Designated Event Purchase Date” has the meaning set forth in Section 5.1(a). 
  
 “Designated Event Purchase Notice” has the meaning set forth
in Section 5.1(c). 
  
 “Designated Event Purchase
Price” has the meaning set forth in Section 5.1(a). 
  

 -3- 

 “Designated Subsidiary” means any existing or future, direct or indirect, Subsidiary of
the Company whose assets constitute 5% or more of the total assets of the Company on a consolidated basis. 
  
 “Disqualified Equity Interests” means any Equity Interest that, either by their terms or by the terms of any security into which they are
convertible or exchangeable or otherwise, are, or upon the happening of an event or passage of time would be, required to be redeemed prior to any Stated Maturity of the principal of the Securities or are redeemable at the option of the holder
thereof at any time prior to any such Stated Maturity (other than upon a Designated Event or sale of assets by the Company in circumstances where the holders of the Securities would have similar rights), or are convertible into or exchangeable for
debt securities at any time prior to any such Stated Maturity at the option of the holder thereof. 
  
 “distributed assets” has the meaning set forth in Section 12.3(d). 
  
 “EDGAR” has the meaning set forth in Section 6.2(b). 
  
 “Equity Interest” of any Person means any and all shares,
interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) corporate stock or other equity participations, including partnership interests, whether general or limited, of such
Person. 
  
 “Event of Default” has the meaning
set forth in Section 8.1. 
  
 “Exchange Act”
means the United States Securities Exchange Act of 1934, as amended. 
  
 “Ex-Dividend Time” means, with respect to any issuance or distribution on Common Stock, the first Trading Day on which the Common Stock trades regular way on the principal securities market on which the Common Stock is then
traded without the right to receive such issuance or distribution. 
  
 “Expiration Time” has the meaning set forth in Section 12.3(f). 
  
 “Fair Market Value” has the meaning set forth in Section 12.3(g). 
  
 “Holder” means a person in whose name a Security is registered on the Registrar’s books. 
  
 “Indebtedness” means, with respect to any Person, without
duplication, any liability of such Person: 
  
 (a) for borrowed money; 
  
 (b)
evidenced by bonds, debentures, notes; 
  
 (c) in
respect of letters of credit or bankers acceptances or similar instruments (or reimbursement obligations with respect thereto); 
  

 -4- 

 (d) to pay the deferred purchase price of property or services, except trade accounts
payable arising in the ordinary course of business; 
  
 (e) as lessee, the obligations of which are capitalized in accordance with generally accepted accounting principles; and 
  
 (f) for Indebtedness of others guaranteed by such Person or for which such Person is legally responsible or liable (whether by agreement
to purchase indebtedness of, or to supply funds or to invest in, others). 
  
 The amount of Indebtedness of any Person at any date shall be (i) the outstanding principal amount of all unconditional obligations described above, as such amount would be reflected on a balance sheet prepared in
accordance with generally accepted accounting principles, and the maximum liability at such date of such Person for any contingent obligations described above, (ii) the accreted value thereof, in the case of any Indebtedness issued with original
issue discount, and (iii) the principal amount thereof, together with any interest thereon that is more than 30 days past due, in the case of any other Indebtedness. 
  
 “Indenture” means this Indenture, as amended or supplemented from time to time in accordance with the terms
hereof, including the provisions of the TIA that are explicitly incorporated in this Indenture by reference to the TIA. 
  
 “Interest Payment Date” has the meaning set forth in Exhibit A attached hereto. 
  
 “Issue Date” of any Security means the date on which such
Security was originally issued or deemed issued as set forth on the face of the Security. 
  
 “Legal Holiday” means any day other than a Business Day. 
  
 “Market Price” means the average of the Closing Sale Prices of one share of Applicable Stock for the 20 Trading Day period immediately
preceding and including the Business Day immediately preceding the Purchase Date or Designated Event Purchase Date, as the case may be (or if the Business Day immediately preceding the Purchase Date or Designated Event Purchase Date, as the case may
be, is not a Trading Day, then on the last Trading Day immediately preceding the Business Day), appropriately adjusted to take into account the occurrence, during the period commencing on the first of such Trading Days during such 20 Trading Day
period and ending on the Purchase Date or Designated Event Purchase Date, as the case may be, of any event described in Section 12.3 or Section 12.4. 
  
 “Non-Electing Share” has the meaning set forth Section 12.4. 
  
 “Officer” means the Chief Executive Officer, the President, the Chief Financial Officer, any Vice
President, the Treasurer, or the Secretary of the Company. 
  
 “Officers’ Certificate” means a written certificate containing the information specified in Section 13.4 and Section 13.5, signed in the name of the Company by any two Officers, at least one of whom is the Chief
Executive Officer or the Chief Financial Officer, and delivered to the Trustee. An Officers’ Certificate given pursuant to Section 6.3 shall be signed by the Chief Financial Officer and one other Officer. 
  

 -5- 

 “Opinion of Counsel” means a written opinion containing the information specified in
Section 13.4 and Section 13.5, from legal counsel. The counsel may be an employee of, or counsel to, the Company. 
  
 “Paying Agent” has the meaning set forth in Section 2.3. 
  
 “Person” or “person” means any individual, corporation, limited liability company,
partnership, joint venture, association, joint stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof (and for purposes of the definition of “Designated Event” shall also have the
meaning set forth in such definition). 
  
 “Principal
Amount” of a Security means the principal amount of the Security as set forth on the face of the Security. 
  
 “QIB” means a “qualified institutional buyer” as defined in Rule 144A. 
  
 “Record Date” has the meaning set forth in Section 12.3(g).

  
 “Reference Period” has the meaning set forth
in Section 12.3(d). 
  
 “Register” has the
meaning set forth in Section 2.3. 
  
 “Registrar”
has the meaning set forth in Section 2.3. 
  
 “Registration Rights Agreement” means the Registration Rights Agreement, dated January 20, 2004, between the Company and Bear, Stearns & Co. Inc., as amended or supplemented from time to time. 
  
 “Regular Record Date” has the meaning set forth in Exhibit A
attached hereto. 
  
 “Responsible Officer” means,
when used with respect to the Trustee, the officer within the corporate trust department of the Trustee, including any vice president, assistant vice president or assistant treasurer or any other officer of the Trustee who customarily performs
functions similar to those performed by the persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and
who shall have direct responsibility for the administration of this Indenture. 
  
 “Restricted Security” means a Security which is a Transfer Restricted Security. 
  
 “Rule 144A” means Rule 144A under the Securities Act (or any successor provision), as it may be amended from time to time. 
  
 “SEC” means the United States Securities and Exchange
Commission, or any successor thereto. 
  

 -6- 

 “Securities” means any of the Company’s 3.25% Convertible Senior Notes due 2006, as
amended or supplemented from time to time, issued under this Indenture that are in substantially the form attached hereto as Exhibit A. 
  
 “Securities Act” means the United States Securities Act of 1933, as amended, or any successor statute thereto. 
  
 “Special Record Date” has the meaning set forth in Exhibit A
attached hereto. 
  
 “Spin-Off” has the meaning
set forth in Section 12.3(d). 
  
 “Spot Price”
means $4.82. 
  
 “Stated Maturity,” when used
with respect to any Security, means January 12, 2006. 
  
 “Subsidiary” means any person of which at least a majority of the outstanding Voting Stock shall at the time directly or indirectly be owned or controlled by the Company or by one or more Subsidiaries or by the Company and
one or more Subsidiaries. 
  
 “TIA” means the
United States Trust Indenture Act of 1939 as in effect on the date of this Indenture; provided, however, that in the event the TIA is amended after such date, TIA means, to the extent required by any such amendment, the TIA as so
amended. 
  
 “Trading Day” means a day during
which trading in securities generally occurs on the Nasdaq National Market system or, if the Applicable Stock is not quoted on the Nasdaq National Market system, on the principal U.S. national or regional securities exchange on which the Applicable
Stock is then listed or, if the Applicable Stock is not listed on a U.S. national or regional securities exchange, and not reported on the Nasdaq National Market system, on the principal other market on which the Applicable Stock is then traded
(provided that no day on which trading of the Applicable Stock is suspended on such exchange or other trading market will count as a trading day). 
  
 “Trade Date” means January 12, 2004. 
  
 “Transfer Certificate” has the meaning set forth in Section 2.12(f). 
  
 “Transfer Restricted Security” has the meaning set forth in Section 2.12(f). 
  
 “Trigger Event” has the meaning set forth in Section
12.3(d). 
  
 “Trustee” means the party named as
the “Trustee” in the first paragraph of this Indenture until a successor replaces it pursuant to the applicable provisions of this Indenture and, thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any
subsequent such successor or successors. 
  
 “Unrestricted
Security” means a Security that is not a Transfer Restricted Security. 
  

 -7- 

 “Voting Stock” of a person means Equity Interest of such person of the class or classes
pursuant to which the holders thereof have the general voting power under ordinary circumstances to elect at least a majority of the board of directors, managers or trustees of such person (irrespective of whether or not at the time Equity Interest
of any other class or classes shall have or might have voting power by reason of the happening of any contingency). 
  
 “Wholly Owned Subsidiary” means a Subsidiary all the Equity Interest of which is owned by the Company or another Wholly Owned Subsidiary,
other than directors’ qualifying shares. 
  
 Section 1.2
Incorporation by Reference of Trust Indenture Act. Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. The following TIA terms used in this Indenture have
the following meanings: 
  
 “Commission” means
the SEC. 
  
 “indenture securities” means the
Securities. 
  
 “indenture security holder” means
a Holder. 
  
 “indenture to be qualified” means
this Indenture. 
  
 “indenture trustee” or
“institutional trustee” means the Trustee. 
  
 “obligor” on the indenture securities means the Company. 
  
 All other TIA terms used but not defined in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule have the meanings assigned to them by such definitions.

  
 Section 1.3 Rules of Construction. Unless the context
otherwise requires: 
  
 (a) a term has the meaning assigned to
it; 
  
 (b) an accounting term not otherwise defined has the
meaning assigned to it in accordance with accounting principles generally accepted in the United States as in effect from time to time; 
  
 (c) “or” is not exclusive; 
  
 (d) “including” means including, without limitation; and 
  
 (e) words in the singular include the plural, and words in the plural include the singular. 
  
 Section 1.4 Acts of Holders. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially 
  

 -8- 

 similar tenor signed by such Holders in person or by an agent duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and, where it is hereby expressly required, to the Company, as described in Section 13.2. Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section 1.4. 
  
 (b) The fact and date of the execution by any person of any such instrument or writing may be proved by the affidavit of a
witness of such execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to such officer the execution
thereof. Where such execution is by a signer acting in a capacity other than such signer’s individual capacity, such certificate or affidavit shall also constitute sufficient proof of such signer’s authority, if it so states. The fact and
date of the execution of any such instrument or writing, or the authority of the person executing the same, may also be proved in any other manner which the Trustee deems sufficient. 
  
 (c) The principal amount and certificate number of any Security and the ownership of Securities shall be proved by the
Register maintained by the Registrar for the Securities. 
  
 (d)
Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Security shall bind every future Holder of the same Security and the Holder of every Security issued upon the registration of transfer thereof
or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company in reliance thereon, whether or not notation of such action is made upon such Security. 
  
 (e) If the Company shall solicit from the Holders any request, demand,
authorization, direction, notice, consent, waiver or other Act, the Company may, at its option, by or pursuant to a Board Resolution, fix in advance a record date for the determination of Holders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other Act, but the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act may be given before or after
such record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of outstanding Securities have authorized or
agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the outstanding Securities shall be computed as of such record date; provided that no such authorization,
agreement or consent by the Holders on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after the record date. 
  

 -9- 

 ARTICLE II 
  

THE SECURITIES 
  
 Section 2.1 Form and Dating. The Securities shall be designated as the “3.25% Convertible Senior Notes due 2006” of the Company. The
aggregate principal amount of Securities outstanding at any time may not exceed $13,000,000 except as provided in Section 2.7. 
  
 The Securities and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A attached hereto, which is incorporated
in and made a part of this Indenture. The Securities may have notations, legends or endorsements required by law, stock exchange rule or usage (provided that any such notation, legend or endorsement required by usage is in a form acceptable
to the Company). The Company shall provide any such notations, legends or endorsements to the Trustee in writing. Each Security shall be dated the date of its authentication. 
  
 Section 2.2 Execution and Authentication. The Securities shall be executed on behalf of the Company by any Officer.
The signature of the Officer on the Securities may be manual or facsimile. 
  
 A Security bearing the manual or facsimile signature of an individual who was at the time of the execution of the Security an Officer shall bind the Company, notwithstanding that such individual has ceased to hold
such office(s) prior to the authentication and delivery of such Securities or did not hold such office(s) at the date of authentication of such Securities. 
  
 No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein duly executed by the Trustee by manual signature of an authorized signatory, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that
such Security has been duly authenticated and delivered hereunder. 
  
 The Trustee shall authenticate and deliver the Securities for original issuance in an aggregate principal amount of up to $13,000,000 upon one or more Company Orders without any further action by the Company (other than as contemplated
below and in Section 13.4 and Section 13.5). The aggregate principal amount due at the Stated Maturity of the Securities outstanding at any time may not exceed the amount set forth in the foregoing sentence except as provided in Section 2.7. In
authenticating such Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall receive and shall be fully protected in relying upon: 
  
 (a) a copy of the Board Resolution in or pursuant to which the terms and
form of the Securities were established, the issuance and sale of the Securities was authorized, this Indenture was authorized and specified Officers were authorized to establish the form and determine the terms of the Securities and the form of
this Indenture, to execute the Securities and this Indenture on behalf of the Company and to take any other necessary actions relating thereto and evidence of any actions taken by authorized Officers pursuant to that Board Resolution, 
  

 -10- 

 certified by the Secretary, an Assistant Secretary or the General Counsel of the Company to have been duly adopted by the
Board of Directors or taken by any authorized Officer and to be in full force and effect as of the date of such certificate; and 
  
 (b) an Officer’s Certificate delivered in accordance with to Section 13.4 and Section 13.5; and 
  
 (c) an Opinion of Counsel which shall state: 
  
 (i) that the form of such Securities has been established by
or pursuant to a resolution of the Board of Directors and in conformity with the provisions of this Indenture; 
  
 (ii) that the terms of such Securities have been established in or pursuant to a resolution of the Board of Directors and in conformity
with the other provisions of this Indenture; 
  
 (iii) that such Securities, when authenticated and delivered by the Trustee and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, shall constitute valid and legally binding obligations
of the Company, enforceable in accordance with their terms, subject to bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting the enforcement of creditors’ rights and to general equity
principles; 
  
 (iv) that all laws and
requirements in respect of the execution and delivery by the Company of such Securities have been complied with; and 
  
 (v) that this Indenture has been duly authorized, executed and delivered by the Company and constitutes a valid and binding agreement of
the Company enforceable in accordance with its terms. 
  
 The
Trustee shall act as the initial authenticating agent. Thereafter, the Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities. An authenticating agent may authenticate Securities whenever the Trustee may do
so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. 
  
 The Securities shall be issued only in registered form without coupons and only in denominations of $1,000 of principal amount and any integral multiple
of $1,000. 
  
 Section 2.3 Registrar, Paying Agent and
Conversion Agent. Pursuant to Section 6.5, the Company shall maintain an office or agency where Securities may be presented for registration of transfer or for exchange (“Registrar”), an office or agency where Securities may be
presented for redemption, repurchase or payment (“Paying Agent”), an office or agency where Securities may be presented for conversion (“Conversion Agent”) and an office or agency where notices and demands to or
upon the Company in respect of the Securities and this Indenture may be served. Pursuant to Section 6.5, the Company shall at all times maintain a Registrar, Paying Agent, Conversion Agent and an office or agency where notices and demands to or upon
the Company in respect of the Securities and this Indenture may be served in the Borough of Manhattan, New York City. The Registrar shall keep a register of the Securities (the “Register”) and of their transfer and exchange.

  

 -11- 

 The Company may have one or more co-registrars, one or more additional paying agents and one or more
additional conversion agents. The term Paying Agent includes any additional paying agent, including any named pursuant to Section 6.5. The term Conversion Agent includes any additional conversion agent, including any named pursuant to Section 6.5.

  
 The Company shall enter into an appropriate limited agency
agreement with any Registrar, Paying Agent, Conversion Agent or co registrar (in each case, if such Registrar, agent or co registrar is a Person other than the Trustee). Each such agreement shall implement the provisions of this Indenture that
relate to such agent. The Company shall notify the Trustee of the name and address of any such agent. If the Company fails to maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate compensation
therefor pursuant to Section 9.7. The Company or any Subsidiary or an Affiliate of either of them may act as Paying Agent, Registrar, Conversion Agent or co registrar and, if the Company fails to maintain a Conversion Agent, the Company shall act as
such. 
  
 The Company hereby initially appoints the Trustee as
Registrar, Paying Agent and Conversion Agent in connection with the Securities. 
  
 Section 2.4 Paying Agent to Hold Cash and Securities in Trust. Except as otherwise provided herein, prior to 10:00 a.m., New York City time, on each due date of payments in respect of any Security, the Company
shall deposit with the Paying Agent, cash (in immediately available funds if deposited on the due date) or number of shares of Applicable Stock, as applicable, sufficient to make such payments when so becoming due. The Company shall require each
Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all cash and Applicable Stock held by the Paying Agent for the making of payments in respect of the
Securities and shall notify the Trustee of any default by the Company in making any such payment. If the Company, a Subsidiary or an Affiliate of either of them acts as Paying Agent, it shall segregate the money and Applicable Stock held by it as
Paying Agent and hold it as a separate trust fund. The Company at any time may require a Paying Agent to pay all cash and Applicable Stock held by it to the Trustee, and to account for any funds and Applicable Stock disbursed by it, and the Trustee
may at any time during the continuance of any such default, upon the written request to the Paying Agent, require such Paying Agent to forthwith pay to the Trustee all cash and Applicable Stock so held in trust. Upon doing so, the Paying Agent shall
have no further liability for the cash or Applicable Stock. 
  
 Section 2.5 Holder Lists. The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Holders. If the Trustee is not the Registrar, the Company shall
cause to be furnished to the Trustee on or before each semiannual interest payment date and at such other times as the Trustee may request in writing a list in such form and as of such date as the Trustee may reasonably require of the names and
addresses of Holders. 
  

 -12- 

 Section 2.6 Transfer and Exchange. (a) Subject to compliance with any applicable additional
requirements contained in Section 2.12, when a Security is presented to the Registrar with a request to register a transfer thereof or to exchange such Security for an equal principal amount of Securities of other authorized denominations, the
Registrar shall register the transfer or make the exchange as requested; provided, however, that every Security presented or surrendered for registration of transfer or exchange shall be duly endorsed or accompanied by an assignment
form and, if applicable, a transfer certificate, each in the form included in Exhibit A attached hereto and in form satisfactory to the Registrar and each duly executed by the Holder thereof or its attorney duly authorized in writing. To permit
registration of transfers and exchanges, upon surrender of any Security for registration of transfer or exchange at an office or agency maintained for such purpose pursuant to Section 2.3, the Company shall execute, and the Trustee shall
authenticate Securities of a like aggregate principal amount at the Registrar’s request. Any transfer or exchange shall be without charge, except that the Company or the Registrar may require payment of a sum sufficient to pay all taxes,
assessments or other governmental charges that may be imposed in connection with the transfer or exchange of the Securities from the Holder requesting such transfer or exchange. 
  
