Document:

exv10w2

Form of Agreement

EXHIBIT 10.2

PURCHASE AGREEMENT

     THIS PURCHASE AGREEMENT (“Agreement”) is made as of the 1st day of June 2009, by and
between ION Geophysical Corporation (the “Company”), a corporation organized under the laws
of the State of Delaware, with its principal offices at 2105 CityWest Blvd., Suite 400, Houston,
Texas 77042-2839, and the purchaser whose name and address is set forth on the signature page
hereof (the “Purchaser”).

     IN CONSIDERATION of the mutual covenants contained in this Agreement, the Company and the
Purchaser agree as follows:

     1. Authorization of Sale of the Shares. Subject to the terms and conditions of the
Agreements (as defined below), the Company has authorized the issuance and sale of up to 18,500,000
shares (the “Shares”) of common stock, par value $0.01 per share (the “Common
Stock”) and the preferred stock purchase rights appurtenant thereto (the “Rights”), of
the Company.

     2. Agreement to Sell and Purchase the Shares. At the Closing (as defined in
Section 3), the Company will, subject to the terms of this Agreement, issue and sell to the
Purchaser and the Purchaser will buy from the Company, upon the terms and conditions hereinafter
set forth, the number of Shares (at the purchase price) shown on the signature page hereof.

     The Company is simultaneously entering into this same form of purchase agreement with certain
other investors (the “Other Purchasers”) and expects to complete sales of the Shares to
them. The Purchaser and the Other Purchasers are hereinafter sometimes collectively referred to as
the “Purchasers,” and this Agreement and the purchase agreements executed by the Other
Purchasers are hereinafter sometimes collectively referred to as the “Agreements.” The
term “Placement Agent” shall mean Barclays Capital Inc., as placement agent.

     3. Delivery of the Shares at the Closing; Termination.

          3.1 Closing. The completion of the purchase and sale of the Shares (the
“Closing”) shall occur at the offices of Andrews Kurth LLP, 600 Travis, Suite 4200,
Houston, Texas 77002, as soon as practicable and as agreed to by the parties hereto, within three
business days following the execution of the Agreements, or on such later date or at such different
location as the parties shall agree in writing, but not prior to the date that the conditions for
Closing set forth below have been satisfied or waived by the appropriate party (the “Closing
Date”).

          3.2 Closing Deliveries. At the Closing, the Purchaser shall deliver, in immediately
available funds, the full amount of the purchase price for the Shares being purchased hereunder by
wire transfer to an account designated by the Company and the Company shall deliver to the
Purchaser one or more stock certificates registered in the name of

 

 

the Purchaser, or in such nominee name(s) as designated by the Purchaser in writing,
representing the number of Shares set forth in Section 2 above and bearing an appropriate
legend referring to the fact that the Shares were sold in reliance upon the exemption from
registration under the Securities Act of 1933, as amended (the “Securities Act”), provided
by Section 4(2) thereof and Rule 506 thereunder. The name(s) in which the stock certificates are
to be registered are set forth in the Stock Certificate Questionnaire attached hereto as part of
Appendix I.

          3.3 Conditions to the Company’s Obligations. The Company’s obligation to complete the
purchase and sale of the Shares and deliver such stock certificate(s) to the Purchaser at the
Closing shall be subject to the following conditions, any one or more of which may be waived by the
Company:

     (a) receipt by the Company of same-day funds in the full amount of the purchase
price for the Shares being purchased hereunder;

     (b) completion of the purchases and sales under the Agreements with the Other
Purchasers;

     (c) the accuracy of the representations and warranties made by the Purchasers
and the fulfillment of those undertakings of the Purchasers to be fulfilled prior to
the Closing; and

     (d) receipt by the Company from the Purchaser of the fully completed
questionnaires attached hereto as Appendix I.

          3.4 Conditions to the Purchaser’s Obligations. The Purchaser’s obligation to accept
delivery of such stock certificate(s) and to pay for the Shares evidenced thereby shall be subject
to the following conditions, any one or more of which may be waived by the Purchaser:

     (a) the closing of purchases of Common Stock by the Other Purchasers equal to
at least the Minimum Purchase Amount; for purposes of this Agreement, the
“Minimum Purchase Amount” means such number of shares of Common Stock to be
purchased by the Other Purchasers under the Agreements that, when combined with the
number of Shares to be purchased by the Purchaser pursuant to this Agreement and
multiplied by the price at which those shares and the Shares are to be purchased, is
equal to $35,000,000;

     (b) each of the representations and warranties of the Company made herein shall
be accurate as of the Closing Date;

     (c) the delivery to the Purchaser by counsel to the Company of legal opinions
substantially similar in substance to the forms of opinion attached as Exhibit
B hereto;

     (d) receipt by the Placement Agent, on each of the date hereof and the Closing
Date, a letter dated the date hereof or the Closing Date, as the case may be, in
form and substance satisfactory to the Placement Agent, from Ernst & Young LLP (i)
confirming that they are independent public accountants within the

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meaning of the Securities Act and are in compliance with the applicable
requirements relating to the qualification of accountants under Rule 2-01 of
Regulation S-X of the Rules and Regulations and (ii) containing statements and
information of the type ordinarily included in accountants’ “comfort letters” to
underwriters in registered public offering with respect to the financial statements
and certain financial information contained in the Private Placement Memorandum;

     (e) receipt by the Purchaser of a certificate executed by the chief executive
officer and the chief financial or accounting officer of the Company, dated as of
the Closing Date, to the effect that the representations and warranties of the
Company set forth herein are true and correct as of the date of this Agreement and
as of such Closing Date and that the Company has complied with all the agreements
and satisfied all the conditions herein on its part to be performed or satisfied on
or prior to such Closing Date;

     (f) receipt by the Purchaser of a certificate of the Secretary of the Company,
dated as of the Closing Date:

     (i) certifying the resolutions adopted by
the Board of Directors of the Company approving
the transactions contemplated by this Agreement
and the issuance of the Shares;

     (ii) certifying the current versions of the
Restated Certificate of Incorporation and the
Amended and Restated Bylaws of the Company; and

     (iii) certifying as to the signatures and
authority of the persons signing this Agreement
and related documents on behalf of the Company;

     (g) receipt by the Purchaser of a certificate of good standing for the Company
for its jurisdiction of incorporation and a certificate of qualification as a
foreign corporation for the Company for any jurisdictions in which it is qualified
to transact business as a foreign corporation;

     (h) receipt by the Purchaser of a certificate from the Company’s transfer agent
certifying the number of shares of Common Stock outstanding as of the Closing Date;

     (i) there shall have been no suspensions in the trading of the Common Stock as
of the Closing Date;

     (j) the Common Stock shall continue to be listed on The New York Stock Exchange
as of the Closing Date and the Shares shall be approved for

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listing on The New York Stock Exchange as of the Closing Date, subject to
official notice of issuance; and

     (k) the fulfillment in all material respects of those undertakings of the
Company to be fulfilled prior to the Closing.

          3.5 Termination. This Agreement shall automatically terminate if the Closing has not
occurred prior to June 15, 2009. Without limiting the generality of the foregoing, in event of
such termination, neither party shall have any obligation to sell or purchase the Shares.

     4. Representations, Warranties and Covenants of the Company. The Company hereby
represents and warrants to, and covenants with, the Purchaser as follows:

          4.1 Organization and Qualification. The Company is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of Delaware, and the Company is
qualified to transact business as a foreign corporation in each jurisdiction in which qualification
is required, except where the failure to so qualify would neither have nor reasonably be expected
to have a Material Adverse Effect (as defined in Section 4.6). Each subsidiary (as
defined under Rule 405 promulgated under the Securities Act) of the Company (each, a
“Subsidiary” and collectively, the “Subsidiaries”) are listed on Exhibit A
to this Agreement. Each Subsidiary is a direct or indirect wholly owned subsidiary of the Company.
Each Subsidiary is duly organized, validly existing and in good standing under the laws of its
jurisdiction of organization and is qualified to transact business as a foreign corporation in each
jurisdiction in which qualification is required, except where failure to so qualify would neither
have nor reasonably be expected to have a Material Adverse Effect.

          4.2 Reporting Company; Form S-3. The Company is not an “ineligible issuer” (as
defined in Rule 405 promulgated under the Securities Act) and is eligible to register the resale of
the Shares by the Purchaser on a registration statement on Form S-3 under the Securities Act. The
Company is subject to the reporting requirements of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), and has filed all reports required thereby during the past 12
calendar months. Provided that none of the Purchasers is deemed to be an underwriter with respect
to any shares and except as provided on Schedule 4.2 hereto, to the Company’s knowledge,
there exist no facts or circumstances (including without limitation any required approvals or
waivers or any circumstances that may delay or prevent the obtaining of accountant’s consents) that
reasonably could be expected to prohibit the preparation and filing of a registration statement on
Form S-3 that will be available for the resale of the Shares by the Purchaser.

          4.3 Authorized Capital Stock. The Company had duly authorized and validly issued
outstanding capitalization as set forth in the “Capitalization” section of the Private Placement
Memorandum (as defined below) as of the date set forth therein; the issued and outstanding shares
of Common Stock (a) have been duly authorized and validly issued, (b) are fully paid and
nonassessable, (c) have been issued in compliance with all federal and state securities laws and,
(d) except for those granted therein by the holders thereof (other than the Company), are free and
clear of all security interests, liens, pledges, mortgages or other encumbrances, whether arising
voluntarily, involuntarily or by operation of law (“Liens”), (e)

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were not issued in violation of or subject to any preemptive rights or other rights to
subscribe for or purchase securities, and (f) conform in all material respects to the description
thereof contained in the confidential private placement memorandum dated May 26, 2009 (together
with any exhibits, amendments and supplements thereto and all information incorporated by reference
therein, the “Private Placement Memorandum”). Except as set forth in the Private Placement
Memorandum and except for the stock options or other equity incentives that have been issued since
May 26, 2009, the Company does not have outstanding any options to purchase, or any preemptive
rights or other rights to subscribe for or to purchase, any securities or obligations convertible
into, or any contracts or commitments to issue or sell, shares of its capital stock or any such
options, rights, convertible securities or obligations. With respect to each of the Subsidiaries,
(i) all of the issued and outstanding shares of such Subsidiary’s capital stock (or equity
interests in the case of non-corporate entities) have been duly authorized and validly issued, are
fully paid and nonassessable, have been issued in compliance with all federal and state securities
laws, were not issued in violation of or subject to any preemptive rights or other rights to
subscribe for or purchase securities, and (ii) there are no outstanding options to purchase, or any
preemptive rights or other rights to subscribe for or to purchase, any securities or obligations
convertible into, or any contracts or commitments to issue or sell, shares of such Subsidiary’s
capital stock or any such options, rights, convertible securities or obligations.

          4.4 Rights Agreement. The Rights Agreement, dated as of December 30, 2008, between
the Company and Computershare Trust Company, N.A., as Rights Agent, (the “Rights
Agreement”), has been duly authorized, executed and delivered by the Company. The Rights have
been duly authorized by the Company and, when issued upon issuance of the Shares, will be validly
issued. The Series A Junior Participating Preferred Stock, par value $0.01 per share (the
“Rights Preferred”), has been duly authorized by the Company and validly reserved for
issuance. Upon the exercise of the Rights in accordance with the terms of the Rights Agreement,
the Rights Preferred, Common Stock or other securities issued pursuant to the Rights Agreement will
be validly issued, fully paid and non-assessable.

          4.5 Issuance, Sale and Delivery of the Shares. The issuance and sale of the Shares
have been duly authorized by the Company and the Shares, when issued, delivered and paid for in the
manner set forth in this Agreement, will be validly issued, fully paid and nonassessable, and will
conform in all material respects to the description thereof set forth in the Private Placement
Memorandum. No preemptive rights or other rights to subscribe for or purchase any shares of Common
Stock of the Company exist with respect to the issuance and sale of the Shares by the Company
pursuant to this Agreement that have not been waived or complied with. No stockholder of the
Company has any right (which has not been waived or has not expired by reason of lapse of time
following notification of the Company’s intention to file the Registration Statement (as
hereinafter defined)) to require the Company to register the sale of any capital stock owned by
such stockholder under the Registration Statement. No further approval or authority of the
Company’s stockholders or the Board of Directors of the Company will be required for the issuance
and sale of the Shares to be sold by the Company as contemplated herein.

          4.6 Due Execution, Delivery and Performance of the Agreements. The Company has full
legal right, corporate power and authority to enter into this Agreement and perform the
transactions contemplated hereby. This Agreement has been duly authorized,

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executed and delivered by the Company. This Agreement constitutes a legal, valid and binding
agreement of the Company, enforceable against the Company in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws and judicial decisions of general application relating to or affecting the
enforcement of creditors’ rights generally and the application of general equitable principles
relating to the availability of remedies, and except as rights to indemnity or contribution,
including but not limited to, indemnification provisions set forth in Section 7.3 of this
Agreement, may be limited by federal or state securities law or the public policy underlying such
laws. The execution and performance of this Agreement by the Company and the consummation of the
transactions herein contemplated will not violate any provision of the Restated Certificate of
Incorporation or Restated Bylaws of the Company or the organizational documents of any Subsidiary
and will not result in the creation of any Liens upon any assets of the Company or any Subsidiary
pursuant to the terms or provisions of, or will not conflict with, result in the breach or
violation of, or constitute, either by itself or upon notice or the passage of time or both, a
default under any agreement, mortgage, deed of trust, lease, franchise, license, indenture, permit
or other instrument to which any of the Company or any Subsidiary is a party or by which any of the
Company or any Subsidiary or their respective properties may be bound or affected and in each case
that would have or reasonably be expected to have a Material Adverse Effect, any statute or any
authorization, judgment, decree, order, rule or regulation of any court or any regulatory body,
administrative agency or other governmental agency or body applicable to the Company or any
Subsidiary or any of their respective properties. No consent, approval, authorization or other
order of any court, regulatory body, administrative agency or other governmental agency or body is
required for the execution and delivery of this Agreement by the Company or the consummation by the
Company of the transactions contemplated by this Agreement, except for compliance with the Blue Sky
laws and federal securities laws applicable to the offering of the Shares and such as may be
required by the bylaws and rules of the Financial Industry Regulatory Authority, Inc. or The New
York Stock Exchange, Inc. For the purposes of this Agreement, the term “Material Adverse
Effect” shall mean any material adverse effect on the business, properties, assets, operations,
results of operations, condition (financial or otherwise) or prospects of the Company and its
Subsidiaries, taken as a whole, or on the transactions contemplated hereby or by the agreements
and instruments to be entered into in connection herewith or therewith, or on the authority or
ability of the Company to perform its obligations hereunder.

          4.7 Accountants. Ernst & Young LLP, who has reported on the consolidated financial
statements and schedules contained in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2008 (which are incorporated by reference into the Private Placement Memorandum), are
registered independent public accountants as required by the Securities Act and the rules and
regulations promulgated thereunder (the “1933 Act Rules and Regulations”) and by the rules
of the Public Accounting Oversight Board.

          4.8 No Defaults or Consents. Neither the execution, delivery and performance of this
Agreement by the Company nor the consummation of any of the transactions contemplated hereby
(including, without limitation, the issuance and sale by the Company of the Shares) will give rise
to a right to terminate or accelerate the due date of any payment due under, or conflict with or
result in the breach of any term or provision of, or constitute a default (or an event that with
notice or lapse of time or both would constitute a default) under, except such

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defaults that individually or in the aggregate would neither cause nor reasonably be expected
to cause a Material Adverse Effect, or require any consent or waiver under, or result in the
execution or imposition of any Liens upon any properties or assets of the Company or its
Subsidiaries pursuant to the terms of, any indenture, mortgage, deed of trust or other agreement or
instrument to which the Company or any of its Subsidiaries is a party or by which either the
Company or its Subsidiaries or any of its or their properties or businesses is bound, or any
franchise, license, permit, judgment, decree, order, statute, rule or regulation applicable to the
Company or any of its Subsidiaries or violate any provision of the charter or by-laws of the
Company or any of its Subsidiaries, except for such consents or waivers that have already been
obtained and are in full force and effect.

          4.9 Contracts. The material contracts to which the Company is a party that have been
filed as exhibits to the SEC Documents (as defined in Section 4.2020), have been duly and
validly authorized, executed and delivered by the Company and constitute the legal, valid and
binding agreements of the Company, enforceable by and against it in accordance with their
respective terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws and judicial decisions of general
application relating to enforcement of creditors’ rights generally, and the application of general
equitable principles relating to or affecting the availability of remedies, and except as rights to
indemnity or contribution may be limited by federal or state securities laws or the public policy
underlying such laws.

          4.10 No Actions. There are no legal or governmental actions, suits or proceedings
pending or, to the Company’s knowledge, threatened against the Company or any Subsidiary before or
by any court, regulatory body or administrative agency or any other governmental agency or body,
domestic or foreign, which actions, suits or proceedings, individually or in the aggregate, would
have or reasonably be expected to have a Material Adverse Effect; and no labor disturbance by the
employees of the Company exists or, to the Company’s knowledge, is imminent, that would have or
reasonably be expected to have a Material Adverse Effect. Neither the Company nor any Subsidiary
is a party to or subject to the provisions of any injunction, judgment, decree or order of any
court, regulatory body, administrative agency or other governmental agency or body that would have
or reasonably be expected to have a Material Adverse Effect.

          4.11 Properties. The Company and each Subsidiary has good and valid title to all items
of tangible personal property described as owned by it in the consolidated financial statements
included in the Private Placement Memorandum that are material to the businesses of the Company and
its Subsidiaries taken as a whole, in each case free and clear of all Liens except for those
disclosed in the SEC Documents, or those, individually or in the aggregate, that (i) do not
materially interfere with the use made and proposed to be made of such property by the Company and
its Subsidiaries or (ii) would neither have nor reasonably be expected to have a Material Adverse
Effect. Any real property described in the Private Placement Memorandum as being leased by the
Company or any Subsidiary that is material to the business of the Company and its Subsidiaries,
taken as a whole, is held by them under valid, existing and enforceable leases, except those that,
individually or in the aggregate, (A) do not materially interfere with the use made or proposed to
be made of such property by the Company and its Subsidiaries or (B) would neither have nor
reasonably be expected to have a Material Adverse Effect.

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          4.12 No Material Adverse Change. Except as disclosed in the Private Placement
Memorandum or the SEC Documents, since December 31, 2008 (i) the Company and its Subsidiaries have
not incurred any material liabilities or obligations, indirect or contingent, or entered into any
material agreement or other transaction that is not in the ordinary course of business or that
could reasonably be expected to result in a material reduction in the future earnings of the
Company; (ii) the Company and its Subsidiaries have not sustained any material loss or material
interference with their businesses or properties from fire, flood, windstorm, accident or other
calamity not covered by insurance; (iii) the Company and its Subsidiaries have not paid or declared
any dividends or other distributions with respect to their capital stock and none of the Company or
any Subsidiary is in material default in the payment of principal or interest on any outstanding
long-term debt obligations; (iv) there has not been any change in the capital stock of the Company
or its Subsidiaries other than the sale of the Shares hereunder and shares or options issued
pursuant to employee equity incentive plans or purchase plans approved by the Company’s Board of
Directors, or indebtedness material to the Company or its Subsidiaries (other than in the ordinary
course of business and any required scheduled payments); and (v) there has not occurred any event
that has caused or would reasonably be expected to cause a Material Adverse Effect.

          4.13 Amendment to Credit Facility. The Company has consummated the Amendment to
Credit Facility as described in the Private Placement Memorandum.

          4.14 Intellectual Property. Except as disclosed in the Private Placement Memorandum
or the SEC Documents, (i) the Company and each Subsidiary owns or has obtained valid and
enforceable licenses or options for the inventions, patent applications, patents, trademarks (both
registered and unregistered), trade names, copyrights and trade secrets necessary for the conduct
of its respective business as currently conducted (collectively, the “Intellectual
Property”); and (ii) (a) there are no third parties who have any ownership rights or other
claims to any Intellectual Property that is owned by, or has been licensed to, the Company or any
Subsidiary for the products and services of the Company and its Subsidiaries described in the
Private Placement Memorandum or the SEC Documents that would preclude the Company or any Subsidiary
from conducting its business as currently conducted and have or reasonably be expected to have a
Material Adverse Effect, except for the ownership rights of the owners of the Intellectual Property
licensed or optioned by the Company or any Subsidiary; (b) there are currently no sales of any
products or the provision of services that would constitute an infringement by third parties of any
Intellectual Property owned, licensed or optioned by the Company or any Subsidiary, which
infringement would have or reasonably be expected to have a Material Adverse Effect; (c) there is
no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others
challenging the rights of the Company or any Subsidiary in or to any Intellectual Property owned,
licensed or optioned by the Company or any Subsidiary, other than claims that would neither have
nor reasonably be expected to have a Material Adverse Effect; (d) there is no pending or, to the
Company’s knowledge, threatened action, suit, proceeding or claim by others challenging the
validity or scope of any Intellectual Property owned, licensed or optioned by the Company or any
Subsidiary, other than actions, suits, proceedings and claims that would neither have nor
reasonably be expected to have a Material Adverse Effect; and (e) there is no pending or, to the
Company’s knowledge, threatened action, suit, proceeding or claim by others that the Company or any
Subsidiaries infringes or otherwise violates any patent, trademark, copyright, trade secret or
other proprietary right of

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others, other than actions, suits, proceedings and claims that would neither have nor
reasonably be expected to have a Material Adverse Effect.

          4.15 Compliance. Neither the Company nor any of its Subsidiaries have been advised,
nor do any of them have any reason to believe, that it is not conducting business in compliance
with all applicable laws, rules and regulations of the jurisdictions in which it is conducting
business, including, without limitation, all applicable local, state and federal environmental laws
and regulations, except where failure to be so in compliance would neither have nor reasonably be
expected to have a Material Adverse Effect.

          4.16 Taxes. The Company and each Subsidiary has filed all required tax returns, and
all such tax returns are true, correct and complete in all material respects. The Company and each
Subsidiary has fully paid all taxes shown as due thereon. None of the Company or any Subsidiary has
knowledge of any deficiency or assessment with respect to liabilities for any material taxes that
has been or might be asserted or threatened against it, which has not been fully paid or finally
settled, unless being contested in good faith through appropriate proceedings and for which
adequate reserves are reflected in the Company’s consolidated financial statements. All tax
liabilities accrued through the date hereof have been adequately reserved for in the Company’s
consolidated financial statements.

