Document:

EX-4.21

 

EXECUTION VERSION

Exhibit 4.21

COMPAGNIE GÉNÉRALE DE GÉOPHYSIQUE

AND

THE GUARANTORS PARTY HERETO

$165,000,000

71/2% Senior Notes due 2015

REGISTRATION RIGHTS AGREEMENT

Dated as of February 3, 2006

CREDIT SUISSE SECURITIES (EUROPE) LIMITED

BNP PARIBAS SECURITIES CORP.

 

 

     This Registration Rights Agreement (this “Agreement”) is made and entered into as
of February 3, 2006 by and among Compagnie Générale de Géophysique, a corporation organized under
the laws of the Republic of France (the “Company”), CGG Americas Inc., CGG Canada Services
Ltd, CGG Marine Resources Norge A/S, Sercel Inc., Sercel Australia Pty Ltd, Sercel Canada Ltd and
any subsidiary of the Company that becomes a guarantor of the Notes (as defined below) subsequent
to the date hereof pursuant to the terms of the Indenture (as defined below) (each a
“Guarantor” and, collectively, the “Guarantors”), and Credit Suisse Securities
(Europe) Limited and BNP Paribas Securities Corp (each an “Initial Purchaser” and,
collectively, the “Initial Purchasers”), who have agreed to purchase $165,000,000 aggregate
principal amount of the Company’s 71/2% Senior Notes due 2015 (the “Initial Notes”) pursuant
to the Purchase Agreement (as defined below).

     This Agreement is made pursuant to the Purchase Agreement, dated January 27, 2006 (the
“Purchase Agreement”), by and among the Company and the Initial Purchasers. In order to
induce the Initial Purchasers to purchase the Initial Notes, the Company has agreed to provide the
registration rights set forth in this Agreement. The execution and delivery of this Agreement is a
condition to the obligations of the Initial Purchasers set forth in Section 6(k) of the Purchase
Agreement. Capitalized terms used herein and not otherwise defined shall have the meaning assigned
to them in the Indenture (as defined).

     The parties hereby agree as follows:

SECTION 1.

DEFINITIONS

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

     Act: The U.S. Securities Act of 1933, as amended.

     Advice: As defined in Section 6(d) hereof.

     Affiliate: As defined in Rule 144 under the Act.

     Broker-Dealer: Any broker or dealer registered under the Exchange Act.

     Closing Date: The date hereof.

     Commission: The U.S. Securities and Exchange Commission.

     Company: As defined in the preamble hereto.

     Consummate: The Exchange Offer shall be deemed “Consummated” for purposes of
this Agreement upon the occurrence of (i) the filing and effectiveness under the Act of the
Exchange Offer Registration Statement relating to the Exchange Offer, (ii) the maintenance
of such Registration Statement continuously effective and the keeping of the Exchange Offer
open for a period not less than the minimum period

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

 

 

required pursuant to Section 3(b) hereof, and (iii) the delivery by the Company to the Registrar under
the Indenture of Exchange Notes in the same aggregate principal amount as the aggregate
principal amount of Initial Notes that were validly tendered and not withdrawn by Holders
thereof pursuant to the Exchange Offer.

     Damages Payment Date: With respect to the Initial Notes, each Interest Payment
Date.

     Effectiveness Target Date: As defined in Section 5 hereof.

     Exchange Act: The U.S. Securities Exchange Act of 1934, as amended.

     Exchange Offer: The offer, registered by the Company under the Act pursuant to
a Registration Statement, of the Exchange Notes to the Holders of all outstanding Transfer
Restricted Securities validly tendered and not withdrawn in such exchange offer by such
Holders.

     Exchange Offer Registration Statement: The Registration Statement relating to
the Exchange Offer, including the related Prospectus.

     Exchange Notes: The Company’s 71/2% Senior Notes due 2015 to be issued pursuant
to the Indenture (a) in the Exchange Offer and (b) as contemplated by Section 6(c)(xii)
hereof.

     Exempt Resales: The transactions in which the Initial Purchasers propose to
sell the Initial Notes (i) to certain “qualified institutional buyers,” as such term is
defined in Rule 144A under the Act and (ii) outside the United States to certain non-U.S.
Persons pursuant to the requirements of Rule 903 under the Act.

     Guarantor: As defined in the preamble hereto.

     Holder and Holders: As defined in Section 2(b) hereof.

     Indemnified Holder: As defined in Section 8(a) hereof.

     Indenture: The Indenture, dated as of April 28, 2005, between the Company and
JPMorgan Chase Bank, National Association, as the Trustee, pursuant to which the Notes are
to be issued, as such Indenture is amended or supplemented from time to time in accordance
with the terms thereof.

     Initial Notes: As defined in the preamble hereto.

     Initial Purchaser and Initial Purchasers: As defined in the preamble
hereto.

     Interest Payment Date: Each May 15 and November 15, beginning with May 15,
2006.

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 2 -

 

     NASD: The National Association of Securities Dealers, Inc.

     Notes: The Initial Notes and the Exchange Notes.

     Prospectus: The prospectus included in a Registration Statement at the time
such Registration Statement is declared effective, as amended or supplemented by any
prospectus supplement and by all other amendments thereto, including post-effective
amendments, and all material incorporated by reference into such Prospectus.

     Record Holder: With respect to any Damages Payment Date relating to Notes,
each Person who is a Holder of Notes on the record date with respect to the Interest Payment
Date on which such Damages Payment Date shall occur.

     Registration Default: As defined in Section 5 hereof.

     Registration Statement: Any registration statement of the Company relating to
(a) an offering of Exchange Notes and the Subsidiary Guarantees pursuant to an Exchange
Offer or (b) the registration for resale of Transfer Restricted Securities pursuant to the
Shelf Registration Statement, in each case, which is filed pursuant to the provisions of
this Agreement and including the related Prospectus.

     Shelf Filing Deadline: As defined in Section 4 hereof.

     Shelf Registration Statement: As defined in Section 4 hereof.

     Subsidiary Guarantees: The joint and several guarantees of the Company’s
payment obligations under the Notes by the Guarantors to the extent required by the terms of
the Indenture.

     TIA: The U.S. Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb) as
in effect on the date of the Indenture.

     Transfer Restricted Securities: Each (a) Initial Note until (i) the date on
which such Initial Note has been exchanged by a Person other than a Broker-Dealer for an
Exchange Note in the Exchange Offer, (ii) the date on which such Initial Note has been
disposed of in accordance with the Shelf Registration Statement in a transaction registered
thereunder and the purchasers thereof have been issued Exchange Notes or (iii) the date on
which such Initial Note is distributed to the public pursuant to Rule 144 under the Act or
may be distributed to the public pursuant to Rule 144(k) under the Act and (b) Exchange Note
until, following the exchange by a Broker-Dealer in the Exchange Offer of an Initial Note
for an Exchange Note, the date on which such Exchange Note is sold pursuant to the “Plan of
Distribution” contemplated in the Exchange Offer Registration Statement to a purchaser who
receives from such Broker-Dealer on or prior to the date of such sale a copy of the
Prospectus contained in the Exchange Offer Registration Statement.

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 3 -

 

     Underwritten Registration or Underwritten Offering: A registration or
an offering in which securities of the Company are sold to an underwriter for reoffering to
the public.

SECTION 2.

SECURITIES SUBJECT TO THIS AGREEMENT

     (a) Transfer Restricted Securities. The securities entitled to the benefits of this
Agreement are the Transfer Restricted Securities.