 Neither the Company, the Registrar nor the Trustee shall be required to exchange or register a transfer of (i) any
Securities selected for redemption (except, in the case of Securities to be redeemed in part, the portion thereof not to be redeemed), or (ii) any Securities in respect of which a Purchase Notice or a Designated Event Purchase Notice has been given
and not withdrawn by the Holder thereof in accordance with the terms of this Indenture (except, in the case of Securities to be repurchased in part, the portion thereof not to be repurchased). 
  
 All Securities issued upon any transfer or exchange of Securities shall be
valid obligations of the Company, evidencing the same debt and entitled to the same benefits under this Indenture, as the Securities surrendered upon such transfer or exchange. 
  
 (b) Any Registrar appointed pursuant to Section 2.3 shall provide to the Trustee such information as the Trustee may
reasonably require in connection with the delivery by such Registrar of Securities upon transfer or exchange of Securities. 
  
 (c) The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this
Indenture or under applicable law with respect to any transfer of any interest in any Security other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly
required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof. 
  
 Section 2.7 Replacement Securities. If (a) any mutilated Security is surrendered to the Company, the Registrar or the Trustee, or (b) the Company,
the Registrar and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Security, and there is delivered to the Company, the Registrar and the Trustee such security or indemnity as may be required by them to
save each of them harmless, then, in the absence of notice to the Company, the Registrar or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall execute and upon its written request the Trustee shall
authenticate and deliver, in exchange for any such mutilated Security or in lieu of any such destroyed, lost or stolen Security, a new Security of like tenor and principal amount, bearing a certificate number not contemporaneously outstanding.

  

 -13- 

 In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and
payable, or is about to be repurchased by the Company pursuant to Article V, the Company in its discretion may, instead of issuing a new Security, pay, redeem or repurchase such Security, as the case may be. 
  
 Upon the issuance of any new Securities under this Section 2.7, the Company
may require the payment of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee or the Registrar) connected
therewith. 
  
 Every new Security issued pursuant to this Section
2.7 in lieu of any mutilated, destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and
shall be entitled to all benefits of this Indenture equally and proportionately with any and all other Securities duly issued hereunder. 
  
 The provisions of this Section 2.7 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities. 
  
 Section 2.8 Outstanding Securities; Determinations of Holders’ Action. Securities outstanding at any time are all the Securities authenticated by the Trustee, except for: 
  
 (a) those cancelled by it, 
  
 (b) those paid, redeemed or repurchased pursuant to Section 2.7, those
delivered to it for cancellation, and 
  
 (c) those described in
this Section 2.8 as not outstanding. 
  
 A Security does not cease
to be outstanding because the Company or an Affiliate thereof holds the Security; provided, however, that in determining whether the Holders of the requisite principal amount of Securities have given or concurred in any request,
demand, authorization, direction, notice, consent, waiver, or other Act hereunder, Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or such other obligor shall be disregarded and deemed not to
be outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent, waiver or other Act, only Securities which a Responsible Officer of the Trustee
actually knows to be so owned shall be so disregarded. Subject to the foregoing, only Securities outstanding at the time of such determination shall be considered in any such determination. 
  
 If a Security is replaced pursuant to Section 2.7, the replaced Security
ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser unaware that such Security has been replaced. 
  

 -14- 

 If the Paying Agent holds, in accordance with the terms of this Indenture, prior to 10:00 a.m., New York
City time, on a Designated Event Purchase Date or Stated Maturity, as the case may be, cash or securities, if permitted hereunder, sufficient to pay Securities payable on that date, then on such Designated Event Purchase Date or Stated Maturity, as
the case may be, such Securities shall cease to be outstanding and interest (inclusive of Additional Interest, if any) on such Securities shall cease to accrue. 
  

If a Security is converted in accordance with Article XII, then from and after the time of conversion on the date of conversion, such Security shall
cease to be outstanding and interest (inclusive of Additional Interest, if any) on such Security shall cease to accrue. 
  
 Section 2.9 Temporary Securities. Pending the preparation of definitive Securities, the Company may execute, and upon Company Order the Trustee
shall authenticate and deliver, temporary Securities which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are
issued and with such appropriate insertions, omissions, substitutions and other variations as the Officers executing such Securities may determine, as conclusively evidenced by their execution of such Securities. 
  
 If temporary Securities are issued, the Company shall cause definitive
Securities to be prepared without unreasonable delay. After the preparation of definitive Securities, the temporary Securities shall be exchangeable for definitive Securities upon surrender of the temporary Securities at the office or agency of the
Company designated for such purpose pursuant to Section 2.3, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities the Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Securities of authorized denominations. Until so exchanged the temporary Securities shall in all respects be entitled to the same benefits under this Indenture as definitive Securities. 
  
 Section 2.10 Cancellation. All Securities surrendered for payment,
repurchase by the Company pursuant to Article V, conversion, redemption or registration of transfer or exchange shall, if surrendered to any person other than the Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The
Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and all Securities so delivered shall be promptly cancelled
by the Trustee. The Company may not issue new Securities to replace Securities it has paid or delivered to the Trustee for cancellation or that any Holder has converted pursuant to Article XII. No Securities shall be authenticated in lieu of or in
exchange for any Securities cancelled as provided in this Section 2.10, except as expressly permitted by this Indenture. All cancelled Securities held by the Trustee shall be disposed of by the Trustee in accordance with the Trustee’s customary
procedure. 
  
 Section 2.11 Persons Deemed Owners. Prior to
due presentment of a Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the person in whose name such Security is registered as the owner of such Security for the purpose of
receiving payment (whether in cash or Applicable Stock) of principal of, Designated Event Purchase Price, and interest (inclusive of Additional Interest, if any) on, the 
  

 -15- 

 Security, for the purpose of receiving cash or Applicable Stock upon conversion and for all other purposes whatsoever,
whether or not such Security be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary. 
  
 Section 2.12 Additional Transfer and Exchange Requirements. 
  
 (a) Transfer and Exchange of Securities. In the event that Securities
are presented by a Holder to the Registrar with a request: 
  
 (x) to register the transfer of the Securities; or 
  
 (y) to exchange such Securities for an equal principal amount of Securities of other authorized denominations, 
  
 such Registrar shall register the transfer or make the exchange as requested;
provided, however, that the Securities presented or surrendered for register of transfer or exchange: 
  
 (i) shall be duly endorsed or accompanied by a written instrument of transfer in accordance with the proviso to the first paragraph of
Section 2.6; and 
  
 (ii) in the case of a
Restricted Security, such request shall be accompanied by the following additional information and documents, as applicable: 
  
 (A) if such Restricted Security is being delivered to the Registrar by a Holder for registration in the name of such Holder, without
transfer, or such Restricted Security is being transferred to the Company or a Subsidiary of the Company, a certification to that effect from such Holder (in substantially the form set forth in the Transfer Certificate); 
  
 (B) if such Restricted Security is being transferred to a
person the Holder reasonably believes is a QIB in accordance with Rule 144A or pursuant to an effective registration statement under the Securities Act, a certification to that effect from such Holder (in substantially the form set forth in the
Transfer Certificate); or 
  
 (C) if such
Restricted Security is being transferred pursuant to an exemption from the registration requirements of the Securities Act in accordance with Rule 144 or to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act) pursuant to and in compliance with an exemption from the registration requirements under the Securities Act, a certification to that effect from the Holder (in substantially the form set forth in the
Transfer Certificate) and, in the case of a transfer to an institutional accredited investor, a certificate containing certain representations and warranties (in substantially the form set forth in Exhibit B) and, in either case, if the Company or
the Registrar so requests, a customary Opinion of Counsel, certificates and other information reasonably acceptable to the Company and the Registrar to the effect that such transfer does not require registration under the Securities Act. 

 

 -16- 

 (b) Legends. 
  
 (1) Except as permitted by the following paragraphs (2), (3) and (4), each Security (and all Securities
issued in exchange therefor or upon registration of transfer or replacement thereof) shall bear a legend in substantially the form called for by footnote 1 to Exhibit A attached hereto (each, a “Transfer Restricted Security”), for
so long as it is required by this Indenture to bear such legend. Each Transfer Restricted Security shall have attached thereto a certificate (a “Transfer Certificate”) in substantially the form called for by footnote 2 to Exhibit A
attached hereto. 
  
 (2) Upon any sale or
transfer of a Transfer Restricted Security (x) after the expiration of the holding period applicable to sales of the Securities under Rule 144(k) of the Securities Act, (y) pursuant to Rule 144 or (z) pursuant to an effective registration statement
under the Securities Act, any Registrar shall permit the Holder thereof to exchange such Restricted Security for an Unrestricted Security; provided, however, that the Holder of such Restricted Security shall, in connection with such
exchange or transfer, comply with the other applicable provisions of this Section 2.12. 
  
 (3) Upon the exchange, registration of transfer or replacement of Securities not bearing the legend described in paragraph (1) above, the
Company shall execute, and the Trustee shall authenticate and deliver Securities that do not bear such legend and that do not have a Transfer Certificate attached thereto. 
  
 (4) After the expiration of the holding period pursuant to Rule 144(k) of the Securities Act, the Company
may with the consent of the Holder of a Security, remove any restriction of transfer on such Security, and the Company shall execute, and the Trustee shall authenticate and deliver Securities that do not bear such legend and that do not have a
Transfer Certificate attached thereto. 
  
 (5)
Until the expiration of the holding period applicable to sales of the Securities under Rule 144(k) of the Securities Act or a transfer pursuant to Rule 144 or pursuant to an effective registration statement under the Securities Act, the Applicable
Stock issued upon conversion of the Securities shall bear the legend in substantially the form called for by Exhibit C attached hereto. 
  
 (c) Transfers to the Company. Nothing contained in this Indenture or in the Securities shall prohibit the sale or other transfer of any Securities
to the Company or any of its Subsidiaries, which Securities shall thereupon be cancelled in accordance with Section 2.10. 
  

 -17- 

 Section 2.13 CUSIP Numbers. The Company may issue the Securities with one or more
“CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption or repurchase as a convenience to Holders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption or repurchase and that reliance may be placed only on the other identification numbers printed on the
Securities, and any such redemption or repurchase shall not be affected by any defect in or omission of such numbers. The Company shall promptly notify the Trustee of any change in the CUSIP numbers. 
  
 Section 2.14 Ranking. The indebtedness of the Company arising under or
in connection with this Indenture and every outstanding Security issued under this Indenture from time to time constitutes and shall constitute a senior unsecured general obligation of the Company, ranking equally with other existing and future
senior unsecured Indebtedness of the Company and ranking senior in right of payment to any future Indebtedness of the Company that is expressly made subordinate to the Securities by the terms of such Indebtedness; provided, however, that the
indebtedness of the Company arising under or in connection with this Indenture and every outstanding Security issued under this Indenture from time to time shall be subordinate to the those certain bonds issued in connection with the bond financing
with the New Jersey Economic Development Authority. 
  
 ARTICLE
III 
  
 [INTENTIONALLY OMITTED] 
  
 ARTICLE IV 
  
 [INTENTIONALLY OMITTED] 
  
 ARTICLE V 
  
 PURCHASE AT THE OPTION OF HOLDERS UPON A DESIGNATED EVENT 
  
 Section 5.1 Designated Event Put. (a) In the event that a Designated
Event shall occur, each Holder shall have the right, at the Holder’s option, but subject to the provisions of this Section 5.1, to require the Company to purchase, and upon the exercise of such right, the Company shall purchase, all of such
Holder’s Securities, or any portion of the Principal Amount thereof that is equal to $1,000 or an integral multiple thereof, as directed by such Holder pursuant to this Section 5.1, on the date designated by the Company (the “Designated
Event Purchase Date”) that is a Business Day no later than 20 Business Days after the date of notice pursuant to Section 5.1(b) of the occurrence of a Designated Event (subject to extension to comply with applicable law). The Company shall
be required to purchase such Securities at a purchase price in cash equal to (i) 103% of the Principal Amount plus (ii) any accrued and 
  

 -18- 

 unpaid interest (inclusive of Additional Interest, if any) to, but excluding, the Designated Event Purchase Date
(collectively, the “Designated Event Purchase Price”). In the event that a Designated Event Purchase Date is a date that is after any Regular Record Date but on or before the corresponding Interest Payment Date, the Company shall be
required to pay accrued and unpaid interest (inclusive of Additional Interest, if any) to the holder of the repurchased Security and not the Holder on the Regular Record Date. 
  
 (b) No later than 20 calendar days after the occurrence of a Designated Event, the Company shall mail a written notice of
the Designated Event by first class mail to the Trustee (and the Paying Agent if the Trustee is not then acting as Paying Agent) and to each Holder at its address shown in the Register of the Registrar, and to beneficial owners as required by
applicable law. The notice shall include a form of Designated Event Purchase Notice to be completed by the Holder and shall briefly state, as applicable: 
  
 (i) the date of such Designated Event and, briefly, the events causing such Designated Event; 
  
 (ii) the date by which the Designated Event Purchase Notice
must be delivered to the Paying Agent in order for a Holder to exercise the purchase right pursuant to this Section 5.1; 
  
 (iii) the Designated Event Purchase Date; 
  
 (iv) the Designated Event Purchase Price; 
  
 (v) the name and address of the Paying Agent and Conversion Agent; 
  
 (vi) the Conversion Rate and any adjustments thereto; 
  
 (vii) that the Securities as to which a Designated Event
Purchase Notice has been given may be converted into Common Stock pursuant to Article XII of this Indenture only if the Designated Event Purchase Notice has been withdrawn in accordance with the terms of this Indenture; 
  
 (viii) that the Securities must be surrendered to the Paying
Agent to collect payment; 
  
 (ix) that the
Designated Event Purchase Price for any Security as to which a Designated Event Purchase Notice has been duly given and not withdrawn shall be paid promptly following the later of the Designated Event Purchase Date and the time of surrender of such
Security as described in Section 5.1(b)(viii); 
  
 (x) the procedures the Holder must follow to exercise rights under this Section 5.1 and a brief description of such rights; 
  
 (xi) briefly, the conversion rights of the Securities, and that the Holder must satisfy the requirements set forth in the Indenture in
order to convert the Securities; 
  

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 (xii) the procedures for withdrawing a Designated Event Purchase Notice, including a form
of notice of withdrawal; 
  
 (xiii) that, unless
the Company defaults in making payment of such Designated Event Purchase Price, interest (inclusive of Additional Interest, if any) on Securities surrendered for purchase by the Company shall cease to accrue on and after the Designated Event
Purchase Date; and 
  
 (xiv) the CUSIP number(s)
of the Securities. 
  
 At the Company’s request, the Trustee
shall give the notice of purchase right in the Company’s name and at the Company’s expense; provided, however, that the Company makes such request at least five Business Days (unless a shorter period shall be satisfactory to
the Trustee) prior to the date by which such notice of purchase right must be given to the Holders in accordance with this Section 5.1(b); provided, further, that the text of the notice of purchase right shall be prepared by the
Company. 
  
 Simultaneously with delivering the written notice
pursuant to this Section 5.1(b), the Company shall publish a notice containing all information specified in such written notice in a newspaper of general circulation in New York, New York or publish such information on the Company’s website, or
through such other public medium that reasonably could be expected to inform Holders of such information. 
  
 (c) A Holder may exercise its rights specified in clause (a) of this Section 5.1 upon delivery of a written notice (which shall be in substantially the
form included on the reverse side of the Securities entitled “Option of Holder to Elect Purchase” hereto and which may be delivered by letter, overnight courier, hand delivery, facsimile transmission or in any other written form of the
exercise of such rights (a “Designated Event Purchase Notice”) to the Paying Agent at any time on or before the 20th Business Day after the date of the Company’s notice of the Designated Event (subject to extension to comply
with applicable law). 
  
 The Designated Event Purchase Notice
delivered by a Holder shall state (i) the certificate number or numbers of the Security or Securities which the Holder shall deliver to be purchased, (ii) the portion of the Principal Amount of the Security which the Holder shall deliver to be
purchased, which portion must be $1,000 or an integral multiple thereof, and (iii) that such Security shall be purchased pursuant to the terms and conditions specified in the Securities and this Indenture. 
  
 Delivery of a Security to the Paying Agent by physical delivery prior to, on
or after the Designated Event Purchase Date (together with all necessary endorsements) at the offices of the Paying Agent is a condition to receipt by the Holder of the Designated Event Purchase Price therefor; provided, however, that
such Designated Event Purchase Price shall be so paid pursuant to this Section 5.1 only if the Security so delivered to the Paying Agent shall conform in all respects to the description thereof in the related Designated Event Purchase Notice, as
determined by the Company. 
  
 The Company shall purchase from the
Holder thereof, pursuant to this Section 5.1, a portion of a Security if the Principal Amount of such portion is $1,000 or an 
  

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 integral multiple of $1,000. Provisions of the Indenture that apply to the purchase of all of a Security pursuant to
Section 5.1 through Section 5.6 also apply to the purchase of such portion of such Security. 
  
 A Paying Agent shall promptly notify the Company of the receipt by it of any Designated Event Purchase Notice or written withdrawal thereof. 
  
 Section 5.2 Effect of Designated Event Purchase Notice. (a) Upon receipt by the Paying Agent of the Designated Event
Purchase Notice specified in Section 5.1(c), the Holder of the Security in respect of which such Designated Event Purchase Notice was given shall (unless such Designated Event Purchase Notice is withdrawn as specified in the following paragraph)
thereafter be entitled to receive the Designated Event Purchase Price with respect to such Security. Such Designated Event Purchase Price shall be paid to such Holder, subject to receipt of cash by the Paying Agent, promptly following the later of
(a) the Designated Event Purchase Date with respect to such Security (provided the conditions in Section 5.1(c) have been satisfied) and (b) the time of delivery of such Security to the Paying Agent by the Holder thereof in the manner
required by Section 5.1(c). Securities in respect of which a Designated Event Purchase Notice has been given by the Holder thereof may not be converted pursuant to Article XII on or after the date of the delivery of such Designated Event Purchase
Notice unless such Designated Event Purchase Notice has first been validly withdrawn as specified in the following paragraph. 
  
 (b) A Designated Event Purchase Notice may be withdrawn by means of a written notice (which may be delivered by letter, overnight courier, hand delivery,
facsimile transmission or in any other written form) of withdrawal delivered by the Holder to the Paying Agent at any time prior to the close of business on the Business Day immediately preceding the Designated Event Purchase Date, specifying (a)
the Principal Amount of the Security or portion thereof (which must be a Principal Amount of $1,000 or an integral multiple of $1,000 in excess thereof) with respect to which such notice of withdrawal is being submitted, (b) the certificate numbers
of the withdrawn Securities, and (c) the Principal Amount, if any, which remains subject to the Designated Event Purchase Notice. 
  