          4.17 Transfer Taxes. On the Closing Date, all stock transfer or other taxes (other
than income taxes) that are required to be paid in connection with the transactions contemplated by
this Agreement will be, or will have been, fully paid by the Company and all laws imposing such
taxes will be or will have been fully complied with.

          4.18 Investment Company. The Company is not an “investment company” or “promoter” or
“principal underwriter” for an investment company, within the meaning of the Investment Company Act
of 1940, as amended, and the rules and regulations of the Securities and Exchange Commission (the
“Commission”) promulgated thereunder.

          4.19 Offering Materials. None of the Company, its directors and officers has
distributed or will distribute prior to the Closing Date any offering material, including, without
limitation, any “free writing prospectus” (as defined in Rule 405 promulgated under the Securities
Act), in connection with the offering and sale of the Shares other than the Private Placement
Memorandum or any amendment or supplement hereto. The Company has not in the past nor will it
hereafter take any action independent of the Placement Agent to sell, offer for sale or solicit
offers to buy any securities of the Company that could result in the initial sale of the Shares not
being exempt from the registration requirements of Section 5 of the Securities Act.

          4.20 Insurance. The Company maintains insurance underwritten by insurers of
recognized financial responsibility, of the types and in the amounts that the Company reasonably
believes is adequate for its business, including, but not limited to, insurance covering all real
and personal property owned or leased by the Company against theft, damage, destruction, acts of
vandalism and all other risks customarily insured against, with such deductibles as are customary
for companies in the same or similar business, all of which insurance is in full force and effect.

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          4.21 Additional Information. The information contained in the following documents
(the “SEC Documents”), which the Placement Agent has furnished to the Purchaser (or will
furnish prior to the Closing) or which are otherwise available through the Commission’s EDGAR
system, as of the dates thereof, did not contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances in which they were made, not misleading:

     (a) the Company’s Annual Report on Form 10-K for the fiscal year ended December
31, 2008;

     (b) the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended
March 31, 2009;

     (c) the Company’s Definitive Proxy Statement for the Annual Meeting of
Stockholders held on May 27, 2009;

     (d) the Company’s Schedule TO filed on April 9 and April 24, 2009;

     (e) the Company’s Current Reports on Form 8-K filed on January 5, January 5,
January 29, March 4 and April 1, 2009;

     (f) the description of the Company’s common stock contained in its Registration
Statement on Form 8-A filed on October 17, 1994, as amended by the Company’s Current
Reports on Form 8-K filed with the Commission on March 8, 2002, December 20, 2007
and February 28, 2008, respectively;

     (g) all other documents, if any, filed by the Company (excluding the Current
Reports on Form 8-K or the portions thereof furnished under Item 2.02 or Item 7.01
of Form 8-K) with the Commission since December 31, 2008 pursuant to the reporting
requirements of the Exchange Act.

     The SEC Documents incorporated by reference in the Private Placement Memorandum or attached as
exhibits thereto, at the time they became effective or were filed with the Commission, as the case
may be, complied in all material respects with the requirements of the Exchange Act, as applicable,
and the rules and regulations of the Commission thereunder (the “1934 Act Rules and
Regulations” and, together with the 1933 Act Rules and Regulations, the “Rules and
Regulations”). In the past 12 calendar months, the Company has filed all documents required to
be filed by it prior to the date hereof with the Commission pursuant to the reporting requirements
of the Exchange Act and the 1934 Act Rules and Regulations.

          4.22 Price of Common Stock. The Company has not taken, and will not take, directly or
indirectly, any action designed to cause or result in, or that has constituted or that might
reasonably be expected to constitute, the stabilization or manipulation of the price of the shares
of the Common Stock to facilitate the sale or resale of the Shares.

          4.23 Use of Proceeds. The Company shall use the proceeds from the sale of the Shares
as described under “Use of Proceeds” in the Private Placement Memorandum.

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          4.24 Non-Public Information. Except as disclosed in the Private Placement Memorandum,
the Company has not disclosed to the Purchaser information that would constitute material
non-public information as of the Closing Date other than the existence of the transactions
contemplated hereby.

          4.25 Use of Purchaser Name. Except as otherwise required by applicable law or
regulation, the Company shall not use the Purchaser’s name or the name of any of its Affiliates (as
defined below) in any advertisement, announcement, press release or other similar public
communication unless it has received the prior written consent of the Purchaser for the specific
use contemplated, which consent shall not be unreasonably withheld or delayed. For purposes of
this Agreement, “Affiliate” means, with respect to any natural person, firm, partnership,
association, corporation, limited liability company, company, trust, entity, public body or
government (a “Person”), any Person that, directly or indirectly, controls, is controlled
by, or is under common control with, such Person. The term “control” (including the terms
“controlled by” and “under common control with”) as used in this definition means the possession,
directly or indirectly, of the power to direct or cause the direction of management and policies of
a Person, whether through the ownership of voting securities, by contract or otherwise. With
respect to any natural person, the term “Affiliate” means (i) the spouse or children (including
those by adoption) and siblings of such Person; and any trust whose primary beneficiary is such
Person, such Person’s spouse, such Person’s siblings and/or one or more of such Person’s lineal
descendants, (ii) the legal representative or guardian of such Person or of any such immediate
family member in the event such Person or any such immediate family member becomes mentally
incompetent and (iii) any Person controlled by or under common control with any one or more of such
Person and the Persons described in clauses (i) or (ii) preceding.

          4.26 Related-Party Transactions. No transaction has occurred between or among the
Company, on the one hand, and its Affiliates, officers or directors on the other hand, that is
required to have been described under applicable securities laws and the rules and regulations
promulgated thereunder in its Exchange Act filings and is not so described in such filings.

          4.27 Off-Balance Sheet Arrangements. There is no transaction, arrangement or other
relationship between the Company and an unconsolidated or other off-balance sheet entity that is
required to be disclosed by the Company in its Exchange Act filings and is not so disclosed or that
otherwise would have or would reasonably be expected to have a Material Adverse Effect. There are
no such transactions, arrangements or other relationships with the Company that may create any
material contingencies or liabilities that are not otherwise disclosed by the Company in its
Exchange Act filings.

          4.28 Governmental Permits, Etc. The Company and each Subsidiary has all franchises,
licenses, certificates and other authorizations from federal, state or local governments or
governmental agencies, departments or bodies that are currently necessary for the operation of the
business of the Company and its Subsidiaries as currently conducted, except where the failure to
possess currently such franchises, licenses, certificates and other authorizations would neither
have nor reasonably be expected to have a Material Adverse Effect. Neither the Company nor any
Subsidiary has received any notice of proceedings relating to the revocation or

11

 

modification of any such permit that, if the subject of an unfavorable decision, ruling or
finding, would have or would reasonably be expected to have a Material Adverse Effect.

          4.29 Financial Statements. The consolidated financial statements of the Company and
the related notes and schedules thereto included in its Exchange Act filings present fairly, in all
material respects, the financial condition of the Company and its consolidated Subsidiaries as of
the dates thereof and the results of operations, stockholders’ equity and cash flows of the Company
and its consolidated Subsidiaries at the dates and for the periods covered thereby. Such financial
statements and the related notes and schedules thereto have been prepared in accordance with
generally accepted accounting principles consistently applied throughout the periods involved
(except as otherwise noted therein) and all adjustments necessary for a fair presentation of
results for such periods have been made; provided, however, that the unaudited financial statements
are subject to normal year-end audit adjustments (which are not expected to be material) and do not
contain all footnotes required under generally accepted accounting principles.

          4.30 Listing Compliance. The Company is in compliance with the requirements of The
New York Stock Exchange for continued listing of the Common Stock thereon. The Company has taken
no action designed to, or likely to have the effect of, terminating the registration of the Common
Stock under the Exchange Act or the listing of the Common Stock on The New York Stock Exchange, nor
has the Company received any notification that the Commission or The New York Stock Exchange is
currently contemplating terminating such registration or listing. The transactions contemplated by
this Agreement will not contravene the rules and regulations of The New York Stock Exchange. The
Company will comply with all requirements of The New York Stock Exchange with respect to the
issuance of the Shares and shall cause the Shares to be listed on The New York Stock Exchange and
listed on any other exchange on which the Common Stock is listed on or before (subject to official
notice of issuance) the Closing Date.

          4.31 Internal Accounting Controls. The Company maintains a system of internal
accounting controls sufficient to provide reasonable assurances that (i) transactions are executed
in accordance with management’s general or specific authorization; (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain accountability for assets; (iii) access to assets is
permitted only in accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. The Company maintains disclosure
controls and procedures (as defined in Rules 13a-15 and 15d-15 under the Exchange Act) that are
designed to ensure that material information relating to the Company is made known to the Company’s
principal executive officer and the Company’s principal financial officer or persons performing
similar functions. Except as set forth in the Private Placement Memorandum or the SEC Documents,
there is and has been no failure on the part of the Company, or to its knowledge after due inquiry,
any of the Company’s directors or officers, in their capacities as such, to comply with any
applicable provisions of the Sarbanes Oxley Act of 2002 and the rules and regulations promulgated
therewith (the “Sarbanes Oxley Act”). Each of the principal executive officer and the
principal financial officer of the Company (or each former principal executive officer of the
Company and each former principal financial officer of the Company as

12

 

applicable) has made all certifications required by Sections 302 and 906 of the Sarbanes-Oxley
Act with respect to all reports, schedules, forms, statements and other documents required to be
filed by it with the Commission. For purposes of the preceding sentence, “principal executive
officer” and “principal financial officer” shall have the meanings given to such terms in the
Sarbanes-Oxley Act. The Company has taken all reasonable actions necessary to ensure that it is in
compliance with all provisions of the Sarbanes-Oxley Act that are in effect and with which the
Company is required to comply.

          4.32 Foreign Corrupt Practices. Neither the Company nor any Subsidiary has, nor, to
the knowledge of the Company, has any director, officer, agent or employee, in the course of its
actions for, or on behalf of, the Company (i) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii)
made any direct or indirect unlawful payment to any foreign or domestic government official or
employee from corporate funds; (iii) violated or is in violation of any provision of the U.S.
Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic government
official or employee.

          4.33 Employee Relations. Neither the Company nor any Subsidiary is a party to any
collective bargaining agreement or employs any member of a union (other than with regards to
statutory unions required under foreign laws and regulations). The Company and each Subsidiary
believe that their relations with their employees are good. No executive officer of the Company
(as defined in Rule 501(f) promulgated under the Securities Act) has notified the Company that such
officer intends to leave the Company or otherwise terminate such officer’s employment with the
Company. No executive officer of the Company is, or is now expected to be, in violation of any
material term of any employment contract, confidentiality, disclosure or proprietary information
agreement, non-competition agreement or any other agreement or any restrictive covenant, and the
continued employment of each such executive officer does not subject the Company or any Subsidiary
to any liability with respect to any of the foregoing matters.

          4.34 ERISA. Each material employee benefit plan, within the meaning of Section 3(3)
of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), that is
maintained, administered or contributed to by the Company or any of its Affiliates for employees or
former employees of the Company and its Subsidiaries, or to which the Company or any of its
Subsidiaries has any liability thereunder (a “Company Benefit Plan”), has been maintained in
material compliance with its terms and the requirements of any applicable statutes, orders, rules
and regulations, including but not limited to ERISA and the Internal Revenue Code of 1986, as
amended (the “Code”); no action, dispute, claim, suit or proceeding is pending or, to the
knowledge of the Company, threatened with respect to any Company Benefit Plan (other than claims
for benefits in the ordinary course) that could result in a material liability to the Company; no
prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has
occurred that could result in a material liability to the Company with respect to any such plan
excluding transactions effected pursuant to a statutory or administrative exemption; and for each
such plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA,
no “accumulated funding deficiency” as defined in Section 412 of the Code has been incurred,
whether or not waived, and the fair market value of the assets of each

13

 

such plan (excluding for these purposes accrued but unpaid contributions) exceeds the present
value of all benefits accrued under such plan determined using reasonable actuarial assumptions.

          4.35 Environmental Matters. There has been no storage, disposal, generation,
manufacture, transportation, handling or treatment of toxic wastes, hazardous wastes or hazardous
substances by the Company or to its knowledge, any Subsidiary (or, to the knowledge of the Company,
any of their predecessors in interest) at, upon or from any of the property now or previously owned
or leased by the Company or any Subsidiary in material violation of any applicable law, ordinance,
rule, regulation, order, judgment, decree or permit or that would require remedial action under any
applicable law, ordinance, rule, regulation, order, judgment, decree or permit; there has been no
material spill, discharge, leak, emission, injection, escape, dumping or release of any kind into
such property or into the environment surrounding such property of any toxic wastes, medical
wastes, solid wastes, hazardous wastes or hazardous substances due to or caused by the Company or
any Subsidiary or with respect to which the Company or any Subsidiary have knowledge; the terms
“hazardous wastes”, “toxic wastes”, “hazardous substances”, and “medical wastes” shall have the
meanings specified in any applicable local, state, federal and foreign laws or regulations with
respect to environmental protection.

          4.36 Integration; Other Issuances of Shares. The Company has not issued any shares of
Common Stock or shares of any series of preferred stock or other securities or instruments
convertible into, exchangeable for or otherwise entitling the holder thereof to acquire shares of
Common Stock that would be integrated with the sale of the Shares to the Purchaser for purposes of
the Securities Act or of any applicable stockholder approval provisions, including, without
limitation, under the rules and regulations of any exchange or automated quotation system on which
any of the securities of the Company are listed or designated. Assuming the accuracy of the
representations and warranties of the Purchasers to the Company as set forth herein, the offer and
sale of the Shares and related Rights by the Company to the Purchasers pursuant to the Agreements
will be exempt from the registration requirements of the Securities Act.

          4.37 Disclosure. All disclosure provided to the Purchaser, including, without
limitation, the Private Placement Memorandum, regarding the Company, its business and the
transactions contemplated hereby, furnished by or on behalf of the Company, were, as of the date
made, true and correct and did not contain any untrue statement of material fact or omit to state
any material fact necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading.

          4.38 No New Issuances and Registrations. The Company agrees that until such time as
the Commission declares the Registration Statement effective, it will not, and it will cause its
directors, officers and Affiliates not to, directly or indirectly, grant, issue, sell, pledge or
otherwise dispose of any shares of Common Stock, or securities convertible into or exchangeable for
Common Stock, or file a registration statement with respect to the registration of any such newly
issued shares of Common Stock or other securities. Notwithstanding the above, the restrictions
set forth in this Section 4.38 shall not apply to issuances by the Company of (i)
securities required to be issued pursuant to contractual obligations of the Company in effect as of
the date hereof; (ii) securities issued on a pro rata basis to all holders of a class of
outstanding

14

 

equity securities of the Company; (iii) securities issued in connection with a strategic
partnership, licensing, joint venture, collaboration, lending or other similar arrangements, or in
connection with the acquisition or license by the Company of any business, products or
technologies, so long as the aggregate amount of such issuances pursuant to this clause (iii) does
not exceed 10% of the Company’s outstanding capital stock measured as of the closing of the sale of
the Shares, including the Shares; and (iv) equity securities issued pursuant to employee
compensation, incentive, benefit or purchase plans in effect as of the date hereof or subsequently
adopted by the Company’s Board of Directors. Notwithstanding the foregoing, the Company shall not,
and shall cause its directors, officers and Affiliates not to, sell, offer for sale or solicit
offers to buy any shares of Common Stock or shares of any series of preferred stock or other
securities or instruments convertible into, exchangeable for or otherwise entitling the holder
thereof to acquire shares of Common Stock that would be integrated with the sale of the Shares to
the Purchaser for purposes of the Securities Act.

          4.39 No Undisclosed Events, Liabilities, Developments or Circumstances. Except for
the transactions contemplated hereby, which will be disclosed in the Press Release (as defined in
Section 7.1(i) below), no event, liability, development or circumstance has occurred or
exists, or is contemplated to occur, with respect to the Company or its Subsidiaries or their
respective business, properties, prospects, operations or financial condition, that would be
required to be disclosed by the Company under applicable securities laws on a registration
statement on Form S-1 filed with the SEC relating to an issuance and sale by the Company of its
Common Stock and which has not been publicly announced.

     5. Representations, Warranties and Covenants of the Purchaser. The Purchaser
represents and warrants to, and covenants with, the Company that:

          5.1 Experience. (i) The Purchaser is knowledgeable, sophisticated and experienced in
financial and business matters, in making, and is qualified to make, decisions with respect to
investments in shares representing an investment decision like that involved in the purchase of the
Shares, including, without limitation, investments in securities issued by the Company and
comparable entities, and the Purchaser has undertaken an independent analysis of the merits and the
risks of an investment in the Shares and has reviewed carefully the Private Placement Memorandum,
based on the Purchaser’s own financial circumstances; (ii) the Purchaser has had the opportunity to
request, receive, review and consider all information it deems relevant in making an informed
decision to purchase the Shares and to ask questions of, and receive answers from, the Company
concerning such information; (iii) the Purchaser is acquiring the number of Shares set forth in
Section 2 above in the ordinary course of its business and for its own account and with no
present intention of distributing any of such Shares or any arrangement or understanding with any
other Persons regarding the distribution of such Shares (this representation and warranty not
limiting the Purchaser’s right to resell the Shares pursuant to the Registration Statement or in
compliance with the Securities Act and the Rules and Regulations, or, other than with respect to
any claims arising out of a breach of this representation and warranty, the Purchaser’s right to
indemnification under Section 7.3); (iv) the Purchaser will not, directly or indirectly,
offer, sell, pledge (other than pledges in connection with bona fide margin accounts), transfer or
otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge
of (other than pledges in connection with bona fide margin accounts)) any of the Shares, nor will
the Purchaser engage in any short sale that

15

 

results in a disposition of any of the Shares by the Purchaser, except in compliance with the
Securities Act and the Rules and Regulations and any applicable state securities laws as currently
interpreted on the date hereof; (v) the Purchaser will comply with the prospectus delivery
requirements of the Securities Act as applicable to it in connection with resales of the Shares
pursuant to the Registration Statement or with the applicable requirements of any exemption from
the Securities Act; (vi) the Purchaser has completed or caused to be completed the Registration
Statement Questionnaire attached hereto as part of Appendix I, for use in preparation of
the Registration Statement, and the answers thereto are true and correct as of the date hereof and
will be true and correct as of the effective date of the Registration Statement, unless the
Purchaser notifies the Company otherwise, and the Purchaser will notify the Company immediately of
any material change in any such information provided in the Registration Statement Questionnaire
until such time as the Purchaser has sold all of its Shares or until the Company is no longer
required to keep the Registration Statement effective; (vii) the Purchaser has, in connection with
its decision to purchase the number of Shares set forth in Section 2 above, relied solely
upon the SEC Documents, the Private Placement Memorandum and the representations and warranties of
the Company contained herein, and the Purchaser has not relied on the Placement Agent in
negotiating the terms of its investment in the Shares and, in making a decision to purchase the
Shares, the Purchaser has not received or relied on any communication, investment advice or
recommendation from the Placement Agent; (viii) the Purchaser has had an opportunity to discuss
this investment with representatives of the Company and ask questions of them but has not relied on
any communication (other than the Private Placement Memorandum) or recommendation from any
representative of the Company and (ix) the Purchaser is an “accredited investor” (an
“Accredited Investor”) within the meaning of Rule 501 under the Securities Act.

          5.2 Reliance on Exemptions. The Purchaser understands that the Shares are being
offered and sold to it in reliance upon specific exemptions from the registration requirements of
the Securities Act, the Rules and Regulations and state securities laws and that the Company is
relying upon the truth and accuracy of, and the Purchaser’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of the Purchaser set forth herein in
order to determine the availability of such exemptions and the eligibility of the Purchaser to
acquire the Shares.

          5.3 Confidentiality. For the benefit of the Company, the Purchaser previously agreed
with the Placement Agent to keep confidential all information concerning this private placement.
The Purchaser is prohibited from reproducing or distributing this Agreement, the Private Placement
Memorandum or any other offering materials or other information provided by the Company in
connection with the Purchaser’s consideration of its investment in the Company, in whole or in
part, or divulging or discussing any of their contents, except to its financial, investment or
legal advisors in connection with its proposed investment in the Shares. Further, the Purchaser
understands that the existence and nature of all conversations and presentations, if any, regarding
the Company and this offering must be kept strictly confidential. The Purchaser understands that
the federal securities laws impose restrictions on trading based on information regarding this
offering. In addition, the Purchaser hereby acknowledges that unauthorized disclosure of
information regarding this offering may result in a violation of Regulation FD. This obligation
will terminate upon the filing by the Company of the Press Release (as defined below), which shall
include any material, non-public information provided to

16

 

the Purchaser prior to the date hereof. In addition to the above, the Purchaser shall
maintain in confidence the receipt and content of any notice of a Suspension (as defined in
Section 5.9 below). The foregoing agreements shall not apply to any information that is or
becomes publicly available through no fault of the Purchaser, or that the Purchaser is legally
required to disclose; provided, however, that if the Purchaser is requested or
ordered to disclose any such information pursuant to any court or other government order or any
other applicable legal procedure, it shall provide the Company with prompt notice of any such
request or order in time sufficient to enable the Company to seek an appropriate protective order.

          5.4 Investment Decision. The Purchaser understands that nothing in the Agreement or
any other materials presented to the Purchaser in connection with the purchase and sale of the
Shares constitutes legal, tax or investment advice. The Purchaser has consulted such legal, tax
and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in
connection with its purchase of the Shares.

          5.5 Risk of Loss. The Purchaser understands that its investment in the Shares
involves a significant degree of risk, including a risk of total loss of the Purchaser’s
investment, and the Purchaser has full cognizance of and understands all of the risk factors
related to the Purchaser’s purchase of the Shares, including, but not limited to, those set forth
and incorporated by reference under the caption “Risk Factors” in the Private Placement Memorandum.
The Purchaser understands that the market price of the Common Stock has been volatile and that no
representation is being made as to the future value of the Common Stock.