     (b) Holders of Transfer Restricted Securities. A Person is deemed to be a holder of
Transfer Restricted Securities (each, a “Holder” and, collectively, the “Holders”)
whenever such Person owns Transfer Restricted Securities of record.

SECTION 3.

REGISTERED EXCHANGE OFFER

     (a) Unless the Exchange Offer shall not be permissible under applicable law or Commission
policy (after the procedures set forth in Section 6(a) below have been complied with), the Company
and the Guarantors shall (i) cause to be filed with the Commission on or before the 120th day after
the Closing Date, a Registration Statement under the Act relating to the Exchange Notes, the
Subsidiary Guarantees and the Exchange Offer, (ii) use their reasonable best efforts to cause such
Registration Statement to become effective on or before the 180th day after the Closing Date, (iii)
in connection with the foregoing, file (A) all pre-effective amendments to such Registration
Statement as may be necessary in order to cause such Registration Statement to become effective,
(B) if applicable, a post-effective amendment to such Registration Statement pursuant to Rule 430A
under the Act and (C) subject to the proviso in Section 6(c)(xi) hereof, cause all necessary
filings in connection with the registration and qualification of the Exchange Notes and the
Subsidiary Guarantees to be made under the Blue Sky laws of such jurisdictions as are necessary to
permit the Exchange Offer to be Consummated, and (iv) upon the effectiveness of such Registration
Statement, commence, and within the time periods contemplated by Section 3(b) hereof Consummate,
the Exchange Offer. The Exchange Offer Registration Statement shall be on the appropriate form
under the Act permitting registration of the Exchange Notes to be offered in exchange for the
Initial Notes that are Transfer Restricted Securities and permitting resales of the Exchange Notes
held by Broker-Dealers that tendered into the Exchange Offer Initial Notes that such Broker-Dealers
acquired for their own account as a result of market-making activities or other trading activities
(other than Initial Notes acquired directly from the Company or any of its Affiliates) as
contemplated by Section 3(c) below.

     (b) The Company and the Guarantors shall cause the Exchange Offer Registration Statement to be
effective continuously and shall keep the Exchange Offer open for a period of not less than the
minimum period required under applicable federal and state securities laws to Consummate the
Exchange Offer; provided, however, that in no event shall such period be less than 20 Business
Days. The Company and the Guarantors shall cause the Exchange Offer to comply with all applicable
federal and state securities laws. No securities other than the

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 4 -

 

Exchange Notes and the Subsidiary Guarantees shall be included in the Exchange Offer Registration
Statement. The Company and the Guarantors shall use their reasonable best efforts to cause the
Exchange Offer to be Consummated on the earliest practicable date after the Exchange Offer
Registration Statement has become effective, but in any event on or prior to the 210th day after
the Closing Date.

     (c) The Company and the Guarantors shall indicate in a “Plan of Distribution” section
contained in the Exchange Offer Registration Statement that any Broker-Dealer who holds Notes that
are Transfer Restricted Securities and that were acquired for its own account as a result of
market-making activities or other trading activities (other than Transfer Restricted Securities
acquired directly from the Company or any of its Affiliates) may exchange such Transfer Restricted
Securities pursuant to the Exchange Offer; however, such Broker-Dealer may be deemed to be an
“underwriter” within the meaning of the Act and must, therefore, deliver a prospectus meeting the
requirements of the Act in connection with its initial sale of the Exchange Notes received by such
Broker-Dealer in the Exchange Offer, which prospectus delivery requirement may be satisfied by the
delivery by such Broker-Dealer of the Prospectus contained in the Exchange Offer Registration
Statement. Such “Plan of Distribution” section shall also contain all other information with
respect to such resales by such Broker-Dealers that the Commission may require in order to permit
such resales pursuant thereto, but such “Plan of Distribution” shall not name any such
Broker-Dealer or disclose the amount of Transfer Restricted Securities held by any such
Broker-Dealer except to the extent required by the Commission as a result of a change in policy
after the date of this Agreement.

     The Company and the Guarantors shall use their reasonable best efforts to keep the Exchange
Offer Registration Statement continuously effective, supplemented and amended as required by and
subject to the provisions of Sections 6(a) and 6(c) below to the extent necessary to ensure that
the related Prospectus is available for resales of Notes acquired by Broker-Dealers for their own
accounts as a result of market-making activities or other trading activities (other than Transfer
Restricted Securities acquired directly from the Company or any of its Affiliates), and to ensure
that it conforms with the requirements of this Agreement, the Act and the policies, rules and
regulations of the Commission as announced from time to time, for a period of one year from the
Consummation Date or such shorter period as will terminate when no Transfer Restricted Securities
covered by such Registration Statement are outstanding.

     The Company and the Guarantors shall provide sufficient copies of the latest version of such
Prospectus to Broker-Dealers promptly upon request at any time during such period in order to
facilitate such resales.

SECTION 4.

SHELF REGISTRATION

     (a) Shelf Registration. If (i) the Company and the Guarantors are not required to
file an Exchange Offer Registration Statement or not permitted to Consummate the Exchange Offer
because the Exchange Offer is not permitted by applicable law or Commission policy (after the
procedures set forth in Section 6(a) below have been complied with) or (ii) any Holder of

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 5 -

 

Transfer Restricted Securities notifies the Company in writing prior to the 20th Business Day
following the Consummation of the Exchange Offer that (A) such Holder is prohibited by applicable
law or Commission policy from participating in the Exchange Offer, or (B) such Holder may not
resell the Exchange Notes acquired by it in the Exchange Offer to the public without delivering a
prospectus and the Prospectus contained in the Exchange Offer Registration Statement is not
available for such resales by such Holder, then the Company and the Guarantors shall use their
reasonable best efforts to:

     (x) cause to be filed a shelf registration statement pursuant to Rule 415 under the
Act, which may be an amendment to the Exchange Offer Registration Statement (in either
event, the “Shelf Registration Statement”) relating to all Transfer Restricted
Securities in the case of Section 4(a)(i) or the Transfer Restricted Securities specified in
any notice in the case of Section 4(a)(ii) on or prior to the earliest to occur of (1) the
90th day after the date on which the Company determines that it is not required to file the
Exchange Offer Registration Statement as a result of Section 4(a)(i) hereof and (2) the 90th
day after the date on which the Company receives notice from a Holder of Transfer Restricted
Securities as contemplated by Section 4(a)(ii) above (such earliest date being the
“Shelf Filing Deadline”), which Shelf Registration Statement shall provide for
resales of all Transfer Restricted Securities the Holders of which shall have provided the
information required pursuant to Section 4(b) hereof; and

     (y) cause such Shelf Registration Statement to be declared effective by the Commission
on or before the 180th day after the Shelf Filing Deadline.

The Company and the Guarantors shall use their reasonable best efforts to keep such Shelf
Registration Statement continuously effective, supplemented and amended as required by the
provisions of Sections 6(b) and (c) hereof to the extent necessary to ensure that it is available
for resales of Transfer Restricted Securities by the Holders thereof entitled to the benefit of
this Section 4(a), and to ensure that it conforms with the requirements of this Agreement, the Act
and the policies, rules and regulations of the Commission as announced from time to time, until the
earlier of (a) two years following the Closing Date and (b) such earlier date when no Transfer
Restricted Securities covered by such Shelf Registration Statement remain outstanding.

     Holders of Transfer Restricted Securities that do not give the written notice within the 20
Business Day period set forth above in this Section 4(a), if required to be given, will no longer
have any registration rights pursuant to this Section 4 and will not be entitled to any Liquidated
Damages pursuant to Section 5 hereof in respect of the Company’s obligations with respect to the
Shelf Registration Statement.