 Section 5.3 Deposit of Designated Event Purchase Price. Prior to 10:00 a.m., New York City time, on the applicable the Designated Event Purchase
Date or the Business Day following the Designated Event Purchase Date, the Company shall deposit with the Paying Agent (or if the Company or a Subsidiary or an Affiliate of either of them is acting as the Paying Agent, shall segregate and hold in
trust as provided in Section 2.4) an amount of cash (in immediately available funds if deposited on such Business Day) sufficient to pay the aggregate Designated Event Purchase Price of all the Securities or portions thereof which are to be
purchased as of such Designated Event Purchase Date. 
  
 If the
Paying Agent holds, in accordance with the terms hereof, at 10:00 a.m., New York City time, on the applicable Designated Event Purchase Date, cash sufficient to pay the Designated Event Purchase Price of any Securities for which a Designated Event
Purchase Notice has been tendered and not withdrawn pursuant to Section 5.2(b), then, on such Designated Event Purchase Date, such Securities shall cease to be outstanding and interest (inclusive of Additional Interest, if any) on such Securities
shall cease to accrue, whether or not 
  

 -21- 

 such Securities are delivered to the Paying Agent, and the rights of the Holders in respect thereof shall terminate
(other than the right to receive the Designated Event Purchase Price upon delivery of such Securities). 
  
 The Company shall publicly announce the Principal Amount of Securities purchased as a result of such Designated Event on or as soon as practicable after
the Designated Event Purchase Date by publishing a notice containing such information in a newspaper of general circulation in New York, New York or by publishing such information on the Company’s website, or through such other public medium
that reasonably could be expected to inform Holders of such information. 
  
 Section 5.4 Securities Purchased in Part. Any Security that is to be purchased only in part shall be surrendered at the office of the Paying Agent (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing) and promptly after the Designated Event Purchase
Date the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security, without charge, a new Security or Securities, of any authorized denomination or denominations as may be requested by such Holder, in
aggregate Principal Amount equal to, and in exchange for, the portion of the Principal Amount of the Security so surrendered that is not purchased. 
  
 Section 5.5 Covenant to Comply with Securities Laws Upon Purchase of Securities. When complying with the provisions of Section 5.1 hereof
(provided that such offer or purchase constitutes an “issuer tender offer” for purposes of Rule 13e 4 (which term, as used herein, includes any successor provision thereto) under the Exchange Act at the time of such offer or
purchase), and subject to any exemptions available under applicable law, the Company shall: 
  
 (a) comply with Rule 13e 4 and Rule 14e 1 (or any successor provision) under the Exchange Act; 
  
 (b) file the related Schedule TO (or any successor schedule, form or report) under the Exchange Act; and 
  
 (c) otherwise comply with all Federal and state securities laws so as to
permit the rights and obligations under this Article V to be exercised in the time and in the manner specified therein. 
  
 Section 5.6 Repayment to the Company. To the extent that the aggregate amount of cash deposited by the Company pursuant to Section 5.3 exceeds the
aggregate Designated Event Purchase Price of the Securities or portions thereof which the Company is obligated to purchase as of the Designated Event Purchase Date then, promptly after the Designated Event Purchase Date, the Paying Agent shall
return any such excess to the Company. 
  

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 ARTICLE VI 
  

COVENANTS 
  
 Section 6.1 Payment of Securities. The Company shall pay interest on the Securities as provided in the Securities. The Company shall promptly make
all payments in respect of the Securities on the dates and in the manner provided in the Securities or pursuant to this Indenture. Principal amount, Designated Event Purchase Price and accrued and unpaid interest (inclusive of Additional Interest,
if any) shall be considered paid on the applicable date due if by 10:00 a.m., New York City time, on such date the Paying Agent holds, in accordance with this Indenture, cash or securities, if permitted hereunder, sufficient to pay all such amounts
then due. The Company shall, to the fullest extent permitted by law, pay interest on overdue principal and overdue installments of interest (inclusive of Additional Interest, if any) at the rate borne by the Securities per annum (inclusive of
Additional Interest, if any). All references in this Indenture or the Securities to interest shall be deemed to include Additional Interest, if any, payable pursuant to the Registration Rights Agreement. 
  
 Payment of the principal of and interest (inclusive of Additional Interest,
if any) on the Securities shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts or in Applicable Stock, as the case may be. 
  
 Subject to Section 5.1, the Company shall pay interest (inclusive of
Additional Interest, if any) on the Securities to the Person in whose name the Securities are registered at the close of business on the Regular Record Date next preceding the corresponding Interest Payment Date. Any such interest (inclusive of
Additional Interest, if any) not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may be paid (a) to the Person in whose name the Securities are registered at the close of
business on a Special Record Date for the payment of such defaulted interest (inclusive of Additional Interest, if any) to be fixed by the Trustee, notice whereof shall be given to the Holders not less than 10 calendar days prior to such Special
Record Date or (b) at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities may be listed, and upon such notice as may be required by such exchange. 
  
 The Holder must surrender the Securities to the Paying Agent to collect
payment of principal. Payment of interest (inclusive of Additional Interest, if any) on Securities in the aggregate principal amount of $1,000,000 or less shall be made by check mailed to the address of the Person entitled thereto as such address
appears in the Register, and payment of interest (inclusive of Additional Interest, if any) on Securities in aggregate principal amount in excess of $1,000,000 shall be made by wire transfer in immediately available funds at the election of such
Holder. 
  
 Notwithstanding the foregoing or anything to the
contrary contained herein, interest may be paid or duly provided for in shares of the Company’s Common Stock, solely at the Company’s option. Twenty (20) Business Days prior to the applicable Interest Payment Date, the Company shall
provide the Trustee and the Holders with notice of whether it will pay interest in Common Stock or cash. If the Company elects to make any payment of or provision 
  

 -23- 

 for interest in shares of its Common Stock, the shares to be delivered will be valued at (i) 95% of the daily
volume-weighted average price of the Common Stock on the applicable Interest Payment Date, if such shares are registered under the Securities Act, or (ii) 90% of the daily volume-weighted average price of the Common Stock on the applicable Interest
Payment Date, if such shares are not so registered under the Securities Act. The Company shall cause such shares to be delivered to the Holder three (3) Business Days following the applicable Interest Payment Date. The Company shall not issue
fractional shares of Common Stock or any scrip representing fractional shares of Common Stock upon such payment of interest. If any fractional share of Common Stock otherwise would be issuable upon the payment of or provision for interest, the
Company, at its option, may either make an adjustment therefore in cash at the current market value thereof to the Holder of the Securities or round the fractional shares up to the nearest whole share, provided that if such Holder holds more than
one Security the number of full shares that shall be issuable upon the payment of or provision for interest shall be computed on the basis of the aggregate principal amount (and the aggregate interest amount payable thereon) of all of the Securities
held by such Holder. 
  
 Section 6.2 SEC and Other Reports to
the Trustee. (a) The Company shall ensure delivery to the Trustee within 15 calendar days after it files such annual and quarterly reports, information, documents and other reports with the SEC, copies of its annual report and of the
information, documents and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act in
accordance with TIA Section 314(a). In the event the Company is at any time no longer subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, it shall continue to provide the Trustee with reports containing substantially
the same information as would have been required to be filed with the SEC had the Company continued to have been subject to such reporting requirements. In such event, such reports shall be provided at the times the Company would have been required
to provide reports had it continued to have been subject to such reporting requirements. The Company also shall comply with the other provisions of TIA Section 314(a). Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of
its covenants hereunder (as to which the Trustee is entitled to rely conclusively on Officers’ Certificates). The Trustee shall have no duty or responsibility to review such reports, information or documents. 
  
 (b) The Company intends to file the reports referred to in paragraph (a)
above in this Section 6.2 hereof with the SEC in electronic form pursuant to Regulation S-T of the SEC using the SEC’s Electronic Data Gathering, Analysis and Retrieval (“EDGAR”) system. The Company shall notify the Trustee in
the manner prescribed herein of each such filing. The Trustee is hereby authorized and directed to access the EDGAR system for purposes of retrieving the reports so filed. Compliance with the foregoing shall constitute delivery by the Company of
such reports to the Trustee in compliance with the provisions of TIA Section 314(a). The Trustee shall have no duty to search for or obtain any electronic or other filings that the Company makes with the SEC, regardless of whether such filings are
periodic, supplemental or otherwise. Delivery of the reports, information and documents to the Trustee pursuant to this Section 6.2(b) shall be solely for the purposes of compliance with this Section 6.2(b) and with 
  

 -24- 

 TIA Section 314(a). The Trustee’s receipt of such reports, information and documents shall not constitute notice to
it of the consent thereof or of any matter determinable from the content thereof, including the Company’s compliance with any of its covenants hereunder, as to which the Trustee is entitled to rely upon Officers’ Certificates. 

 
 Section 6.3 Compliance Certificate. The Company shall deliver to
the Trustee within 120 calendar days after the end of each fiscal year of the Company (beginning with the fiscal year ending June 30, 2004) an Officers’ Certificate, stating whether or not to the knowledge of the signers thereof, the Company is
in Default in the performance and observance of any of the terms, provisions and conditions of this Indenture and if the Company shall be in Default, specifying all such Defaults and the nature and status thereof of which they may have knowledge.

  
 Section 6.4 Further Instruments and Acts. Upon request
of the Trustee, or as otherwise necessary, the Company shall execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purposes of this Indenture. 
  
 Section 6.5 Maintenance of Office or Agency of the Trustee, Registrar,
Paying Agent and Conversion Agent. The Company shall maintain in the Borough of Manhattan, New York, New York, an office or agency of the Trustee, Registrar, Paying Agent and Conversion Agent where Securities may be presented or surrendered for
payment, where Securities may be surrendered for registration of transfer, exchange, redemption, repurchase or conversion and where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served. The office
of The Bank of New York shall initially be such office or agency for all of the aforesaid purposes. The Company shall give prompt written notice to the Trustee of the location, and of any change in the location, of any such office or agency (other
than a change in the location of the office of the Trustee). If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices
and demands may be made or served at the address of the Trustee set forth in Section 13.2. 
  
 The Company may also from time to time designate one or more other offices or agencies where the Securities may be presented or surrendered for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in the Borough of Manhattan, New York, New York, for such purposes.

  
 Section 6.6 Delivery of Information Required Under Rule
144A. At any time when the Company is not subject to Section 13 or 15(d) of the Exchange Act, upon the request of a Holder or any beneficial owner of Securities or holder or beneficial owner of Common Stock issued upon conversion thereof, the
Company shall promptly furnish or cause to be furnished the information required pursuant to Rule 144A(d)(4) under the Securities Act to such Holder or any beneficial owner of Securities or holder or beneficial owner of Common Stock, or to a
prospective purchaser of any such security designated by any such holder, as the case may be, to the extent required to permit compliance by such Holder or holder with Rule 144A under the Securities Act in connection with the resale of any such
security. Whether a person is a beneficial owner shall be determined by the Company to the Company’s reasonable satisfaction. 
  

 -25- 

 Section 6.7 Waiver of Stay, Extension or Usury Laws. The Company covenants (to the extent that it
may lawfully do so) that it shall not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury or other law wherever enacted, now or at any time hereafter in
force, which would prohibit or forgive the Company from paying all or any portion of the principal amount or Designated Event Purchase Price in respect of Securities, or any interest (inclusive of Additional Interest, if any) on such amounts, as
contemplated herein, or which may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not
hinder, delay or impede the execution of any power herein granted to the Trustee, but shall suffer and permit the execution of every such power as though no such law had been enacted. 
  
 Section 6.8 Statement by Officers as to Default. The Company shall deliver to the Trustee, as soon as practicable and
in any event within five Business Days after the Company becomes aware of the occurrence of any Default or Event of Default, an Officers’ Certificate setting forth the details of such Default or Event of Default and the action which the Company
proposes to take with respect thereto. 
  
 Section 6.9
Incurrence of Indebtedness. The Company will not, and will not permit any of its Subsidiaries to, create, incur, assume or directly or indirectly guarantee or in any other manner become directly or indirectly liable for any Indebtedness in an
aggregate amount greater than $10 million which has a maturity date at or prior to three years from the Trade Date and which ranks equally with the indebtedness of the Company arising under or in connection with this Indenture. Further, neither the
Company nor any of its Subsidiaries shall incur any indebtedness that ranks senior to the Notes. 
  
 ARTICLE VII 
  
 SUCCESSOR CORPORATION 
  
 Section 7.1 When
Company May Merge or Transfer Assets. The Company shall not consolidate with or merge with or into any other person or convey, transfer, sell, lease or otherwise dispose of all or substantially all of its properties and assets to any person,
unless: 
  
 (a) either (i) the Company shall be the continuing
corporation or (ii) the Person (if other than the Company) formed by such consolidation or into which the Company is merged or the Person which acquires by conveyance, transfer, sale, lease or other disposition all or substantially all of the
properties and assets of the Company substantially as an entirety (1) shall be organized and validly existing under the laws of the United States or any State thereof or the District of Columbia and (2) shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form reasonably satisfactory to the Trustee, all of the obligations of the Company under the Securities and this Indenture; 
  

 -26- 

 (b) immediately after giving effect to such transaction, no Default shall have occurred and be
continuing; and 
  
 (c) the Company shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer, sale, lease or other disposition and, if a supplemental indenture is required in connection with such transaction,
such supplemental indenture, comply with this Article VII and that all conditions precedent herein provided for relating to such transaction have been satisfied. 
  
 For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise) of the properties and assets of one or
more Subsidiaries, which, if such assets were owned by the Company, together with the assets of all of the other Subsidiaries of the Company, would constitute all or substantially all of the properties and assets of the Company, shall be deemed to
be the transfer of all or substantially all of the properties and assets of the Company unless such transfer is to the Company or another Subsidiary. 
  
 The successor Person formed by such consolidation or into which the Company is merged or the successor Person to which such conveyance, transfer, sale,
lease or other disposition is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor had been named as the Company herein; and thereafter,
except in the case of a conveyance, transfer, sale, lease or other disposition and any obligations the Company may have under a supplemental indenture, the Company shall be discharged from all obligations and covenants under this Indenture and the
Securities. Subject to Section 11.6, the Company, the Trustee and the successor Person shall enter into a supplemental indenture to evidence the succession and substitution of such successor Person and such discharge and release of the Company.

  
 ARTICLE VIII 
  
 DEFAULTS AND REMEDIES 
  
 Section 8.1 Events of Default. So long as any Securities are
outstanding, each of the following shall be an “Event of Default”: 
  
 (a) the Company defaults in the payment of the principal amount of any Security when the same becomes due and payable as therein provided or as provided in this Indenture, whether at Stated Maturity or by declaration
of acceleration; 
  
 (b) the Company defaults in the payment of
any accrued and unpaid interest on any Security (inclusive of Additional Interest, if any) in each case, when due and payable, and such default shall continue for a period of 30 days; 
  

 -27- 

 (c) the Company fails to convert any portion of the principal amount of any Security following the
exercise by the Holder of the right to convert such Security into Common Stock pursuant to and in accordance with Article XII; 
  
 (d) the Company defaults in its obligation to purchase any Security, or any portion thereof, upon the exercise by the Holder of such Holder’s right
to require the Company to purchase such Securities pursuant to and in accordance with Article V; 
  
 (e) the Company defaults in its obligation to provide notice in the event of a Designated Event in accordance with Section 5.1(b); 
  
 (f) there shall be a default in the performance, or breach, of any covenant
or agreement of the Company under this Indenture (other than a default in the performance or breach of a covenant or agreement which is specifically dealt with in clause (a), (b), (d) or (e)) and such default or breach shall continue for a period of
60 days after written notice has been given, by certified mail, (1) to the Company by the Trustee or (2) to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Securities then outstanding; 
  
 (g) there shall have occurred a default under any credit agreement, mortgage,
indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness of the Company or any of its Subsidiaries whether such Indebtedness now exists, or is created after the date of this Indenture,
which default (i) involves the failure to pay principal of or any premium or interest on such Indebtedness in an amount in excess of $7.5 million when such Indebtedness becomes due and payable at the stated maturity thereof, and such default shall
continue after any applicable grace period or (ii) results in the acceleration of such Indebtedness unpaid prior to the stated maturity thereof (without such acceleration being rescinded or annulled) and, in the case of (ii), the principal amount of
such Indebtedness, together with the principal amount of any other Indebtedness so unpaid at its stated maturity or the stated maturity of which has been so accelerated, aggregates $10 million or more; 
  
 (h) there shall be a failure by the Company or any of its Subsidiaries to pay
final judgments not covered by insurance aggregating in excess of $7.5 million, which judgments are not paid, discharged or stayed for a period of 60 calendar days; 
  
 (i) the Company or any Designated Subsidiary, or any group of two or more Subsidiaries that, taken as a whole, would
constitute a Designated Subsidiary, pursuant to or under or within the meaning of any Bankruptcy Law: 
  
 (i) commences a voluntary case or proceeding; 
  
 (ii) consents to the entry of any order for relief against it in an involuntary case or proceeding or the commencement of any case against
it; 
  
 (iii) consents to the appointment of a
Custodian of it or for any substantial part of its property; 
  
 (iv) makes a general assignment for the benefit of its creditors; 
  

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 (v) files a petition in bankruptcy or answer or consent seeking reorganization or relief;
or 
  
 (vi) consents to the filing of such
petition or the appointment of or taking possession by a Custodian; or 
  
 (j) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 
  
 (i) is for relief against the Company or any Designated Subsidiary, or any group of two or more Subsidiaries that, taken as whole, would
constitute a Designated Subsidiary, in an involuntary case or proceeding, or adjudicates the Company or any Designated Subsidiary, or any group of two or more Subsidiaries that, taken as whole, would constitute a Designated Subsidiary, insolvent or
bankrupt; 
  
 (ii) appoints a Custodian of the
Company or any Designated Subsidiary, or any group of two or more Subsidiaries that, taken as whole, would constitute a Designated Subsidiary, or for any substantial part of its property; or 
  
 (iii) orders the winding up or liquidation of the Company or
any Designated Subsidiary, or any group of two or more Subsidiaries that, taken as whole, would constitute a Designated Subsidiary, 
  
 and the order of decree remains unstayed and in effect for 60 days. 
  
 Section 8.2 Acceleration. If an Event of Default (other than an Event of Default specified in Section 8.1(i) or
Section 8.1(j) with respect to the Company) occurs and is continuing (including an Event of Default specified in Section 8.1(i) or Section 8.1(j) with respect to one or more Designated Subsidiaries), the Trustee by notice to the Company, or the
Holders of at least 25% in aggregate principal amount of the Securities at the time outstanding by notice to the Company and the Trustee, may declare the principal amount plus accrued and unpaid interest (inclusive of Additional Interest, if any) on
all the Securities to be immediately due and payable. Upon such a declaration, such accelerated amount shall be due and payable immediately. 
  
 If an Event of Default specified in Section 8.1(i) or Section 8.1(j) occurs with respect to the Company and is continuing, the principal amount plus
accrued and unpaid interest (inclusive of Additional Interest, if any) on all the Securities shall become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holders. 
  
 The Holders of a majority in aggregate principal amount of the Securities at
the time outstanding, by notice to the Trustee (and without notice to any other Holder) may rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default have been
cured or waived except nonpayment of the principal amount plus accrued and unpaid interest (inclusive of Additional Interest, if any) that have become due solely as a result of acceleration and if all amounts due to the Trustee under Section 9.7
have been paid. No such rescission shall affect any subsequent Default or impair any right consequent thereto. 
  