          5.6 Legend; Legend Removal. The Purchaser understands that, until such time as the
Registration Statement has been declared effective, or the Shares are sold pursuant to Rule 144
under the Securities Act without any restriction as to the number of securities as of a particular
date that can then be immediately sold, the Shares will bear a restrictive legend in substantially
the following form:

“THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.
THE SHARES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH
ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER
JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM
REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE
REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS
OR THE COMPANY HAS

17

 

RECEIVED FROM THE HOLDER REASONABLE ASSURANCE THAT THE SHARES CAN BE
SOLD, ASSIGNED OR TRANSFERRED PURSUANT TO RULE 144 UNDER THE
SECURITIES ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN
OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

     The legend set forth above shall be removed and the Company shall issue a certificate without
such legend to the holder of the Shares upon which it is stamped or issue such Shares to such
holder by electronic delivery at the applicable balance account at The Depository Trust Company
(“DTC”), if, unless otherwise required by state securities laws, (i) the Registration
Statement covering registered resales of such Shares has been declared effective under the
Securities Act and such Registration Statement remains effective under such Act, or (ii) in
connection with any sale, assignment or other transfer of Shares that is not to be effected
pursuant to such Registration Statement, such holder first provides the Company with an opinion of
counsel reasonably satisfactory to the Company, in a generally acceptable form, to the effect that
such sale, assignment or transfer of the Shares may be made without registration under the
applicable requirements of the Securities Act and that such legend is no longer required, or (iii)
such holder first provides the Company with reasonable assurance that the Shares can be sold,
assigned or transferred pursuant to Rule 144. The Company shall be responsible for the fees of its
transfer agent and all DTC fees associated with such issuance. If the Company shall fail for any
reason or for no reason to issue to the holder of the Shares within five (5) Trading Days (as
defined below) after the occurrence of any of (i) through (iii) above and following the delivery by
such holder to the Company in accordance with Section 10 hereof or to the Company’s
transfer agent (with a copy delivered to the Company in accordance with Section 10 hereof)
of a certificate representing Shares issued with a restrictive legend, a certificate without such
legend to such holder or to issue such Shares to such holder by electronic delivery at the
applicable balance account at DTC, and if on or after such Trading Day such holder purchases (in an
open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale
by such holder of such Shares that the holder anticipated receiving without legend from the Company
(a “Buy-In”), then the Company shall, within five (5) Trading Days after such holder’s
request and in such holder’s discretion, either (i) pay cash to such holder in an amount equal to
such holder’s total purchase price (including brokerage commissions, if any) for the shares of
Common Stock actually purchased by such holder (the “Buy-In Price”), at which point the
Company’s obligation to deliver such unlegended Shares shall terminate and such holder shall
transfer to the Company title to such Shares and hereby agrees to execute and deliver to the
Company such documentation as the Company may reasonably request to reflect such transfer, or (ii)
promptly honor its obligation to deliver to the holder such unlegended Shares as provided above and
pay cash to the holder in an amount equal to the excess (if any) of the Buy-In Price over the
product of (A) such number of shares of Common Stock, times (B) the closing bid price of the Common
Stock on the date such legend-free Shares were required to have been delivered. For purposes of the
Agreement, “Trading Day” means a day on which the Common Stock is traded on The New York
Stock Exchange or, if the Common Stock is not then traded on The New York Stock Exchange, the
principal market or exchange on which the Common Stock is then listed or quoted for trading.

18

 

     The Company acknowledges and agrees that, so long as Shares owned by the Purchaser remain
“restricted securities” within the meaning of Rule 144 and have not been sold pursuant to the
Registration Statement, the Purchaser may from time to time pledge some or all of such Shares
pursuant to a bona fide margin agreement with a registered broker-dealer that is a qualified
institutional buyer as defined in Rule 144A under the Securities Act (a “QIB”) or an
Accredited Investor or grant a security interest in some or all of such Shares to a financial
institution that is a QIB or an Accredited Investor (each such pledgee or transferee, a
“Qualifying Institution”), provided in each case such Qualifying Institution agrees to be
bound by the provisions of this Agreement (including without limitation complying with the
restrictions on transfer set forth herein and agreeing not to make any sale of the Shares under the
Registration Statement without complying with the provisions of this Agreement and without
effectively causing the prospectus delivery requirement under the Securities Act to be satisfied).
The Purchaser shall not be required to give notice to the Company of such pledge or granting of a
security interest, but, in accordance with Section 7.2 hereof, shall promptly furnish to
the Company upon request a copy of such instrument or instrument of transfer evidencing the
assignee’s or transferee’s agreement to be bound by the provisions of this Agreement (including
Section 11 hereof). If required under the terms of the Purchaser’s arrangement with such
Qualifying Institution, the Purchaser may transfer any such pledged or secured Shares to such
Qualifying Institution, provided such transfer is made in compliance with the Securities Act and
the 1933 Act Rules and Regulations and any applicable state securities laws. Such transfer would
not be subject to approval by the Company, and no legal opinion of legal counsel of the Qualifying
Institution would be required in connection therewith. At the Purchaser’s expense, the Company
will execute and deliver such reasonable documentation as such Qualifying Institution may
reasonably request in connection with a transfer of such Shares, including, if appropriate, the
preparation and filing of any required prospectus supplement under Rule 424(b)(3) under the
Securities Act or other applicable provision of the Securities Act to appropriately amend the list
of selling stockholders thereunder to include such Qualifying Institution as a selling stockholder
therein.

          5.7 Stop Transfer. The certificates representing the Shares will be subject to a stop
transfer order with the Company’s transfer agent prior to the time that the resale Registration
Statement on Form S-3 is effective, which order restricts the transfer of such shares, except in
circumstances in which the Company is permitted to suspend the effectiveness of the Registration
Statement as permitted herein and with notice provided to the Purchaser of such stop transfer order
in accordance with Section 10.

          5.8 Residency. The Purchaser’s principal executive offices are in the jurisdiction
set forth immediately below the Purchaser’s name on the signature pages hereto.

          5.9 Public Sale or Distribution. The Purchaser hereby covenants with the Company not
to make any sale of the Shares under the Registration Statement without complying with the
provisions of this Agreement and without effectively causing the prospectus delivery requirement
under the Securities Act to be satisfied (whether physically or through compliance with Rule 172
under the Securities Act or any similar rule). The Purchaser acknowledges that there may
occasionally be times when the Company must suspend the use of the prospectus (the
“Prospectus”) forming a part of the Registration Statement (a “Suspension”) until
such time as an amendment to the Registration Statement has been filed by the Company

19

 

and declared effective by the Commission, or until such time as the Company has filed an
appropriate report with the Commission pursuant to the Exchange Act. Without the Company’s prior
written consent, which consent shall not unreasonably be withheld or delayed, the Purchaser shall
not use any written materials to offer the Shares for resale other than the Prospectus, including
any “free writing prospectus” as defined in Rule 405 under the Securities Act. The Purchaser
covenants that it will not sell any Shares pursuant to said Prospectus during the period commencing
at the time when the Company gives the Purchaser written notice of Suspension of the use of said
Prospectus and ending at the time when the Company gives the Purchaser written notice that the
Purchaser may thereafter effect sales pursuant to said Prospectus. In each such notice, the
Company shall not disclose the content of any material, non-public information to the Purchaser.
The Purchaser shall maintain in confidence the receipt of any notice of Suspension.
Notwithstanding the foregoing, the Company agrees that no Suspension shall be for a period in
excess of fifteen (15) consecutive days, and during any three hundred sixty-five (365) day period,
the aggregate of all of the Suspensions shall not exceed an aggregate of thirty (30) days, and the
first day of any Suspension shall be at least five (5) trading days after the last day of any prior
Suspension (each, an “Allowable Suspension Period”).

          5.10 Organization; Validity; Enforcements. The Purchaser further represents and
warrants to, and covenants with, the Company that (i) the Purchaser has full right, power,
authority and capacity to enter into this Agreement and to consummate the transactions contemplated
hereby and has taken all necessary action to authorize the execution, delivery and performance of
this Agreement, (ii) the making and performance of this Agreement by the Purchaser and the
consummation of the transactions herein contemplated will not violate any provision of the
organizational documents of the Purchaser or conflict with, result in the breach or violation of,
or constitute, either by itself or upon notice or the passage of time or both, a default under any
material agreement, mortgage, deed of trust, lease, franchise, license, indenture, permit or other
instrument to which the Purchaser is a party or, any statute or any authorization, judgment,
decree, order, rule or regulation of any court or any regulatory body, administrative agency or
other governmental agency or body applicable to the Purchaser, (iii) no consent, approval,
authorization or other order of any court, regulatory body, administrative agency or other
governmental agency or body is required on the part of the Purchaser for the execution and delivery
of this Agreement or the consummation of the transactions contemplated by this Agreement, (iv) upon
the execution and delivery of this Agreement, this Agreement shall constitute a legal, valid and
binding obligation of the Purchaser, enforceable in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws or judicial decisions of general application relating to or affecting the
enforcement of creditors’ rights generally and the application of equitable principles relating to
the availability of remedies, and except as rights to indemnity or contribution, including, but not
limited to, the indemnification provisions set forth in Section 7.3 of this Agreement, may
be limited by federal or state securities laws or the public policy underlying such laws and (v)
there is not in effect any order enjoining or restraining the Purchaser from entering into or
engaging in any of the transactions contemplated by this Agreement.

          5.11 Short Sales. Since the time the Purchaser was first contacted about the offering
of the Shares and the transactions contemplated hereby, the Purchaser has not taken, and prior to
the public announcement of the transaction the Purchaser shall not take, any action that

20

 

has caused or will cause the Purchaser to have, directly or indirectly, sold or agreed to sell
any shares of Common Stock, effected any short sale, whether or not against the box, established
any “put equivalent position” (as defined in Rule 16a-1(h) under the Exchange Act) with respect to
the Common Stock, granted any other right (including, without limitation, any put or call option)
with respect to the Common Stock or with respect to any security that includes, relates to or
derived any significant part of its value from the Common Stock.

     6. Survival of Agreements; Non-Survival of Company Representations and Warranties.
Notwithstanding any investigation made by any party to this Agreement or by the Placement Agent,
all representations, warranties, covenants and agreements made by the Company and the Purchaser
herein and in the certificates for the Shares delivered pursuant hereto shall survive the execution
of this Agreement, the delivery to the Purchaser of the Shares being purchased and the payment
therefor.

     7. Registration of the Shares; Compliance with the Securities Act.

          7.1 Registration Procedures and Expenses. The Company shall:

     (a) as soon as reasonably practicable, but in no event later than five business
days following the Closing Date (the “Filing Deadline”), prepare and file
with the Commission the Registration Statement on Form S-3 relating to the resale of
the Shares and related Rights by the Purchaser and the Other Purchasers from time to
time on The New York Stock Exchange, or the facilities of any national securities
exchange on which the Common Stock is then traded or in privately-negotiated
transactions;

     (b) use its reasonable best efforts, subject to receipt of necessary
information from the Purchasers, to cause the Commission to declare the Registration
Statement effective by the earlier of (i) 3 days after the Commission has advised
the Company that the Registration Statement has not been selected for review by the
Commission, (ii) 3 days after the Commission has advised the Company the Commission
has no more comments with respect to the Registration Statement or (iii) 75 days
after the Closing Date (each of (i) and (ii), the “Effective Deadline”);

     (c) by 9:30 a.m., New York City time, on the second business day following the
date the Registration Statement is declared effective by the Commission, the Company
shall file with the Commission in accordance with Rule 424 under the Securities Act
the final prospectus to be used in connection with sales pursuant to such
Registration Statement;

     (d) promptly prepare and file with the Commission such amendments and
supplements to the Registration Statement and the prospectus used in connection
therewith as may be necessary to keep the Registration Statement effective until the
earlier of (i) the date as of which the Investors may sell all of the Shares covered
by such Registration Statement without restriction pursuant to Rule 144 and without
the requirement to be in compliance with Rule 144(c)(1) (or

21

 

any successor thereto) promulgated under the Securities Act or (ii) the date on
which the Investors shall have sold all of the Shares covered by the Registration
Statement. For the purpose of this Agreement, “Investor” means a Purchaser
or any transferee or assignee thereof to whom a Purchaser assigns its rights as a
holder of Shares under this Agreement and who agrees to become bound by the
provisions of this Agreement and any transferee or assignee thereof to whom a
transferee or assignee assigns its rights as a holder of Shares under this Agreement
and who agrees to become bound by the provisions of this Agreement;

     (e) furnish to the Purchaser with respect to the Shares and related Rights
registered under the Registration Statement (and to each underwriter, if any, of
such Shares and related Rights) such number of copies of prospectuses and such other
documents as the Purchaser may reasonably request, in order to facilitate the public
sale or other disposition of all or any of the Shares and related Rights by the
Purchaser;

     (f) file documents required of the Company for normal Blue Sky clearance in
states specified in writing by the Purchaser; provided, however,
that the Company shall not be required to qualify to do business or consent to
service of process in any jurisdiction in which it is not now so qualified or has
not so consented;

     (g) bear all expenses in connection with the procedures in paragraphs (a)
through (e) of this Section 7.1 and the registration of the Shares and
related Rights pursuant to the Registration Statement, other than fees and expenses,
if any, of counsel or other advisers to the Purchaser or the Other Purchasers or
underwriting discounts, brokerage fees and commissions incurred by the Purchaser or
the Other Purchasers, if any, in connection with the offering of the Shares and
related Rights pursuant to the Registration Statement;

     (h) file a Form D with the Commission with respect to the Shares and related
Rights as required under Regulation D promulgated under the Securities Act and to
provide a copy thereof to the Purchaser promptly after filing;

     (i) issue a press release describing the transactions contemplated by this
Agreement (the “Press Release”) on or before 9:00 a.m., New York City time,
on the first business day following the date hereof; and

     (j) the Company shall not, and shall cause each of its Subsidiaries and each of
their respective officers, directors, employees and agents not to, provide any
Purchaser with any material, non-public information regarding the Company or any of
its Subsidiaries from and after the filing of the Press Release without the express
written consent of such Purchaser;

     (k) in order to enable the Purchasers to sell the Shares under Rule 144 under
the Securities Act, for a period of one year from Closing, use its reasonable best
efforts to comply with the requirements of Rule 144, including without

22

 

limitation, use its reasonable best efforts to comply with the requirements of
Rule 144(c) with respect to public information about the Company and to timely file
all reports required to be filed by the Company under the Exchange Act; and

     (l) permit the Purchaser and its legal counsel to review and comment upon (i)
an initial draft of a Registration Statement at least two (2) business days prior to
its filing with the Commission and (ii) any numbered pre-effective amendment to such
Registration Statement (for purposes of clarification, excluding any Annual Report
on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other
public filing incorporated by reference into such Registration Statement) at least
one (1) business day prior to its filing with the Commission. The Company shall
furnish to the Purchaser or its legal counsel, without charge, copies of any
correspondence from the Commission to the Company or its representatives relating to
the Registration Statement.

     The Company understands that the Purchaser disclaims being an underwriter, but the Purchaser
being deemed an underwriter shall not relieve the Company of any obligations it has hereunder.
Neither the Company nor any Subsidiary or Affiliate thereof shall identify the Purchaser as an
underwriter in any public disclosure or filing with the Commission or any stock exchange or market
without the prior written consent of Purchaser. The forms of the questionnaires related to the
Registration Statement to be completed by the Purchaser are attached hereto as Appendix I.

     For purposes of this Section 7.1 and for purposes of Sections 7.3(d),
7.6 and 18 hereof, the definition of “Shares” shall include any capital stock of
the Company issued or issuable with respect to the Shares as a result of any stock split, stock
dividend, recapitalization, exchange or similar event or otherwise.

          7.2 Transfer of Shares After Registration. The Purchaser agrees that it will not
effect any disposition of the Shares or its right to purchase the Shares that would constitute a
sale within the meaning of the Securities Act or pursuant to any applicable state securities laws,
except pursuant to the Registration Statement referred to in Section 7.1, in accordance
with Rule 144 under the Securities Act or as otherwise permitted by law , and that it will promptly
notify the Company of any changes in the information set forth in the Registration Statement
regarding the Purchaser or its plan of distribution.

          7.3 Indemnification. For the purpose of this Section 7.3:

(i) the term “Purchaser Indemnified Persons” shall mean
each Investor, director, officer, member, partner, employee,
agent and representative of the Investor and each Person, if
any, who controls any Investor within the meaning of the
Securities Act or the Exchange Act; and

(ii) the term “Registration Statement” shall include
any preliminary prospectus, final prospectus, free writing
prospectus, exhibit, supplement or amendment included in or

23

 

relating to, and any document incorporated by reference in, the
Registration Statement referred to in Section 7.1.

     (a) The Company agrees to indemnify and hold harmless the Purchaser Indemnified
Persons, against any losses, claims, damages, liabilities or expenses, joint or
several, to which the Purchaser Indemnified Persons may become subject, under the
Securities Act, the Exchange Act, or any other federal or state statutory law or
regulation, or at common law or otherwise (including in settlement of any
litigation, if such settlement is effected with the written consent of the Company),
insofar as such losses, claims, damages, liabilities or expenses (or actions in
respect thereof as contemplated below) arise out of or are based upon (i) any untrue
statement or alleged untrue statement of any material fact contained in the
Registration Statement, including, without limitation, the Prospectus, financial
statements and schedules, and all other documents filed as a part thereof, as
amended at the time of effectiveness of the Registration Statement, including,
without limitation, any information deemed to be a part thereof as of the time of
effectiveness pursuant to paragraph (b) of Rule 430A, or pursuant to Rules 430B,
430C or 434, of the 1933 Act Rules and Regulations, or the Prospectus, in the form
first filed with the Commission pursuant to Rule 424(b) of the 1933 Act Rules and
Regulations, or filed as part of the Registration Statement at the time of
effectiveness if no Rule 424(b) filing is required or any amendment or supplement
thereto, or that arise out of or are based upon the omission or alleged omission to
state in any of them a material fact required to be stated therein or necessary to
make the statements in the Registration Statement or any amendment or supplement
thereto not misleading or in the Prospectus or any amendment or supplement thereto
not misleading in light of the circumstances under which they were made;
provided, however, that the Company will not be liable for amounts
paid in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Company, which consent shall not
be unreasonably withheld or delayed, and the Company will not be liable in any such
case to the extent that any such loss, claim, damage, liability or expense arises
out of or is based upon (A) an untrue statement or alleged untrue statement or
omission or alleged omission made in the Registration Statement, the Prospectus or
any amendment or supplement thereto in reliance upon and in conformity with written
information furnished to the Company by or on behalf of the Purchaser expressly for
use therein, (B) the failure of the Purchaser to comply with the covenants and
agreements contained herein or (C) the inaccuracy of any representation or warranty
made by the Purchaser herein, (ii) any misrepresentation or breach of any
representation or warranty made by the Company in the Agreement or any other
certificate, instrument or document contemplated hereby or thereby, (iii) any breach
of any covenant, agreement or obligation of the Company contained in the Agreement
or any other certificate, instrument or document contemplated hereby or thereby or
(iv) any cause of action, suit or claim brought or made against such Purchaser
Indemnified Person by a third party (including for these purposes a derivative
action brought on behalf of the Company) and arising out of or resulting (A) from
the execution, delivery, performance or enforcement of the Agreement or any other
certificate,

24

 

instrument or document contemplated hereby or thereby, (B) from any transaction
financed or to be financed in whole or in part, directly or indirectly, with the
proceeds of the issuance of the Shares or (C) solely from the status of such
Purchaser or holder of the Shares as an investor in the Company, and the Company
will promptly reimburse the Purchaser Indemnified Persons for reasonable legal and
other expenses as such expenses are reasonably incurred by the Purchaser Indemnified
Persons in connection with investigating, defending or preparing to defend,
settling, compromising or paying any such loss, claim, damage, liability, expense or
action.

     (b) The Purchaser and Other Purchasers will severally, but not jointly,
indemnify and hold harmless the Company, each of its directors, each of its officers
who signed the Registration Statement and each person, if any, who controls the
Company within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act (a “Control Person”), against any losses, claims, damages,
liabilities or expenses to which the Company, each of its directors, each of its
officers who signed the Registration Statement or Control Person may become subject,
under the Securities Act, the Exchange Act, or any other federal or state statutory
law or regulation, or at common law or otherwise (including in settlement of any
litigation, but only if such settlement is effected with the written consent of the
Purchaser) insofar as such losses, claims, damages, liabilities or expenses (or
actions in respect thereof as contemplated below) arise out of or are based upon any
untrue or alleged untrue statement of any material fact contained in the
Registration Statement, the Prospectus, or any amendment or supplement thereto, or
that arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements in the Registration Statement or any amendment or supplement thereto not
misleading or in the Prospectus or any amendment or supplement thereto not
misleading in the light of the circumstances under which they were made, in each
case to the extent, but only to the extent, that such untrue statement or alleged
untrue statement or omission or alleged omission was made in the Registration
Statement, the Prospectus, or any amendment or supplement thereto, in reliance upon
and in conformity with written information furnished to the Company by or on behalf
of the Purchaser expressly for use therein; and will reimburse the Company, each of
its directors, each of its officers who signed the Registration Statement and each
such Control Person for any legal and other expense reasonably incurred by the
Company, each of its directors, each of its officers who signed the Registration
Statement or Control Person, as the case may be, in connection with investigating,
defending, settling, compromising or paying any such loss, claim, damage, liability,
expense or action; provided, however, that the Purchaser’s aggregate
liability under this Section 7 shall not exceed the amount of net proceeds
received by the Purchaser on the sale of the Shares pursuant to the Registration
Statement.