     (b) Provision by Holders of Certain Information in Connection with the Shelf Registration
Statement. No Holder of Transfer Restricted Securities may include any of its Transfer
Restricted Securities in any Shelf Registration Statement pursuant to this Agreement unless and
until such Holder furnishes to the Company in writing, within 10 Business Days after receipt of a
request therefor, such information as the Company may reasonably request for use in connection with
any Shelf Registration Statement or Prospectus or preliminary Prospectus

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 6 -

 

included therein. No Holder of Transfer Restricted Securities shall be entitled to Liquidated
Damages pursuant to Section 5 hereof if such Holder shall have failed to provide all such
reasonably requested information within such period. Each Holder as to which any Shelf
Registration Statement is being effected agrees to furnish promptly to the Company all information
required to be disclosed in order to make the information previously furnished to the Company by
such Holder not materially misleading.

SECTION 5.

LIQUIDATED DAMAGES

     If (i) any of the Registration Statements required by this Agreement to be filed is not filed
with the Commission on or prior to the date specified for such filing in this Agreement, (ii) any
of such Registration Statements has not been declared effective by the Commission on or prior to
the date specified for such effectiveness in this Agreement (the “Effectiveness Target
Date”), whether or not the Company and the Guarantors have breached any obligations to use
their reasonable best efforts to cause any such Registration Statement to be declared effective,
(iii) the Exchange Offer has not been Consummated within 210 days of the Closing Date with respect
to the Exchange Offer Registration Statement or (iv) subject to Section 6(c)(i) hereof, any
Registration Statement required by this Agreement is filed and declared effective but shall
thereafter cease to be effective or fail to be usable for its intended purpose without being
succeeded within 10 Business Days by a post-effective amendment to such Registration Statement that
cures such failure and that is itself declared effective within 10 Business Days of the date of
filing of such post-effective amendment (each such event referred to in clauses (i) through (iv), a
“Registration Default”), the Company and the Guarantors hereby jointly and severally agree
to pay liquidated damages to each Holder of Transfer Restricted Securities in an amount equal to
$.05 per week per $1,000 principal amount of Transfer Restricted Securities held by such Holder for
each week or portion thereof that the Registration Default continues with respect to the first
90-day period immediately following the occurrence of such Registration Default. The amount of the
liquidated damages shall increase by an additional $.05 per week per $1,000 in principal amount of
Transfer Restricted Securities with respect to each subsequent 90-day period until all Registration
Defaults have been cured, up to a maximum amount of liquidated damages of $.30 per week per $1,000
principal amount of Transfer Restricted Securities provided that the Company shall in no event be
required to pay Liquidated Damages for more than one Registration Default at any given time. All
accrued liquidated damages shall be paid to Record Holders by the Company on each Damages Payment
Date following the accrual thereof, in the same manner as provided in the Indenture and the Notes
for the payment of interest on the Notes. Following the cure of all Registration Defaults relating
to any particular Transfer Restricted Securities, the accrual of liquidated damages with respect to
such Transfer Restricted Securities will cease.

     All obligations of the Company and the Guarantors set forth in the preceding paragraph that
are outstanding with respect to any Transfer Restricted Security at the time such security ceases
to be a Transfer Restricted Security shall survive until such time as all such obligations with
respect to such security shall have been satisfied in full.

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 7 -

 

SECTION 6.

REGISTRATION PROCEDURES

     (a) Exchange Offer Registration Statement. In connection with the Exchange Offer, the
Company and the Guarantors shall comply with all of the applicable provisions of Section 6(c)
below, shall use their reasonable best efforts to effect such exchange and to permit the sale of
Transfer Restricted Securities being sold in accordance with the intended method or methods of
distribution thereof, and shall comply with all of the following provisions:

     (i) If in the reasonable opinion of counsel to the Company there is a question as to
whether the Exchange Offer is permitted by applicable law, the Company and the Guarantors
hereby agree to seek a no-action letter or other favorable decision from the Commission
allowing the Company and the Guarantors to Consummate the Exchange Offer for such Transfer
Restricted Securities and to permit the resale of Exchange Notes by Broker-Dealers that
tendered in the Exchange Offer Initial Notes that such Broker-Dealers acquired for their own
account as a result of market-making activities or other trading activities (other than
Initial Notes acquired directly from the Company or any of its Affiliates) being sold in
accordance with the intended method or methods of distribution thereof. The Company and the
Guarantors hereby agree to use their reasonable best efforts to pursue the issuance of such
a decision to the Commission staff level but shall not be required to take commercially
unreasonable action to effect a change of Commission policy.

     (ii) As a condition to its participation in the Exchange Offer, each Holder of Transfer
Restricted Securities (including, without limitation, any Holder who is a Broker-Dealer)
shall furnish, upon the request of the Company, prior to the Consummation of the Exchange
Offer, a written representation to the Company (which may be contained in the letter of
transmittal contemplated by the Exchange Offer Registration Statement) to the effect that,
at the time of Consummation of the Exchange Offer, (A) any Exchange Notes received by such
Holder will be acquired in the ordinary course of its business, (B) such Holder will have no
arrangement or understanding with any person to participate in distribution of the Initial
Notes or the Exchange Notes within the meaning of the Act, (C) if the Holder is not a
Broker-Dealer or is a Broker-Dealer but will not receive Exchange Notes for its own account
in exchange for Initial Notes, neither the Holder nor any such other Person is engaged in or
intends to participate in a distribution of the Exchange Notes, and (D) such Holder is not
an Affiliate of the Company. If the Holder is a Broker-Dealer that will receive Exchange
Notes for its own account in exchange for Initial Notes, it will represent that the Initial
Notes to be exchanged for the Exchange Notes were acquired by it as a result of
market-making activities or other trading activities, and will acknowledge that it will
deliver a prospectus meeting the requirements of the Act in connection with any resale of
such Exchange Notes. It is understood that, by acknowledging that it will deliver, and by
delivering, a prospectus meeting the requirements of the Act in connection with any resale
of such Exchange Notes, the Holder is not admitting that it is an “underwriter” within the
meaning of the Act.

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 8 -

 

     (iii) Prior to effectiveness of the Exchange Offer Registration Statement, the Company
and the Guarantors shall provide a supplemental letter to the Commission (A) stating that
the Company and the Guarantors are registering the Exchange Offer in reliance on the
position of the Commission enunciated in Exxon Capital Holdings Corporation (available May
13, 1988), Morgan Stanley and Co., Inc. (available June 5, 1991) and, if applicable, any
no-action letter obtained pursuant to clause (i) above and (B) including a representation
that neither the Company nor any Guarantor has entered into any arrangement or understanding
with any Person to distribute the Exchange Notes to be received in the Exchange Offer and
that, to the best of the Company’s information and belief, each Holder participating in the
Exchange Offer is acquiring the Exchange Notes in its ordinary course of business and has no
arrangement or understanding with any Person to participate in the distribution of the
Exchange Notes received in the Exchange Offer.