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 Section 8.3 Other Remedies. If an Event of Default occurs and is continuing, the Trustee may, but
shall not be obligated to, pursue any available remedy to collect the payment of the principal amount plus accrued and unpaid interest (inclusive of Additional Interest, if any) on the Securities or to enforce the performance of any provision of the
Securities or this Indenture. 
  
 The Trustee may maintain a
proceeding even if the Trustee does not possess any of the Securities or does not produce any of the Securities in the proceeding. A delay or omission by the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default
shall not impair the right or remedy or constitute a waiver of, or acquiescence in, the Event of Default. No remedy is exclusive of any other remedy. All available remedies are cumulative. 
  
 Section 8.4 Waiver of Past Defaults. Subject to Section 8.7 and
Section 11.2, the Holders of a majority in aggregate principal amount of the Securities at the time outstanding, by notice to the Trustee (and without notice to any other Holder), may waive an existing Default and its consequences except:

  
 (a) an Event of Default described in Section 8.1(a), Section
8.1(b) or Section 8.1(d); 
  
 (b) a Default which constitutes a
failure to convert any Security in accordance with the terms of Article XII; or 
  
 (c) a Default in respect of any provision of this Indenture or the Securities, which, under Section 11.2, cannot be amended or modified without the consent of each Holder affected thereby. 
  
 When a Default is waived, it is deemed cured, but no such waiver shall extend
to any subsequent or other Default or impair any consequent right. This Section 8.4 shall be in lieu of Section 316(a)1(B) of the TIA and such Section 316(a)1(B) is hereby expressly excluded from this Indenture, as permitted by the TIA. 

 
 Section 8.5 Control by Majority. The Holders of a majority in
aggregate principal amount of the Securities at the time outstanding may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee. However,
the Trustee may refuse to follow any direction that conflicts with law or this Indenture or that the Trustee determines in good faith is prejudicial to the rights of other Holders or would involve the Trustee in personal liability unless the Trustee
is provided indemnity satisfactory to it. This Section 8.5 shall be in lieu of Section 316(a)1(A) of the TIA and such Section 316(a)1(A) is hereby expressly excluded from this Indenture, as permitted by the TIA. 
  
 Section 8.6 Limitation on Suits. A Holder may not pursue any remedy
with respect to this Indenture or the Securities unless: 
  
 (a)
the Holder gives to the Trustee written notice stating that an Event of Default is continuing; 
  

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 (b) the Holders of at least 25% in aggregate principal amount of the Securities at the time outstanding
make a written request to the Trustee to pursue the remedy; 
  
 (c) such Holder or Holders provide to the Trustee security or indemnity satisfactory to the Trustee against any loss, liability or expense; 
  
 (d) the Trustee does not comply with the request within 60 days after receipt of such notice, request and offer of security or indemnity; and 

 
 (e) the Holders of a majority in aggregate principal amount of the
Securities at the time outstanding do not give the Trustee a direction inconsistent with the request during such 60-day period. 
  
 A Holder may not use this Indenture to prejudice the rights of any other Holder or to obtain a preference or priority over any other Holder. 

 
 Section 8.7 Rights of Holders to Receive Payment or to Convert.
Notwithstanding any other provision of this Indenture, the right of any Holder to receive payment of the principal amount, Designated Event Purchase Price or interest (inclusive of Additional Interest, if any) in respect of the Securities held by
such Holder, on or after the respective due dates expressed in the Securities and in this Indenture, and to convert such Securities in accordance with Article XII, or to bring suit for the enforcement of any such payment on or after such respective
dates or the right to convert, is absolute and unconditional and shall not be impaired or affected adversely without the consent of such Holder. 
  
 Section 8.8 Collection Suit by Trustee. If an Event of Default described in Section 8.1(a), Section 8.1(b) or Section 8.1(d) occurs and is
continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company or another obligor on the Securities for the whole amount owing with respect to the Securities and the amounts provided for in
Section 9.7. 
  
 Section 8.9 Trustee May File Proofs of
Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the
property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal amount, Designated Event Purchase Price or interest (inclusive of Additional Interest, if any) in respect of the Securities shall
then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of any such amount) shall be entitled and empowered, by intervention in
such proceeding or otherwise: 
  
 (a) to file and prove a claim
for the whole amount of the principal amount, Designated Event Purchase Price, or interest (inclusive of Additional Interest, if any) and to file such other papers or documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel or any other amounts due the Trustee under Section 9.7) and of the Holders allowed in such judicial proceeding,
and 
  

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 (b) to collect and receive any moneys or other property payable or deliverable on any such claims and to
distribute the same; 
  
 and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 9.7. 
  
 Nothing contained herein shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the
claim of any Holder in any such proceeding. 
  
 Section 8.10
Priorities. If the Trustee collects any money pursuant to this Article VIII, it shall pay out the money in the following order: 
  
 FIRST: to the Trustee for amounts due under Section 9.7; 
  
 SECOND: to Holders for amounts due and unpaid on the Securities for the principal amount, Designated Event Purchase Price or interest (inclusive of
Additional Interest, if any) as the case may be, ratably, without preference or priority of any kind, according to such amounts due and payable on the Securities; and 
  
 THIRD: the balance, if any, to the Company. 
  
 The Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section 8.10. At least 10
calendar days prior to such record date, the Trustee shall mail to each Holder and the Company a notice that states the record date, the payment date and the amount to be paid. 
  
 Section 8.11 Undertaking for Costs. In any suit for the enforcement of any right or remedy under this Indenture or in
any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant (other than the Trustee) in the suit of an undertaking to pay the costs of the suit, and the court
in its discretion may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This
Section 8.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 8.7 or a suit by Holders of more than 10% in aggregate principal amount of the Securities at the time outstanding. This Section 8.11 shall be in lieu of
Section 315(e) of the TIA and such Section 315(e) is hereby expressly excluded from this Indenture, as permitted by the TIA. 
  

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 ARTICLE IX 
  

TRUSTEE 
  
 Section 9.1 Duties of Trustee. (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested
in it by this Indenture and use the same degree of care and skill in its exercise of those rights and powers as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. 
  
 (b) Except during the continuance of an Event of Default: 
  
 (i) the Trustee need perform only those duties that are
specifically set forth in this Indenture and no others; and 
  
 (ii) in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture, but in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall examine the certificates and
opinions to determine whether or not they conform to the requirements of this Indenture, but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein. 
  
 This Section 9.1(b) shall be in lieu of Section 315(a) of the TIA and such Section 315(a) is
hereby expressly excluded from this Indenture, as permitted by the TIA. 
  
 (c) The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that: 
  
 (i) this clause (c) does not limit the effect of clause (b) of this Section 9.1; 
  
 (ii) the Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer unless it is proved that the Trustee was negligent in ascertaining the pertinent facts; and 
  
 (iii) the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction
received by it pursuant to Section 8.5. 
  
 Subparagraphs (c)(i), (ii) and (iii)
shall be in lieu of Sections 315(d)(1), 315(d)(2) and 315(d)(3) of the TIA, respectively, and such Sections 315(d)(1), 315(d)(2) and 315(d)(3) are hereby expressly excluded from this Indenture, as permitted by the TIA. 
  
 (d) The Trustee may refuse to perform any duty or exercise any right or power
or extend or risk its own funds or otherwise incur any financial liability unless it receives indemnity reasonably satisfactory to it against any loss, liability or expense. 
  
 (e) Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by
law. The Trustee (acting in any capacity hereunder) shall be under no liability for interest on any money received by it hereunder unless otherwise agreed in writing with the Company. 
  

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 (f) No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such
risk or liability is not reasonably assured to it. 
  
 (g) In no
event shall the Trustee be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of
such loss or damage and regardless of the form of action. 
  
 Section 9.2 Rights of Trustee. Subject to its duties and responsibilities under the TIA: 
  
 (a) the Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document (whether in original or facsimile form) believed by it to be genuine and to have been signed or presented
by the proper party or parties; 
  
 (b) whenever in the
administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in
the absence of bad faith on its part, conclusively rely upon an Officers’ Certificate; 
  
 (c) the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by it hereunder; 
  
 (d) the Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith which it reasonably believes to be authorized or within its rights or powers conferred under this
Indenture; 
  
 (e) the Trustee may consult with counsel selected
by it and any advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder in good faith and in reliance on such advice or Opinion of Counsel; 

 
 (f) the Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request, order or direction of any of the Holders, pursuant to the provisions of this Indenture, unless such Holders shall have provided to the Trustee security or indemnity satisfactory to it against
the costs, expenses and liabilities which may be incurred therein or thereby; 
  

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 (g) any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company
Request or Company Order and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution; 
  
 (h) the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney at the sole cost of the
Company and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation; 
  
 (i) the Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge
thereof or unless written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities and this Indenture; 
  
 (j) the rights, privileges, protections, immunities and benefits given to the
Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and other person employed to act hereunder; and

  
 (k) the Trustee may request that the Company deliver an
Officers’ Certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person authorized to sign
an Officers’ Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded. 
  
 Section 9.3 Individual Rights of Trustee. The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may
otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar, Conversion Agent or co-registrar may do the same with like rights. However, the Trustee must comply with
Section 9.10 and Section 9.11. 
  
 Section 9.4 Trustee’s
Disclaimer. The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s use or application of the proceeds from the Securities, it shall not be
responsible for any statement in any registration statement for the Securities under the Securities Act or in any offering document for the Securities, this Indenture or the Securities (other than its certificate of authentication), or the
determination as to which beneficial owners are entitled to receive any notices hereunder. 
  
 Section 9.5 Notice of Defaults. If a Default occurs and if it is known to the Trustee, the Trustee shall give to each Holder notice of the Default within 90 calendar days after 
  

 -35- 

 it occurs or, if later, within 15 calendar days after it is known to the Trustee, unless such Default shall have been
cured or waived before the giving of such notice. Notwithstanding the preceding sentence, except in the case of a Default described in Section 8.1(a), Section 8.1(b) or Section 8.1(d), the Trustee may withhold the notice if and so long as the
Responsible Officer in good faith determines that withholding the notice is in the interest of the Holders. The preceding sentence shall be in lieu of the proviso to Section 315(b) of the TIA and such proviso is hereby expressly excluded from this
Indenture, as permitted by the TIA. 
  
 Section 9.6 Reports by
Trustee to Holders. Within 60 days after each May 15 beginning with the May 15 following the date of this Indenture, the Trustee shall mail to each Holder a brief report dated as of such May 15 that complies with TIA Section 313(a), if required
by such Section 313(a). The Trustee also shall comply with TIA Section 313(b). 
  
 A copy of each report at the time of its mailing to Holders shall be filed with the SEC and each securities exchange, if any, on which the Securities are listed. The Company agrees to notify the Trustee promptly
whenever the Securities become listed on any securities exchange and of any delisting thereof. 
  
 Section 9.7 Compensation and Indemnity. The Company agrees to: 
  
 (a) pay to the Trustee from time to time such compensation as the Company and the Trustee shall from time to time agree in writing for all services
rendered by it hereunder (which compensation shall not be limited (to the extent permitted by law) by any provision of law in regard to the compensation of a trustee of an express trust); 
  
 (b) reimburse the Trustee upon its request for all expenses, disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Indenture (including the compensation and the reasonable expenses, advances and disbursements of its agents and counsel), except any such expense, disbursement or advance as shall be determined to have been
caused by its own negligence or willful misconduct; and 
  
 (c)
fully indemnify the Trustee or any predecessor Trustee and their agents for, and to hold them harmless against, any and all loss, damage, claim, liability, cost or expense (including attorney’s fees and expenses, and taxes (other than taxes
based upon, measured by or determined by the income of the Trustee)) incurred without negligence or willful misconduct on its part, arising out of or in connection with the acceptance or administration of this trust, including the costs and expenses
of defending itself against any claim (whether asserted by the Company or any Holder or any other person) or liability in connection with the exercise or performance of any of its powers or duties hereunder, or in connection with enforcing the
provisions of this Section 9.7. 
  
 With regard to its
indemnification rights under Section 9.7(c) where the Company has assumed the defense in any action or proceeding, the Trustee shall have the right to employ separate counsel in any such action or proceeding and participate in the investigation and
defense thereof, and the Company shall pay the reasonable fees and expenses of such separate counsel; provided, however, that the Trustee may only employ separate counsel at the expense of the Company if in the judgment of the Trustee
(i) a conflict of interest exists by reason of common 
  

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 representation or (ii) there are legal defenses available to the Trustee that are different from or are in addition to
those available to the Company or if all parties commonly represented do not agree as to the action (or inaction) of counsel. 
  
 To secure the Company’s payment obligations in this Section 9.7, the Trustee shall have a lien prior to the Securities on all money or property held
or collected by the Trustee, except that held in trust to pay the principal amount, Designated Event Purchase Price or interest (inclusive of Additional Interest, if any) as the case may be, on particular Securities. 
  
 The Company’s payment obligations pursuant to this Section 9.7 shall
survive the discharge of this Indenture and the resignation or removal of the Trustee. When the Trustee incurs expenses after the occurrence of a Default specified in Section 8.1(i) or Section 8.1(j), the expenses including the reasonable charges
and expenses of its counsel, are intended to constitute expenses of administration under any Bankruptcy Law. 
  
 Section 9.8 Replacement of Trustee. The Trustee may resign by so notifying the Company; provided, however, that no such resignation
shall be effective until a successor Trustee has accepted its appointment pursuant to this Section 9.8. The Holders of a majority in aggregate principal amount of the Securities at the time outstanding may remove the Trustee by so notifying the
Trustee and the Company. The Company shall remove the Trustee if: 
  
 (a) the Trustee fails to comply with Section 9.10; 
  
 (b) the Trustee is adjudged bankrupt or insolvent; 
  
 (c) a receiver or public officer takes charge of the Trustee or its property; or 
  
 (d) the Trustee otherwise becomes incapable of acting. 
  
 If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint, by resolution of its Board of Directors, a successor Trustee. 
  
 A successor Trustee shall deliver a written acceptance of its appointment to
the retiring Trustee and to the Company satisfactory in form and substance to the retiring Trustee and the Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the
rights, powers and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, upon
payment of all the retiring Trustee’s fees and expenses then due and payable and subject to the lien provided for in Section 9.7. 
  
 If a successor Trustee does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the
Holders of a majority in aggregate principal amount of the Securities at the time outstanding may petition at the expense of the Company any court of competent jurisdiction at the expense of the Company for the appointment of a successor Trustee.

  

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 If the Trustee fails to comply with Section 9.10, any Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
  
 Section 9.9 Successor Trustee by Merger. If the Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another corporation, the
resulting, surviving or transferee corporation without any further act shall be the successor Trustee. 
  
 Section 9.10 Eligibility; Disqualification. The Trustee shall at all times satisfy the requirements of TIA Sections 310(a)(1) and 310(b). The
Trustee (or its parent holding company) shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. Nothing contained herein shall prevent the Trustee from filing with the
Commission the application referred to in the penultimate paragraph of TIA Section 310(b). 
  
 Section 9.11 Preferential Collection of Claims Against Company. The Trustee shall comply with TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee who has resigned or
been removed shall be subject to TIA Section 311(a) to the extent indicated therein. 
  
 ARTICLE X 
  
 DISCHARGE
OF INDENTURE 
  
 Section 10.1 Discharge of Liability on
Securities. When (i) the Company delivers to the Trustee all outstanding Securities (other than Securities replaced or repaid pursuant to Section 2.7) for cancellation or (ii) all outstanding Securities have become due and payable (whether at
the Stated Maturity or upon acceleration, or on any Designated Event Purchase Date, or upon conversion) and the Company deposits with the Paying Agent or Conversion Agent cash or Applicable Stock sufficient to pay all amounts due and owing on all
outstanding Securities (other than Securities replaced pursuant to Section 2.7), and if in either case the Company pays all other sums payable hereunder by the Company, then this Indenture shall, subject to Section 9.7, cease to be of further
effect. The Trustee shall join in the execution of a document prepared by the Company acknowledging satisfaction and discharge of this Indenture on demand of the Company accompanied by an Officers’ Certificate and Opinion of Counsel and at the
cost and expense of the Company. 
  
 Section 10.2 Repayment to
the Company. The Trustee and the Paying Agent shall return to the Company upon written request any cash or securities held by them for the payment of any amount with respect to the Securities that remains unclaimed for two years, subject to
applicable unclaimed property law. After return to the Company, Holders entitled to the cash or securities must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person and the
Trustee and the Paying Agent shall have no further liability to the Holders with respect to such cash or securities for that period commencing after the return thereof. 
  

 -38- 

 ARTICLE XI 
  
 AMENDMENTS 
  
 Section 11.1 Without Consent of Holders. The Company and the Trustee may amend this Indenture or the Securities without the consent of any Holder
to: 
  
 (a) add to the covenants of the Company for the
benefit of the Holders of Securities; 
  
 (b) surrender any right
or power herein conferred upon the Company; 
  
 (c) provide for
conversion rights of Holders of Securities if any reclassification or change of the Common Stock or any consolidation, merger or sale of all or substantially all of the Company’s assets occurs; 
  
 (d) provide for the assumption of the Company’s obligations to the
Holders of Securities in the case of a merger, consolidation, conveyance, transfer, sale, lease or other disposition pursuant to Article VII; 
  
 (e) increase the Conversion Rate; provided, however, that such increase in the Conversion Rate shall not adversely affect the interests of
the Holders of Securities (after taking into account tax and other consequences of such increase); 
  
 (f) comply with the requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA; 
  
 (g) make any changes or modifications necessary in connection with the
registration of the Securities under the Securities Act as contemplated in the Registration Rights Agreement; provided, however, that such action pursuant to this clause (g) does not, in the good faith opinion of the Board of Directors
of the Company (as evidenced by a Board Resolution), adversely affect the interests of the Holders of Securities in any material respect; 
  
 (h) cure any ambiguity, correct or supplement any provision herein which may be inconsistent with any other provision herein or which is otherwise
defective, or to make any other provisions with respect to matters or questions arising under this Indenture which the Company may deem necessary or desirable and which shall not be inconsistent with the provisions of this Indenture;
provided, however, that such action pursuant to this clause (h) does not, in the good faith opinion of the Board of Directors of the Company (as evidenced by a Board Resolution), adversely affect the interests of the Holders of
Securities in any material respect; 
  
 (i) evidence the
succession of another Person to the Company or any other obligor upon the Securities, and the assumption by any such successor of the covenants of the Company or such obligor herein and in the Securities, in each case in compliance with the
provisions of this Indenture; 
  

 -39- 

 (j) evidence and provide the acceptance of the appointment of a successor trustee hereunder; and

  
 (k) add or modify any other provisions herein with respect to
matters or questions arising hereunder which the Company and the Trustee may deem necessary or desirable and which shall not adversely affect the interests of the Holders of Securities. 
  
 Section 11.2 With Consent of Holders. Except as provided below in this Section 11.2, this Indenture or the Securities
may be amended, modified or supplemented, and noncompliance in any particular instance with any provision of this Indenture or the Securities may be waived, in each case with the written consent or affirmative vote of the Holders of at least a
majority of the principal amount of the Securities at the time outstanding. 
  