     (c) Promptly after receipt by an indemnified party under this Section
7.3 of notice of the threat or commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against an

25

 

indemnifying party under this Section 7.3, promptly notify the indemnifying party in
writing thereof, but the omission to notify the indemnifying party will not relieve
it from any liability that it may have to any indemnified party for contribution or
otherwise under the indemnity agreement contained in this Section 7.3 to the
extent it is not prejudiced as a result of such failure. In case any such action is
brought against any indemnified party and such indemnified party seeks or intends to
seek indemnity from an indemnifying party, the indemnifying party will be entitled
to participate in, and, to the extent that it may wish, jointly with all other
indemnifying parties similarly notified, to assume the defense thereof with counsel
reasonably satisfactory to such indemnified party; provided,
however, if the defendants in any such action include both the indemnified
party and the indemnifying party, and the indemnified party shall have reasonably
concluded, based on an opinion of counsel reasonably satisfactory to the
indemnifying party, that there may be a conflict of interest between the positions
of the indemnifying party and the indemnified party in conducting the defense of any
such action or that there may be legal defenses available to it and/or other
indemnified parties that are different from or additional to those available to the
indemnifying party, the indemnified party or parties shall have the right to select
separate counsel to assume such legal defenses and to otherwise participate in the
defense of such action on behalf of such indemnified party or parties. Upon receipt
of notice from the indemnifying party to such indemnified party of its election to
assume the defense of such action and approval by the indemnified party of counsel,
the indemnifying party will not be liable to such indemnified party under this
Section 7.3 for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof unless (i) the indemnified
party shall have employed such counsel in connection with the assumption of legal
defenses in accordance with the proviso to the preceding sentence (it being
understood, however, that the indemnifying party shall not be liable for the
expenses of more than one separate counsel, reasonably satisfactory to such
indemnifying party, representing all of the indemnified parties who are parties to
such action) or (ii) the indemnifying party shall not have employed counsel
reasonably satisfactory to the indemnified party to represent the indemnified party
within a reasonable time after notice of commencement of action, in each of which
cases the reasonable fees and expenses of counsel shall be at the expense of the
indemnifying party. In no event shall any indemnifying party be liable in respect
of any amounts paid in settlement of any action unless the indemnifying party shall
have approved in writing the terms of such settlement; provided that such
consent shall not be unreasonably withheld or delayed. No indemnifying party shall,
without the prior written consent of the indemnified party, effect any settlement of
any pending or threatened proceeding in respect of which any indemnified party is or
could have been a party and indemnification could have been sought hereunder by such
indemnified party from all liability on claims that are the subject matter of such
proceeding.

     (d) If the indemnification provided for in this Section 7.3 is required
by its terms but is for any reason held to be unavailable to or otherwise
insufficient to hold harmless an indemnified party under paragraphs (a), (b) or (c)

26

 

of this Section 7.3 in respect to any losses, claims, damages,
liabilities or expenses referred to herein, then each applicable indemnifying party
shall contribute to the amount paid or payable by such indemnified party as a result
of any losses, claims, damages, liabilities or expenses referred to herein (i) in
such proportion as is appropriate to reflect the relative benefits received by the
Company and the Purchaser from the private placement of Common Stock hereunder or
(ii) if the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but the relative fault of the Company and the
Purchaser in connection with the statements or omissions or inaccuracies in the
representations and warranties in this Agreement and/or the Registration Statement
that resulted in such losses, claims, damages, liabilities or expenses, as well as
any other relevant equitable considerations. The relative benefits received by the
Company on the one hand and the Purchaser on the other shall be deemed to be in the
same proportion as the amount paid by the Purchaser to the Company pursuant to this
Agreement for the Shares purchased by the Purchaser that were sold pursuant to the
Registration Statement bears to the difference (the “Difference”) between
the amount the Purchaser paid for the Shares that were sold pursuant to the
Registration Statement and the amount received by the Purchaser from such sale. The
relative fault of the Company on the one hand and the Purchaser on the other shall
be determined by reference to, among other things, whether the untrue or alleged
statement of a material fact or the omission or alleged omission to state a material
fact or the inaccurate or the alleged inaccurate representation and/or warranty
relates to information supplied by the Company or by the Purchaser and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The amount paid or payable by a party as a
result of the losses, claims, damages, liabilities and expenses referred to above
shall be deemed to include, subject to the limitations set forth in paragraph (c) of
this Section 7.3, any legal or other fees or expenses reasonably incurred by
such party in connection with investigating or defending any action or claim. The
provisions set forth in paragraph (c) of this Section 7.3 with respect to
the notice of the threat or commencement of any threat or action shall apply if a
claim for contribution is to be made under this paragraph (d); provided,
however, that no additional notice shall be required with respect to any threat
or action for which notice has been given under paragraph (c) for purposes of
indemnification. The Company and the Purchaser agree that it would not be just and
equitable if contribution pursuant to this Section 7.3 were determined
solely by pro rata allocation (if the Purchaser were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in this paragraph. Notwithstanding the
provisions of this Section 7.3, the Purchaser shall not be required to
contribute any amount in excess of the amount by which the Difference exceeds the
amount of any damages that the Purchaser has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission.
Notwithstanding the provisions of this Section 7.3, the Purchaser shall not
be required to contribute any amount in excess of the

27

 

amount of net proceeds received by such Purchaser from the sale of its Shares
pursuant to the Registration Statement, less any other payments made by such
Purchaser pursuant to this Section 7.3. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall
be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation. The Purchasers’ obligations to contribute pursuant to this
Section 7.3 are several and not joint.

          7.4 Termination of Conditions and Obligations. The restrictions imposed by
Section 5.9 or Section 7.2 upon the transferability of the Shares shall cease and
terminate as to any particular number of the Shares upon the earlier of (i) the passage of one year
from the effective date of the Registration Statement covering such Shares and (ii) at such time as
an opinion of counsel satisfactory in form and substance to the Company shall have been rendered to
the effect that such conditions are not necessary in order to comply with the Securities Act.

          7.5 Information Available. The Company, upon the reasonable request of the Purchaser,
shall make available for inspection by each Purchaser, any underwriter participating in any
disposition pursuant to the Registration Statement and any attorney, accountant or other agent
retained by the Purchaser or any such underwriter, all financial and other records, pertinent
corporate documents and properties of the Company, and cause the Company’s officers, employees and
independent accountants to supply all information reasonably requested by the Purchaser or any such
underwriter, attorney, accountant or agent in connection with the Registration Statement, and all
such information provided by the Company pursuant to this Section 7.5 shall be subject to
the confidentiality obligations imposed by Section 5.3.

          7.6 Delay in Filing or Effectiveness of Registration Statement; Public Information.

     (a) If (i) a Registration Statement covering all of the Shares required to be
covered thereby and required to be filed by the Company pursuant to this Agreement
is (A) not filed with the SEC on or before the respective Filing Deadline (a
“Filing Failure”) or (B) not declared effective by the SEC on or before the
Effectiveness Deadline (an “Effectiveness Failure”) or (ii) on any day after
the Effective Date sales of all of the Shares required to be included on such
Registration Statement cannot be made (other than during an Allowable Suspension
Period (as defined in Section 5.9)) pursuant to such Registration Statement or
otherwise (including, without limitation, because of a failure to keep such
Registration Statement effective, to disclose such information as is necessary for
sales to be made pursuant to such Registration Statement or to register a sufficient
number of shares of Common Stock or to maintain the listing of the shares of Common
Stock) (a “Maintenance Failure”) then, as partial relief for the damages to
any Investor by reason of any such delay in or reduction of its ability to sell the
underlying shares of Common Stock (which remedy shall not be exclusive of any other
remedies available at law or in equity), the Company shall pay to each Investor
relating to such Registration Statement an amount in cash equal to (A) one percent
(1.0%) of the aggregate Purchase Price of such Investor’s Shares included in such
Registration Statement on each of the following dates: (i)

28

 

the day of a Filing Failure and on every thirtieth day (pro rated for periods
totaling less than thirty (30) days) thereafter until the date such Filing Failure
is cured; (ii) the day of an Effectiveness Failure and on every thirtieth day (pro
rated for periods totaling less than thirty (30) days) thereafter until the date
such Effectiveness Failure is cured; and (iii) the initial day of a Maintenance
Failure and on every thirtieth day (pro rated for periods totaling less than thirty
(30) days) thereafter until the date such Maintenance Failure is cured. The
payments to which an Investor shall be entitled to pursuant to this Section
7.6 are referred to herein “Registration Delay Payments.” Registration
Delay Payments shall be paid on the earlier of (I) the last day of the calendar
month during which such Registration Delay Payments are incurred and (II) the third
Business Day after the event or failure giving rise to the Registration Delay
Payments is cured. In the event the Company fails to make Registration Delay
Payments in a timely manner, such Registration Delay Payments shall bear interest at
the rate of one percent (1.5%) per month (prorated for partial months) until paid in
full. The parties agree that the maximum aggregate Registration Delay Payments
payable to an Investor under this Agreement shall be 10% of the aggregate purchase
price paid by such Investor pursuant to this Agreement. In addition, and
notwithstanding anything to the contrary contained herein, if the Company has
received a comment by the SEC requiring an Investor to be named as an underwriter in
the Registration Statement (which notwithstanding the reasonable best efforts of the
Company is not withdrawn by the SEC) and such Investor elects in writing not to be
named as a selling stockholder in the Registration Statement, the Investor shall not
be entitled to any Registration Delay Payments with respect to such Registration
Statement.

(b) At any time during the period commencing on the six (6) month anniversary
of the Closing Date and ending at such time that all of the Shares can be sold
without the requirement to be in compliance with Rule 144(c)(1) and otherwise
without restriction or limitation pursuant to Rule 144(c), including, if applicable,
Rule 144(i), if a registration statement is not available for the resale of all of
the Shares and the Company shall fail for any reason to satisfy the current public
information requirement under Rule 144 (a “Public Information Failure”)
then, as partial relief for the damages to any Investor by reason of any such delay
in or reduction of its ability to sell the Shares of such Investor (which remedy
shall not be exclusive of any other remedies available at law or in equity), the
Company shall pay to each Investor an amount in cash equal to one percent (1.0%) of
the aggregate Purchase Price of such Investor’s Shares on every thirtieth day (pro
rated for periods totaling less than thirty days) after a Public Information Failure
until the earlier of (i) the date such Public Information Failure is cured and (ii)
such time that such public information is no longer required pursuant to Rule 144.
The payments to which a holder shall be entitled pursuant to this Section
7.6(b) are referred to herein as “Public Information Failure Payments.”
Public Information Failure Payments shall be paid on the earlier of (I) the last day
of the calendar month during which such Public Information Failure Payments are
incurred and (II) the third Business Day after the event or failure giving rise to
the

29

 

Public Information Failure Payments is cured. In the event the Company fails
to make Public Information Failure Payments in a timely manner, such Public
Information Failure Payments shall bear interest at the rate of 1.5% per month
(prorated for partial months) until paid in full.

          7.7 Questionnaires. The Purchaser agrees to furnish to the Company completed
questionnaires in the form attached hereto as Appendix I at the Closing for use in
preparation of the Registration Statement contemplated in Section 7.1. The Company shall
not be required to include the Shares of the Purchaser in the Registration Statement and shall not
be required to pay a cash payment to such Purchaser pursuant to Section 7.6 so long as the
Purchaser fails to furnish fully completed questionnaires at the Closing or does not respond to
subsequent written requests for information by the Company within two business days of such
requests; provided that the Company shall be required to provide only two (2) such subsequent
written request for information.

     8. Broker’s Fee. The Purchaser acknowledges that the Company intends to pay to the
Placement Agent a fee in respect of the sale of the Shares to the Purchaser. The Purchaser and the
Company agree that the Purchaser shall not be responsible for such fee and that the Company will
indemnify and hold harmless the Purchaser Indemnified Persons against any losses, claims, damages,
liabilities or expenses, joint or several, to which such Purchaser Indemnified Person may become
subject with respect to such fee. Each of the parties hereto represents that, on the basis of any
actions and agreements by it, there are no other brokers or finders entitled to compensation in
connection with the sale of the Shares to the Purchaser.

     9. Independent Nature of Purchasers’ Obligations and Rights. The obligations of the
Purchaser under this Agreement are several and not joint with the obligations of any Other
Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations
of any Other Purchaser under the Agreements. The decision of each Purchaser to purchase the Shares
pursuant to the Agreements has been made by such Purchaser independently of any other Purchaser.
Nothing contained in the Agreements, and no action taken by any Purchaser pursuant thereto, shall
be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any
other kind of entity, or create a presumption that the Purchasers are in any way acting in concert
or as a group with respect to such obligations or the transactions contemplated by the Agreements.
Each Purchaser acknowledges that no other Purchaser has acted as agent for such Purchaser in
connection with making its investment hereunder and that no Purchaser will be acting as agent of
such Purchaser in connection with monitoring its investment in the Shares or enforcing its rights
under this Agreement. Each Purchaser shall be entitled to independently protect and enforce its
rights, including without limitation the rights arising out of this Agreement, and it shall not be
necessary for any other Purchaser to be joined as an additional party in any proceeding for such
purpose.

     10. Notices. All notices, requests, consents and other communications hereunder shall
be in writing, shall be mailed by first-class registered or certified airmail, e-mail, confirmed
facsimile or nationally recognized overnight express courier postage prepaid, and shall be deemed
given when so mailed and shall be delivered as addressed as follows:

if to the Company, to:

30

 

ION Geophysical Corporation

2105 CityWest Blvd., Suite 400

Houston, Texas 77042-2839

Attention: David L. Roland, Senior Vice President,

                  General Counsel & Corporate
Secretary

Facsimile: (281) 879- 3600

E-mail: david.roland@iongeo.com

with a copy to:

Mayer Brown LLP

700 Louisiana, Suite 3400

Houston, Texas 77002-2730

Attention: Marc H. Folladori

Facsimile: (713) 238-4696

E-mail: mfolladori@mayerbrown.com

or to such other person at such other place as the Company shall designate to the Purchaser
in writing; and

if to the Purchaser, at its address as set forth at the end of this Agreement,

with a copy to:

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Telephone:    (212) 756-2000

Facsimile:     (212) 593-5955

Attention:    Eleazer N. Klein, Esq.

or at such other address or addresses as may have been furnished to the Company in writing.

     11. Changes. This Agreement may not be modified or amended except pursuant to an
instrument in writing signed by the Company and the Purchaser. Any amendment or waiver effected in
accordance with this Section 11 shall be binding upon each holder of any securities
purchased under this Agreement at the time outstanding, each future holder of all such securities,
and the Company.

     12. Headings. The headings of the various sections of this Agreement have been
inserted for convenience of reference only and shall not be deemed to be part of this Agreement.

     13. Severability. In case any provision contained in this Agreement should be
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or impaired thereby.

31

 

     14. Governing Law; Venue. This Agreement is to be construed in accordance with and
governed by the federal law of the United States of America and the internal laws of the State of
Delaware without giving effect to any choice of law rule that would cause the application of the
laws of any jurisdiction other than the internal laws of the State of Delaware to the rights and
duties of the parties.

     15. Counterparts. This Agreement may be executed in counterparts, each of which shall
constitute an original, but all of which, when taken together, shall constitute but one instrument,
and shall become effective when one or more counterparts have been signed by each party hereto and
delivered to the other parties. Facsimile signatures shall be deemed original signatures.

     16. Entire Agreement. This Agreement and the instruments referenced herein contain
the entire understanding of the parties with respect to the matters covered herein and therein and,
except as specifically set forth herein or therein, neither the Company nor the Purchaser makes any
representation, warranty, covenant or undertaking with respect to such matters. Each party
expressly represents and warrants that it is not relying on any oral or written representations,
warranties, covenants or agreements outside of this Agreement.

     17. Fees and Expenses. Except as set forth herein, each of the Company and the
Purchaser shall pay its respective fees and expenses related to the transactions contemplated by
this Agreement.

     18. Parties. This Agreement is made solely for the benefit of and is binding upon the
Purchaser and the Company and to the extent provided in Section 7.3, any Person controlling
the Company or the Purchaser, the officers and directors of the Company, and their respective
executors, administrators, successors and assigns and subject to the provisions of Section
7.3, no other Person shall acquire or have any right under or by virtue of this Agreement. The
term “successor and assigns” shall not include any subsequent purchaser, as such purchaser, of the
Shares sold to the Purchaser pursuant to this Agreement; provided, however, it shall include
purchasers of Shares if (i) the Investor agrees in writing with the transferee or assignee to
assign such rights, and a copy of such agreement is furnished to the Company within a reasonable
time after such assignment; (ii) the Company is, within a reasonable time after such transfer or
assignment, furnished with a duly executed Stock Certificate Questionnaire from such transferee or
assignee and written notice of (a) the name and address of such transferee or assignee, and (b) the
securities with respect to which such rights are being transferred or assigned; (iii) immediately
following such transfer or assignment, the further disposition of such securities by the transferee
or assignee is restricted under the Securities Act and applicable state securities laws; (iv) at or
before the time the Company receives the written notice contemplated by clause (ii) of this
sentence, the transferee or assignee agrees in writing with the Company to be bound by all of the
obligations of Investor under this Agreement; (v) such transfer shall have been made in accordance
with the applicable requirements of this Agreement; and (vi) such transfer shall have been
conducted in accordance with all applicable federal and state securities laws.

     19. Further Assurances. Each party agrees to cooperate fully with the other parties
and to execute such further instruments, documents and agreements and to give such further written
assurance as may be reasonably requested by any other party to evidence and reflect the

32

 

transactions described herein and contemplated hereby and to carry into effect the intents and
purposes of this Agreement.

[Remainder of Page Left Intentionally Blank]

33

 

Form
of Agreement

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly
authorized representatives as of the day and year first above written.

	 	 	 	 	 
	 	ION GEOPHYSICAL CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	David L. Roland 	 
	 	 	Title:  	Senior Vice President, General Counsel and
Corporate Secretary 	 
	 

	 	 	 	 	 
	 
	 	Print or Type:
	 	 

	 	 	 	 	 

	 	 	 	 	Name of Purchaser

(Individual or Institution)

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	Jurisdiction of Purchaser’s Executive Offices

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	Name of Individual representing Purchaser (if an Institution)

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	Title of Individual representing Purchaser (if an Institution)

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	Number of Shares to Be Purchased

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	$

	 	 	 	 	 

	 	 	 	 	Price Per Share in Dollars

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	Aggregate Price

	 	 	Signature by:
	 	 

	 	 	 	 	 

	 	 	 	 	Individual Purchaser or Individual 

representing Purchaser:

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 
	 	 	 	 
	 
	 	Address:

	 	 	 	 
	 	 	 

	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	Telephone:
	 	 	 	 
	 	 	 

	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	Facsimile:
	 	 	 	 
	 	 	 

	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	E-mail:exv10w3

Execution Copy

EXHIBIT 10.3

MASTER LOAN AND SECURITY AGREEMENT

Dated as of June 29, 2009

among

ICON ION, LLC,

as Lender,

and

ARAM RENTALS CORPORATION,

as Borrower

and

ION GEOPHYSICAL CORPORATION,

as Guarantor

 

 

MASTER LOAN AND SECURITY AGREEMENT

     THIS MASTER LOAN AND SECURITY AGREEMENT is made as of June 29, 2009 by and among ARAM RENTALS
CORPORATION (“Borrower”) with its principal office located at 7236 — 10th Street NE, Calgary
Alberta, T2E 8X3, ION GEOPHYSICAL CORPORATION, a Delaware corporation (the “Guarantor”), with its
principal office located at 2105 CityWest Blvd., Suite 400, Houston, Texas 77042, and ICON ION,
LLC, (the “Lender”) with its principal office located at 100 Fifth Avenue, 4th Floor,
New York, New York 10011.

RECITALS

	A.	 	Lender has agreed with Borrower that, at Borrower’s request, Lender shall make the Loan
available to Borrower on the terms and subject to the conditions set forth in this Agreement.
	 
	B.	 	Borrower and Lender desire that this Agreement serve as a master agreement that sets forth
the terms and conditions governing the Loan that Lender may make to Borrower.

AGREEMENT

NOW, THEREFORE, in consideration of the representations, warranties and covenants set forth herein,
and for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

ARTICLE 1

DEFINITIONS

	1.1	 	Defined Terms. As used in this Agreement, the following terms shall have the
following meanings (such meanings to be equally applicable to both the singular and plural
forms of the terms defined):
	 
	 	 	“Affiliate” means, with respect to a specified Person, another Person that directly,
or indirectly through one or more intermediaries, controls or is controlled by or is under
common control with the Person specified. “Control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or otherwise, and
the terms “controlling” and “controlled” have corresponding meanings.
	 
	 	 	“Agreement” means this Master Loan and Security Agreement and all Schedules and
Exhibits annexed hereto and made a part hereof, as the same may be amended, restated,
supplemented, modified, renewed or replaced from time to time.

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“Applicable Law” means, at any time, with respect to any Person, property,
transaction or event, all applicable laws, statutes, regulations, treaties, judgments and
decrees and all applicable official directives, rules, consents, approvals, by-laws,
permits, authorizations, guidelines, orders and policies of any governmental or regulatory
body or Persons having authority over such Person, property, transaction or event.

“ARAM” means ARAM Systems Corporation, a Nova Scotia unlimited company, and
wholly-owned subsidiary of Guarantor; and its successors and permitted assigns.

 “Assignment” means a collateral assignment in the form of Exhibit B attached
hereto pledging to Lender as security for the Loan Borrower’s right, title and interest in,
but not the obligations of Borrower under, the Contracts described in Schedule 1 thereto.

“BIA” means the Bankruptcy and Insolvency Act (Canada) and the regulations
thereunder as amended and in effect from time to time, and any successor statutes.

“Blocked Account” means each deposit account established at the Blocked Account Bank
into which all Contract Receivables due under any Contract are to be deposited by the
applicable Obligor, Borrower or Guarantor for the benefit of Lender over which Lender has a
perfected security interest by way of a Blocked Account Agreement with a Blocked Account
Bank.

“Blocked Account Agreement” means a blocked account control agreement entered into
by Borrower, Lender and a Blocked Account Bank in respect of the Blocked Account in form and
substance satisfactory to Lender.

“Blocked Account Bank” means one or more commercial banks acceptable to Lender.

“Business Day” means any day, other than a Saturday, Sunday or Canadian holiday, on
which Canadian chartered banks are open for business in Calgary, Alberta, Canada.

“Canadian Insolvency Proceeding” means, with respect to any Person, any voluntary or
involuntary insolvency, bankruptcy, receivership, custodianship, liquidation, dissolution,
reorganization, assignment for the benefit of creditors, appointment of a custodian,
receiver, trustee or other officer with similar powers, or any other proceeding for the
liquidation, dissolution or other winding up of such Person, whether under the BIA, the CCAA
or the Winding-Up and Restructuring Act (Canada), or any other bankruptcy or insolvency
laws, or any laws relating to relief of debtors, readjustment of indebtedness or
reorganization, composition or extension of indebtedness.