     (b) Shelf Registration Statement. In connection with the Shelf Registration
Statement, if required, the Company and the Guarantors shall comply with all the provisions of
Section 6(c) below and shall use their reasonable best efforts to effect such registration to
permit the sale of the Transfer Restricted Securities being sold in accordance with the intended
method or methods of distribution thereof (as indicated in the information furnished to the Company
pursuant to Section 4(b) hereof) and, pursuant thereto, the Company and the Guarantors will prepare
and file with the Commission in accordance with Section 4(a) hereof a Shelf Registration Statement
to effect such registration on any appropriate form under the Act, which form shall be available
for the sale of the Transfer Restricted Securities in accordance with the intended method or
methods of distribution thereof within the time periods and otherwise in accordance with the
provisions hereof.

     (c) General Provisions. In connection with any Registration Statement and any
Prospectus required by this Agreement to permit the sale or resale of Transfer Restricted
Securities (including, without limitation, any Registration Statement and the related Prospectus
required to permit resales of Notes by Broker-Dealers as contemplated herein), the Company and the
Guarantors shall during the periods specified in Sections 3 and 4 hereof, as applicable:

     (i) use their reasonable best efforts to keep such Registration Statement continuously
effective and provide all requisite financial statements (including, if required by the Act
or any regulation thereunder, financial statements of the Guarantors, if any) for the period
specified in Section 3 or 4 hereof, as applicable; upon the occurrence of any event that
would cause any such Registration Statement or the Prospectus contained therein (A) to
contain an untrue statement of material fact or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they were made,
not misleading or (B) not to be effective and usable for the resale of Transfer Restricted
Securities during the period required by this Agreement, the Company and the Guarantors
shall file promptly an appropriate amendment to such Registration Statement, in the case of
clause (A), correcting any such misstatement or omission, and, in the case of either clause
(A) or (B), use their reasonable best efforts to cause such amendment to be declared
effective and such Registration

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 9 -

 

Statement and the related Prospectus to become usable for their intended purpose(s) as soon
as practicable thereafter; provided, however, if (A) the full Board of Directors of the
Company determines in good faith that it is in the best interests of the Company not to
disclose the existence of or facts surrounding any proposed or pending material corporate
transaction involving the Company or any of its subsidiaries and (B) the Company notifies
the Holders, pursuant to Section 6(c)(iii)(D) hereof, within two Business Days after such
Board of Directors makes such determination, the Company may allow the Shelf Registration
Statement to fail to be effective and usable as a result of such nondisclosure for up to 120
days during the period of effectiveness required by Section 4 hereof, but in no event for a
period in excess of 45 consecutive days;

     (ii) prepare and file with the Commission such amendments and post-effective amendments
to the Registration Statement as may be necessary to keep the Registration Statement
effective for the applicable period set forth in Section 3 or 4 hereof; cause the Prospectus
to be supplemented by any required Prospectus supplement, and as so supplemented to be filed
pursuant to Rule 424 under the Act, and to comply fully with the applicable provisions of
Rules 424 and 430A under the Act in a timely manner; and comply with the provisions of the
Act with respect to the disposition of all securities covered by such Registration Statement
during the applicable period in accordance with the intended method or methods of
distribution by the sellers thereof set forth in such Registration Statement or supplement
to the Prospectus;

     (iii) except in the case of the Exchange Offer Registration Statement, advise the
underwriter(s), if any, and selling Holders promptly and, if requested by any such Person,
to confirm such advice in writing, (A) when the Prospectus or any Prospectus supplement or
post-effective amendment has been filed, and, with respect to any Registration Statement or
any post-effective amendment thereto, when the same has become effective, (B) of any request
by the Commission for amendments to the Registration Statement or amendments or supplements
to the Prospectus or for additional information relating thereto, (C) of the issuance by the
Commission of any stop order suspending the effectiveness of the Registration Statement
under the Act or of the suspension by any state securities commission of the qualification
of the Transfer Restricted Securities for offering or sale in any jurisdiction, or the
initiation of any proceeding for any of the preceding purposes, and (D) of the existence of
any fact or the happening of any event that makes any statement of a material fact made in
the Registration Statement, the Prospectus, any amendment or supplement thereto, or any
document incorporated by reference therein untrue, or that requires the making of any
additions to or changes in the Registration Statement or the Prospectus in order to make the
statements therein not misleading. If at any time the Commission shall issue any stop order
suspending the effectiveness of the Registration Statement, or any state securities
commission or other regulatory authority shall issue an order suspending the qualification
or exemption from qualification of the Transfer Restricted Securities under state securities
or Blue Sky laws, the Company and the Guarantors shall use their reasonable best efforts to
obtain the withdrawal or lifting of such order at the earliest possible time;

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 10 -

 

     (iv) in the case of a Shelf Registration Statement, furnish to each of the selling
Holders and each of the underwriter(s), if any, before filing with the Commission, copies of
any Registration Statement or any Prospectus included therein or any amendments or
supplements to any such Registration Statement or Prospectus (but excluding any documents
incorporated by reference as a result of the Company’s periodic reporting requirements under
the Exchange Act), and neither the Company nor any Guarantors shall file any such
Registration Statement or Prospectus or any amendment or supplement to any such Registration
Statement or Prospectus (excluding all such documents incorporated by reference as a result
of the Company’s periodic reporting requirements under the Exchange Act) to which a selling
Holder of Transfer Restricted Securities covered by such Registration Statement or the
underwriter(s), if any, shall reasonably object within five Business Days after the receipt
thereof. A selling Holder or underwriter, if any, shall be deemed to have reasonably
objected to such filing if such Registration Statement, amendment, Prospectus or supplement,
as applicable, as proposed to be filed, contains an untrue statement of material fact or
omits to state any material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading;

     (v) in the case of a Shelf Registration Statement, promptly following the filing of any
document that is to be incorporated by reference into a Registration Statement or
Prospectus, provide copies of such document to the selling Holders and to the
underwriter(s), if any, make the Company’s representatives available for discussion of such
document and other customary due diligence matters, and include such information in such
document prior to the filing thereof as such selling Holders or underwriter(s), if any,
reasonably may request;

     (vi) in the case of a Shelf Registration Statement, make available at reasonable times
for inspection by the selling Holders, any underwriter participating in any disposition
pursuant to such Registration Statement, and any attorney or accountant retained by such
selling Holders or any of the underwriter(s), all relevant financial and other records and
pertinent corporate documents and properties of the Company and the Guarantors and cause the
Company’s and the Guarantors’ officers, directors and employees to supply all information
reasonably requested by any such Holder, underwriter, attorney or accountant in connection
with such Registration Statement subsequent to the filing thereof and prior to its
effectiveness; provided, however, that the foregoing inspection and information gathering
(i) shall be coordinated on behalf of the selling Holders, underwriters, or any
representative thereof, by one counsel, who shall be Vinson & Elkins R.L.L.P. or such other
counsel as may be chosen by the Holders of a majority in principal amount of Transfer
Restricted Securities, and (ii) shall not be available for any such Holder who does not
agree in writing to hold such information in confidence.