 Without the written consent or the affirmative vote of each Holder of Securities affected thereby (in addition to the written consent or the affirmative vote of the holders of at least a majority of the principal
amount of the Securities at the time outstanding), an amendment or waiver under this Section 11.2 may not: 
  
 (a) change the maturity of the principal amount of, or the payment date of any installment of interest (inclusive of Additional Interest, if any) on, any
Security; 
  
 (b) reduce the principal amount of, or interest
(inclusive of Additional Interest, if any), on, or Designated Event Purchase Price of, any Security; 
  
 (c) change the currency of payment of principal amount of, or interest (inclusive of Additional Interest, if any), on, or the Designated Event Purchase
Price of, any Security from U.S. Dollars; 
  
 (d) impair or
adversely affect the rate of accrual of interest (inclusive of Additional Interest, if any), on any Security, or the manner of calculation thereof; 
  
 (e) impair the right of any Holder to institute suit for the enforcement of any payment or with respect to, or conversion of, any Security; 
  
 (f) impair or adversely affect the conversion rights of the Holder of the
Securities as provided in Article XII; 
  
 (g) impair or adversely
affect the purchase rights of the Holders of the Securities as provided in Article V; 
  
 (h) reduce the percentage of the principal amount of the outstanding Securities the written consent or affirmative vote of whose Holders is required for any such supplemental indenture; 
  
 (i) reduce the percentage of the principal amount of the outstanding
Securities the written consent or affirmative vote of whose Holders is required for any waiver of any past Default provided for in this Indenture; or 
  

 -40- 

 (j) waive any matter set forth in Section 8.4(a), Section 8.4(b) or Section 8.4(c). 
  
 It shall not be necessary for the consent of the Holders under this Section
11.2 to approve the particular form of any proposed amendment, but it shall be sufficient if such consent approves the substance thereof. 
  
 After an amendment under this Section 11.2 becomes effective, the Company shall mail to each Holder a notice briefly describing the amendment. 

 
 Nothing contained in this Section 11.2 shall impair the ability of the
Company and the Trustee to amend this Indenture or the Securities without the consent of any Holder to provide for the assumption of the Company’s obligations to the Holders of Securities in the case of a merger, consolidation, conveyance,
transfer, sale, lease or other disposition pursuant to Article VII. 
  
 Section 11.3 Compliance with Trust Indenture Act. Every supplemental indenture executed pursuant to this Article shall comply with the TIA. 
  
 Section 11.4 Revocation and Effect of Consents, Waivers and Actions. Until an amendment, waiver or other action by
Holders becomes effective, a consent thereto by a Holder of a Security hereunder is a continuing consent by the Holder and every subsequent Holder of that Security or portion of the Security that evidences the same obligation as the consenting
Holder’s Security, even if notation of the consent, waiver or action is not made on the Security. However, any such Holder or subsequent Holder may revoke the consent, waiver or action as to such Holder’s Security or portion of the
Security if the Trustee receives the notice of revocation before the date the amendment, waiver or action becomes effective. After an amendment, waiver or action becomes effective, it shall bind every Holder. 
  
 Section 11.5 Notation on or Exchange of Securities. Securities
authenticated and delivered after the execution of any supplemental indenture pursuant to this Article XI may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental
indenture. If the Company shall so determine, new Securities so modified as to conform, in the opinion of the Trustee and the Board of Directors, to any such supplemental indenture may be prepared and executed by the Company and authenticated and
delivered by the Trustee in exchange for outstanding Securities. 
  
 Section 11.6 Trustee to Sign Supplemental Indentures. The Trustee shall sign any supplemental indenture authorized pursuant to this Article XI if the amendment contained therein does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. If it does, the Trustee may, but need not, sign such supplemental indenture. In signing such supplemental indenture the Trustee shall receive, and (subject to the provisions of Section 9.1) shall be fully
protected in relying upon, an Officers’ Certificate and an Opinion of Counsel stating that such amendment is authorized or permitted by this Indenture. 
  
 Section 11.7 Effect of Supplemental Indentures. Upon the execution of any supplemental indenture under this Article,
this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder shall be
bound thereby. 
  

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 ARTICLE XII 
  
 CONVERSION 
  
 Section 12.1 Conversion Right. (a) At any time prior to the Stated Maturity subject to and upon compliance with the provisions of this Article XII,
a Holder of a Security shall have the right, at such Holder’s option, to convert all or any portion (if the portion to be converted is $1,000 or an integral multiple of $1,000) of such Security into Common Stock. 
  
 Section 12.2 Conversion Procedures; Conversion Rate; Fractional
Shares. (a) Each Security shall be convertible at the office of the Conversion Agent into fully paid and nonassessable shares of Common Stock (calculated to the nearest 1/10,000th of a share). The Company shall deliver to such Holder a number of
shares of Common Stock equal to (1) the aggregate original principal amount of Securities to be converted plus any accrued and unpaid interest (inclusive of Additional Interest, if any) thereon, divided by 1,000, multiplied by (2) the Conversion
Rate. 
  
 The Conversion Agent shall notify the Company
when it receives a Conversion Notice. The Company shall determine the number of shares of Common Stock that the Holder that submitted the Conversion Notice is entitled to receive upon surrender of the Securities covered by that Conversion Notice. A
certificate for the number of full shares of Common Stock into which the Securities are converted (and cash in lieu of fractional shares) shall be delivered to such Holder, assuming all of the other requirements have been satisfied by such Holder,
as soon as practicable after receipt of a Conversion Notice. Notwithstanding the foregoing, the Company shall not be required to deliver certificates for Common Stock while the stock transfer books for such stock or the security register are duly
closed for any purpose, but certificates for Common Stock shall be issued and delivered as soon as practicable after the opening of such books or security register. 
  
 No cash payment of accrued and unpaid interest or Additional Interest shall be paid by the Company on a converted Security,
except as described in Section 12.9. Accrued and unpaid interest (inclusive of Additional Interest, if any), shall be deemed to be paid in full with the shares of Common Stock issued upon conversion, rather than deemed cancelled, extinguished or
forfeited. 
  
 If the Common Stock received upon conversion of a
Security pursuant to this Article XII does not include cash sufficient to comply with the United States federal withholding tax obligations imposed by the Code with respect to accrued and unpaid interest on the Securities payable to the beneficial
owner of such Security, the Company may, to the extent required by applicable law, recoup or set-off such liability against either the Common Stock to be issued upon conversion to such beneficial owner or any actual cash dividends or distributions
subsequently made with respect to such Common Stock to such beneficial owner. 
  

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 In the event of a Designated Event, if a Holder has submitted any or all of its Securities for
repurchase, a Holder’s conversion rights on the Securities so subject to repurchase shall expire at 5:00 p.m., New York City time, on the Business Day immediately preceding the Designated Event Purchase Date. Notwithstanding the foregoing, a
Security in respect of which a Holder has delivered a Designated Event Purchase Notice exercising such Holder’s right to require the Company to repurchase such Security may be converted only if such Designated Event Purchase Notice is withdrawn
in accordance with Section 5.2(b) prior to 5:00 p.m., New York City time, on the Business Day immediately preceding the Designated Event Purchase Date. 
  
 (b) Before any Holder shall be entitled to convert the same into Common Stock, such Holder shall surrender such Securities, duly endorsed to the Company
or in blank, at the office of the Conversion Agent, and shall give written notice to the Company at said office or place in the form of the Conversion Notice attached to the Security (the “Conversion Notice”) that such Holder elects
to convert the same and shall state in writing therein the principal amount of Securities to be converted (in whole or in part so long as the principal amount to be converted is in multiples of $1,000 principal amount) and the name or names (with
addresses) in which such Holder wishes the certificate or certificates for Common Stock to be issued. 
  
 Before any such conversion, a Holder also shall pay all funds required, if any, relating to interest (inclusive of Additional Interest, if any), on the
Securities, as provided in Section 12.9, and all taxes or duties, if any, as provided in Section 12.8. 
  
 If more than one Security shall be surrendered for conversion at one time by the same Holder, the number of full shares of Common Stock that shall be
deliverable upon conversion shall be computed on the basis of the aggregate principal amount of the Securities (or specified portions thereof to the extent permitted thereby) so surrendered. 
  
 If Common Stock to be issued upon conversion of a Restricted Security are to
be issued in the name of a Person other than the Holder of such Restricted Security, such Holder shall deliver to the Conversion Agent a certification in substantially the form set forth in a Transfer Certificate dated the date of surrender of such
Restricted Security and signed by such Holder, as to compliance with the restrictions on transfer applicable to such Restricted Security. The Company shall not be required to issue Common Stock upon conversion of any such Restricted Security to a
Person other than the Holder if such Restricted Security is not so accompanied by a properly completed certification, and the Registrar shall not be required to register Common Stock upon conversion of any such Restricted Security in the name of a
Person other than the Holder if such Restricted Security is not so accompanied by a properly completed certification. 
  
 (c) A Security shall be deemed to have been converted immediately prior to 5:00 p.m., New York City time, on the date on which all of the conversion
requirements set forth in Section 12.2(b) have been satisfied, and the person or persons entitled to receive the Common Stock issuable upon such conversion shall be treated for all purposes as the record Holder or Holders of such Common Stock as of
5:00 p.m., New York City time, on such date. 
  

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 (d) In case any Security shall be surrendered for partial conversion, the Company shall execute and the
Trustee shall authenticate and deliver to or upon the written order of the Holder of the Security so surrendered, without charge to such Holder (subject to the provisions of Section 12.8), a new Security or Securities in authorized denominations in
an aggregate principal amount equal to the unconverted portion of the surrendered Securities. 
  
 Section 12.3 Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from time to time as follows: 
  
 (a) In case the Company shall, at any time or from time to time while any of the Securities are outstanding, pay a dividend or make a distribution in
Common Stock to all or substantially all holders of its outstanding Common Stock, then the Conversion Rate in effect immediately prior to the close of business on the Record Date fixed for the determination of stockholders entitled to receive such
dividend or other distribution shall be adjusted so that the Holder of any Security thereafter surrendered for conversion shall be entitled to receive that number of shares of Common Stock which it would have received had such Security been
converted immediately prior to the happening of such event as well as such additional shares it would have received as a result of such event. Such adjustment shall become effective immediately prior to the opening of business on the day following
the Record Date fixed for such determination. If any dividend or distribution of the type described in this Section 12.3(a) is declared but not so paid or made, the Conversion Rate shall again be adjusted to the Conversion Rate which would then be
in effect if such dividend or distribution had not been declared. 
  
 (b) In case the Company shall, at any time or from time to time while any of the Securities are outstanding, subdivide its outstanding shares of Common Stock into a greater number of Common Stock or combine its outstanding shares of Common
Stock into a smaller number of Common Stock, then the Conversion Rate in effect immediately prior to the close of business on the day upon which such subdivision or combination becomes effective shall be adjusted so that the Holder of any Security
thereafter surrendered for conversion shall be entitled to receive that number of shares of Common Stock which it would have received had such Security been converted immediately prior to the happening of such event as well as such additional shares
as it would have received as a result of such event. 
  
 Such
adjustment shall become effective immediately prior to the opening of business on the day following the day upon which such subdivision or combination becomes effective. 
  
 (c) In case the Company shall, at any time or from time to time while any of the Securities are outstanding, issue rights or
warrants for a period expiring within 60 days (other than any rights or warrants referred to in Section 12.3(d)) to all or substantially all holders of its outstanding Common Stock entitling them to subscribe for or purchase Common Stock (or
securities convertible into or exchangeable or exercisable for Common Stock), at a price per share of Common Stock (or having a conversion, exchange or exercise price per share of Common Stock) less than the Closing Sale Price of the Common Stock on
the Business Day immediately preceding the date of announcement of such issuance (treating the conversion, exchange or exercise price per share of Common Stock of the securities convertible, exchangeable or exercisable into Common Stock as equal to
(x) the sum of (i) the price for a unit 
  

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 of the security convertible into or exchangeable or exercisable for Common Stock and (ii) any additional consideration
initially payable upon the conversion of or exchange or exercise for such security into Common Stock divided by (y) the number of shares of Common Stock initially underlying such convertible, exchangeable or exercisable security), then the
Conversion Rate shall be adjusted by multiplying the Conversion Rate in effect at the opening of business on the date after such date of announcement by a fraction: 
  
 (i) the numerator of which shall be the number of shares of Common Stock outstanding at the close of
business on the date of announcement, plus the total number of additional shares of Common Stock so offered for subscription or purchase (or into which the convertible, exchangeable or exercisable securities so offered are convertible, exchangeable
or exercisable); and 
  
 (ii) the denominator of
which shall be the number of shares of Common Stock outstanding on the close of business on the date of announcement, plus the number of shares of Common Stock (or convertible, exchangeable or exercisable securities) which the aggregate offering
price of the total number of shares of Common Stock (or convertible, exchangeable or exercisable securities) so offered for subscription or purchase (or the aggregate conversion, exchange or exercise price of the convertible, exchangeable or
exercisable securities so offered) would purchase at such Closing Sale Price of the Common Stock. 
  
 Such adjustment shall become effective immediately prior to the opening of business on the day following the Record Date for such determination. To the
extent that shares of Common Stock (or securities convertible, exchangeable or exercisable into shares of Common Stock) are not delivered pursuant to such rights or warrants, upon the expiration or termination of such rights or warrants, the
Conversion Rate shall be readjusted to the Conversion Rate which would then be in effect had the adjustments made upon the issuance of such rights or warrants been made on the basis of the delivery of only the number of shares of Common Stock (or
securities convertible, exchangeable or exercisable into shares of Common Stock) actually delivered. In the event that such rights or warrants are not so issued, the Conversion Rate shall again be adjusted to be the Conversion Rate which would then
be in effect if the Record Date fixed for the determination of stockholders entitled to receive such rights or warrants had not been fixed. In determining whether any rights or warrants entitle the holders to subscribe for or purchase shares of
Common Stock at less than such Closing Sale Price, and in determining the aggregate offering price of such shares of Common Stock, there shall be taken into account any consideration received for such rights or warrants, the value of such
consideration if other than cash, to be determined by the Board of Directors. 
  
 (d) (i) In case the Company shall, at any time or from time to time while any of the Securities are outstanding, by dividend or otherwise, distribute to all or substantially all holders of its outstanding shares of
Common Stock (including any such distribution made in connection with a consolidation or merger in which the Company is the continuing corporation and the shares of Common Stock are not changed or exchanged), shares of its capital stock, evidences
of its Indebtedness or other assets, including securities, but excluding (i) dividends or distributions of Common Stock referred to in Section 12.3(a), (ii) any rights or warrants referred to in Section 12.3(c), (iii) dividends and distributions
paid exclusively in cash referred to in 
  

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 Section 12.3(e) and (iv) dividends and distributions of stock, securities or other property or assets (including cash) in
connection with the reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance to which Section 12.4 applies (such capital stock, evidence of its indebtedness, other assets or securities being
distributed hereinafter in this Section 12.3(d) called the “distributed assets”), then, in each such case, subject to paragraphs (D) and (E) of this Section 12.3(d), the Conversion Rate shall be adjusted by multiplying the
Conversion Rate in effect immediately prior to the close of business on the Record Date with respect to such distribution by a fraction: 
  
 (A) the numerator of which shall be the Current Market Price; and 
  
 (B) the denominator of which shall be such Current Market Price of the Common Stock, less the Fair Market
Value on such date of the portion of the distributed assets so distributed applicable to one share of Common Stock (determined on the basis of the number of shares of Common Stock outstanding on the Record Date) on such date. 
  
 Such adjustment shall become effective immediately prior to the opening of
business on the day following the Record Date for such distribution. In the event that such dividend or distribution is not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate which would then be in effect if such
dividend or distribution had not been declared. 
  
 (ii) If the Board of Directors determines the Fair Market Value of any distribution for purposes of this Section 12.3(d) by reference to the actual or when issued trading market for any distributed assets comprising all or part of such
distribution, it must in doing so consider the prices in such market over the same period (the “Reference Period”) used in computing the Current Market Price pursuant to Section 12.3(g) to the extent possible, unless the Board of
Directors determines in good faith that determining the Fair Market Value during the Reference Period would not be in the best interest of the Holders. 
  
 (iii) In the event any such distribution consists of shares of capital stock of, or similar equity interests in, one or more of the
Company’s Subsidiaries (a “Spin Off”), the Fair Market Value of the securities to be distributed shall equal the average of the Closing Sale Prices of such securities on the principal securities market on which such securities
are traded for the five consecutive Trading Days commencing on and including the sixth Trading Day of those securities after the effectiveness of the Spin Off, and the Current Market Price shall be measured for the same period. In the event,
however, that an underwritten initial public offering of the securities in the Spin Off occurs simultaneously with the Spin Off, Fair Market Value of the securities distributed in the Spin Off shall mean the initial public offering price of such
securities and the Current Market Price shall mean the Closing Sale Price for the Common Stock on the same Trading Day. 
  
 (iv) Rights or warrants distributed by the Company to all holders of its outstanding shares of Common Stock entitling them to subscribe
for or purchase shares 
  

 -46- 

 of Equity Interest (either initially or under certain circumstances), which rights or warrants, until the
occurrence of a specified event or events (“Trigger Event”), (x) are deemed to be transferred with such Common Stock, (y) are not exercisable and (z) are also issued in respect of future issuances of Common Stock shall be deemed not
to have been distributed for purposes of this Section 12.3(d) (and no adjustment to the Conversion Rate under this Section 12.3(d) shall be required) until the occurrence of the earliest Trigger Event. If such right or warrant is subject to
subsequent events, upon the occurrence of which such right or warrant shall become exercisable to purchase different distributed assets, evidences of indebtedness or other assets, or entitle the holder to purchase a different number or amount of the
foregoing or to purchase any of the foregoing at a different purchase price, then the occurrence of each such event shall be deemed to be the date of issuance and Record Date with respect to a new right or warrant (and a termination or expiration of
the existing right or warrant without exercise by the holder thereof). In addition, in the event of any distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other event (of the type described in the preceding
sentence) with respect thereto, that resulted in an adjustment to the Conversion Rate under this Section 12.3(d): 
  
 (A) in the case of any such rights or warrants which shall all have been redeemed or purchased without exercise by any holders thereof,
the Conversion Rate shall be readjusted upon such final redemption or purchase to give effect to such distribution or Trigger Event, as the case may be, as though it were a cash distribution, equal to the per share redemption or Purchase Price
received by a holder of Common Stock with respect to such rights or warrants (assuming such holder had retained such rights or warrants), made to all holders of Common Stock as of the date of such redemption or purchase; and 
  
 (B) in the case of such rights or warrants which shall have
expired or been terminated without exercise, the Conversion Rate shall be readjusted as if such rights and warrants had never been issued. 
  