“CCAA” means the Companies’ Creditors Arrangement Act (Canada) and the regulations
thereunder, as amended and in effect from time to time, and any successor statutes.

“Closing Date” means June 29, 2009 or such other date as Lender and Borrower may
mutually agree upon.

“Collateral” has the meaning provided in Section 3.1.

2

 

“Consumer Goods” has the meaning given to such term in the PPSA.

“Contract” means a written lease, installment sale contract or other agreement
evidencing payment obligations relating to the leasing or financing of Equipment, in each
case, together with all schedules, riders, addenda or supplements thereto, provided
that each such Contract is consistent with ARAM’s past practices.

“Contract Receivables” means, with respect to a Contract, all amounts due and
payable or to become due and payable under such Contract, together with all rights to
receive such amounts under such Contract.

“Contribution Agreement” means the Section 85 rollover agreement between ARAM, as
vendor, and Borrower, as purchaser, in respect of the transfer of the Equipment and
Contracts in the form attached as Exhibit A.

“Credit Parties” means Borrower and Guarantor and “Credit Party” means either of
them.

“Default” means any of the events described in Section 7.1 regardless of whether
any requirement in connection with such event for the giving of notice, the lapse of time,
or both, has been satisfied or met.

“Equipment” means: (i) any seismic equipment contributed by ARAM to Borrower
pursuant to a Contribution Agreement on or prior to the Closing Date, and (ii) any
additional seismic equipment contributed to Borrower including any additional seismic
equipment that replaces the seismic equipment identified in subsection (i) in the ordinary
course of the Borrower’s business, in each case, together with all parts, spare parts,
accessories, attachments, upgrades, improvements, replacements, substitutions, additions,
accessions, alterations and repairs incorporated therein or affixed thereto, and all
proceeds thereof (including insurance proceeds); and “related Equipment” shall, when
used with reference to any Contract, mean the Equipment subject to that respective Contract.
For greater certainty, any Hewlett Packard leased equipment shall not be included in the
definition of “Equipment”.

“Event of Default” means any of the events specified in Section 7.1, provided that
any requirement in connection with such event for the giving of notice, the lapse of time or
both, has been satisfied or met.

“Fiscal Year” means the fiscal year of Borrower, which commences each January 1 and
ends each December 31.

“Foreign Located Equipment” means all seismic equipment located in Germany or Egypt,
in each case, as listed in Schedule 1 attached hereto on the Closing Date, that will
automatically be included in the definition of “Equipment” for all purposes of this
Agreement immediately upon its arrival into North America.

3

 

“GAAP” means:

	 	(i)	 	in respect of Borrower, generally accepted accounting
principles as approved by the Canadian Institute of Chartered Accountants that
are in effect from time to time, applied in a consistent manner from period to
period; and
	 
	 	(ii)	 	in respect of Guarantor, generally accepted accounting
principles that are in effect in the United States from time to time, applied
in a consistent manner from period to period.

“Guaranty” means the guaranty from Guarantor in favour of Lender in respect of the
Indebtedness of Borrower in form and substance satisfactory to Lender.

“HSBC” means HSBC BANK USA, N.A., in its capacity as administrative agent under the
HSBC Credit Agreement, together with its successors and assigns.

“HSBC Credit Agreement” means that certain Amended and Restated Credit Agreement
dated as of July 3, 2008, among Guarantor, as domestic borrower, ION International S.À R.L.,
a Luxembourg private limited company (société a responsabilité limitée), as foreign
borrower, the guarantors from time to time party thereto, HSBC BANK USA, N.A., as
administrative agent, and the other financial institutions party from time to time thereto,
as lenders, as the same may be amended, restated, supplemented or otherwise modified from
time to time.

“Hypothec” means a moveable hypothec executed by Borrower in favour of Lender in
form and substance satisfactory to Lender.

“Indebtedness” means the aggregate principal amount of the Loan made by Lender to
Borrower hereunder, all accrued but unpaid interest thereon, and all other amounts that
Borrower may from time to time be obligated to pay to Lender under this Agreement and the
other Loan Documents.

“Initial Draw Amount” has the meaning set out in Section 2.3(a).

“Interest Period” means a period (i) in the case of the first Interest Period,
commencing on the Closing Date of the initial Loan and ending on and including the first
Payment Date and (ii) for each successive Interest Period, commencing on each Payment Date
and ending on, and including, the next Payment Date, provided if a Payment Date is not a
Business Day, then the Interest Period shall end on the first Business Day thereafter,
provided in no event will interest be charged twice for the same day.

“Interest Rate” means, with respect to the Loan, a rate per annum equal to the
following: (a) provided that no Event of Default has occurred and is continuing, the
interest rate of fifteen percent (15%) per annum calculated monthly (the “Fixed Interest
Rate”); and (b) upon the occurrence and during the continuation of an Event of Default and
subject to Applicable Law, the sum of, with respect to the Loan, (i) applicable Fixed
Interest Rate plus (ii) an additional 2.00% per annum.

4

 

“Liabilities” of any Person shall at any time mean all items that, in accordance
with GAAP, would be included on the liability side of a balance sheet of that Person as of
the date in question and shall include the following items whether or not so included in
accordance with GAAP: (a) duties and obligations (excluding unaccrued finance charges) of
that Person, as obligor, under leases, whether or not capitalized; (b) indebtedness
(including, without limitation, indebtedness arising under conditional sale or other title
retention agreements, but excluding, however, prepaid interest thereon) secured by a Lien in
property owned or being purchased by that Person, whether or not such indebtedness shall
have been assumed by that Person; and (c) all contingent obligations of that Person.

“Lien” means any lien, encumbrance or security interest of any kind whatsoever,
whether arising under a Security Instrument or as a matter of law, judicial process or
otherwise.

“Loan” means the loan that Lender makes to Borrower under Article 2 of this
Agreement.

“Loan Documents” has the meaning set out in Section 4.1(d) and shall also
automatically include, without limitation, the Blocked Account Agreement immediately upon
being executed and delivered by Borrower, Lender and the Blocked Account Bank.

“Loan Limit” means US$20,000,000; a portion of which shall be available to Borrower
under this Agreement and the remaining amount (if any) shall be made available to US
Borrower under the US 2009 Loan Agreement.

“Material Adverse Change” means any change, event, violation, circumstance or effect
that, when considered individually or when aggregated with other changes, events,
violations, circumstances or effects, is or would reasonably be expected to have a Material
Adverse Effect.

“Material Adverse Effect” means a material adverse effect on: (i) the business,
property, assets, liabilities, operations, condition (financial or otherwise) or affairs of
Borrower or Guarantor, taken as a whole; (ii) the ability of Borrower or Guarantor to
perform its obligations under any of the Loan Documents; or (iii) the ability of Lender to
enforce its rights and remedies under any of the Loan Documents.

“Maturity Date” means July 31, 2014.

“Memorandum” means the Memorandum of Association and the Articles of Association of
Borrower.

“Note(s)” means the promissory note or notes issued by Borrower in connection with
each borrowing under the Loan, in form and substance as set out in Exhibit D attached
hereto.

“Obligations” means the Indebtedness, together with any and all other duties,
obligations, undertakings and amounts required to be paid or performed by Borrower

5

 

and/or Guarantor under this Agreement and each Loan Document executed pursuant hereto.

“Obligor” means, with respect to a Contract, each Person having a payment obligation
under or with respect to such Contract.

“Payment Date” means the first (1st) day of each calendar month, or if
such day is not a Business Day, the next Business Day.

“Permitted Jurisdictions” means, collectively, the United States and Canada and each
other jurisdiction to which the Lender has consented in writing, such consent not to be
unreasonably withheld, delayed or conditioned; provided that Lender has taken those
steps reasonably required to obtain a valid, enforceable and perfected first lien, charge
and security interest in the Equipment in each such jurisdiction.

“Permitted Liens” means:

	 	(i)	 	inchoate liens for taxes, assessments or other governmental
charges or levies not at the time delinquent or being contested in good faith
by appropriate proceedings;
	 
	 	(ii)	 	non-consensual statutory Liens arising in the ordinary course
of Borrower’s business to the extent such Liens secure indebtedness that is not
overdue; and
	 
	 	(iii)	 	rights of Obligors under Contracts in the related Equipment.

“Person” means any natural person, corporation, limited liability company, trust,
joint venture, company, partnership, firm, association, government, governmental agency or
any other entity, whether acting in an individual, fiduciary or other capacity.

“Pledge Agreement” means the non recourse securities pledge agreement from ARAM in
favour of Lender in respect of all the outstanding equity securities of Borrower owned by
ARAM in form and substance satisfactory to Lender.

“PPSA” means the Personal Property Security Act (Alberta) and all regulations and
ministerial orders thereunder, as from time to time in effect in the Province of Alberta;
provided, however, that if by reason of mandatory provisions of law, any and all of the
attachment, perfection or priority of the security interest of Lender in and to the
Collateral is governed by the personal property security legislation as in effect in a
jurisdiction other than the Province of Alberta, the term “PPSA” shall mean the personal
property security legislation as in effect in such other jurisdiction for purposes of the
provisions relating to such attachment, perfection or priority and for purposes of
definitions related to such provisions.

“Proceeds” has the meaning given to such term in the PPSA.

6

 

	 	 	“Quarterly Report” means a completed report substantially in the form of Exhibit C
hereto signed and delivered by a senior officer of Borrower.
	 
	 	 	“Residual Proceeds” means, as to a Contract, all Contract Receivables and monetary
value received by Borrower, net of any out of pocket costs incurred in connection with
obtaining such Contract Receivables and monetary value, after all of the obligations of the
Obligor during the originally scheduled term of the Contract (including the payment of all
taxes and charges relating to the Equipment) have been paid in full, including net proceeds
realized from the sale, re-lease or rental of the Equipment or the renewal or extension of
the Contract.
	 
	 	 	 “Scheduled Repayment” has the meaning provided in Section 2.8.
	 
	 	 	“Second Draw Amount” has the meaning provided in Section 2.3(b).
	 
	 	 	“Security Deposits” means monies held by Borrower on behalf of Obligors as
collateral for obligations of such Obligors under the Contracts.
	 
	 	 	“Security Instrument” means any security agreement, pledge agreement, lease intended
as security, conditional sale contract, chattel mortgage, assignment, control agreement or
other agreement, or any amendment, restatement, supplement, renewal or replacement thereof
or thereto, or any financing statement or financing change statement, in each case granting,
evidencing or perfecting any security interest in personal property.
	 
	 	 	“Taxes” shall have the meaning provided in Section 6.1(f).
	 
	 	 	“US 2009 Loan Agreement” shall mean the Master Loan and Security Agreement, dated
June 30, 2009, as amended, among ICON ION, LLC, as lender, US Borrower, as borrower, and ION
Geophysical Corporation, as guarantor and all Loan Documents (as defined therein) pursuant
thereto.
	 
	 	 	“US Borrower” means ARAM Seismic Rentals, Inc., a corporation formed under the laws
of the State of Texas; and its successors and permitted assigns.
	 
	 	 	“US Borrower Hypothec” means a moveable hypothec executed by US Borrower in favour
of Lender substantially in the form of the Hypothec.
	 
	 	 	“US Dollars”, “USD” and “US$” means lawful money of the United
States of America.
	 
	1.2	 	Other Terms. All accounting terms not specifically defined herein shall be construed
in accordance with GAAP. All terms used in the PPSA, and not specifically defined herein, are
used herein as defined therein.
	 
	1.3	 	Interpretation. As used in this Agreement, the words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation,” the word “or”
is not exclusive, and the word “will” shall be construed to have the same meaning and effect
as the word “shall”. Unless the context requires otherwise (a) any definition of or reference
to any agreement, instrument or other document herein shall be construed as

7

 

	 	 	referring to such agreement, instrument or other document as from time to time amended,
restated, supplemented or otherwise modified (subject to any restrictions on such
amendments, restatements, supplements or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person’s successors and assigns
(subject to any restrictions on assignments set forth herein), (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, and (d) all references
herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles
and Sections of, and Exhibits and Schedules to, this Agreement unless another document is
specifically referenced.
	 
	1.4	 	U.S. Currency. Unless otherwise specified herein, all amounts and values referred to
in this Agreement shall refer to lawful money of the United States. Notwithstanding the
foregoing, all payments made hereunder shall be made in the currency in respect of which the
obligation requiring such payment arose.
	 
	1.5	 	Determination of Rates and Basis of Calculation of Interest.

	 	(a)	 	The rates of interest and fees shall be determined by Lender whenever such
determination is required for any purpose of this Agreement in accordance with the
terms and conditions provided herein, and such determination shall be prima facie
evidence of such rate absent manifest error.
	 
	 	(b)	 	All interest payments to be made under this Agreement shall be paid without
allowance or deduction for deemed re-investment or otherwise, both before and after
maturity and before and after default and/or judgment, if any, until payment of the
amount on which such interest is accruing, and interest will accrue on overdue
interest, if any.
	 
	 	(c)	 	In calculating interest or fees payable under this Agreement for any period,
unless otherwise specifically stated, the first day of such period shall be included
and the last day of such period shall be excluded.
	 
	 	(d)	 	Unless otherwise stated, wherever in this Agreement reference is made to a rate
of interest “per annum” or a similar expression is used, such interest will be
calculated on the basis of a calendar year of 365 days or 366 days, as the case may be,
and using the nominal rate method of calculation, and will not be calculated using the
effective rate method of calculation or on any other basis that gives effect to the
principle of deemed re-investment of interest.
	 
	 	(e)	 	For the purposes of the Interest Act (Canada) and disclosure under such act,
whenever interest to be paid under this Agreement is to be calculated on the basis of a
year of 365 or 366 days or any other period of time that is less than a calendar year,
the yearly rate of interest to which the rate determined pursuant to such calculation
is equivalent is the rate so determined multiplied by the actual number of days in the
calendar year in which the same is to be ascertained and divided by 365 or 366 or such
other period of time, as the case may be.

8

 

	 	(f)	 	If the payment of interest at the rate provided for in Subsection (b) of the
definition of “Interest Rate” is not enforceable by reason of the Interest Act
(Canada), then payment of interest after an Event of Default on principal and interest
amounts shall be at the same rate of interest applicable thereto prior to the
occurrence of the Event of Default.

	1.6	 	Maximum Return.

	 	(a)	 	In the event that any provision of this Agreement would oblige Borrower to make
any payment of interest or any other payment that is construed by a court of competent
jurisdiction to be interest in an amount or calculated at a rate that would be
prohibited by law or would result in a receipt by Lender of interest at a criminal rate
(as such terms are construed under the Criminal Code (Canada)), then notwithstanding
such provision, such amount or rate shall be deemed to have been adjusted nunc pro tunc
to the maximum amount or rate of interest, as the case may be, as would not be so
prohibited by law or so result in a receipt by the Lender of interest at a criminal
rate, such adjustment to be effected, to the extent necessary, as follows:

	 	(i)	 	firstly, by reducing the amount or rate of interest otherwise
required to be paid under Article 2 of this Agreement; and
	 
	 	(ii)	 	thereafter, by reducing any fees, commissions, premiums and
other amounts that would constitute interest for the purposes of Section 347 of
the Criminal Code (Canada).

	 	(b)	 	If, notwithstanding the provisions of this Section 1.6 and after giving effect
to all adjustments contemplated thereby, the Lender shall have received an amount in
excess of the maximum permitted by the Criminal Code (Canada), then such excess shall
be applied by the Lender to the reduction of the principal balance of the Loan
outstanding and not to the payment of interest or if such excessive interest exceeds
such principal balance, such excess shall be refunded to Borrower.
	 
	 	(c)	 	Any amount or rate of interest referred to in this Section 1.6 shall be
determined in accordance with generally accepted actuarial practices and principles at
an effective annual rate of interest over the term of this Agreement on the assumption
that any charges, fees or expenses that fall within the meaning of “interest” (as
defined in the Criminal Code (Canada)) shall, if they relate to a specific period of
time, be prorated over that period of time and otherwise be prorated over the terms of
this Agreement and, in the event of dispute, a certificate of a Fellow of the Canadian
Institute of Actuaries appointed by the Lender shall be conclusive for the purposes of
such determination.

9

 

ARTICLE 2

THE LOAN; COLLATERAL

	2.1	 	The Loan. On the terms and subject to the conditions set forth in this Agreement,
Lender establishes and agrees to make available to Borrower a committed non-revolving term
loan facility at the applicable Interest Rate.
	 
	2.2	 	Loan Limit. The maximum outstanding borrowings under the Loan shall not at any time
exceed the Loan Limit.
	 
	2.3	 	Advances; Non Revolving Feature of Loan.

	 	(a)	 	On the Closing Date, Borrower may only draw under this Agreement by way of a
single borrowing in a maximum amount of (i) US$12,500,000 less (ii) any
borrowings made by U.S. Borrower under the US 2009 Loan Agreement (the “Initial Draw
Amount”).
	 
	 	(b)	 	On July 17, 2009, Borrower may make a second and final draw under this
Agreement in a maximum amount of US$7,500,000 (the “Second Draw Amount”).
	 
	 	(c)	 	On July 17, 2009, any undrawn commitment of Lender under this Agreement shall
be automatically cancelled. No amounts repaid or prepaid by Borrower under this
Agreement may be reborrowed.

	2.4	 	Purpose of Loan. Borrower may use the proceeds of the Loan for general corporate
purposes, working capital or to repay Liabilities.
	 
	2.5	 	Restrictions on Borrowing. Borrower shall not request a borrowing under the Loan if
a Default or Event of Default exists at such time or if the result thereof would create or
cause a Default or Event of Default.
	 
	2.6	 	Evidence of Indebtedness. Lender shall maintain accounts and records evidencing the
Obligations of Borrower to Lender under this Agreement. Lender’s accounts and records shall
constitute prima facie evidence of the Indebtedness of Borrower to Lender under this Agreement
in the absence of manifest error.
	 
	2.7	 	Procedure of Requesting the Loan. Borrower hereby requests the Initial Draw Amount
on the Closing Date. In respect of the Second Draw Amount, Borrower shall execute and deliver
to Lender on or before July 17, 2009 the written request in the form attached hereto as
Exhibit F which shall be irrevocable and binding on Borrower. Borrower shall indemnify Lender
against any loss or expense incurred by Lender as a result of any failure by it to fulfill on
or before the date specified for such borrowing the applicable conditions set forth in
Sections 4.1 and 4.2, including, without limitation, any loss or expense incurred by reason of
the liquidation or re-employment of deposits or other funds acquired by Lender to fund any
loan to be made by Lender as part of such borrowing if such loan, as a result of such failure,
is not made on such date.

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	2.8	 	Scheduled Repayments. Subject to the terms of this Agreement, Borrower shall
permanently repay the principal amount of all borrowings outstanding under the Loan in the
following amounts and on the following dates (each a “Scheduled Repayment”):

	 	(a)	 	for the period from the Closing Date to and including June 30, 2009, Borrower
shall make a payment of interest only on July 1, 2009 based on the applicable Interest
Rate and the Initial Draw Amount;
	 
	 	(b)	 	for the period from the July 1, 2009 to and including July 31, 2009, Borrower
shall make a payment of interest only on August 1, 2009 based on the applicable
Interest Rate and the Initial Draw Amount;
	 
	 	(c)	 	for the period from July 17, 2009 to and including July 31, 2009, Borrower
shall make a payment of interest only on August 1, 2009 based on the applicable
Interest Rate and the Second Draw Amount;
	 
	 	(d)	 	sixty (60) equal monthly installments, payable monthly in arrears on the
Payment Date, each monthly installment in the amount as set out in the amortization
schedule annexed to each Note, with the first monthly payment due on September 1, 2009;
and
	 
	 	(e)	 	all remaining outstanding principal of the Loan together with all accrued
interest, fees and other amounts then unpaid by Borrower with respect to the Loan, on
the Maturity Date.

	2.9	 	Prepayment.

	 	(a)	 	Borrower may not voluntarily prepay all or any outstanding borrowings under the
Loan during the period from the Closing Date until and including July 31, 2012.
	 
	 	(b)	 	During the period commencing August 1, 2012 until and including January 31,
2014, Borrower may make a prepayment of the outstanding principal balance of the Loan
plus all accrued and unpaid interest through such date plus all fees that are then
owing and due provided that: (i) Borrower pays to Lender a prepayment fee equal
to the amount of 3% of the outstanding principal balance of the Loan at such time, and
(ii) Borrower provides thirty (30) days prior written notice to Lender.
	 
	 	(c)	 	From and after February 1, 2014, Borrower may at any time, without payment of
any penalty or fee, upon thirty (30) days prior written notice to Lender, make a
prepayment of the outstanding principal balance of the Loan plus all accrued and unpaid
interest through such date plus all fees that are then owing and due.
	 
	 	(d)	 	Borrower may make a prepayment against the outstanding principal balance of the
Loan as contemplated and permitted by Section 6.2(g)(ii)(B) provided that all
terms and conditions of Section 6.2(g) are complied with by Borrower and Guarantor.

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	 	 	Upon indefeasible payment in full of all amounts owing under or in connection with the Loan,
and upon Borrower’s written request, Lender shall release its security interest in the
Collateral securing the Loan.
	 
	2.10	 	Payments Generally. Each payment under this Agreement shall be made for value at or
before 1:00 p.m. (New York time) on the day such payment is due, provided that, if any such
day is not a Business Day, such payment shall be deemed for all purposes of this Agreement to
be due on the Business Day next following such day (and any such extension shall be taken into
account for purposes of the computation of interest and fees payable under this Agreement).
All payments shall be made by Borrower to Lender by way of wire to the following account:

Account Name: ICON Leasing Fund Twelve, LLC

Account Number: 590411942

Bank Name: JP Morgan Chase

Bank Address: New York, NY

ABA: 021000021

	2.11	 	Fees. The Borrower shall pay Lender a fee of 0.50% of the sum of the Initial Draw
Amount and the Second Draw Amount on each of the 12th, 24th,
36th and 48th Payment Dates. Lender acknowledges receipt from Borrower
of an irrevocable and fully earned commitment fee of $300,000.
	 