     (vii) in the case of a Shelf Registration Statement, if requested by any selling
Holders or the underwriter(s), if any, promptly incorporate in any Registration Statement or
Prospectus, pursuant to a supplement or post-effective amendment if necessary, such

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 11 -

 

information as such selling Holders and underwriter(s), if any, may reasonably request to
have included therein, including, without limitation, information relating to the “Plan of
Distribution” of the Transfer Restricted Securities, information with respect to the
principal amount of Transfer Restricted Securities being sold to such underwriter(s), the
purchase price being paid therefor and any other terms of the offering of the Transfer
Restricted Securities to be sold in such offering; and make all required filings of such
Prospectus supplement or post-effective amendment as soon as practicable after the Company
is notified of the matters to be incorporated in such Prospectus supplement or
post-effective amendment;

     (viii) in the case of a Shelf Registration Statement, furnish to each selling Holder
and each of the underwriter(s), if any, without charge, at least one copy of the
Registration Statement, as first filed with the Commission, and of each amendment thereto,
including all documents incorporated by reference therein and all exhibits (including
exhibits incorporated therein by reference);

     (ix) deliver to each selling Holder and each of the underwriter(s), if any, without
charge, as many copies of the Prospectus (including each preliminary prospectus) and any
amendment or supplement thereto as such Persons reasonably may request; the Company and the
Guarantors hereby consent, subject to Section 6(d) hereof, to the use of the Prospectus and
any amendment or supplement thereto by each of the selling Holders and each of the
underwriter(s), if any, in connection with the offering and the sale of the Transfer
Restricted Securities covered by the Prospectus or any amendment or supplement thereto;
provided that such use of the Prospectus and any amendment or supplement thereto and such
offering and sale conforms to the Plan of Distribution set forth in the Prospectus and
complies with the terms of this Agreement and all applicable laws and regulations
thereunder;

     (x) in the event of an Underwritten Registration, enter into such customary agreements
(including an underwriting agreement), make such customary representations and warranties,
deliver such customary documents and certificates, and take all such other customary actions
in connection therewith in order to expedite or facilitate the disposition of the Transfer
Restricted Securities pursuant to any Shelf Registration Statement contemplated by this
Agreement, all to such extent as may be reasonably requested by any Holder of Transfer
Restricted Securities or underwriter in connection with any sale or resale pursuant to any
Shelf Registration Statement contemplated by this Agreement; and, without limiting the
generality of the foregoing, the Company and the Guarantors shall:

     (A) furnish to each underwriter upon the effectiveness of the Shelf
Registration Statement:

     (1) a certificate, dated the date of effectiveness of the Shelf
Registration Statement, signed on behalf of the Company by two senior
officers, one of whom must be its Senior Executive Vice President,

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 12 -

 

Finance and Human Resources, confirming, as of such date, the matters
addressed in the officers’ certificate delivered pursuant to Section 6(e) of
the Purchase Agreement with respect to the transactions contemplated by the
Shelf Registration Statement;

     (2) an opinion or opinions, dated the date of effectiveness of the
Shelf Registration Statement, of counsel for the Company and the Guarantors
covering the matters referred to in Section 6(c) and (d) of the Purchase
Agreement with respect to the transactions contemplated by the Shelf
Registration Statement; and

     (3) a customary comfort letter, dated as of the date of effectiveness
of the Shelf Registration Statement, from the Company’s independent
accountants if such comfort letter shall be issuable to the underwriters in
accordance with the relevant accounting industry pronouncements, in the
customary form and covering matters of the type customarily covered in
comfort letters to underwriters in connection with primary underwritten
offerings, and substantially in the form of the comfort letters delivered
pursuant to Section 6(a) of the Purchase Agreement; and

     (B) deliver such other documents and certificates as may be reasonably
requested by such parties and which are customarily delivered in Underwritten
Offerings.

     (xi) prior to any public offering of Transfer Restricted Securities, cooperate with the
selling Holders, the underwriter(s), if any, and their respective counsel in connection with
the registration and qualification of the Transfer Restricted Securities under the
securities or Blue Sky laws of such jurisdictions as the selling Holders or underwriter(s)
may reasonably request and do any and all other acts or things reasonably necessary or
advisable to enable the disposition in such jurisdictions of the Transfer Restricted
Securities covered by the Shelf Registration Statement; provided, however, that neither the
Company nor the Guarantors shall be required to register or qualify as a foreign corporation
where it is not now so qualified or to take any action that would subject it to the service
of process in suits or to taxation, other than as to matters and transactions relating to
the Registration Statement, in any jurisdiction where it is not now so subject;

     (xii) issue, upon the request of any Holder of Initial Notes covered by the Shelf
Registration Statement, Exchange Notes, having an aggregate principal amount equal to the
aggregate principal amount of Initial Notes being sold by such Holder, such Exchange Notes
to be registered in the name of the purchaser(s) of such Notes, as the case may be; in
return, the Initial Notes held by such Holder shall be surrendered to the Company for
cancellation;

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 13 -

 

     (xiii) in connection with any sale of Transfer Restricted Securities that will result
in such securities no longer being Transfer Restricted Securities, cooperate with the
selling Holders and the underwriter(s), if any, to facilitate the timely preparation and
delivery of certificates representing Transfer Restricted Securities to be sold and not
bearing any restrictive legends; and enable such Transfer Restricted Securities to be in
such authorized denominations and registered in such names as the Holders or the
underwriter(s), if any, may reasonably request at least two Business Days prior to any sale
of Transfer Restricted Securities made by such underwriter(s);

     (xiv) if any fact or event contemplated by clause (c)(iii)(D) above shall exist or have
occurred, prepare a supplement or post-effective amendment to the Registration Statement or
related Prospectus or any document incorporated therein by reference or file any other
required document so that, as thereafter delivered to the purchasers of Transfer Restricted
Securities, the Prospectus will not contain any untrue statement of a material fact or omit
to state any material fact necessary to make the statements therein not misleading;

     (xv) provide a CUSIP number for all Exchange Notes not later than the effective date of
the Registration Statement and provide the Trustee under the Indenture with one or more
global certificates for the Exchange Notes that are in a form eligible for deposit with The
Depository Trust Company;

     (xvi) in the case of a Shelf Registration Statement, cooperate and assist in any
filings required to be made with the NASD and in the performance of any due diligence
investigation by any underwriter (including any “qualified independent underwriter”) that is
required to be retained in accordance with the rules and regulations of the NASD;

     (xvii) otherwise use their reasonable best efforts to comply with all applicable rules
and regulations of the Commission, and make generally available to its security holders with
regard to any applicable Registration Statement, as soon as practicable, a consolidated
earnings statement meeting the requirements of Rule 158 (which need not be audited) for a
twelve-month period commencing after the effective date of the Registration Statement;

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

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 14 -

 

     (xix) provide promptly to each Holder upon request each document filed with the
Commission pursuant to the requirements of Section 13 or Section 15 of the Exchange Act.

     (d) Each Holder agrees by acquisition of a Transfer Restricted Security that, upon receipt of
any notice from the Company of the existence of any fact of the kind described in Section
6(c)(iii)(D) hereof, such Holder will keep such notice confidential and forthwith discontinue
disposition of Transfer Restricted Securities pursuant to the applicable Registration Statement
until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 6(c)(xiv) hereof, or until it is advised in writing (the “Advice”) by the Company
that the use of the Prospectus may be resumed, and has received copies of any additional or
supplemental filings that are incorporated by reference in the Prospectus. If so directed by the
Company, each Holder will deliver to the Company (at the Company’s expense) all copies, other than
permanent file copies then in such Holder’s possession, of the Prospectus covering such Transfer
Restricted Securities that was current at the time of receipt of such notice. If the Company shall
give any such notice, the time period regarding the effectiveness of such Registration Statement
set forth in Section 3 or 4 hereof, as applicable, shall be extended by the number of days during
the period from and including the date of the giving of such notice pursuant to Section
6(c)(iii)(D) hereof to and including the date when each selling Holder covered by such Registration
Statement shall have received the copies of the supplemented or amended Prospectus contemplated by
Section 6(c)(xiv) hereof or shall have received the Advice.

SECTION 7.