 (v) For purposes of this Section 12.3(d) and Section 12.3(a), Section 12.3(b) and Section 12.3(c), any dividend or distribution to which
this Section 12.3(d) is applicable that also includes (x) Common Stock, (y) a subdivision or combination of Common Stock to which Section 12.3(b) applies or (z) rights or warrants to subscribe for or purchase Common Stock to which Section 12.3(c)
applies (or any combination thereof), shall be deemed instead to be: 
  
 (A) a dividend or distribution of the evidences of indebtedness, assets, shares of capital stock, rights or warrants, other than such Common Stock, such subdivision or combination or such rights or warrants to which
Section 12.3(a), Section 12.3(b) and Section 12.3(c) apply, respectively (and any Conversion Rate adjustment required by this Section 12.3(d) with respect to such dividend or distribution shall then be made), immediately followed by 
  
 (B) a dividend or distribution of such Common Stock, such
subdivision or combination or such rights or warrants (and any further Conversion Rate 
  

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 adjustment required by Section 12.3(a), Section 12.3(b) and Section 12.3(c) with respect to such dividend
or distribution shall then be made), except: 
  
 (1) the Record Date of such dividend or distribution shall be substituted as (i) ”the date fixed for the determination of stockholders entitled to receive such dividend or other distribution,” “Record Date fixed for such
determinations” and “Record Date” within the meaning of Section 12.3(a), (ii) ”the day upon which such subdivision or combination becomes effective” within the meaning of Section 12.3(b), and (iii) as “the Record Date
fixed for the determination of the stockholders entitled to receive such rights or warrants” and such “Record Date” within the meaning of Section 12.3(c); and 
  
 (2) any reduction or increase in the number of shares of Common Stock resulting from such subdivision or
combination shall be disregarded in connection with such dividend or distribution. 
  
 (e) In case the Company shall, at any time or from time to time after the initial Issue Date while any of the Securities are outstanding, by dividend or otherwise, distribute to all or substantially all holders of its
outstanding shares of Common Stock, cash (including any quarterly cash dividends, but excluding any cash that is distributed upon a reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance to which
Section 12.4 applies or as part of a distribution referred to in Section 12.3(d)), then, and in each case, immediately after the close of business on such date, the Conversion Rate shall be adjusted by multiplying the Conversion Rate in effect
immediately prior to the close of business of such Record Date by a fraction: 
  
 (i) the numerator of which shall be equal to the Current Market Price on such date; and 
  
 (ii) the denominator of which shall be equal to the Current Market Price on the Record Date, less an amount equal to the quotient of (x)
the aggregate amount of such cash distribution and (y) the number of shares of Common Stock outstanding on the Record Date. 
  
 Such adjustment shall become effective immediately prior to the opening of business on the day following the Record Date for such distribution. In the event that such
distribution is not so made, the Conversion Rate shall again be adjusted to be the Conversion Rate which would then be in effect if such distribution had not been declared. 
  
 (f) In case a tender offer or exchange offer (other than as part of a stock option exchange offer) made by the Company or
any of its Subsidiaries for all or any portion of the Common Stock shall expire, then and in each such case, immediately prior to the opening of business on the day after the date of the last time (the “Expiration Time”) tenders or
exchanges could have been made pursuant to such tender offer or exchange offer, the Conversion Rate shall be adjusted so that the same shall equal the rate determined by multiplying the Conversion Rate 
  

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 in effect immediately prior to the close of business on the date of the Expiration Time by a fraction: 
  
 (i) the numerator of which shall be the sum of (x) the
product of (i) the number of shares of Common Stock outstanding (excluding any tendered or exchanged shares) at the Expiration Time and (ii) the Current Market Price of the Common Stock at the Expiration Time, and (y) the Fair Market Value of the
aggregate consideration payable to stockholders based on acceptance (up to any maximum specified in the terms of the tender offer or exchange offer) of all shares validly tendered and not withdrawn as of the Expiration Time; and 
  
 (ii) the denominator of which shall be the product of the
number of shares of Common Stock outstanding (including any tendered or exchanged shares) at the Expiration Time and the Current Market Price of the Common Stock at the Expiration Time. 
  
 Such adjustment (if any) shall become effective immediately prior to the opening of business on the day following the
Expiration Time. In the event that the Company is obligated to purchase shares pursuant to any such tender offer or exchange offer, but the Company is permanently prevented by applicable law from effecting any such purchases or all or a portion of
such purchases are rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate which would then be in effect if such (or such portion of the) tender offer or exchange offer had not been made. If the application of this Section
12.3(e) to any tender offer or exchange offer would result in a decrease in the Conversion Rate, no adjustment shall be made for such tender offer under this Section 12.3(e). 
  
 To the extent the Company has a rights plan in effect upon the conversion of the Securities, if Holders of the Securities
exercising the right of conversion attaching after the date the rights separate from the underlying Common Stock are not entitled to receive the rights that would otherwise be attributable to the Common Stock received upon conversion, the Conversion
Rate shall be adjusted as though the rights were being distributed to holders of Common Stock on the date of such separation. If such an adjustment is made and the rights are later redeemed, invalidated or terminated, then a corresponding reversing
adjustment shall be made to the Conversion Rate on an equitable basis. 
  
 (g) For purposes of this Article XII, the following terms shall have the meanings indicated: 
  
 “Current Market Price” on any date means the average of the daily Closing Sale Prices per share of Common Stock for the ten consecutive
Trading Days immediately prior to such date; provided, however, that if: 
  
 (i) the “ex” date (as hereinafter defined) for any event (other than the issuance or distribution requiring such computation)
that requires an adjustment to the Conversion Rate pursuant to Section 12.3(a), Section 12.3(b), Section 12.3(c), Section 12.3(d), Section 12.3(e) or Section 12.3(f) occurs during such ten consecutive Trading Days, the Closing Sale Price for each
Trading Day prior to the “ex” date for such other event shall be adjusted by multiplying such Closing Sale Price by the same fraction by which the Conversion Rate is so required to be adjusted as a result of such other event; 

 

 -49- 

 (ii) the “ex” date for any event (other than the issuance or distribution
requiring such computation) that requires an adjustment to the Conversion Rate pursuant to Section 12.3(a), Section 12.3(b), Section 12.3(c), Section 12.3(d), Section 12.3(e) or Section 12.3(f) occurs on or after the “ex” date for the
issuance or distribution requiring such computation and prior to the day in question, the Closing Sale Price for each Trading Day on and after the “ex” date for such other event shall be adjusted by multiplying such Closing Sale Price by
the reciprocal of the fraction by which the Conversion Rate is so required to be adjusted as a result of such other event; and 
  
 (iii) the “ex” date for the issuance or distribution requiring such computation is prior to the day in question, after taking
into account any adjustment required pursuant to clause (i) or (ii) of this proviso, the Closing Sale Price for each Trading Day on or after such “ex” date shall be adjusted by adding thereto the amount of any cash and the Fair Market
Value (as determined by the Board of Directors in a manner consistent with any determination of such value for purposes of Section 12.3(d), Section 12.3(e) or Section 12.3(f)) of the evidences of Indebtedness, shares of capital stock or assets being
distributed applicable to one share of Common Stock as of the close of business on the day before such “ex” date. 
  
 For purposes of any computation under Section 12.3(e), if the “ex” date for any event (other than the tender offer requiring such computation) that requires an
adjustment to the Conversion Rate pursuant to Section 12.3(a), Section 12.3(b), Section 12.3(c), Section 12.3(d), Section 12.3(e) or Section 12.3(f) occurs on or after the Expiration Time for the tender or exchange offer requiring such computation
and prior to the day in question, the Closing Sale Price for each Trading Day on and after the “ex” date for such other event shall be adjusted by multiplying such Closing Sale Price by the reciprocal of the fraction by which the
Conversion Rate is so required to be adjusted as a result of such other event. For purposes of this paragraph, the term “ex” date, when used: 
  
 (i) with respect to any issuance or distribution, means the first date on which the Common Stock trade regular way on the relevant
exchange or in the relevant market from which the Closing Sale Price was obtained without the right to receive such issuance or distribution; 
  
 (ii) with respect to any subdivision or combination of Common Stock, means the first date on which the Common Stock trade regular way on
such exchange or in such market after the time at which such subdivision or combination becomes effective; and 
  
 (iii) with respect to any tender offer or exchange offer, means the first date on which the Common Stock trade regular way on such
exchange or in such market after the Expiration Time of such offer. 
  
 Notwithstanding the foregoing, whenever successive adjustments to the Conversion Rate are called for pursuant to this Section 12.3, such adjustments shall be made to the Current Market Price as may be necessary or appropriate to effectuate
the intent of this Section 12.3 and to avoid unjust or inequitable results as determined in good faith by the Board of Directors. 
  

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 “Fair Market Value” means the amount which a willing buyer would pay a willing seller in
an arm’s-length transaction (as determined by the Board of Directors, whose determination shall be made in good faith and, absent manifest error, shall be final and binding on Holders of the Securities). 
  
 “Record Date” means, with respect to any dividend,
distribution or other transaction or event in which the holders of Common Stock have the right to receive any cash, securities or other property or in which the Common Stock (or other applicable security) is exchanged for or converted into any
combination of cash, securities or other property, the date fixed for determination of stockholders entitled to receive such cash, securities or other property (whether such date is fixed by the Board of Directors or by statute, contract or
otherwise). 
  
 (h) The Company shall be entitled to make such
additional adjustments in the Conversion Rate, in addition to those required by Section 12.3(a), Section 12.3(b), Section 12.3(c), Section 12.3(d), Section 12.3(e) or Section 12.3(f) if the Board of Directors determines that it is advisable, subject
to compliance with Nasdaq Marketplace Rule 4350(i), in order that any dividend or distribution of Common Stock, any subdivision, reclassification or combination of Common Stock or any issuance of rights or warrants referred to above shall not be
taxable to the holders of Common Stock for United States Federal income tax purposes. 
  
 (i) To the extent permitted by applicable law, the Company may, from time to time, increase the Conversion Rate by any amount for any period of time if such period is at least 20 calendar days, the increase is
irrevocable during the period and the Board of Directors, in good faith and absent manifest error, determines that such increase would be in the best interest of the Company, subject to compliance with Nasdaq Marketplace Rule 4350(i). Whenever the
Conversion Rate is increased pursuant to the preceding sentence, the Company shall mail to the Trustee and each Holder at the address of such Holder as it appears in the register of the Securities maintained by the Registrar, at least 15 calendar
days prior to the date the increased Conversion Rate takes effect, a notice of the increase stating the increased Conversion Rate and the period during which it shall be in effect. 
  
 (j) In any case in which this Section 12.3 shall require that any adjustment be made effective as of or retroactively
immediately following a Record Date, the Company may elect to defer (but only for five Trading Days following the filing of the notice referred to in Section 12.5) issuing to the Holder of any Securities converted after such Record Date the Common
Stock issuable upon such conversion over and above the Common Stock issuable upon such conversion on the basis of the Conversion Rate prior to adjustment; provided, however, that the Company shall deliver to such Holder a due bill or
other appropriate instrument evidencing such Holder’s right to receive such additional Common Stock upon the occurrence of the event requiring such adjustment. 
  
 (k) All calculations under this Section 12.3 shall be made to the nearest cent or one hundredth of a share, with one-half
cent and 0.005 of a share, respectively, being rounded upward. Notwithstanding any other provision of this Section 12.3, the Company shall not be 
  

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 required to make any adjustment of the Conversion Rate unless such adjustment would require an increase or decrease of at
least 1% in the Conversion Rate as last adjusted. Any lesser adjustment shall be carried forward and shall be made at the time of and together with the next subsequent adjustment which, together with any adjustment or adjustments so carried forward,
shall amount to an increase or decrease of at least 1% in the Conversion Rate as last adjusted. Any adjustments under this Section 12.3 shall be made successively whenever an event requiring such an adjustment occurs. 
  
 (l) In the event that at any time, as a result of an adjustment made pursuant
to this Section 12.3, the Holder of any Securities thereafter surrendered for conversion shall become entitled to receive any shares of stock of the Company other than Common Stock into which the Securities originally were convertible, the
Conversion Rate of such other shares so receivable upon conversion of any such Security shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to Common Stock
contained in subparagraphs (a) through (j) of this Section 12.3, and the provision of Section 12.1, Section 12.2 and Section 12.4 through Section 12.9 with respect to the Common Stock shall apply on like or similar terms to any such other shares and
the determination of the Board of Directors as to any such adjustment shall be conclusive. 
  
 (m) No adjustment shall be made pursuant to this Section 12.3 if (i) the effect thereof would be to reduce the Conversion Price below the par value (if any) of the Common Stock or (ii) any dividend, distribution or
issuance that would otherwise give rise to an adjustment pursuant to this Section 12.3 is made or paid to the Holders of the Securities. 
  
 Section 12.4 Consolidation or Merger of the Company. If any of the following events occurs, namely: 
  
 (a) any reclassification or change of the outstanding shares of Common Stock
(other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination); 
  
 (b) any merger, consolidation, statutory share exchange or combination of the Company with another corporation as a result of which holders of Common
Stock shall be entitled to receive stock, securities or other property or assets (including cash) with respect to or in exchange for such Common Stock; or 
  
 (c) any sale or conveyance of the properties and assets of the Company as, or substantially as, an entirety to any other corporation as a result of which
holders of Common Stock shall be entitled to receive stock, securities or other property or assets (including cash) with respect to or in exchange for such Common Stock; 
  
 the Company or the successor or purchasing corporation, as the case may be, shall execute with the Trustee a supplemental indenture (which
shall comply with the Trust Indenture Act as in force at the date of execution of such supplemental indenture, if such supplemental indenture is then required to so comply) providing that such Securities shall be convertible into the kind and amount
of shares of stock and other securities or property or assets (including cash) which such Holder would have been entitled to receive upon such reclassification, change, merger, 
  

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 consolidation, statutory share exchange, combination, sale or conveyance had such Securities been converted into Common
Stock immediately prior to such reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance assuming such holder of Common Stock did not exercise its rights of election, if any, as to the kind or amount
of securities, cash or other property receivable upon such merger, consolidation, statutory share exchange, sale or conveyance (provided, that if the kind or amount of securities, cash or other property receivable upon such merger,
consolidation, statutory share exchange, sale or conveyance is not the same for each share of Common Stock in respect of which such rights of election shall not have been exercised (“Non Electing Share”), then for the purposes of
this Section 12.4, the kind and amount of securities, cash or other property receivable upon such merger, consolidation, statutory share exchange, sale or conveyance for each Non Electing Share shall be deemed to be the kind and amount so receivable
per share by a plurality of the Non Electing Shares). Such supplemental indenture shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Article XII. If, in the case of any
such reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance, the stock or other securities and assets receivable thereupon by a holder of Common Stock includes shares of stock or other securities
and assets of a corporation other than the successor or purchasing corporation, as the case may be, in such reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance, then such supplemental indenture
shall also be executed by such other corporation and shall contain such additional provisions to protect the interests of the Holders of the Securities as the Board of Directors shall reasonably consider necessary by reason of the foregoing.

  
 The Company shall cause notice of the execution of such
supplemental indenture to be mailed to each Holder, at the address of such Holder as it appears on the register of the Securities maintained by the Registrar, within 20 days after execution thereof. Failure to deliver such notice shall not affect
the legality or validity of such supplemental indenture. 
  
 The
above provisions of this Section 12.4 shall similarly apply to successive reclassifications, mergers, consolidations, statutory share exchanges, combinations, sales and conveyances. 
  
 If this Section 12.4 applies to any event or occurrence, Section 12.3 shall not apply. 
  
 Section 12.5 Notice of Adjustment. Whenever an adjustment in the
Conversion Rate with respect to the Securities is required: 
  
 (a) the Company shall forthwith place on file with the Trustee and any Conversion Agent for such securities a certificate of the Chief Financial Officer of the Company, stating the adjusted Conversion Rate determined as provided herein and
setting forth in reasonable detail such facts as shall be necessary to show the reason for and the manner of computing such adjustment; and 
  
 (b) a notice stating that the Conversion Rate has been adjusted and setting forth the adjusted Conversion Rate shall forthwith be given by the Company or,
at the Company’s request, by the Trustee in the name and at the expense of the Company, to each Holder in the manner provided in Section 13.2. Any notice so given shall be conclusively presumed to have been duly given, whether or not the Holder
receives such notice. 
  

 -53- 

 Section 12.6 Notice in Certain Events. In case of: 
  
 (a) a consolidation or merger to which the Company is a party and for which
approval of any stockholders of the Company is required, or of the sale or conveyance to another Person or entity or group of Persons or entities acting in concert as a partnership, limited partnership, syndicate or other group (within the meaning
of Rule 13d 3 under the Exchange Act) of all or substantially all of the property and assets of the Company; or 
  
 (b) the voluntary or involuntary dissolution, liquidation or winding up of the Company; or 
  
 (c) any action triggering an adjustment of the Conversion Rate referred to in clause (x) or (y) below; 
  
 then, in each case, the Company shall cause to be filed with the Trustee and the Conversion
Agent, and shall cause to be given, to the Holders of the Securities in the manner provided in Section 13.2, at least 15 days prior to the applicable date hereinafter specified, a notice stating: 
  
 (x) the date on which a record is to be taken for the
purpose of any distribution or grant of rights or warrants triggering an adjustment to the Conversion Rate pursuant to this Article XII, or, if a record is not to be taken, the date as of which the holders of record of Common Stock entitled to such
distribution, rights or warrants are to be determined; or 
  
 (y) the date on which any reclassification, consolidation, merger, sale, conveyance, dissolution, liquidation or winding up triggering an adjustment to the Conversion Rate pursuant to this Article XII is expected to
become effective, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such reclassification, consolidation,
merger, sale, conveyance, dissolution, liquidation or winding up. 
  
 Failure to give such notice or any defect therein shall not affect the legality or validity of the proceedings described in Section 12.6(a), Section 12.6(b) or Section 12.6(c). 
  
 Section 12.7 Company to Reserve Stock: Registration; Listing. (a) The Company shall, prior to issuance of any
Securities hereunder, and from time to time as may be necessary, reserve and keep available, free from preemptive rights, out of its authorized but unissued Common Stock, for the purpose of effecting the conversion of the Securities, such number of
its duly authorized Common Stock as shall from time to time be sufficient to effect the conversion of all Securities then outstanding into such Common Stock at any time (assuming that, at the time of the computation of such number of Common Stock,
all such Securities would be held by a single Holder). The Company covenants that all Common Stock which may be issued upon conversion of Securities shall upon issue be fully paid and nonassessable and free from all liens and charges and,
except as provided in Section 12.8, taxes with respect to the issue thereof. 
  

 -54- 

 (b) If any Common Stock which would be issuable upon conversion of Securities hereunder require
registration with or approval of any governmental authority before such shares or securities may be issued upon such conversion, the Company shall use its reasonable best efforts to cause such shares or securities to be duly registered or approved,
as the case may be. The Company further covenants that so long as the Common Stock shall be quoted on the Nasdaq National Market system, the Company shall use its reasonable best efforts, if permitted by the rules of the Nasdaq National Market
system, to keep so quoted all Common Stock issuable upon conversion of the Securities, and the Company shall use its reasonable best efforts to list or obtain approval for the quotation of the Common Stock to be delivered upon conversion of the
Securities prior to such delivery upon any other national securities exchange or quotation system upon which the outstanding Common Stock is listed or quoted at the time of such delivery. 
  