	2.12	 	Illegality. If the introduction of or any change in any Applicable Law or in the
interpretation or application thereof by any court or by any governmental authority charged
with the administration thereof, makes it unlawful or prohibited for Lender to make, to fund
or to maintain its commitment or any portion thereof or to perform any of its obligations
under this Agreement, Lender may, by 30 days written notice to Borrower (unless the provision
of the Applicable Law requires earlier prepayment in which case the notice period shall be
such shorter period as required to comply with the Applicable Law), terminate its obligations
under this Agreement (or those that are unlawful or prohibited as the case may be) and in such
event, the Borrower shall (to the extent required) prepay such borrowings under the Loan
forthwith (or at the end of such period as Lender in its discretion agrees), without notice or
penalty (other than breakage costs), together with all accrued but unpaid interest and fees as
may be applicable to the date of payment.

ARTICLE 3

COLLATERAL SECURITY

	3.1	 	Grant of Security. As general and continuing collateral security for the due payment
and performance of the Obligations, Borrower charges, pledges and assigns to Lender, and
grants to Lender a lien and security interest in, all present and after acquired personal
property and undertaking of Borrower including, without limitation, the following:

	 	(a)	 	all Equipment;

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	 	(b)	 	all Contracts and Contract Receivables;
	 
	 	(c)	 	all cheques, money orders, wire transfers, notes, drafts and other orders for
payment of money or other remittances payable to Borrower and the depository accounts
in the name of Borrower, including all Blocked Accounts, and including all sums now or
hereafter on deposit in or payable to and any interest accrued or payable on the credit
balances therein;
	 
	 	(d)	 	any guarantees, supporting obligations or other collateral securing payment of
the Contracts; and
	 
	 	(e)	 	all Proceeds of any of the foregoing;

	 	 	but specifically excludes Consumer Goods (collectively, the “Collateral”).
	 
	3.2	 	Limitations on Grant of Security. If the grant of any security interest in any
Contract under Section 3.1 would result in the termination or breach of the governing
agreement relating to such Contract, then the applicable Contract will not be subject to any
security interest under Section 3.1 but will be held in trust by Borrower for the benefit of
Lender. In addition, the security interests created by this Agreement do not extend to the
last day of the term of any lease, rental contract or other agreement now held or hereafter
acquired by Borrower. Such last day will be held by Borrower in trust for Lender and, on the
exercise by Lender of any of its rights under this Agreement following an Event of Default,
will be assigned by Borrower as directed by Lender.
	 
	3.3	 	Attachment. Borrower confirms that value has been given by Lender to Borrower, that
Borrower has rights in the Collateral (other than after-acquired property) and that Borrower
and Lender have not agreed to postpone the time for attachment of the security interests
created by this Agreement to any of the Collateral. The security interests created by this
Agreement are intended to attach: (i) to existing Collateral when Borrower signs this
Agreement; and (ii) to Collateral subsequently acquired by Borrower immediately upon Borrower
acquiring any rights in such Collateral. The security interests created by this Agreement
will have effect and be deemed to be effective whether or not the Obligations or any part
thereof are owing or in existence before or after or upon the date of this Agreement.
	 
	3.4	 	Additional Security. The security interests created by this Agreement are in
addition and without prejudice to any other security interests now or later held by Lender.
No security interests held by Lender will be exclusive of or dependent upon or merge in any
other security interests, and Lender may exercise its rights under such security interests
separately or in combination.
	 
	3.5	 	Cooperation of Lender While in Possession of Collateral. To the extent Lender has
perfected its security interest in Collateral by possession of such Collateral, Lender agrees
to permit Borrower reasonable access to such Collateral (including making or allowing the
Borrower to make copies of any Contracts that are in the possession of the Lender).

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ARTICLE 4

CONDITIONS

	4.1	 	Conditions Precedent to the Loan — Initial Borrowing. The obligation of Lender to
make available the initial borrowing under this Agreement is subject to the terms and
conditions of this Agreement and is conditional upon satisfactory evidence being given to
Lender and its counsel as to compliance with the following conditions:

	 	(a)	 	Representations and Warranties. Each of the representations and
warranties contained in this Agreement shall be true and correct as if made by the
Borrower and the Guarantor contemporaneously with the initial borrowings under the
Loan.
	 
	 	(b)	 	Resolutions and Certificates. Lender shall have received, duly executed
and in form and substance satisfactory to it:

	 	(i)	 	a copy of the constating documents and by-laws of each Credit
Party and ARAM and a copy of the resolutions of the board of directors of each
Credit Party and ARAM authorizing the execution, delivery and performance of
the Loan Documents, certified in each case by a senior officer of the
applicable Credit Party and ARAM;
	 
	 	(ii)	 	a certificate of incumbency for each Credit Party and ARAM
showing the names, offices and specimen signatures of the officers who will
execute the Loan Documents; and
	 
	 	(iii)	 	a certificate of status for each Credit Party and ARAM or its
equivalent from its jurisdiction of organization.

	 	(c)	 	Legal Opinions. Lender shall have received a favourable legal opinion
from counsel to each Credit Party and ARAM in connection with the due authorization,
execution, delivery and enforceability of the Loan Documents and related matters, which
opinions shall be satisfactory to Lender and its counsel, acting reasonably.
	 
	 	(d)	 	Delivery of Agreements. The Credit Parties shall have executed and
unconditionally delivered, or caused to be executed and delivered, the following
documents to Lender (collectively, the “Loan Documents”):

	 	(i)	 	this Agreement;
	 
	 	(ii)	 	the Assignment;
	 
	 	(iii)	 	the Hypothec;
	 
	 	(iv)	 	the Pledge Agreement together with (a) original share
certificates evidencing the equity securities owned by ARAM in the Borrower,
and (b) duly executed share transfer power in respect thereof undated in blank;

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	 	(v)	 	the Guaranty;
	 
	 	(vi)	 	the Note in connection with the Initial Draw Amount; and
	 
	 	(vii)	 	an assignment of insurance executed by Borrower (but not the
applicable insurer(s)) in favour of Lender (it being acknowledged by Lender
that Borrower shall undertake to use its best efforts to obtain an
acknowledgement from each applicable insurer within a reasonable period of time
following the Closing Date, but that failure of Borrower to delivery any such
acknowledgement shall not constitute an Event of Default under this Agreement).

	 	(e)	 	No Default or Event of Default. No Default or Event of Default has
occurred and is continuing under this Agreement or any other Loan Document.
	 
	 	(f)	 	Registration. Satisfactory evidence that Lender has a valid and
perfected first priority (subject to Permitted Liens) security interest in the
Collateral in all jurisdictions deemed necessary or advisable by the Lender and its
counsel.
	 
	 	(g)	 	Insurance. Lender shall have received a satisfactory certificate of
insurance issued by Borrower’s insurance broker (the insurance policies issued by a
reputable underwriter satisfactory to Lender) in respect of all policies maintained by
the Borrower naming Lender as a first loss payee and additional insured.
	 
	 	(h)	 	Lender Fees. All fees and expenses payable pursuant to the terms and
conditions of the letter dated May 21 from the Lenders to the Borrower otherwise due
and payable by the Borrower to the Lender shall have been paid or shall
contemporaneously be paid to the Lender including, but not limited to, the Commitment
Fee.
	 
	 	(i)	 	Legal Fees. The legal fees and disbursements of Lender’s counsel that
have been invoiced at least two Business Days prior to the Closing Date shall have been
paid.
	 
	 	(j)	 	HSBC Release. A satisfactory release from HSBC in respect of any
security interest, lien, claim or encumbrance in respect of the Collateral.
	 
	 	(k)	 	Liens against Equipment. There shall be no liens, encumbrances or other
security interests charging any of the Equipment, other than security interests in
favour of Lender or other Liens not otherwise prohibited under Section 6.2(b).
	 
	 	(l)	 	Material Adverse Change. A Material Adverse Change shall not have
occurred.
	 
	 	(m)	 	Contribution Agreement. Lender has received a copy of the executed
Contribution Agreements and Lender is satisfied with terms and conditions of transfer
of the Equipment and contracts to Borrower pursuant to such Contribution Agreements.

15

 

	 	(n)	 	Financing Statements. Lender shall have received PPSA verification
statements satisfactory to Lender and its legal counsel evidencing the registration of
financing statements against each Obligor, as debtor, in favour of Borrower, as secured
party, in all jurisdictions required by Lender and it legal counsel.

	4.2	 	Conditions Precedent to the Loan — Subsequent Borrowings. The obligation of Lender
to make available the additional drawing contemplated in Section 2.3(b) of this Agreement
after the initial drawing and Closing Date is conditional upon satisfactory evidence being
given to Lender as to compliance with the following conditions:

	 	(a)	 	Representations and Warranties. Each of the representations and
warranties contained in this Agreement shall be true and correct as if made by Borrower
and Guarantor contemporaneously with any subsequent borrowing under the Loan.
	 
	 	(b)	 	No Default or Event of Default. No Default or Event of Default has
occurred and is continuing under this Agreement or any other Loan Document.
	 
	 	(c)	 	Notice of Borrowing. Lender shall have received a notice of borrowing
as contemplated in Section 2.7 of this Agreement.
	 
	 	(d)	 	Liens against Equipment. There shall be no liens, encumbrances or other
security interests charging any of the Equipment, other than security interests in
favour of Lender.
	 
	 	(e)	 	Notice of Liens. Lender shall not have received written notice of any
lien, trust, charge, encumbrance or other security interest affecting the Equipment
charged by Lender’s Loan Documents or an execution.
	 
	 	(f)	 	Material Adverse Change. A Material Adverse Change shall not have
occurred since the Closing Date.
	 
	 	(g)	 	Bankruptcy Remoteness. Borrower shall be a “special purpose bankruptcy
remote” entity as such term is generally recognized to mean in the United States that
is satisfactory to Lender and its legal counsel. The Memorandum shall have been
amended such that Borrower is a “special purpose bankruptcy remote” entity to the
satisfaction of Lender and its legal counsel. A certified copy of each Special
Resolution passed amending the Memorandum as provided herein shall have been filed at
the Nova Scotia Registry of Joint Stock Companies and a Registry certified copy of each
such Special Resolution shall have been delivered to Lender. All “special purpose
bankruptcy remote” provisions of the Certificate of Formation of US Borrower, a
corporation formed or to be formed under the Texas Business Organizations Code, shall
be contained in the Memorandum unless Lender waives any such requirement or any such
provision is contrary to the laws of the Province of Nova or the laws of Canada
applicable therein.
	 
	 	(h)	 	Legal Opinion. Lender shall have received a favourable legal opinion
from Nova Scotia counsel to Borrower in connection with the “bankruptcy remoteness” of
Borrower, the non-consolidation of its property, assets and liabilities with that of

16

 

	 	 	 	ARAM, the Guarantor or any Affiliate of ARAM or the Guarantor and related matters,
which opinion shall be satisfactory to Lender and its counsel, acting reasonably.
	 
	 	(i)	 	Blocked Account. Evidence satisfactory to the Lender that a Blocked
Account is opened and the accompanying Blocked Account Agreement is in effect between
the Borrower and the Account Bank. Lender shall have received a favourable legal
opinion from counsel to Borrower in connection with the due authorization, execution,
delivery by the Borrower and enforceability against the Borrower of the Blocked Account
Agreement, which opinion shall be satisfactory to Lender and its counsel, acting
reasonably.
	 
	 	(j)	 	Legal Fees. The legal fees and disbursements of Lender’s counsel that
have been invoiced at least two Business Days prior to July 17, 2009 shall have been
paid.
	 
	 	(k)	 	Note. Borrower shall have executed and delivered to Lender the Note in
respect of the Second Draw Amount.
	 
	 	(l)	 	US Borrower PPSA Registrations. Satisfactory evidence that Lender has
a valid and perfected first priority (subject to Permitted Liens) security interest in
all present and after-acquired assets and undertaking of US Borrower in all
jurisdictions deemed necessary or advisable by Lender and its counsel.
	 
	 	(m)	 	US Borrower Hypothec. US Borrower shall have executed and delivered
the US Borrower Hypothec. Lender shall have received a favourable legal opinion from
counsel to Borrower in connection with the due authorization, execution, delivery and
enforceability of the US Borrower Hypothec, which opinions shall be satisfactory to
Lender and its counsel, acting reasonably.

ARTICLE 5

REPRESENTATIONS, WARRANTIES AND COVENANTS

	5.1	 	Borrower’s Representations and Warranties. 

	 	(a)	 	General Representations and Warranties as to Borrower. To induce
Lender to enter into this Agreement, Borrower represents and warrants to Lender as
follows, which representations and warranties shall be deemed to be continuing and true
from the time of Borrower’s execution of this Agreement until all of the Obligations
hereunder and under each Assignment shall have been paid and performed in full:

	 	(i)	 	Organization, etc. Borrower is an unlimited liability
corporation validly organized and existing and in good standing under the laws
of the Province of Nova Scotia, is duly qualified to do business and in good
standing as an extra-provincial corporation in each jurisdiction where the
failure to so qualify might have a Material Adverse Effect and has full power
and authority to own its property and conduct its business

17

 

	 	 	 	substantially as presently conducted by it. Borrower has full power and
authority to enter into and to perform its Obligations under this Agreement
and each other Loan Document executed by it pursuant hereto.
	 
	 	(ii)	 	Due Authorization. The execution and delivery by
Borrower of this Agreement and each Loan Document executed by it pursuant
hereto and the performance by Borrower of its Obligations hereunder and
thereunder and the borrowings hereunder by Borrower have been duly authorized
by all necessary corporate action of Borrower, do not require any approval or
consent of any governmental agency or authority, do not and will not conflict
with, result in any violation of, or constitute any default under, any
provision of the memorandum of association, articles of association or by-laws
of Borrower or any agreement binding upon or applicable to it (other than any
agreement with respect to which a waiver has been obtained), or any present
Applicable Law or governmental regulation or court decree or order applicable
to it and will not result in or require the creation or imposition of any Lien
in any of its properties pursuant to the provisions of any present agreement
binding upon or applicable to it.
	 
	 	(iii)	 	Validity of This Agreement, etc. This Agreement is,
and each other Loan Document executed by it pursuant hereto will on the due
execution and delivery thereof be, the legal, valid and binding obligation of
Borrower, enforceable in accordance with its terms, subject only to bankruptcy,
insolvency, reorganization, moratorium or similar laws at the time in effect
affecting the enforceability of the rights of creditors generally; and
equitable principles limiting the availability of the remedy of specific
enforcement.
	 
	 	(iv)	 	Financial Information. All balance sheets, statements
of income, shareholders’ equity, and cash flows and other financial information
that have been furnished by Borrower to Lender in connection with this
Agreement or the transactions contemplated hereby have been prepared in
accordance with GAAP (except in the case of any unaudited statements, to the
extent of the limited nature of the footnotes and subject to normal year-end
adjustments) consistently applied throughout the periods involved (except as
disclosed therein) and present (except as aforesaid with respect to unaudited
statements) fairly the financial condition of Borrower as at the dates thereof
and the results of its operations for the periods then ended.
	 
	 	(v)	 	Absence of Default. Borrower is not in default (after
taking into account grace periods) in the payment of any liabilities
representing any borrowing or financing or any other material liability or
under any law or governmental regulation or court decree or order materially
affecting its property or business.

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	 	(vi)	 	Litigation. No litigation, arbitration or governmental
investigation or proceeding is pending or, to the knowledge of Borrower,
threatened against Borrower or any of its properties that, if adversely
determined, could reasonably be expected to have a Material Adverse Effect,
except as described in any Quarterly Report delivered to Lender from time to
time.
	 
	 	(vii)	 	No Material Contingent Liabilities. Borrower does not
have any material contingent liabilities of any kind.
	 
	 	(viii)	 	Taxes. Borrower has filed all tax returns and reports required by
law to have been filed by it (including, without limitation, all Taxes
applicable to or arising out of the Equipment and the Contracts, the proceeds
thereof or the leasing or financing thereof) and has paid, or will pay when
due, all Taxes and governmental charges thereby shown to be owing except to the
extent that the Borrower has contested the validity thereof in good faith by
appropriate proceedings and has set aside on its books adequate reserves with
respect thereto.
	 
	 	(ix)	 	Absence of Lien. Borrower is the owner of the
Equipment, Contracts and other Collateral, free and clear of all Liens, other
than the Liens permitted pursuant to Section 6.2(b).
	 
	 	(x)	 	Contracts. Borrower and Guarantor covenant that each
Contract has or will have arisen out of a bona fide transaction, accurately
evidenced by the written terms of the Contract. Borrower only maintains one
original of each Contract and to the extent any Contract constitutes “chattel
paper” (as defined in the PPSA), and the original chattel paper counterpart is
in Borrower’s possession. No Contract exists only in electronic form.
	 
	 	(xi)	 	Accuracy of Information. All written information
heretofore or contemporaneously herewith furnished by or on behalf of Borrower
to Lender for purposes of, or in connection with, this Agreement or any
transaction contemplated hereby is, and all other such written information
hereafter furnished by or on behalf of Borrower to Lender will be, true and
accurate in every material respect on the date as of which such information is
dated or certified and does not omit any material fact necessary to make such
information not misleading.
	 
	 	(xii)	 	Security Interest. Each security interest in the
Collateral granted pursuant to Section 3.1 is a valid, enforceable, first
priority (subject to Permitted Liens) Lien that has attached, and has been
timely and properly perfected under the provisions of the PPSA or similar law
relating to the perfection and priority of the security interest granted.
	 
	 	(xiii)	 	Eligible Contracts. Each Contract represents the absolute obligation
of the related Obligor to pay the amounts set forth therein, free from any and
all claims, defenses or rights of counterclaim against Lender.

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	 	(xiv)	 	Security Deposits. Borrower has not received and does
not hold any security deposit for any Contract.
	 
	 	(xv)	 	Location of Equipment. The property, assets and the
Equipment of Borrower (save and except for the Foreign Located Equipment) are
located in Permitted Jurisdictions, and in no other jurisdiction .
	 
	 	(xvi)	 	Foreign Located Equipment. The orderly liquidation
value of the Foreign Located Equipment in aggregate is less than $300,000.

	5.2	 	Guarantor Representations and Warranties. To induce Lender to enter into this
Agreement, Guarantor represents and warrants to Lender as follows, which representations and
warranties shall be deemed to be continuing and true from the time of Guarantor’s execution of
this Agreement until all of the Obligations hereunder are paid and fully performed:

	 	(a)	 	Guarantor is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware.
	 
	 	(b)	 	Guarantor has all requisite corporate power and authority to own, lease and
operate its properties, and to carry on its business as now being conducted;
	 
	 	(c)	 	The execution, delivery and performance by Guarantor of this Agreement and the
Guaranty and the consummation of the transactions contemplated hereby and thereby and
are within Guarantor’s corporate powers and authority and have been duly authorized by
all necessary corporate action on the part of Guarantor;
	 
	 	(d)	 	This Agreement, the Guaranty and all other documents or writings relating
hereto or contemplated hereby or thereby to be signed by Guarantor constitute the valid
and binding obligations of Guarantor enforceable in accordance with their respective
terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting creditors’ rights in general, and equitable principles
limiting the availability of the remedy of specific enforcement;
	 
	 	(e)	 	The execution and performance of this Agreement and the Guaranty by Guarantor
does not violate any laws, regulations, indentures or contracts to which Guarantor is a
party or the organizational documents of Guarantor;
	 
	 	(f)	 	Except as otherwise provided herein, no consent, approval or authorization of,
or designation, declaration or filing with, any governmental authority is required on
the part of Guarantor in connection with the execution, delivery and performance of
this Agreement or the Guaranty;
	 
	 	(g)	 	Neither Guarantor nor any subsidiary of Guarantor to which Guarantor has
delegated its servicing responsibilities, is a party to and there is no pending or
threatened litigation, legal or administrative proceeding or otherwise that would,

20

 

	 	 	 	if decided against Guarantor or such subsidiary, have any material adverse impact on
Guarantor’s or such subsidiary’s ability to service the Collateral;
	 
	 	(h)	 	Guarantor agrees to, or cause ARAM and Borrower to, fully and completely
perform all of its obligations under the Contribution Agreement in accordance with its
terms and remakes for the benefit of Lender each of the representations and warranties
made by ARAM, if any, in the Contribution Agreement; and
	 
	 	(i)	 	The unaudited balance sheet of Guarantor as at December 31, 2008 and the
related statement of income of Guarantor for the twelve month period then ended,
certified by its chief financial officer, present fairly in all material respects the
financial position of Guarantor at such date and the results of its operations for the
periods then ended, all in accordance with generally accepted accounting principles
consistently applied, and since said date there has been no Material Adverse Change.

ARTICLE 6

COVENANTS

	6.1	 	Affirmative Covenants. Guarantor and Borrower covenant and agree with Lender that
until all of the Obligations (other than any indemnities that are not then due and owing)
shall have been paid and performed in full:

	 	(a)	 	Financial Information; Quarterly Report. Guarantor and Borrower shall
furnish, or cause to be furnished, to Lender copies of the following financial
statements, reports and information:

	 	(i)	 	within forty-five (45) days after the close of each quarter of
each Fiscal Year, a Quarterly Report;
	 
	 	(ii)	 	So long as: (a) Guarantor continues to be a public company; (b)
Guarantor files its financial statements in accordance with the requirements of
the Security and Exchange Commission; and (c) all such financial statements are
available to the Lender through a public medium, such as EDGAR; and (d) an
Event of Default has not occurred and is continuing, neither Guarantor nor
Borrower shall be required to provide the Lender with any financial statements;
provided that in the event that any of the above conditions (a) — (d) are not
satisfied, Borrower and Guarantor shall be required to furnish, or cause to be
furnished, to the Lender, Borrower’s and Guarantor’s, (i) quarterly financial
statements certified by the principal financial officer of Borrower and
Guarantor, respectively, within sixty (60) days of the end of a fiscal quarter,
(ii) annual audited financial statements for the Borrower and Guarantor,
prepared by Guarantor’s certified public accountant, must be sent to the Lender
within ninety (90) days of the end of the Guarantor’s Fiscal Year, (iii) a copy
of the compliance certificate delivered to HSBC under the HSBC Credit

21

 

	 	 	 	Agreement, which shall include the financial covenant calculations required
by the HSBC Credit Agreement;
	 
	 	(iii)	 	upon written request by Lender, Guarantor or Borrower shall
deliver to Lender copies of each Contract (or to the extent any Contract
constitutes “chattel paper,” the original chattel paper counterpart) or copies
of any other document relating thereto in its possession within five (5)
Business Days of Borrower’s or Guarantor’s receipt of a written request for
such information; and
	 
	 	(iv)	 	such other information with respect to the financial condition
and operations of Borrower and Guarantor as Lender may from time to time
reasonably request, provided that Lender shall bear the cost of obtaining such
information if and to the extent it is not already being compiled by or for
Guarantor.