REGISTRATION EXPENSES

     (a) All expenses incident to the Company’s or the Guarantors’ performance of or compliance
with this Agreement will be borne by the Company and the Guarantors regardless of whether a
Registration Statement becomes effective, including without limitation: (i) all registration and
filing fees and expenses (including filings made by the Initial Purchasers or Holders with the NASD
(and, if applicable, the fees and expenses of any “qualified independent underwriter” and its
counsel that may be required by the rules and regulations of the NASD)); (ii) all fees and expenses
of compliance with federal securities and state Blue Sky or securities laws; (iii) all expenses of
printing (including printing of Prospectuses), messenger and delivery services and telephone; (iv)
all fees and disbursements of counsel for the Company and the Guarantors and, subject to Section
7(b) below, counsel for the Holders of Transfer Restricted Securities; (v) all application and
filing fees in connection with listing Notes on a national securities exchange or automated
quotation system, if any; and (vi) all fees and disbursements of independent public accountants of
the Company and the Guarantors (including the expenses of any special audit and comfort letters
required by or incident to such performance).

     The Company and the Guarantors will, in any event, bear their internal expenses (including,
without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), the expenses of any annual audit and the fees and expenses of any Person,
including special experts, retained by the Company or any Guarantor. The Company

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 15 -

 

shall not be responsible for any other expenses or costs, including but not limited to commissions,
fees and discounts of underwriters, brokers, dealers and agents.

     (b) In connection with any Registration Statement required by this Agreement (excluding the
Exchange Offer Registration Statement), the Company and the Guarantors will reimburse the Holders
of Transfer Restricted Securities being tendered in the Exchange Offer and/or resold pursuant to
the “Plan of Distribution” contained in the Exchange Offer Registration Statement or registered
pursuant to the Shelf Registration Statement, as applicable, for the reasonable fees and
disbursements of not more than one counsel, who shall be Vinson & Elkins R.L.L.P. or such other
counsel as may be chosen by the Holders of a majority in principal amount of the Transfer
Restricted Securities for whose benefit such Registration Statement is being prepared; provided
that, except in the case of an Underwritten Offering, the fees and expenses of such counsel to be
reimbursed by the Company shall not exceed $25,000.

SECTION 8.

INDEMNIFICATION

     (a) The Company and the Guarantors jointly and severally, agree to indemnify and hold harmless
(i) each Holder, (ii) each Initial Purchaser, (iii) each person, if any, who controls any Holder or
an Initial Purchaser within the meaning of Section 15 of the Act or Section 20(a) of the Exchange
Act and (iii) the respective officers, directors, partners, employees, representatives and agents
of any Holder or Initial Purchaser or any controlling person (any person referred to in clauses
(i), (ii) or (iii) may hereinafter be referred to as an “Indemnified Holder”), to the
fullest extent lawful, from and against any and all losses, liabilities, claims, damages and
expenses whatsoever (including but not limited to reasonable attorneys’ fees and any and all
reasonable expenses whatsoever incurred in investigating, preparing or defending against any
investigation or litigation, commenced or threatened, or any claim whatsoever, and any and all
amounts paid in settlement of any claim or litigation), joint or several, to which they or any of
them may become subject under the Act, the Exchange Act or otherwise, insofar as such losses,
liabilities, claims, damages or expenses (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of a material fact contained in any
Registration Statement or Prospectus, or in any supplement thereto or amendment thereof, or 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 therein, in the light of the circumstances
under which they were made, not misleading; provided, however, that the Company and the Guarantors
will not be liable in any such case to the extent, but only to the extent, that any such loss,
liability, claim, damage or expense arises out of or is based upon any such untrue statement or
alleged untrue statement or omission or alleged omission made therein in reliance upon and in
conformity with written information furnished to the Company by or on behalf of the any of the
Holders expressly for use therein. This indemnity agreement will be in addition to any liability
that the Company and the Guarantors may otherwise have, including under this Agreement.

     (b) Each Holder of Transfer Restricted Securities agrees, severally and not jointly, to
indemnify and hold harmless the Company, each of the Guarantors and each person, if any, who

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 16 -

 

controls the Company or any Guarantor within the meaning of Section 15 of the Act or Section 20(a)
of the Exchange Act and each of their respective officers, directors, employers, partners,
representatives and agents to the same extent as the foregoing indemnity from the Company and the
Guarantors to each of the Indemnified Holders, but only with respect to information relating to
such Holder furnished in writing by such Holder for use in any Registration Statement, or in any
amendment thereof or supplement thereto; provided, however, that in no case shall any selling
Holder be liable or responsible for any amount in excess of proceeds received by such Holder upon
the sale of the Notes giving rise to such indemnification obligation. This indemnity will be in
addition to any liability that the Holders may otherwise have, including under this Agreement.

     (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice
of the commencement of any action, such indemnified party shall, if a claim in respect thereof is
to be made against the indemnifying party under such subsection, notify each party against whom
indemnification is to be sought in writing of the commencement thereof (but the failure so to
notify an indemnifying party shall not relieve it from any liability that it may have under this
Section 8 or otherwise except to the extent that it has been prejudiced in any material respect by
such failure). In case any such action is brought against any indemnified party, and it notifies
an indemnifying party of the commencement thereof, the indemnifying party will be entitled to
participate therein, and to the extent it may elect by written notice delivered to the indemnified
party promptly after receiving the aforesaid notice from such indemnified party, to assume and
control the defense thereof with counsel reasonably satisfactory to such indemnified party.
Notwithstanding the foregoing, the indemnified party or parties shall have the right to employ its
or their own counsel in any such case, but the fees and expenses of such counsel shall be at the
expense of such indemnified party or parties unless (i) the employment of such counsel shall have
been authorized in writing by the indemnifying parties in connection with the defense of such
action, (ii) the indemnifying parties shall not have employed counsel to take charge of the defense
of such action within a reasonable time after notice of commencement of the action, or (iii) such
indemnified party or parties shall have reasonably concluded that there may be defenses available
to it that are different from or additional to those available to one or all of the indemnifying
parties (in which case the indemnifying party shall not have the right to direct the defense of
such action on behalf of the indemnified party or parties), in any of which events such fees and
expenses of counsel shall be borne by the indemnifying parties; provided, however, that the
indemnifying party under subsection (a) or (b) above shall only be liable for the legal expenses of
one counsel (in addition to any local counsel) for all indemnified parties. Anything in this
subsection to the contrary notwithstanding, an indemnifying party shall not be liable for any
settlement of any claim or action effected without its prior written consent; provided that such
consent was not unreasonably withheld.

SECTION 9.