 Section 12.8 Taxes on Conversion. The issue of stock certificates on conversion of Securities shall be made without
charge to the converting Holder for any documentary, stamp or similar issue or transfer taxes in respect of the issue thereof, and the Company shall pay any and all documentary, stamp or similar issue or transfer taxes that may be payable in respect
of the issue or delivery of Common Stock on conversion of Securities pursuant hereto. The Company shall not, however, be required to pay any such tax which may be payable in respect of any transfer involved in the issue or delivery of Common Stock
or the portion, if any, of the Securities which are not so converted in a name other than that in which the Securities so converted were registered, and no such issue or delivery shall be made unless and until the Person requesting such issue has
paid to the Company the amount of such tax or has established to the satisfaction of the Company that such tax has been paid. 
  
 Section 12.9 Conversion After Regular Record Date. Except as provided in the succeeding paragraph, the Holder of such Securities shall not be
entitled to receive any accrued and unpaid interest or Additional Interest, if any. 
  
 If any Securities are surrendered for conversion subsequent to the close of business on any Regular Record Date but prior to the opening of business on the corresponding Interest Payment Date, the Holder of such
Securities at the close of business on such Regular Record Date shall receive the interest (inclusive of Additional Interest, if any), payable on such Securities on such Interest Payment Date notwithstanding the conversion thereof. Securities
surrendered for conversion during the period from the close of business on any Regular Record Date to the opening of business on the corresponding Interest Payment Date shall be accompanied by payment by Holders, for the account of the Company, in
New York Clearing House funds or other funds acceptable to the Company of an amount equal to the interest (inclusive of Additional Interest, if any), payable on such interest payment date on the Securities being surrendered for conversion.

  
 Except as provided in Section 12.2(a) and this Section 12.9,
no payment or adjustment shall be made in respect of dividends or distributions on the Common Stock issued upon conversion or accrued and unpaid interest (inclusive of Additional Interest, if any), on a converted Security. 
  

 -55- 

 Section 12.10 Company Determination Final. Any determination that the Company or the Board of
Directors must make pursuant to this Article XII shall be conclusive if made in good faith and in accordance with the provisions of this Article, absent manifest error, and set forth in a Board Resolution. 
  
 Section 12.11 Responsibility of Trustee for Conversion Provisions. The
Trustee has no duty to determine when an adjustment under this Article XII should be made, how it should be made or what it should be. The Trustee makes no representation as to the validity or value of any securities or assets issued upon conversion
of Securities. The Trustee shall not be responsible for any failure of the Company to comply with this Article XII. Each Conversion Agent other than the Company shall have the same protection under this Section 12.11 as the Trustee.

  
 The rights, privileges, protections, immunities and benefits
given to the Trustee under this Indenture including, without limitation, its rights to be indemnified, are extended to, and shall be enforceable by, other than the Company, the Trustee in each of its capacities hereunder, and each Paying Agent or
Conversion Agent, other than the Company, acting hereunder. 
  
 Section 12.12 Unconditional Right of Holders to Convert. Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to convert its Security in
accordance with this Article XII and to bring an action against the Company for the enforcement of any such right to convert, and such rights shall not be impaired or affected without the consent of such Holder. 
  
 ARTICLE XIII 
  
 MISCELLANEOUS 
  
 Section 13.1 Trust Indenture Act Controls. If any provision of this
Indenture limits, qualifies, or conflicts with the duties imposed by TIA Section 318(c), such section of the TIA shall control. If any provision of this Indenture expressly modifies or excludes any provision of the TIA that may be so modified or
excluded, the Indenture provision so modifying or excluding such provision of the TIA shall be deemed to apply. 
  
 Section 13.2 Notices. Any request, demand, authorization, notice, waiver, consent or communication shall be in writing and delivered in person
(including by commercial courier services) or mailed by first class mail, postage prepaid, addressed as follows or transmitted by facsimile transmission (confirmed by guaranteed overnight courier) to the following facsimile numbers: 
  

 -56- 

 if to the Company: 
  
 IMMUNOMEDICS, INC. 
 300 American Road 
 Morris Plains, New Jersey 07950 
 Attention: Gerard Gorman 
 Facsimile No.: (973) 605-8282 
  
 if to the Trustee: 
  
 The Bank of New York 
 101 Barclay Street, Fl. 8W 
 New York, New
York 10286 
 Attention: Corporate Trust Administration 
 Facsimile No.: (212) 815-5707 
  
 The Company or the Trustee by notice given to the other in the manner provided above may designate additional or different addresses for subsequent notices or communications. 
  
 Any notice or communication given to a Holder shall be mailed to the Holder, by first class mail, postage prepaid, at the
Holder’s address as it appears on the registration books of the Registrar and shall be sufficiently given if so mailed within the time prescribed. 
  
 Failure to mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. If a notice or
communication is mailed in the manner provided above, it is duly given, whether or not received by the addressee. 
  
 If the Company mails a notice or communication to the Holders, it shall mail a copy to the Trustee and each Registrar, Paying Agent, Conversion Agent, or
co registrar. 
  
 Section 13.3 Communication by Holders with
Other Holders. Holders may communicate pursuant to TIA Section 312(b) with other Holders with respect to their rights under this Indenture or the Securities. The Company, the Trustee, the Registrar, the Paying Agent, the Conversion Agent and
anyone else shall have the protection of TIA Section 312(c). 
  
 Section 13.4 Certificate and Opinion as to Conditions Precedent. Upon any request or application by the Company to the Trustee to take any action under this Indenture (except in connection with the original issuance of Securities),
the Company shall furnish to the Trustee: 
  
 (a) an
Officers’ Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and 
  
 (b) an Opinion of Counsel stating that, in the opinion of such counsel, all
such conditions precedent have been complied with. 
  

 -57- 

 Section 13.5 Statements Required in Certificate or Opinion. Each Officers’ Certificate or
Opinion of Counsel with respect to compliance with a covenant or condition provided for in this Indenture shall include: 
  
 (a) a statement that each person making such Officers’ Certificate or Opinion of Counsel has read such covenant or condition; 
  
 (b) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such Officers’ Certificate or Opinion of Counsel are based; 
  
 (c) a statement that, in the opinion of each such person, he has made such examination or investigation as is necessary to enable such person to express
an informed opinion as to whether or not such covenant or condition has been complied with; and 
  
 (d) a statement that, in the opinion of such person, such covenant or condition has been complied with. 
  
 In giving such Opinion of Counsel, counsel may rely as to factual matters on
an Officer’s Certificate or on certificates of public officials. 
  
 Section 13.6 Separability Clause. In case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby. 
  
 Section 13.7 Rules by
Trustee, Paying Agent, Conversion Agent, Registrar. The Trustee may make reasonable rules for action by or a meeting of Holders. The Registrar, the Conversion Agent and the Paying Agent may make reasonable rules for their functions.

  
 Section 13.8 Legal Holidays. If any specified date
(including a date for giving notice) is a Legal Holiday, the action shall be taken on the next succeeding day that is not a Legal Holiday, and, if the action to be taken on such date is a payment in respect of the Securities, no interest, if any,
shall accrue for the intervening period. 
  
 Section 13.9
Governing Law; Submission to Jurisdiction; Service of Process. This Indenture shall be governed by, and construed in accordance with, the laws of the State of New York. 
  
 The Company submits to the non-exclusive jurisdiction of the courts of the State of New York and the courts of the United
States of America, in each case located in the Borough of Manhattan, New York, New York over any suit, action or proceeding arising under or in connection with this Indenture or the transactions contemplated hereby or the Securities. The Company
waives any objection that it may have to the venue of any suit, action or proceeding arising under or in connection with this Indenture or the transactions contemplated hereby or the Securities in the courts of the State of New York or the courts of
the United States of America, in each case located in the Borough of Manhattan, New York, New York, or that such suit, action or proceeding brought in the courts of the State of New York or the courts of the United States of America, in each case
located in the Borough of Manhattan, New York, New York, was brought in an inconvenient court and agrees not to plead or claim the same. 
  

 -58- 

 The Company agrees that service of all writs, process and summonses in any suit, action or proceeding
arising under or in connection with this Indenture or the transactions contemplated thereby or the Securities against the Company in any court of the State of New York or any United States Federal court, in each case, sitting in the Borough of
Manhattan, New York, New York, may be made upon CT Corporation System at 111 Eighth Avenue, New York, New York 10011, whom the Company irrevocably appoints as its authorized agent for service of process. The Company represents and warrants that CT
Corporation System has agreed to act as the Company’s agent for service of process. The Company agrees that such appointment shall be irrevocable until the irrevocable appointment by the Company of a successor in New York, New York as its
authorized agent for such purpose and the acceptance of such appointment by such successor. The Company further agrees to take any and all action, including the filing of any and all documents and instruments that may be necessary to continue such
appointment in full force and effect as aforesaid. If CT Corporation System shall cease to act as the agent for service of process for the Company, the Company shall appoint without delay, another such agent and provide prompt written notice to the
Trustee of such appointment. 
  
 Section 13.10 No Recourse
Against Others. No recourse under or upon any obligation, covenant or agreement contained in this Indenture, or in any Security, or because of any indebtedness evidenced thereby, shall be had against any incorporator, as such, or against any
past, present or future stockholder, officer or director, as such, of the Company or of any successor, either directly or through the Company or any successor, under any rule of law, statute or constitutional provision or by the enforcement of any
assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of the Securities by the Holders and as part of the consideration for the issue of the Securities.

  
 Section 13.11 Successors. All agreements of the Company
in this Indenture and the Securities shall bind its successor. All agreements of the Trustee in this Indenture shall bind its successor. 
  
 Section 13.12 Multiple Originals. The parties may sign any number of copies of this Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement. One signed copy is enough to prove this Indenture. 
  
 *    *    *    * 
  
 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 
  

 -59- 

 IN WITNESS WHEREOF, the undersigned, being duly authorized, have executed this Indenture on behalf of the
respective parties hereto as of the date first above written. 
  

			
	 IMMUNOMEDICS, INC.

		
	 By:
	 	 /s/ Cynthia L. Sullivan

	 	 	 Name:

	 	 	 Title:

  

 SIGNATURE PAGE TO INDENTURE 

			
	 The Bank of New York

	     As Trustee

		
	 By:
	 	 /s/ Marie E. Trimboli

	 	 	 Name: Marie E. Trimboli

	 	 	 Title: Assistant Vice President

  
  

 SIGNATURE PAGE TO INDENTURE 

 EXHIBIT A 
  

[FORM OF FACE OF SECURITY] 
  
 THE SECURITY EVIDENCED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT OF
1933”), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ACQUISITION HEREOF, THE HOLDER: 
  

(1) REPRESENTS THAT IT IS (A) A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT OF 1933 OR
(B) IT IS AN INSTITUTIONAL INVESTOR THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT OF 1933 (AN “INSTITUTIONAL ACCREDITED INVESTOR”); 
  
 (2) AGREES THAT IT SHALL NOT WITHIN TWO YEARS AFTER THE
ORIGINAL ISSUANCE OF THIS SECURITY, RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) TO A PERSON THAT THE
HOLDER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN, AND IN COMPLIANCE WITH, RULE 144A UNDER THE SECURITIES ACT OF 1933, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES
ACT OF 1933 (IF AVAILABLE), (D) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933 (IF AVAILABLE) TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO AMERICAN STOCK TRANSFER AND
TRUST COMPANY, AS TRANSFER AGENT (OR ANY SUCCESSOR TRANSFER AGENT, AS APPLICABLE), SUCH CERTIFICATIONS AND OPINION OF COUNSEL REQUIRED BY THE COMPANY OR THE TRANSFER AGENT OR (E) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT OF 1933 AND THAT CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER; AND 
  
 (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO
CLAUSE 2(C) OR 2(E) ABOVE), A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.1 

	1	This legend should be included only if the Security is a Transfer Restricted Security. 

  

 A-1 

 [THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT (AS SUCH TERM
IS DEFINED IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF) AND, BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT.] 2 

	2	This legend should be included only if the Security is a Transfer Restricted Security. 

  

 A-2 

 IMMUNOMEDICS, INC. 
  
 3.25% Convertible Senior Notes due 2006 
  
 No.      
  
 IMMUNOMEDICS, INC., a Delaware corporation (the “Company,” which term shall include any successor corporation under the Indenture referred to on the
reverse hereof), promises to pay to                     , or registered assigns, the principal amount of
                     Dollars
($                                       
 ) on January 12, 2006, and to pay interest thereon from January 12, 2004 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, on July 12 and January 12 in each year (each, an “Interest
Payment Date”), commencing on July 12, 2004, at the rate of 3.25% per annum, until the principal hereof is paid or made available for payment at January 12, 2006 or upon acceleration, or until such date on which the Securities are converted
or purchased as provided herein, and at the rate of 3.25% per annum on any overdue principal and on any overdue installment of interest (inclusive of Additional Interest, if any). The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date shall, as provided in the Indenture (as hereinafter defined), be paid to the Person in whose name this Security (or one or more predecessor Securities) is registered at the close of business on the regular record date for
such interest, which shall be the June 1 or December 1 (whether or not a Business Day), as the case may be, next preceding the corresponding Interest Payment Date (a “Regular Record Date”). Any such interest (inclusive of Additional
Interest, if any), not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may be paid (a) to the Person in whose name this Security (or one or more predecessor Securities) is
registered at the close of business on a special record date for the payment of such defaulted interest to be fixed by the Trustee (a “Special Record Date”), notice whereof shall be given to Holders not less than 10 calendar days
prior to such Special Record Date, or (b) at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities may be listed, and upon such notice as may be required by such exchange, all
as more fully provided in the Indenture. 
  
 The Company may
elect, solely at the Company’s option, to pay interest in shares of the Company’s Common Stock. If the Company elects to make any payment of interest in shares of Common Stock, the shares to be delivered shall be valued at (i) 95% of the
daily volume-weighted average price of the Common Stock on the applicable Interest Payment Date, if such shares are registered under the Securities Act; or (ii) 90% of the daily volume-weighted average price of the Common Stock on the applicable
Interest Payment Date, if such shares are not so registered under the Securities Act, as described in the Indenture. 
  
 Reference is hereby made to the further provisions of this Security set forth on the reverse side of this Security, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
  

 A-3 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 
  

							
	 Dated:
	 	 IMMUNOMEDICS, INC.

			
	 	 	 By:
	 	  

	 	 	 	 	 Name:
	 	  

	 	 	 	 	 Title:
	 	  

  

 A-4 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Securities referred to in the within mentioned Indenture.

  

					
	 Dated:
	 	 The Bank of New York,

	 	 	     as Trustee

			
	 	 	 By:
	 	  

  

 A-5 

 [FORM OF REVERSE OF SECURITY] 
  
 3.25% Convertible Senior Notes due 2006 
  
 This Security is one of a duly authorized issue of 3.25% Convertible Senior Notes due 2006 (the
“Securities”) of IMMUNOMEDICS, INC., a Delaware corporation (including any successor corporation under the Indenture hereinafter referred to, the “Company”), issued under an Indenture, dated as of January 20, 2004
(the “Indenture”), between the Company and The Bank of New York, as Trustee (the “Trustee”). The terms of the Security include those stated in the Indenture, those made part of the Indenture by reference to the
Trust Indenture Act of 1939, as amended (“TIA”), and those set forth in this Security. This Security is subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of all such terms. To the
extent permitted by applicable law, in the event of any inconsistency between the terms of this Security and the terms of the Indenture, the terms of the Indenture shall control. Capitalized terms used but not defined herein have the meanings
assigned to them in the Indenture referred to below unless otherwise indicated. 
  
 1. Interest. 
  
 Interest on the Securities shall be computed on the basis of a 360-day year of twelve 30-day months. 
  
 If the Holder elects to require the Company to purchase this Security
pursuant to Section 6 of this Security, on a date that is after the Regular Record Date and on or before the corresponding Interest Payment Date, interest (inclusive of Additional Interest, if any), accrued and unpaid hereon to, but excluding, the
applicable Designated Event Purchase Date shall be paid to the same Holder to whom the Company pays the principal of this Security. 
  
 Interest (inclusive of Additional Interest, if any) on Securities converted after the close of business on a Regular Record Date but prior to the opening
of business on the corresponding Interest Payment Date shall be paid to the Holder of the Securities on the Regular Record Date but, upon conversion, the Holder must pay the Company the interest (inclusive of Additional Interest, if any), which has
accrued and shall be paid on such Interest Payment Date. Any reference herein to interest accrued or payable as of any date shall include any Additional Interest accrued or payable on such date as provided in the Registration Rights Agreement.

  
 2. Method of Payment. 
  
 Payment of the principal of and interest (inclusive of Additional Interest,
if any) on the Securities shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts or in Applicable Stock, as the case may be. The Holder must surrender the
Securities to the Paying Agent to collect payment of principal. If the Company elects not to pay interest in shares of the Company’s Common Stock, payment of interest (inclusive of Additional Interest, if any), on Securities shall be made by
check mailed to the address of the Person entitled thereto as such address appears in the Register and payment of interest (inclusive of Additional Interest, if any) on Securities in aggregate principal amount in excess of $1,000,000 shall be made
by wire transfer in immediately available funds at the election of such Holder. 
  

 A-6 

 3. Paying Agent, Registrar, Conversion Agent. 
  
 Initially, The Bank of New York shall act as Paying Agent, Registrar and
Conversion Agent. The Company may appoint and change any Paying Agent, Registrar and Conversion Agent without notice, other than notice to the Trustee; provided that the Company shall maintain at least one Paying Agent in Borough of
Manhattan, New York, New York, which shall initially be an office or agency of the Trustee. The Company or any of its Subsidiaries or any of their Affiliates may act as Paying Agent, Registrar or Conversion Agent. 
  
 4. Indenture. 
  
 The Securities are general unsecured obligations of the Company limited to
up to $13,000,000 aggregate principal amount. 
  
 5. [Intentionally Omitted] 
  
 6.
Purchase by the Company Upon a Designated Event. 
  
 Subject to the terms and conditions of the Indenture, the Company shall become obligated to purchase, at the option of the Holder, all or any portion of the Securities held by such Holder upon a Designated Event in integral multiples of
$1,000 at the Designated Event Purchase Price in cash. To exercise such right, a Holder shall deliver to the Paying Agent a Designated Event Purchase Notice containing the information set forth in the Indenture at any time on or before the 20th
Business Day after the date of the Company’s notice of the Designated Event (subject to extension to comply with applicable law), and shall deliver the Securities to the Paying Agent as set forth in the Indenture. 
  
 Holders have the right to withdraw any Designated Event Purchase Notice by
delivering to the Paying Agent a written notice of withdrawal in accordance with the provisions of the Indenture. 
  
 If cash sufficient to pay the Designated Event Purchase Price of all Securities or portions thereof to be purchased on the Designated Event Purchase Date
is deposited with the Paying Agent, at 10:00 a.m., New York City time, on the Designated Event Purchase Date, such Securities shall cease to be outstanding and interest (inclusive of Additional Interest, if any) on such Securities shall cease to
accrue and the Holder thereof shall have no other rights as such other than the right to receive the Designated Event Purchase Price upon surrender of such Security. 
  
 7. Conversion. 
  
 Subject to and in compliance with the provisions of the Indenture, a Holder is entitled, at such Holder’s option, to
convert the Holder’s Security (or any portion of the principal amount thereof that is $1,000 or an integral multiple $1,000), into fully paid and nonassessable shares of Common Stock at the Conversion Rate in effect on the date of conversion.