	 	(b)	 	Maintenance of Corporate Existence. Guarantor and Borrower will cause
to be done at all times all things necessary to maintain and preserve their respective
lawful existence.
	 
	 	(c)	 	Bankruptcy Remoteness. Guarantor and Borrower agree that Borrower
shall be, or shall cause to be, a “special purpose bankruptcy remote” entity as such
term is generally recognized to mean in the United States that is satisfactory to
Lender and its legal counsel on or before July 17, 2009. Guarantor and Borrower agree
that (A) the Memorandum will be amended such that Borrower is a “special purpose
bankruptcy remote” entity to the satisfaction of Lender and its legal counsel, (B) a
certified copy of each Special Resolution passed amending the Memorandum as provided
herein will be filed at the Nova Scotia Registry of Joint Stock Companies, and (C) a
Registry certified copy of each such Special Resolution shall be delivered to Lender on
or before July 17, 2009. Guarantor and Borrower agree that all “special purpose
bankruptcy remote” provisions of the Certificate of Formation of US Borrower, a
corporation formed or to be formed under the Texas Business Organizations Code, will be
contained in the Memorandum unless Lender waives any such requirement or any such
provision is contrary to the laws of the Province of Nova Scotia or the laws of Canada
applicable therein on or before July 17, 2009.
	 
	 	(d)	 	Maintenance of Special Purpose Bankruptcy Remoteness. Upon Borrower
becoming a “special purpose bankruptcy remote” entity, Guarantor and Borrower shall do,
or cause to be done, at all times, all things necessary to maintain and preserve the
“special purpose bankruptcy remoteness” of Borrower, including, but not limited to, all
things necessary to maintain its separate corporate existence and identity and all
things necessary to make it apparent to third parties it is an entity with property,
assets and liabilities distinct from those of ARAM, the Guarantor or any Affiliate of
ARAM or the Guarantor.

22

 

	 	(e)	 	Performance of Covenants in Memorandum. Guarantor and Borrower shall
do, or cause to be done, at all times, all things necessary for the performance and
observance of all covenants in the Memorandum.
	 
	 	(f)	 	Payment of Taxes, etc. Guarantor and Borrower will pay and discharge,
prior to the same becoming delinquent, all taxes, assessments and other governmental
charges or levies (“Taxes”) against or on any of the Contracts or other Collateral, as
well as claims of any kind that, if unpaid, might become a Lien upon any of the
Contracts or other Collateral; provided, however, that the foregoing shall not require
Borrower or Guarantor to pay any such tax, assessment, charge, levy or claim so long as
they shall contest the validity thereof in good faith by appropriate proceedings and
shall set aside on their respective books adequate reserves with respect thereto.
	 
	 	(g)	 	Agreements with Respect to Equipment. Guarantor and Borrower will, to
the best of their ability, at all times cause each item of Equipment to be maintained,
preserved and kept in good condition (as when originally delivered), repair and working
order, subject to normal wear and tear and to be maintained in accordance with all
industry and regulatory standards and all manufacturer’s suggested and recommended
maintenance procedures (including, without limitation, preventive maintenance) and to
cause any related software to be used in accordance with any license agreement
governing such software. Borrower and Guarantor covenant that the Equipment is capable
of performing the task for which it was originally intended and conforms to all
regulatory requirements and Applicable Laws imposed by any governmental body with
respect to the Equipment.
	 
	 	(h)	 	Notice of Default and Litigation. Guarantor and Borrower will promptly
give notice to Lender of: (i) the occurrence of any Event of Default; (ii) any
litigation, arbitration or governmental investigation or proceeding not previously
disclosed in writing by Guarantor or Borrower to Lender that has been instituted or, to
the knowledge of Guarantor or Borrower, is threatened against Guarantor or Borrower or
any of their respective properties that, if adversely determined, could reasonably be
expected to have a Material Adverse Effect; (iii) any material development that has
occurred in any litigation, arbitration or governmental investigation or proceeding
previously disclosed in writing by Guarantor or Borrower to Lender that, if adversely
determined, could reasonably be expected to have a Material Adverse Effect, or (iv) any
other event, development or condition which may reasonably be expected to have a
Material Adverse Effect.
	 
	 	(i)	 	Performance of Loan Document Obligations. Borrower will perform
promptly and faithfully all of its Obligations under each Loan Document executed
pursuant hereto.
	 
	 	(j)	 	Books and Records. Guarantor and Borrower will each keep their
respective books and records reflecting, in all material respects, all of their
respective business affairs and transactions in accordance with GAAP and will permit

23

 

	 	 	 	Lender (or any of representatives thereof), subject to the requirements of the
Protection of Personal Information and Electronic Documents Act, at reasonable times
and intervals, to visit its offices where such books and records are kept, discuss
its financial matters with their respective officers and independent accountants
(and hereby authorizes such independent accountants to discuss their respective
financial matters with Lender and its representatives) and examine any of their
books and other corporate records.
	 
	 	(k)	 	Maintenance of Security Interest. Guarantor and Borrower each agree to
maintain the perfection of the first priority (subject to Permitted Liens) security
interest in and to the Collateral and shall not permit any other Lien on the Collateral
other than the Liens permitted pursuant to Section 6.2(b). Guarantor and Borrower
will, at their sole cost, defend any claims with respect to Lender’s perfected first
priority security interest in the Collateral.
	 
	 	(l)	 	Performance of Contract Duties. Guarantor and Borrower warrant that
they have performed, and covenant and agree that they will continue to perform, their
respective duties and obligations under each Contract.
	 
	 	(m)	 	Lender’s Performance for Borrower. If Guarantor or Borrower shall fail
to pay Taxes with respect to or maintain any Equipment in accordance herewith, Lender
may (but shall have no duty to do so), cause the same to be done or performed; and in
any such case, the amounts paid by Lender shall be immediately upon demand reimbursed
to it by Guarantor or Borrower, and shall bear interest from the date incurred until
the date in question at the applicable Interest Rate.
	 
	 	(n)	 	Notice of Relocation. Borrower and Guarantor will give Lender at least
thirty (30) days prior written Notice of any relocation of the chief executive office
or principal place of business of either of them.
	 
	 	(o)	 	Contribution Agreement. Borrower shall enforce ARAM’s responsibilities
to Borrower under the Contribution Agreement in all respects and shall not waive the
performance by ARAM of its responsibilities thereunder, without the prior written
consent of Lender.
	 
	 	(p)	 	Insurance. Borrower and Guarantor shall insure the Equipment with such
insurers and with such coverage and against such loss or damage to the full insurable
value of the Equipment to the extent insured against by comparable corporations engaged
in comparable businesses or according to industry standards. Losses under all such
insurance policies affecting the Equipment shall be payable to Lender as first loss
payee. Each such policy shall provide for a minimum of 30 days prior notice to Lender
of cancellation or lapse. Borrower shall pay or cause to be paid all premiums necessary
to maintain any such insurance policies as such premiums become due and payable.
Borrower agrees that it shall forthwith provide to Lender a certified copy of each
policy of insurance within 120 days of the Closing Date, and will provide a certified
copy of each policy of insurance issued in replacement of or in substitution for any

24

 

	 	 	 	policy of insurance or policies of insurance or as a renewal of any policy of
insurance or policies of insurance within 30 days following request from Lender.
	 
	 	(q)	 	Use of Proceeds. Borrower shall use the proceeds of all borrowings for
the purposes contemplated under this Agreement.
	 
	 	(r)	 	New Contracts. Borrower and Guarantor shall ensure that any Contracts
entered into after the Closing Date shall be in the name of Borrower (and not Guarantor
or ARAM). Borrower shall maintain one original of each such Contract and to the extent
any such Contract constitutes “chattel paper” (as defined in the PPSA), the original
chattel paper counterpart shall remain in Borrower’s possession unless delivered to
Lender under Section 6.1(a)(iii). The Borrower shall ensure that no Contract exists
only in electronic form. If reasonably requested by Lender, Borrower shall use
commercially reasonable efforts to cause the applicable third party to provide a
satisfactory consent of the assignment by way of security of such new Contract to
Lender.
	 
	 	(s)	 	PPSA Registrations re: Contracts. Borrower shall provide written
confirmation to Lender confirming that all PPSA registrations required under all
applicable provincial laws have been made by Borrower against each Obligor (in its
capacity as lessee) under each new Contract entered into by Borrower to perfect the
security interests created under such Contract within ten (10) Business Days after such
Contract is entered into by Borrower. Borrower shall register, or cause to be
registered, in the applicable personal property registry system any renewals necessary
to ensure that any existing financing statements registered against an Obligor shall
not expire or lapse.
	 
	 	(t)	 	Blocked Account. Borrower and Guarantor shall direct that all Obligors
pay to or deposit, and to the extent required by Section 9.2(a), Borrower and Guarantor
shall themselves pay or deposit (or cause to be paid or deposited), all Contract
Receivables together with any proceeds from the sale of the Equipment as permitted
pursuant to Section 6.2(g) into the Blocked Account, provided that, for the avoidance
of doubt, Borrower and Guarantor may, at any time during any month during the term of
the Loan, provided that no Default or Event of Default has occurred and is continuing,
be permitted to withdraw amounts from the Blocked Account so long as an amount equal to
one month’s installment payable under Section 2.8(d) remains in the Blocked Account
after giving effect to any such withdrawal.
	 
	 	(u)	 	Notice of Assignment. Borrower shall provide each Obligor notice, in
the form attached hereto as Exhibit E, of the collateral assignment of its Contract
within thirty (30) days of the Closing Date.
	 
	 	(v)	 	US Borrower Hypothec. Borrower shall cause US Borrower to execute and
deliver the US Borrower Hypothec on or before July 17, 2009.

25

 

	6.2	 	Negative Covenants. Borrower and Guarantor, as applicable, covenant and agree with
Lender that until all of the Obligations shall have been paid and performed in full:

	 	(a)	 	Debt and other Liabilities. Borrower will not create, incur, assume or
suffer to exist or otherwise become or be liable in respect of any Liabilities without
the prior, written consent of Lender, other than:

	 	(i)	 	the Indebtedness and other Obligations;
	 
	 	(ii)	 	liabilities in respect of Taxes, assessments, governmental
charges or levies and claims of any kind, to the extent that payment thereof
shall not at the time be required to be made or with respect to which the
Borrower has contested the validity thereof in good faith by appropriate
proceedings and has set aside on its books adequate reserves with respect
thereto;
	 
	 	(iii)	 	liabilities to the Guarantor in connection with the transfer
of Contracts from the Guarantor to the Borrower that are being paid in full on
Closing Date from the proceeds of the Loan
	 
	 	(iv)	 	other Liabilities to Lender; and
	 
	 	(v)	 	liabilities incurred in the ordinary course of business with
respect to the administration and operation of its business and consistent with
the past practices of ARAM with respect to the Equipment or Contracts.

	 	(b)	 	Creation of Liens. Borrower will not create, incur, assume or suffer
to exist any Lien upon any of Borrower’s property, assets or Collateral, whether now
owned or hereafter acquired, except:

	 	(i)	 	the security interest granted by this Agreement or other
agreements with Lender;
	 
	 	(ii)	 	liens of carriers, warehousemen, mechanics, materialmen and
landlords incurred in the ordinary course of business for sums either not
overdue, or that are being contested in good faith and that have not resulted
in perfected liens;
	 
	 	(iii)	 	judgment liens junior and subordinate to the security interest
created under this Agreement that have been in existence less than 20 days
after the entry thereof or with respect to which execution has been stayed; and
	 
	 	(iv)	 	Permitted Liens.

	 	(c)	 	Inconsistent Agreements. Neither Guarantor nor Borrower will enter
into any agreement containing any provision that would be violated or breached by any
sale of Contracts hereunder or under the Contribution Agreement or the performance by
Borrower or Guarantor of its Obligations hereunder or under any Loan Document executed
by it pursuant hereto.

26

 

	 	(d)	 	Relocation of Equipment. Borrower and Guarantor shall not allow the
Equipment and any other Collateral to be moved outside of a Permitted Jurisdiction
without providing at least ten (10) Business Days prior written notice thereof
to Lender.
	 
	 	(e)	 	Not to Amalgamate, Merge, etc. Except as otherwise permitted by
Section 7.1(i), no Credit Party shall enter into any transaction or series of related
transactions (whether by way of amalgamation, merger, winding-up, liquidation,
dissolution, consolidation, reorganization, reconstruction, continuance, transfer,
sale, lease or otherwise) whereby all or substantially all of its properties, rights or
assets would become the property of any other Person or, in the case of amalgamation,
merger or continuance, of the continuing corporation resulting therefrom; provided that
Guarantor may amalgamate into, merge with or convert or reorganize into any other
Person so long (a) as the Guarantor is or will be the surviving Person following any
such transaction or event, (b) no Event of Default then exists or would result after
giving effect to such transaction or event, including any Event of Default under
Section 7.1(i), (c) Guarantor shall have provided written notice to Lender of such
transaction or event not less than fifteen (15) days prior to the consummation of such
transaction or event, (d) Lender is in receipt of any information reasonably requested
by it from Guarantor in respect of such transaction, and (e) Lender shall have
determined in good faith that, after giving effect to such transaction or event, the
Guarantor (as the surviving Person) is at least as credit-worthy as it was immediately
prior to the consummation of such transaction or event.
	 
	 	(f)	 	Amendment of Memorandum, etc. With the exception of the amendment of
the Memorandum as described and contemplated in Sections 4.2(g) and 6.1(c), Guarantor
and Borrower shall not do, permit or allow, or shall cause not to be done, permitted or
allowed, anything that would result in the amendment, supplementation, revocation,
restatement or replacement of any provision of the Memorandum without the prior written
consent of Lender or which would result in the violation of any provision of the
Memorandum.
	 
	 	(g)	 	Disposition of Equipment. The Borrower shall not sell, assign,
transfer, convey, lease (as lessor), contribute or otherwise dispose of, or grant any
rights with respect to the Equipment other than:

	 	(i)	 	Any lease of Equipment pursuant to a Contract; and
	 
	 	(ii)	 	Sales, assignments, transfers, conveyances or other
dispositions of Equipment provided that no Default or Event of Default has
occurred or continues to exist and that Borrower shall either:

	 	(A)	 	substitute the sold Equipment with other
seismic equipment (which shall be free and clear of any Liens) of at
least equivalent value acceptable to Lender in its sole discretion
within 30 days after the date on which the Borrower has sold, assigned,
transferred,

27

 

	 	 	 	conveyed or otherwise disposed of Equipment for which substitute
equipment (which shall be free and clear of any Liens) has not
otherwise been provided having an aggregate fair market value in
excess $100,000, or
	 
	 	(B)	 	apply the proceeds therefrom against the
outstanding principal balance of the Loan provided that: (I)
such amount does not exceed $100,000 and is paid not more than one time
during any quarter of Borrower’s Fiscal Year, and (II) the Borrower
pays an administrative fee in the amount of $15,000 to Lender for every
occurrence of the above right being exercised.

	 	 	 	Notwithstanding the above or any other term or provision contained in this
Agreement, Borrower shall not enter into any agreement to sell, assign, transfer,
convey or otherwise dispose of any Equipment in reliance on this Section 6.2(g)(ii)
in an individual or aggregate amount (based on the fair market value of the
Equipment) of greater than $400,000 without the prior written consent of Lender,
such written consent to be provided (or reasonably withheld) within two (2) Business
Days after Lender is in receipt of such request by Borrower; provided, however, that
the Borrower shall be permitted to sell, assign, transfer or convey Equipment upon
the exercise by an Obligor of a purchase option, set forth in a Contract without
prior written consent from Lender so long as the Borrower has (i) provided Lender
written notice of Obligors’ exercise of its purchase option and a copy of the
document exercising such option subject to any confidentiality limitations and a
written description of the replacement equipment within two (2) Business Days after
receipt of such request by Obligor, and (ii) substituted the sold Equipment with
other seismic equipment (which shall be free and clear of any Liens) of like-kind
and at least equivalent value prior to such sale. For purposes of this Section
6.2(g), the fair market value for the Equipment is set out in Schedule 2 attached
hereto. Lender will cooperate with Borrower’s reasonable requests to promptly
deliver any chattel paper to the purchaser of any Collateral sold in accordance with
the terms of this Section 6.2(g).
	 
	 	 	 	Any payments made pursuant to Subsection 6.2(g)(ii)(B) shall be applied against the
outstanding principal balance of the Loan. If a Default or Event of Default has
occurred and is continuing, Lender may retain the proceeds from the sale of such
Equipment and may apply such proceeds in its sole discretion against any amounts due
and owing by Borrower to Lender.

ARTICLE 7

DEFAULTS AND REMEDIES

	7.1	 	Events of Default. The occurrence of any of the following shall constitute an Event
of Default hereunder:

28

 

	 	(a)	 	Borrower or Guarantor shall fail to pay when due any Indebtedness or other
Obligation due to Lender, or failed to maintain in the Blocked Account an amount equal
to at least one month’s installment payable under Section 2.8(c), and such failure
shall continue unremedied for a period of five (5) Business Days;
	 
	 	(b)	 	Borrower or Guarantor shall fail to duly perform and observe any covenant or
agreement contained in Section 6.1 (except for Section 6.1(c)) that is not cured thirty
(30) days after the earlier of: (i) the day on which Borrower or Guarantor had actual
knowledge of such breach or reasonably ought to have known of such breach, and (ii)
notice thereof has been given to Borrower or Guarantor, as applicable, by Lender;
	 
	 	(c)	 	Borrower or Guarantor shall fail to duly perform and observe any covenant or
agreement contained in Section 6.2;
	 
	 	(d)	 	Any representation or warranty of Borrower or Guarantor made in this Agreement,
the Contribution Agreement or any Loan Document executed or delivered in connection
herewith or therewith, shall prove to have been materially untrue at any time made and
if curable, is not cured with twenty (20) days after the earlier of: (i) the day on
which Borrower or Guarantor had actual knowledge of such breach or reasonably ought to
have known of such breach, and (ii) notice thereof has been given to Borrower or
Guarantor, as applicable, by Lender;
	 
	 	(e)	 	Any Event of Default (as defined in the US 2009 Loan Agreement) shall have
occurred and be continuing pursuant to the US 2009 Loan Agreement;
	 
	 	(f)	 	Borrower or Guarantor shall fail to duly perform and observe any other covenant
or agreement contained herein, in the Contribution Agreement or in any Loan Document
executed by it pursuant hereto or thereto, and that failure shall continue unremedied
for a period of thirty (30) days after the earlier of: (i) the day on which Borrower or
Guarantor had actual knowledge of such breach or reasonably ought to have known of such
breach, and (ii) notice thereof has been given to Borrower or Guarantor, as applicable,
by Lender;
	 
	 	(g)	 	any event or condition occurs that results in any Liability having an aggregate
principal outstanding amount exceeding US$20,000,000 becoming due prior to its
scheduled maturity or that enables or permits (with or without the giving of notice,
the lapse of time or both) the holder or holders of such Liability or any trustee or
agent on its or their behalf to cause such Liability to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled
maturity, provided that this clause (f) shall not apply to any secured Liability that
becomes due as a result of the voluntary sale or transfer of the property or assets
securing such Liability;
	 
	 	(h)	 	Guarantor or Borrower shall become insolvent or generally fail to pay, or admit
in writing its inability to pay, debts as they become due; or Guarantor or Borrower
shall apply for, consent to, or acquiesce in, the appointment of a trustee, receiver,

29

 

	 	 	 	interim receiver, receiver and manager, liquidator, sequestrator, custodian, or
other similar official for Borrower or Guarantor or any of its respective
properties, or make a general assignment for the benefit of creditors; or, in the
absence of such application, consent or acquiescence, a trustee, receiver, interim
receiver, receiver and manager, liquidator, sequestrator, custodian, or other
similar official shall be appointed for Borrower or Guarantor or for a substantial
part of its properties and not be discharged within thirty (30) days; or any
Canadian Insolvency Proceeding, or other case or proceeding under any bankruptcy or
insolvency law, or any dissolution, winding-up or liquidation proceeding shall be
commenced in respect of Borrower or Guarantor and, if not commenced by Borrower or
Guarantor, be consented to or acquiesced in by Borrower or Guarantor or remain for
thirty (30) days undismissed; or Borrower or Guarantor shall take any action to
authorize, or in furtherance of, any of the foregoing;
	 
	 	(i)	 	without the written consent of Lender, a Person or Persons acting in concert
shall acquire in a single transaction or a series of transactions more than fifty (50%)
percent of the voting stock of the Guarantor or additional voting stock that when added
to voting stock then held by such Person or Persons exceeds fifty percent (50%) of the
voting stock of Guarantor, provided, however, that the current shareholders of
Guarantor may transfer all of the voting stock of Guarantor to an entity owned in its
entirety by the current shareholders of Guarantor so long as (A) no other provisions of
this Agreement would be violated thereby, (B) Guarantor gives the Lender at least 30
days prior written notice of such transfer, describing the capitalization and ownership
of the transferee, (C) no Default or Event of Default shall have occurred and be
continuing either before or after giving effect to such transfer, and (D) all action
has been taken, to the satisfaction of Lender, such that Lender’s rights in any
Collateral are preserved;
	 
	 	(j)	 	If at any time there occurs an event or circumstance which constitutes a
Material Adverse Change;
	 
	 	(k)	 	If the Guaranty of the Obligations shall be terminated, revoked or declared
void or invalid, without the prior written consent of Lender;
	 
	 	(l)	 	If the Pledge Agreement shall be terminated, revoked or declared void or
invalid, without the prior written consent of Lender
	 
	 	(m)	 	If Borrower and Guarantor sells or otherwise disposes of, or agrees to sell or
otherwise dispose of, all or a substantially all of the Equipment, in each case,
whether in one transaction or a series of related transactions;
	 
	 	(n)	 	If Borrower or Guarantor suspends or ceases or threatens to suspend or cease
its business; or
	 
	 	(o)	 	If any of the following events fail to occur on or before July 17, 2009: (A)
the Memorandum are not amended such that Borrower is a “special purpose bankruptcy
remote” entity to the satisfaction of Lender and its legal counsel, (B) a

30

 

	 	 	 	certified copy of each Special Resolution passed amending the Memorandum as required under
this Agreement is not be filed at the Nova Scotia Registry of Joint Stock Companies, or
(C) a Registry certified copy of each such Special Resolution is not delivered to
Lender.
	 