CONTRIBUTION

     In order to provide for contribution in circumstances in which the indemnification provided
for in Section 8 is for any reason held to be unavailable or is insufficient to hold harmless a
party indemnified thereunder, the Company and the Guarantors on the one hand, and

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 17 -

 

the Holders on the other hand, shall contribute to the aggregate losses, claims, damages,
liabilities and expenses of the nature contemplated by such indemnification provision (including
any investigation, legal and other expenses incurred in connection with, and any amount paid in
settlement of, any action, suit or proceeding or any claims asserted, but after deducting in the
case of losses, claims, damages, liabilities and expenses suffered by the Company and the
Guarantors any contribution received by the Company and the Guarantors from Persons, other than a
Holder, who may also be liable for contribution, including persons who control the Company and the
Guarantors within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act) to
which the Company, the Guarantors or any Holder may be subject, (i) in such proportion as is
appropriate to reflect the relative fault of the Company and the Guarantors on one hand, and each
Holder, on the other hand, in connection with the statements or omissions that resulted in such
losses, claims, damages, liabilities or expenses, or (ii) if the allocation provided by clause (i)
is not permitted by applicable law, in such proportion as is appropriate to reflect not only the
relative fault referred to in clause (i) above but also other relevant equitable considerations.
The relative fault of the Company and the Guarantors on one hand, and of each Holder, on the other
hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates
to information supplied by the Company, the Guarantors or such Holder and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission. The Company, the Guarantors and each Holder of Transfer Restricted Securities agree that
it would not be just and equitable if contribution pursuant to this Section 9 were determined by
pro rata allocation or by any other method of allocation that does not take into account the
equitable considerations referred to above. Notwithstanding the provisions of this Section 9, (i)
in no case shall any Holder be required to contribute any amount in excess of the amount by which
the proceeds received by such Holder upon the sale of the Transfer Restricted Securities giving
rise to such obligation exceeds the amount of any damages that such Holder has otherwise been
required to pay by reason of any untrue or alleged untrue statement or omission or alleged omission
and (ii) no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation. For purposes of this Section 9, (A) each Person, if any, who controls any of
the Holders within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act and
(B) the respective officers, directors, partners, employees, representatives and agents of such
Holder or any controlling Person shall have the same rights to contribution as the Holders, and
each Person, if any, who controls the Company or any Guarantor within the meaning of Section 15 of
the Act or Section 20(a) of the Exchange Act shall have the same rights to contribution as the
Company and the Guarantors subject in each case to clauses (i) and (ii) of this Section 9. Any
party entitled to contribution will, promptly after receipt of notice of commencement of any
action, suit or proceeding against such party in respect of which a claim for contribution may be
made against another party or parties under this Section 9, notify such party or parties from whom
contribution may be sought, but the failure to so notify such party or parties shall n
ot relieve
the party or parties from whom contribution may be sought from any obligation it or they may have
under this Section 9 or otherwise, except to the extent it or they have been prejudiced in any
material respect by such failure. No party shall be liable for contribution with respect to any
action or

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 18 -

 

claim settled without its prior written consent; provided that such written consent was not
unreasonably withheld.

SECTION 10.

RULE 144A

     The Company and the Guarantors hereby agree with each Holder, for so long as any Transfer
Restricted Securities remain outstanding, to make available, upon request, to any Holder of
Transfer Restricted Securities in connection with any sale thereof and any prospective purchaser of
such Transfer Restricted Securities from such Holder, the information required by Rule 144A(d)(4)
under the Act in order to permit resales of such Transfer Restricted Securities pursuant to Rule
144A.

SECTION 11.

PARTICIPATION IN UNDERWRITTEN REGISTRATIONS

     No Holder may participate in any Underwritten Registration hereunder unless such Holder (a)
agrees to sell such Holder’s Transfer Restricted Securities on the basis provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements
and (b) completes and executes all reasonable questionnaires, powers of attorney, indemnities,
underwriting agreements, lock-up letters and other documents required under the terms of such
underwriting arrangements.

SECTION 12.

SELECTION OF UNDERWRITERS

     The Holders of Transfer Restricted Securities covered by the Shelf Registration Statement who
desire to do so may sell such Transfer Restricted Securities in an Underwritten Offering. In any
such Underwritten Offering, the investment banker or investment bankers and manager or managers
that will administer the offering will be selected by the Company; provided, however, that such
investment bankers and managers must be reasonably satisfactory to the Holders of a majority in
aggregate principal amount of the Transfer Restricted Securities included in such offering.

SECTION 13.

MISCELLANEOUS

     (a) No Inconsistent Agreements. The Company and the Guarantors shall not, on or after
the date of this Agreement, enter into any agreement with respect to its securities that is
inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with
the provisions hereof. The rights granted to the Holders hereunder do not in any way conflict with
and are not inconsistent with the rights granted to the holders of the Company’s or any Guarantor’s
securities under any agreement in effect on the date hereof.

     (b) [Intentionally omitted.]

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 19 -

 

     (c) Amendments and Waivers. The provisions of this Agreement may not be amended,
modified or supplemented, and waivers or consents to or departures from the provisions hereof may
not be given unless the Company has obtained the written consent of Holders of a majority of the
outstanding principal amount of Transfer Restricted Securities; provided, however, that the Company
may amend this Agreement to include or exclude a Guarantor as a party hereto if, pursuant to the
terms of the Indenture, such Guarantor is required to provide a Subsidiary Guarantee for the Notes
or is released from such obligation. Notwithstanding the foregoing, a waiver or consent to
departure from the provisions hereof that relates exclusively to the rights of Holders whose
securities are being tendered pursuant to the Exchange Offer and that does not affect directly or
indirectly the rights of other Holders whose securities are not being tendered pursuant to such
Exchange Offer may be given by the Holders of a majority of the outstanding principal amount of
Transfer Restricted Securities being tendered.

     (d) Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand-delivery, first-class mail (registered or certified, return
receipt requested), telecopier, or air courier guaranteeing overnight delivery:

     (i) if to a Holder, at the address set forth on the records of the Registrar under the
Indenture, with a copy to the Registrar under the Indenture; and

     (ii) if to the Company or any Guarantor:

Compagnie Générale de Géophysique

1, rue Léon Migaux

91341 Massy

France

Telecopier No.: 33-1-67-47-34-32

Attention: Chief Financial Officer

     with a copy to:

Linklaters & Alliance

25, rue de Marignan

75008 Paris

France

Telecopier No.: 33-1-43-59-41-96

Attention: Tom O’Neill

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; when receipt acknowledged, if telecopied; and on the next Business Day,
if timely delivered to an air courier guaranteeing overnight delivery.

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 20 -

 

     Copies of all such notices, demands or other communications shall be concurrently delivered by
the Person giving the same to the Trustee at the address specified in the Indenture.

     (f) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties, including without limitation and
without the need for an express assignment, the successors and assigns of subsequent Holders of
Transfer Restricted Securities; provided, however, that this Agreement shall not inure to the
benefit of or be binding upon a successor or assign of a Holder unless and to the extent such
successor or assign acquired Transfer Restricted Securities from such Holder.

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

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

     (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

     (j) Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable,
the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

[Signature page to follow]

Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

- 21 -

 

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

	 	 	 	 	 
	 	Compagnie
Generale de Geophysique

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CGG Americas Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CGG Canada Services Ltd

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CGG Marine Resources Norge A/S

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	Sercel Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	Sercel Australia Pty Ltd

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	Sercel Canada Ltd.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights Agreement

 

 

Accepted and agreed to as of

the date first above written:

Credit Suisse Securities (Europe) Limited

BNP Paribas Securities Corp.