  

 A-7 

 A Security in respect of which a Holder has delivered a Designated Event Purchase Notice exercising the
right of such Holder to require the Company to purchase such Security may be converted only if such Designated Event Purchase Notice is withdrawn in accordance with the terms of the Indenture. 
  
 To surrender a Security for conversion, a Holder must (1) surrender the
Security to the Conversion Agent, (2) complete and manually sign the conversion notice below (or complete and manually sign a facsimile of such notice) and deliver such notice to the Conversion Agent, (3) if required by the Conversion Agent, furnish
appropriate endorsements and transfer documents and (4) pay all funds required, if any, relating to interest (inclusive of Additional Interest, if any) and any transfer or similar tax or duty, if required. 
  
 No fractional share of Common Stock shall be issued upon conversion of any
Security. Instead, the Company shall pay a cash adjustment as provided in the Indenture. 
  
 No payment or adjustment shall be made for accrued and unpaid interest (inclusive of Additional Interest, if any) or dividends on the Common Stock, except as provided in the Indenture. 
  
 If the Company (i) is a party to a consolidation, merger or binding share
exchange (ii) reclassifies the Common Stock or (iii) conveys, transfers or leases its properties and assets substantially as an entirety to any Person, the right to convert a Security into shares of Common Stock may be changed into a right to
convert it into securities, cash or other assets of the Company or such other Person, in each case in accordance with the Indenture. 
  
 8. Denominations; Transfer; Exchange. 
  
 The Securities are in fully registered form, without coupons, in denominations of $1,000 of principal amount and integral multiples of $1,000. A Holder
may transfer or exchange Securities in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by
the Indenture. 
  
 9. Persons Deemed
Owners. 
  
 The registered Holder of this Security may be
treated as the owner of this Security for all purposes. 
  
 10. Unclaimed Money or Securities. 
  
 The Trustee and the Paying Agent shall return to the Company upon written request any cash or securities held by them for the payment of any amount with respect to the Securities that remains unclaimed for two years,
subject to applicable unclaimed property law. After return to the Company, Holders entitled to the money or securities must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person.

  

 A-8 

 11. Amendment; Waiver. 
  
 Subject to certain exceptions set forth in the Indenture, (i) the Indenture
or the Securities may be amended with the written consent or affirmative vote of the Holders of at least a majority in aggregate principal amount of the outstanding Securities and (ii) certain Defaults may be waived with the written consent or
affirmative vote of the Holders of a majority in aggregate principal amount of the outstanding Securities. 
  
 Without the consent of any Holder, the Company and the Trustee may amend the Indenture or the Securities to (i) add to the covenants of the Company for
the benefit of the Holders of Securities, (ii) surrender any right or power conferred upon the Company in the Indenture, (iii) provide for conversion rights of Holders of Securities if any reclassification or change of the Company’s Common
Stock or any consolidation, merger or sale of all or substantially all of the Company’s assets occurs, (iv) provide for the assumption of the Company’s obligations to the Holders of Securities in the case of a merger, consolidation,
conveyance, transfer, sale, lease or other disposition pursuant to Article VII of the Indenture, (v) increase the Conversion Rate; provided, however, that such increase in the Conversion Rate shall not adversely affect the interest of
the Holders of Securities (after taking into account tax and other consequences of such increase), (vi) comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the TIA, (vii) make any changes
or modifications necessary in connection with the registration of the Securities under the Securities Act as contemplated in the Registration Rights Agreement; provided, however, that such action pursuant to this clause does not, in
the good faith opinion of the Board of Directors of the Company (as evidenced by a Board Resolution) and the Trustee, adversely affect the interests of the Holders of Securities in any material respect, (viii) cure any ambiguity, correct or
supplement any provision in the Indenture which may be inconsistent with any other provision therein or which is otherwise defective, or to make any other provisions with respect to matters or questions arising under the Indenture which the Company
may deem necessary or desirable and which shall not be inconsistent with the provisions of the Indenture; provided, however, that such action pursuant to this clause does not, in the good faith opinion of the Board of Directors of the
Company (as evidenced by a Board Resolution) and the Trustee, adversely affect the interests of the Holders of Securities in any material respect, (ix) evidence the succession of another Person to the Company or any other obligor upon the
Securities, and the assumption by any such successor of the covenants of the Company or such obligor herein and in the Securities, in each case in compliance with the provisions of the Indenture, (x) evidence and provide the acceptance of the
appointment of a successor trustee thereunder and (xi) add or modify any other provisions in the Indenture with respect to matters or questions arising thereunder which the Company and the Trustee may deem necessary or desirable and which shall not
adversely affect the interests of the Holders of Securities. 
  
 12. Defaults and Remedies. 
  
 If any Event of Default other than as a result of certain events of bankruptcy, insolvency or reorganization of the Company or its Subsidiaries occurs and is continuing, the principal of all the Securities may be declared due and payable in
the manner and with the effect provided in the Indenture. If an Event of Default occurs as a result of certain events of bankruptcy, insolvency or reorganization of the Company or its Subsidiaries, the principal of all the Securities shall become
due and payable immediately without any declaration or other act on the part of the Trustee or any Holder, all as and to the extent provided in the Indenture. 
  

 A-9 

 13. Trustee Dealings with the Company. 
  
 Subject to certain limitations imposed by the TIA, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not Trustee. 
  
 14. Calculations in Respect of Securities. 
  
 The Company or its agents shall be responsible for making all calculations called for under the Securities including, but not limited to, determination of the Market Price and Closing Sale Price of the Applicable
Stock, the number of shares of Applicable Stock issuable upon conversion and the amounts of interest on the Securities. Any calculations made in good faith and without manifest error shall be final and binding on Holders of the Securities. The
Company or its agents shall be required to deliver to the Trustee a schedule of its calculations and the Trustee shall be entitled to conclusively rely upon the accuracy of such calculations without independent verification. 
  
 15. No Recourse Against Others. 
  
 No recourse under or upon any obligation, covenant or agreement contained in
the Indenture, or in this Security, or because of any indebtedness evidenced thereby, shall be had against any incorporator, as such, or against any past, present or future stockholder, officer or director, as such, of the Company or of any
successor, either directly or through the Company or any successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being
expressly waived and released by the acceptance of the Securities by the Holders and as part of the consideration for the issue of the Securities. 
  
 16. Authentication. 
  
 This Security shall not be valid until an authorized signatory of the Trustee signs, manually or by facsimile, the Trustee’s Certificate of
Authentication on the other side of this Security. 
  
 17. Abbreviations. 
  
 Customary abbreviations
may be used in the name of a Holder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with right of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform
Gift to Minors Act). 
  

 A-10 

 18. INDENTURE TO CONTROL; GOVERNING LAW. 
  
 IN THE CASE OF ANY CONFLICT BETWEEN THE PROVISIONS OF THIS SECURITY AND THE
INDENTURE, THE PROVISIONS OF THE INDENTURE SHALL CONTROL. THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 The Company shall furnish to any Holder upon written request and without charge a copy of the Indenture which has in it the
text of this Security in larger type. Requests may be made to: 
  
 IMMUNOMEDICS, INC. 
 300 American Road 
 Morris Plains, New Jersey 07950 
 Attention: Chief Financial Officer 
 Facsimile No.: (973) 605-8282 
  
 19. Registration Rights. 
  
 The Holders of the Securities are entitled to the benefits of a Registration Rights Agreement, dated as of January 20, 2004, between the Company and Bear,
Stearns & Co. Inc., including the receipt of Additional Interest upon a registration default (as defined in such agreement). 
  

 A-11 

 ASSIGNMENT FORM 
  
 To assign this Security, fill in the form below: 
  

I or we assign and transfer this Security to 
  

	
	 ___________________________________________________________________________________________________________

	(Insert assignee’s soc. sec. or tax ID no.)
	  
 ___________________________________________________________________________________________________________

	  
 ___________________________________________________________________________________________________________

	  
 ___________________________________________________________________________________________________________

	  
 ___________________________________________________________________________________________________________

	  
 __________________________________________________________________(Print or type assignee’s name, address and zip code)

  
 and irrevocably appoint
________________________________________________________________________________________ 
 agent to transfer this Security on the books of the Company. The
agent may substitute another to act for him. 
  

			
	 	 	Your Signature(s):
	Date:
                                        
                                        
                 	 	                                       
                                        
                               

	 	 	(Sign exactly as your name(s) appears on the
	 	 	other side of this Security)
		
	Signature Guaranteed	 	 
		
	                                       
                                        
                               
	 	 
	 Participant in a Recognized Signature
 Guarantee
Medallion Program
	 	 
		
	By:
                                        
                                        
                    	 	 
	Authorized Signatory	 	 

  

 A-12 

 OPTION OF HOLDER TO ELECT PURCHASE 
  
 If you wish to have this Security purchased by the Company pursuant to Article V (Purchase at the Option of Holders Upon a Designated Event)
of the Indenture, check the box:   ̈. 
  
 If you wish to have a portion of this Security purchased by the Company pursuant to Article V of the Indenture state the amount (in Principal Amount): 
 $                     . 
  
 The certificate numbers of the Securities to be delivered for purchase are:
            . 
  
 Any purchase of Securities pursuant hereto shall be pursuant to the terms and conditions specified in the Indenture. 
  

			
	 	 	Your Signature(s):
		
	Date:                                  	 	

	 	 	(Sign exactly as your name(s) appears on the
	 	 	other side of this Security)
		
	Signature Guaranteed	 	 
		
	  

	 	 
	Participant in a Recognized Signature	 	 
	Guarantee Medallion Program	 	 
		
	 By:  

	 	 
	Authorized Signatory	 	 

  

 A-13 

 CONVERSION NOTICE 
  
 To convert this Security into Common Stock of the Company, check the box   ̈. 
  
 To
convert only part of this Security, state the principal amount to be converted (which must be $1,000 or an integral multiple of $1,000):
                                        
            . 
  
 Please check one: 
  

	 ̈	I certify that neither I nor any other Person shall become a 10% Stockholder upon satisfaction by the Company of the Conversion Obligation underlying this Conversion Notice in
Common Stock. 

  

	 ̈	I do not certify that neither I nor any other Person shall become a 10% Stockholder upon satisfaction by the Company of the Conversion Obligation underlying this Conversion Notice
in Common Stock. 

  
 “10% Stockholder” means a
Person that owns, directly or indirectly, applying the provisions of Section 958(a) of the Internal Revenue Code of 1986, as amended (the “Code”), or by attribution, applying the provisions of Section 958(b) of the Code, 10% or more of the
outstanding shares of Common Stock. 
  
 If you want the stock certificate made out
in another person’s name fill in the form below: 
  

	
	  

	(Insert assignee’s soc. sec. or tax ID no.)
	  

	  

	  

	  

	(Print or type assignee’s name, address and zip code)

  

			
	 	 	Your Signature(s):
		
	Date:                                  	 	  

	 	 	 (Sign exactly as your name(s) appears on the
 other
side of this Security)

	Signature Guaranteed	 	 
		
	  

	 	 
	 Participant in a Recognized Signature
 Guarantee
Medallion Program
	 	 
		
	 By:

	 	 
	Authorized Signatory	 	 

  

 A-14 

 TRANSFER CERTIFICATE 3 
  
 Re:
3.25% Convertible Senior Notes due 2006 
 (the “Securities”) of Immunomedics, Inc. (the “Company”)

  
 This certificate relates to
$             principal amount of Securities owned in definitive form by
                     (the “Transferor”). 
  
 The Transferor has requested a Registrar or the Trustee to exchange or register the transfer of such Securities. 

 
 In connection with such request and in respect of each such Security, the
Transferor does hereby certify that the Transferor is familiar with transfer restrictions relating to the Securities as provided in Section 2.6 and Section 2.12 of the Indenture dated January 20, 2004 between the Company and The Bank of New York, as
Trustee (the “Indenture”), and the transfer of such Security is being made pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”) (check applicable box),
or the transfer or exchange, as the case may be, of such Security does not require registration under the Securities Act because (check applicable box): 
  

	 	 ̈	Such Security is being transferred to the Company or a Subsidiary; or 

  

	 	 ̈	Such Security is being transferred to a Qualified Institutional Buyer in compliance with Rule 144A under the Securities Act; or 

  

	 	 ̈	Such Security is being transferred pursuant to and in compliance with an exemption from the registration requirements under the Securities Act in accordance with Rule 144 (or any
successor thereto) (“Rule 144”) under the Securities Act; or 

  

	 	 ̈	Such Security is being transferred to an institutional investor that is an “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act)
that has transferred a letter making certain representations, warranties and agreements relating to restrictions on transfer and an opinion of counsel to American Stock Transfer and Trust Company as transfer agent (or any successor transfer agent,
as applicable) that such transfer is in compliance with the Securities Act; or 

  

	 	 ̈	Such Security is being transferred pursuant to an effective registration statement under the Securities Act; or 

  

	 	 ̈	Such Security is being acquired for the Transferor’s own account, without transfer. 

	3	This certificate should only be included if this Security is a Transfer Restricted Security.

  

 A-15 

			
	Date:                                  	 	

	 	 	Signature(s) of Transferor

  
 (If the registered owner is a
corporation, partnership or fiduciary, the title of the person signing on behalf of such registered owner must be stated.) 
  

			
	Signature Guaranteed
	  

	 Participant in a Recognized Signature
 Guarantee Medallion Program

		
	By:	 	  

	 	 	Authorized Signatory

  

 A-16 

 EXHIBIT B 
  

FORM OF CERTIFICATE TO BE DELIVERED BY 
 TRANSFEREE IN CONNECTION WITH TRANSFERS 
 TO INSTITUTIONAL ACCREDITED INVESTORS 
  
 [Date] 
  
 The Bank of New York, as Trustee 
 101 Barclay
Street, Fl. 8W 
 New York, New York 10286 
 Attention: Corporate
Trust Administration 
  
 American Stock Transfer and Trust Company, 
 as Transfer Agent 
  
 Re: Immunomedics, Inc. 
  
 Ladies and Gentlemen: 
  
 In connection with the undersigned’s proposed purchase of
$                     aggregate principal amount of 3.25% Convertible Senior Notes due 2006 (the “Notes”) of Immunomedics,
Inc. (the “Company”) or                      shares of Common Stock of the Company issued upon conversion of the Notes, par
value $.01 per share (the “Common Stock” and, together with the Notes, the “Securities”), the undersigned confirms, represents and warrants that: 
  
 (1) The undersigned is an institutional “accredited investor” within the meaning of Rule
501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended (the “Securities Act”) (an “Institutional Accredited Investor”). 
  
 (2) (A) Any purchase of the Securities by the undersigned shall be for the undersigned’s own account or
for the account of one or more other Institutional Accredited Investors or as fiduciary for the account of one or more trusts, each of which is an “accredited investor” within the meaning of Rule 501(a)(7) under the Securities Act and for
each of which the undersigned exercises sole investment discretion or (B) the undersigned is a “bank,” within the meaning of Section 3(a)(2) of the Securities Act, or a “savings and loan association” or other institution
described in Section 3(a)(5)(A) of the Securities Act that is acquiring the Securities as fiduciary for the account of one or more institutions for which the undersigned exercises sold investment discretion. 
  
 (3) The undersigned has such knowledge and experience in
financial and business matters that the undersigned is capable of evaluating the merits and risks of its investment in the Securities, and the undersigned and any accounts for which it is acting is each able to bear the economic risk of its or their
investment. 
  

 B-1 

 (4) The undersigned has been given an opportunity to ask questions and receive answers
concerning the terms and conditions of the Securities and to obtain any additional information which the Company possesses or can acquire without reasonable effort or expense that is necessary to verify the accuracy of the information furnished.

  
 (5) The undersigned is not acquiring the
Securities with a view to distribution thereof or with any present intention of offering or selling any Securities, except as permitted below; provided that the disposition of the undersigned’s property and the property of any accounts
for which the undersigned is acting as fiduciary shall remain at all times within the undersigned’s control. 
  
 (6) The undersigned understands that the Securities have not been registered under the Securities Act or any applicable state securities
laws. 
  
 (7) The undersigned agrees, on its own
behalf and on behalf of each account for which the undersigned acquires any Securities, that if in the future the undersigned decides to resell or otherwise transfer such Securities within two years after the original issuance of the Notes, such
Securities may be resold or otherwise transferred only: 
  
 (A) to the Company or any subsidiary thereof; 
  
 (B) with respect to Notes only, to a person which is a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) in compliance with Rule 144A under the Securities Act; 
  
 (C) pursuant to the exemption from registration provided by
Rule 144 under the Securities Act (if available); 
  
 (D) pursuant to an exemption from registration under the Securities Act to an Institutional Accredited Investor that prior to such transfer, furnishes to you (and the Trustee or the Transfer Agent, as the case may be) a signed letter
substantially in the form of this letter, a transfer certificate substantially in the form provided in the Indenture and an opinion of counsel; or 
  
 (E) pursuant to a registration statement which has been declared effective under the Securities Act and continues to be effective at the
time of such transfer. 
  
 The undersigned further agrees to provide to any person
purchasing any of the Securities from us a notice advising such purchaser that resales of the Securities are restricted as stated herein. 
  
 (8) The undersigned understands that, on any proposed resale of any Securities, the undersigned shall be required to furnish to the
Trustee or the Transfer Agent, as the case may be, and the Company such certifications, legal opinions and other information as you and the Company may reasonably require to confirm that the proposed sale complies with the foregoing restrictions.
The undersigned further understands that the Securities purchased by the undersigned shall be certificated securities and shall bear a legend to the foregoing effect. 
  

 B-2 

 Each of the Company, the Trustee or the Transfer Agent, as the case may be, and the initial purchasers of
the Securities are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered
hereby. 
  

			
	Very truly yours,
		
	By:	 	  

	 	 	Name:
	 	 	Title:
	 	 	Address:

  
  

 B-3 

 EXHIBIT C 
  

FORM OF RESTRICTIVE LEGEND FOR 
 COMMON STOCK ISSUED UPON CONVERSION 
  
 THE
SECURITY EVIDENCED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT OF 1933”), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE
FOLLOWING SENTENCE. BY ACQUISITION HEREOF, THE HOLDER: 
  
 (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT OF 1933 OR (B) IT IS AN INSTITUTIONAL INVESTOR THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE
501(a)(1), (2), (3), OR (7) UNDER THE SECURITIES ACT (AN “INSTITUTIONAL ACCREDITED INVESTOR”); 
  
 (2) AGREES THAT IT SHALL NOT, WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THE SECURITY UPON THE CONVERSION OF WHICH THE SHARES OF
COMMON STOCK EVIDENCED HEREBY WERE ISSUED, RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT
OF 1933 (IF AVAILABLE), (C) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933 (IF AVAILABLE) TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT PRIOR TO SUCH TRANSFER, FURNISHES TO AMERICAN STOCK TRANSFER AND TRUST
COMPANY, AS TRANSFER AGENT (OR ANY SUCCESSOR TRANSFER AGENT, AS APPLICABLE), CERTIFICATIONS AND OPINION OF COUNSEL REQUIRED BY THE COMPANY OR TRANSFER AGENT OR (D) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT OF 1933 AND THAT CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER; AND 
  
 (3) AGREES THAT IT SHALL DELIVER TO EACH PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO
CLAUSE 2(B) OR 2(D) ABOVE), A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. 
  

 C-1

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