	 	(p)	 	If evidence satisfactory to Lender is not delivered on or before July 17, 2009
confirming that a Blocked Account Agreement is in effect between Borrower and the
Blocked Account Bank.
	 
	 	(q)	 	If Borrower fails to cause the US Borrower Hypothec to be executed and
delivered to Lender on or before July 17, 2009.

7.2 Remedies.

	 	 	Upon the occurrence of an Event of Default hereunder and in compliance with Applicable Law,
Lender may exercise any or all of the following remedies, in addition to those granted to
Lender under the PPSA of all applicable jurisdictions, and any other Applicable Law:

	 	(i)	 	Lender may enforce all rights and remedies under each Contract
that constitutes Collateral under Article 3 hereof and may recover possession
(subject to the right of an Obligor to quietly enjoy the use of any Equipment,
so long as it has not breached nor defaulted in performing any of its duties or
obligations under the Contract thereof) of any Equipment subject to a Contract,
and may require that same be assembled and delivered to a specific location.
Lender shall be entitled to a decree of specific performance to enforce the
rights set forth herein.
	 
	 	(ii)	 	Lender may give, or cause Guarantor or Borrower to give notice
to each Obligor under any Contract to direct all Contract Receivables to
Lender; Lender may collect and receive any and all Contract Receivables and
other cash and non-cash proceeds that constitute part of, or are derived from,
the Collateral including, without limitation, all renewal payments and Residual
Proceeds.
	 
	 	(iii)	 	Lender may sell all or any part of the Collateral, free from
any and all claims of Borrower, in one lot and as an entirety, or in separate
lots, at public or private sale, for cash or credit, in its discretion subject
to the non-disturbance of the rights of quiet enjoyment of the Obligors under
the Contracts. Upon any such public sale, Lender may bid for the property
offered for sale or any part thereof and the proceeds of such sale, net of
costs, shall be applied to any Obligations secured hereby as provided
hereinafter. Any such sale shall be held or conducted in a commercially
reasonable manner and at such place and at such time as Lender may specify, or
as may be required by law. Without limiting the generality of the foregoing,
Borrower expressly agrees that in any such event that Lender, without demand of
performance or other demand or notice of any

31

 

	 	 	 	kind (except notice of time and place of public or private sale) to or upon
Borrower or any other Person (all and each of which demands and/or notices
are hereby expressly waived), may forthwith collect, receive, appropriate
and realize upon the Collateral or any part thereof. If any notification of
intended disposition of any of the Collateral is required by law, such
notification shall be deemed reasonably and properly given (i) if
effectively received by Borrower at least five (5) days before such
disposition, or (ii) ten (10) days after deposit in the mail if sent by
registered mail, return receipt requested and addressed to Borrower for
Borrower at the Borrower’s address for notices under this Agreement.

	 	(iv)	 	At the request of Lender, Borrower and Guarantor shall promptly
execute and deliver to Lender such documents as Lender shall deem necessary or
advisable to enable Lender to obtain possession of the Equipment or to transfer
the title to the Equipment to any purchaser (including, without limitation,
Lender) in connection with any sale. Upon taking possession and sale of the
Equipment, Borrower shall cease to have any rights of redemption in respect of
the Equipment hereunder, and no payments thereafter made by Borrower in respect
of any or all of the Equipment shall give to Borrower any legal or equitable
interest or title in or to the Equipment or any cause or right of action at law
or in equity in respect of the Equipment against Lender, except that Lender
shall report to Borrower regarding the proceeds of the sale and the application
thereof.
	 
	 	(v)	 	Lender shall apply the net proceeds of any such collection,
recovery, receipt, appropriation, realization and sale, after deducting all
reasonable costs and expenses of every kind incurred therein or incidental to
the recovery, care, safekeeping or otherwise of any or all of the Collateral or
in any way relating to the rights of Lender hereunder, including reasonable
legal fees and expenses as follows: first to its costs and expenses in
enforcing Borrower’s or Guarantor’s obligations hereunder, then to accrued and
unpaid interest at the applicable Interest Rate, then to any other obligations
of Borrower or Guarantor hereunder and then, any remainder, if any, to
Borrower. Borrower or Guarantor hereby waive presentment, demand and protest
(to the extent permitted by Applicable Law) of any kind in connection with this
Agreement or any Collateral.

ARTICLE 8

INDEMNITY

	8.1	 	Indemnity. Borrower and Guarantor covenant and agree, at their sole cost and expense
and without limiting any other rights that Lender has hereunder, to indemnify, protect and
save Lender harmless against and from any and all claims, damages, losses, liabilities,
obligations, demands, defenses, judgments, costs, disbursements or expenses of any kind or of
any nature whatsoever that may be imposed upon, incurred by or asserted or

32

 

	 	 	awarded against Lender and related to or arising from the following, unless such claim, loss
or damage shall be based upon the gross negligence or willful misconduct of Lender:

	 	(a)	 	any breach by Borrower of the representations, warranties, covenants, or other
obligations or agreements made by Borrower in this Agreement, in any Contracts or in
any agreement related hereto or thereto;
	 
	 	(b)	 	the existence of any defense or offset against any Contract resulting from an
act or omission of Borrower with respect to the sale, lease and delivery of any
Equipment;
	 
	 	(c)	 	the violation by Borrower of any Applicable Law;
	 
	 	(d)	 	the reduction, or the claim or demand for a reduction, of any Obligor’s
indebtedness under a Contract as a result of an act or omission of Borrower;
	 
	 	(e)	 	a material misrepresentation made by Borrower to Lender;
	 
	 	(f)	 	any alleged failure of any Contract or the related Equipment to comply with any
Applicable Law;
	 
	 	(g)	 	any alleged failure on Borrower’s part to keep or perform any of its
obligations, express or implied, with respect to any Contract or the related Equipment;
	 
	 	(h)	 	any alleged injury to persons or property caused by the Equipment or any
violation or invasion of any patent or invention rights in respect of the Equipment; or
	 
	 	(i)	 	any governmental fees, charges, taxes or penalties levied or imposed in respect
to any Contract or any related Equipment, other than income taxes or franchise taxes
imposed on the Lender or any of its Affiliates.

ARTICLE 9

SERVICING AND ENFORCEMENT OF CONTRACTS

	9.1	 	Servicing of Contracts. Borrower and Lender hereby appoint Guarantor, and Guarantor
hereby accepts such appointment, to act as the agent for Lender with respect to the Contracts,
Contract Receivables and the Equipment in accordance with the terms of this Agreement.
Guarantor shall be responsible for collecting all amounts payable under the Contracts and
enforcing the Contract provisions in accordance with the terms set forth herein and Lender
shall have no responsibility or liability with respect thereto. Guarantor agrees that it shall
carry out its collection responsibilities in accordance with prudent servicing standards and
that it shall exercise that degree of skill and care consistent with the same degree of skill
and care that Guarantor exercises with respect to similar contracts and equipment owned or
serviced by Guarantor. Notwithstanding the foregoing, Borrower and Lender acknowledge and
agree that Guarantor may delegate its

33

 

	 	 	responsibilities to act as agent to one or more
of its subsidiaries provided that prior written
notice is given to Lender and Guarantor remains
liable for such responsibilities.

	9.2	 	Payment from Obligors.

	 	(a)	 	Lender acknowledges that not all Contract Receivables are collected via
pre-authorized payment systems. If at any time the amount on deposit in the Block
Account is less than one month’s installment payable under Section 2.8(d), Borrower or
Guarantor shall deposit in the Blocked Account promptly, but in any event within two
(2) Business Days of receipt, all payments received from any Obligor or any insurance
proceeds with respect to Equipment, and until deposited in the Blocked Account,
Borrower and Guarantor shall hold all such amounts in trust for the benefit of Lender.
Except for Borrower’s ability to withdraw amounts from the Blocked Account in
accordance with Section 6.1(t), the Blocked Account shall be under control of Lender
and Lender may move funds out of the Blocked Account in Lender’s sole discretion.
	 
	 	(b)	 	Until deposited in the Blocked Account, Borrower and Guarantor shall hold all
Contract Receivables that are not pre-authorized payment systems or otherwise deposited
into the Blocked Account, in trust for the benefit of Lender.

	9.3	 	Taxes. With respect to Taxes, Borrower and Guarantor agree that any and all Taxes
and credits, refunds or the like with respect to Taxes accrued or assessed with respect to the
Equipment or the Collateral through and including the date of this Agreement shall be the
liability of or credit of Borrower and all liabilities shall be paid solely by Borrower or
Guarantor.
	 
	9.4	 	Cooperation.

	 	(a)	 	Guarantor, Borrower and Lender agree to: cooperate fully with and make
available to one another and to any taxing authority as reasonably requested all
information, records, and documents relating to Taxes relating to the Contracts and
Equipment and timely furnish one another with copies of all correspondence received
from any taxing authority in connection with any tax audit or information request with
respect to any such taxable period.
	 
	 	(b)	 	Without limitation, and in addition to other indemnities contained herein,
Borrower and Guarantor, jointly and severally, agree to indemnify Lender relating to
any failure by Guarantor to comply with the sale and use tax laws of any jurisdiction.

	9.5	 	General Offset. In the event either Guarantor or Borrower fails to pay any amount
owed to Lender pursuant to this Agreement, Borrower and Guarantor agree that Lender, in
Lender’s sole discretion, may offset such amount from funds held by Lender pursuant to this
Agreement. Such offset shall not relieve Borrower and/or Guarantor of the obligations to pay
such amount and upon any such repayment by Borrower or Guarantor, the amount refunded by
Borrower or Guarantor to Lender shall be deemed to be held by Lender pursuant to the terms and
conditions of this Agreement.

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ARTICLE 10

MISCELLANEOUS

	10.1	 	Fees, Costs and Expenses.

	 	(a)	 	Borrower and Guarantor jointly and severally agree to pay all of the costs and
expenses of Lender incurred in connection with the review, documentation and/or
preparation for closing and closing of this transaction, and the Loan, including but
not limited to, all reasonable legal fees, and out-of-pocket expenses of Lender and
Lender’s legal counsel related to this transaction, and all audit fees as provided in
Section 6.1(j) hereof.
	 
	 	(b)	 	Borrower and Guarantor jointly and severally agree to pay all cost and
expenses, including Lender’s reasonable legal fees with respect to the enforcement of
this Agreement or the Loan, or realizing on the Collateral therefor, or any waivers
granted by Lender hereunder, or any Amendment hereto agreed to by Lender.

	10.2	 	Power of Attorney. Borrower and Guarantor hereby irrevocably constitute and appoint
Lender as Borrower’s and Guarantor’s attorney-in-fact with full power of substitution, for
Borrower and Guarantor, and in Borrower’s and Guarantor’s name to do, at Lender’s option and
at Borrower’s and Guarantor’s expense, all lawful acts and things that Lender may deem
necessary to perfect and continue the perfection of any security interest created hereunder
and to ask, demand, collect (including, but not limited to, the execution, in Borrower’s or
Guarantor’s name, of notification letters) sue for, compound and give acquittance for any and
all Contract Receivables assigned hereunder and to endorse, in writing or by stamp, Borrower’s
and Guarantor’s name or otherwise on all checks for any monies in respect of the Collateral;
provided that notwithstanding the foregoing, Lender agrees that it will not exercise any such
right or power unless an Event of Default has occurred and is continuing.
	 
	10.3	 	Survival. All covenants, agreements, representations, warranties, indemnities (and
obligations to repurchase) contained in this Agreement (and any and each other agreement or
instrument delivered pursuant hereto) shall survive the execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby. All indemnities
contained in this Agreement (and any and each other agreement or instrument delivered pursuant
hereto) shall survive the payment in full of the Indebtedness and the termination of this
Agreement.
	 
	10.4	 	Redelivery of Contracts upon Repurchase, Substitution or Payment in Full. In
connection with any repurchase or substitution of any Equipment or Contract by Borrower or
prepayment by an Obligor under any Contract, Lender shall, and hereby does, release its
security interest in the Contract, Equipment and other collateral and shall, and hereby does,
authorize Borrower or Guarantor to file the appropriate PPSA financing change statements
(including partial discharges) with respect thereto.

35

 

	10.5	 	Broker Fees. Guarantor and Borrower represent and warrant that no broker has been
engaged by Borrower or Guarantor with respect to the transactions contemplated by this
Agreement for which Lender may be responsible. Guarantor and Borrower will indemnify and hold
harmless Lender from any claim of any Person for any such fees, compensation or remuneration.
	 
	10.6	 	Notices. Except as otherwise provided, all notices and other communications to any
party pursuant to this Agreement or any Loan Document executed by it pursuant hereto shall be
in writing, addressed or delivered to it at its address set forth below its signature hereto
or at such other address as it shall designate in a notice to each other party, or by
confirmed electronic transmission. Any notice if mailed properly addressed shall be deemed
given on the third Business Day after mailing, postage prepaid.
	 
	10.7	 	Governing Law; Consent to Jurisdiction and Service of Process. THIS AGREEMENT SHALL
BE SUBJECT TO AND GOVERNED BY THE LAWS OF THE PROVINCE OF ALBERTA (WITHOUT REGARD TO THE
CONFLICT OF LAW PRINCIPLES THEREOF). BORROWER DOES HEREBY SUBMIT, AT LENDER’S ELECTION, TO
THE NON-EXCLUSIVE JURISDICTION AND VENUE OF ANY COURTS (FEDERAL, PROVINCIAL OR LOCAL) HAVING A
LOCATION WITHIN THE MUNICIPALITY OF METROPOLITAN CALGARY WITH RESPECT TO ANY DISPUTE, CLAIM,
OR SUIT WHETHER DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR ANY
RELATED ASSIGNMENT OR ANY OF BORROWER’S OBLIGATIONS OR INDEBTEDNESS HEREUNDER. BORROWER
HEREBY IRREVOCABLY WAIVES ANY CLAIM THAT THE CITY OF CALGARY, ALBERTA IS AN INCONVENIENT FORUM
OR AN IMPROPER FORUM BASED ON LACK OF VENUE AS WELL AS ANY RIGHT IT MAY NOW OR HEREAFTER HAVE
TO REMOVE ANY SUCH ACTION OR PROCEEDING, ONCE COMMENCED TO ANOTHER COURT ON THE GROUNDS OF
FORUM NON CONVENIENS OR OTHERWISE. THE NON-EXCLUSIVE CHOICE OF FORUM SET FORTH HEREIN SHALL
NOT BE DEEMED TO PRECLUDE THE ENFORCEMENT BY LENDER OF ANY JUDGMENT OBTAINED IN SUCH FORUM OR
THE TAKING OF ANY ACTION BY LENDER TO ENFORCE THE SAME IN ANY OTHER APPROPRIATE JURISDICTION.
	 
	10.8	 	Other Documents. Borrower shall execute such other documents and shall otherwise
cooperate with Lender as Lender reasonably requires to effectuate the transactions
contemplated hereby (including, without limitation, execution and delivery of any security
agreement, document or instrument as Lender or its legal counsel requires from time to time to
ensure that Lender has a first priority (subject to Permitted Liens) Lien, charge and security
interest against the Collateral).
	 
	10.9	 	Severability. Any provision of this Agreement or any instrument executed pursuant
hereto that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of any such prohibition or unenforceability without invalidating
the remaining provisions of this Agreement or any Loan Document or affecting the validity or
enforceability of that provision in any other jurisdiction.

36

 

	10.10	 	Entirety. This Agreement and the Exhibits referred to herein constitute the entire
agreement between Lender and Borrower as to the subject matter contemplated herein, and
supersedes all prior agreements and understandings relating thereto. Each of the parties
hereto acknowledges that no party hereto nor any agent of any other party whomsoever has made
any promise, representation or warranty whatsoever, express or implied, not contained herein,
concerning the subject matter hereof, to induce it to execute this Agreement. No other
agreements will be effective to change, modify or terminate this Agreement in whole or in part
unless such agreement is in writing and duly executed by the party to be charged except as
expressly set forth herein.
	 
	10.11	 	Waivers, Amendments, etc. The provisions of this Agreement and each Loan Document
executed by it pursuant hereto may from time to time be amended, modified or waived, if such
amendment, modification or waiver is in writing and consented to by the Borrower, the
Guarantor and the Lender. No failure or delay on the part of Lender or any assignee or Lender
in exercising any power or right under this Agreement or any Loan Document executed by it
pursuant hereto shall operate as a waiver thereof, nor shall any single or partial exercise of
any such power or right preclude any other or further exercise thereof or the exercise of any
other power or right. No notice to or demand on Borrower in any case shall entitle it to any
notice or demand in similar or other circumstances. Any waiver or approval hereunder by Lender
shall, subject to such limitations as may be stated in such waiver or approval, be applicable
to subsequent transactions, and in the event of the subsequent withdrawal or rescission of any
waiver or approval, such waiver or approval shall nevertheless be effective according to its
terms as to any transaction occurring before notice from Lender to Borrower of such withdrawal
or rescission. No waiver or approval hereunder by Lender shall require Lender to grant
thereafter any similar or dissimilar waiver or approval hereunder.
	 
	10.12	 	Headings. The various headings of this Agreement and of any Loan Document executed
pursuant hereto are inserted for convenience only and shall not affect the meaning or
interpretation of this Agreement or any such Loan Document or any provisions hereof or
thereof.
	 
	10.13	 	Counterparts and Effectiveness. This Agreement may be executed by the parties
hereto in several counterparts with original or verified electronic means, and each such
counterpart shall be deemed to be an original and all of which shall constitute together but
one and the same agreement, and shall be effective when signed by all parties hereto.
	 
	10.14	 	Successors and Assigns. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and assigns, except that neither
Borrower nor Guarantor may assign or transfer its rights hereunder without the prior written
consent of Lender. Lender reserves the right to sell, assign, transfer, negotiate or grant
participations in all or any part of, or any interest in, its rights and benefits hereunder
and under any Loan Document executed by it pursuant hereto and may, in connection therewith,
disclose all documents and information that it may have relating to Guarantor, Borrower or
their respective businesses, this Agreement, and any other Loan Document; provided, however,
that so long as no Event of Default shall exist, the Lender shall not sell, assign, transfer,
negotiate or grant any participations in all or

37

 

	 	 	any part of this Agreement or the Loan to any Person that is a competitor of the Guarantor
or any of its Affiliates.

	10.15	 	Confidentiality and Non-Disclosure. From the date hereof and except as may be
specifically required by law, no party hereto will without the prior consent of (such consent
not to be unreasonably withheld or unduly delayed) and consultation with the other parties
hereto make any written public announcement, make any written statement or release to the
media (except Lender may insert a customary “tombstone” in a newspaper or financial
publication), or make any written statement with respect to the transactions contemplated
hereby; provided, however, Borrower agrees to provide each Obligor any required notice of the
sales of Contracts within thirty (30) days of the Closing Date hereunder, the form and content
of which shall have been approved by Lender; and further provided, that Guarantor, Borrower
and Lender may disclose the contents of this Agreement to their respective assignees, lenders,
professional advisors, or as required by law or in connection with the enforcement of this
Agreement.
	 
	10.16	 	Rights Cumulative; Waivers. All rights, remedies and powers granted to Lender
hereunder are irrevocable and cumulative, and not alternative or exclusive, and shall be in
addition to all other rights, remedies and powers given hereunder, or in or by any other
instrument, or available in law or equity. Lender’s knowledge at any time of any breach of,
or non-compliance with, any representations, warranties, covenants or agreements hereunder
shall not constitute or be deemed a waiver of any of such rights or remedies hereunder, and
any waiver of any default shall not constitute a waiver of any other default. If, following
the occurrence of an Event of Default, Lender elects in writing to bill for and collect the
Contracts, Borrower and Guarantor shall be relieved of any further responsibility for
servicing; provided, Borrower shall remain liable for any acts or omissions committed during
the period Borrower or Guarantor was responsible for servicing the Contracts.
	 
	10.17	 	No Assumption of Obligation. Notwithstanding anything contained herein, Lender
assumes no obligation or liability to any Obligor under the Contracts and no assignment of the
Contracts or Contract Documents shall impose any such obligation or liability on Lender.
	 
	10.18	 	Authorization and Consent. Notwithstanding anything contained herein, the Credit
Parties authorize and consent to the reproduction, disclosure and use by Lender of information
about the Credit Parties (including, without limitation, the Credit Parties’ names and any
identifying logos) and the financing transactions provided for herein to enable Lender to
publish promotional “tombstones” and other forms of notices of the financings provided for
herein in any manner and in any media including, without limitation, marketing materials,
sales materials, printed media or web based material.

[*REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.*]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized as of the day and year first above written.

	 	 	 	 	 
	 	ARAM RENTALS CORPORATION

(“Borrower”)

 	 
	 	By:  	/s/ David L. Roland
 	 
	 	 	Name:  	David L. Roland 	 
	 	 	Title:  	Vice President and Corporate Secretary 	 
	 

Address:

7236 – 10th Street NE,

Calgary Alberta, T2E 8XE

Attn.: President

	 	 	 	 	 
	 	

ION GEOPHYSICAL CORPORATION

(“Guarantor”)

 	 
	 	By:  	/s/ David L. Roland
 	 
	 	 	Name:  	David L. Roland 	 
	 	 	Title:  	Senior Vice President, General Counsel

and Corporate Secretary 	 
	 

Address:

2105 CityWest Blvd., Suite 400

Houston, Texas 77042-2839

Attn.: General Counsel

Attn.: David L. Roland, Senior Vice President,

           General Counsel and Corporate Secretary

 

 

	 	 	 	 	 
	 	ICON ION, LLC

By: IEMC Corp., its Manager
 (“Lender”)

 	 
	 	By:  	                              /s/ Signed
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Address:

100 Fifth Avenue, 4th Floor

New York, New York 10011

Attn.: General Counsel

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