	 	 	 	 	 
	By : Credit Suisse Securities (Europe) Limited

 	 
	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Compagnie Generale de Geophysique

71/2% Senior Notes due 2015

Registration Rights AgreementEX-4.22

 

Exhibit 4.22

USD 70,000,000

LONG-TERM FACILITY AGREEMENT

for

Exploration Investment Resources II AS

as Borrower

provided by

The Financial Institutions

listed in Schedule 1

as Lenders

with

DnB NOR Bank ASA

as Mandated Lead Arranger

and

DnB NOR Bank ASA

as Underwriter

and

DnB NOR Bank ASA

as Agent

Dated 29 March 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	1
	 	DEFINITIONS AND INTERPRETATION	 	 	4	 
	 
	 	 	 	 	 	 
	2
	 	THE FACILITY	 	 	12	 
	 
	 	 	 	 	 	 
	3
	 	PURPOSE	 	 	13	 
	 
	 	 	 	 	 	 
	4
	 	CONDITIONS PRECEDENT	 	 	13	 
	 
	 	 	 	 	 	 
	5
	 	DRAWDOWN	 	 	13	 
	 
	 	 	 	 	 	 
	6
	 	REPAYMENT	 	 	14	 
	 
	 	 	 	 	 	 
	7
	 	PREPAYMENT AND CANCELLATION	 	 	14	 
	 
	 	 	 	 	 	 
	8
	 	INTEREST	 	 	16	 
	 
	 	 	 	 	 	 
	9
	 	INTEREST PERIODS	 	 	17	 
	 
	 	 	 	 	 	 
	10
	 	CHANGES TO THE CALCULATION OF INTEREST	 	 	17	 
	 
	 	 	 	 	 	 
	11
	 	FEES	 	 	18	 
	 
	 	 	 	 	 	 
	12
	 	TAX GROSS-UP AND INDEMNITIES	 	 	19	 
	 
	 	 	 	 	 	 
	13
	 	INCREASED COSTS	 	 	20	 
	 
	 	 	 	 	 	 
	14
	 	OTHER INDEMNITIES	 	 	20	 
	 
	 	 	 	 	 	 
	15
	 	COSTS AND EXPENSES	 	 	21	 
	 
	 	 	 	 	 	 
	16
	 	SECURITY	 	 	22	 
	 
	 	 	 	 	 	 
	17
	 	REPRESENTATIONS AND WARRANTIES	 	 	22	 
	 
	 	 	 	 	 	 
	18
	 	INFORMATION UNDERTAKINGS	 	 	26	 
	 
	 	 	 	 	 	 
	19
	 	FINANCIAL COVENANTS	 	 	28	 
	 
	 	 	 	 	 	 
	20
	 	GENERAL UNDERTAKINGS	 	 	30	 
	 
	 	 	 	 	 	 
	21
	 	VESSEL COVENANTS	 	 	32	 
	 
	 	 	 	 	 	 
	22
	 	EVENTS OF DEFAULT	 	 	36	 
	 
	 	 	 	 	 	 
	23
	 	CHANGES TO THE PARTIES	 	 	38	 
	 
	 	 	 	 	 	 
	24
	 	ROLE OF THE AGENT, SECURITY TRUSTEE  AND THE ARRANGER	 	 	40	 
	 
	 	 	 	 	 	 
	25
	 	SHARING AMONG THE FINANCE PARTIES	 	 	44	 
	 
	 	 	 	 	 	 
	26
	 	PAYMENT MECHANICS	 	 	46	 
	 
	 	 	 	 	 	 
	27
	 	SET-OFF	 	 	47	 
	 
	 	 	 	 	 	 
	28
	 	NOTICES	 	 	48	 
	 
	 	 	 	 	 	 
	29
	 	CALCULATIONS	 	 	49	 
	 
	 	 	 	 	 	 
	30
	 	MISCELLANEOUS	 	 	49	 
	 
	 	 	 	 	 	 
	31
	 	GOVERNING LAW AND ENFORCEMENT	 	 	50	 

2

 

SCHEDULES

	 	 	 
	1
	 	Lenders and Commitments
	 
	 	 
	2
	 	Conditions precedent
	 
	 	 
	3
	 	Form of Drawdown Notice
	 
	 	 
	4
	 	Form of Compliance Certificate
	 
	 	 
	5
	 	Form of Transfer Certificate
	 
	 	 
	6 A
	 	Form of Assignment of Insurances
	 
	 	 
	6 B
	 	Form of Assignment of Earnings and Charterparties
	 
	 	 
	7
	 	Form of Guarantee

3

 

THIS LONG-TERM FACILITY AGREEMENT is dated 29 March 2006 and made between:

	(1)	 	Exploration Investment Resources II AS of Damsgårdsv 125, 5162 Laksevåg, Bergen, Norway,
organisation number 984 670 303, as borrower (the “Borrower”);

	(2)	 	The banks and financial institutions listed in Schedule 1, as original lenders
(together, the “Lenders”);

	(3)	 	DnB NOR Bank ASA of Lars Hillesgt 30, N-5020 Bergen, Norway, organisation number 984 851 006,
as mandated lead arranger (the “Arranger”);

	(4)	 	DnB NOR Bank ASA of Lars Hillesgt 30, N-5020 Bergen, Norway, organisation number 984 851 006,
as underwriter (the “Underwriter”); and

	(5)	 	DnB NOR Bank ASA of Lars Hillesgt 30, N-5020 Bergen, Norway, organisation number 984 851 006,
as facility agent (the “Agent”), and with respect to the Mortgage as security trustee (the
“Security Trustee”).

IT IS AGREED as follows:

1    DEFINITIONS AND INTERPRETATION

1.1 Definitions

In this Agreement, unless the context otherwise requires:

“Agreement” means this long-term facility agreement, as it may be amended, supplemented and varied
from time to time, including its Schedules and any Transfer Certificate.

“Assignment of Charterparties and Earnings” means the first priority assignment of the
Charterparties and the Earnings, to be made between the Borrower and the Agent (on behalf of the
Finance Parties) as security for the Borrower’s obligations under the Finance Documents,
substantially in the form set out in Schedule 6 B (Form of Assignment of Charterparties and
Earnings).

“Assignment of Insurances” means the first priority assignment of the Insurances to be made between
the Borrower and the Agent (on behalf of the Finance Parties) as security for the Borrower’s
obligations under the Finance Documents, substantially in the form set out in Schedule 6 A
(Form of Assignment of Insurances).

“Availability Period” means the period from and including the date of this Agreement until 1 June
2006, but only until 30 April 2006 as to Tranche I, or such other date as agreed upon by the
Borrower and the Lenders.

“Break Costs” means the amount (if any) by which:

	a)	 	the interest which a Lender should have received for the period from the date of receipt of
all or part of its participation in a Loan or Unpaid Sum to the last day of the current
Interest Period in respect of such Loan or Unpaid Sum, had the principal amount or Unpaid Sum
been paid on the last day of that Interest Period; exceeds

	b)	 	the amount which that Lender would be able to obtain by placing an amount equal to the
principal amount or Unpaid Sum received by it on deposit with a leading bank in the

4

 

	 	 	relevant interbank market for a period starting on the Business Day following receipt or
recovery and ending on the last day of the current Interest Period.

“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for business
in Bergen, New York and Paris (or any other relevant place of payment under Clause 26 (Payment
mechanics).

“CGG”
means Compagnie Générale de Géophysique, of 1, rue Léon Migaux, 91341 Massy Cedex, France,
being the ultimate holding company of the Borrower, the Charterer and ExRe.

“CGG-Charterparties” means each of the charterparties made between the Borrower and the Charterer
for the charter of the Vessels, in form and substance satisfactory to the Agent (on behalf of the
Finance Parties).

“C-Orion” means the seismic research vessel C-Orion with call sign YJRV2 and owned by the Borrower
and chartered to the Charterer.

“Charterer” means CGG Marine SAS or such other charterers of any of the Vessels from time to time
as approved by the Agent (on behalf of the Finance Parties).

“Charterparties” means the CGG-Charterparties and the Geo-Charterparty.

“Commitment” means:

	a)	 	in relation to a Lender, the amount set opposite its name under the heading “Commitments” in
Schedule 1 (Lenders and Commitments) for the respective Tranche and the amount of any other
Commitment transferred to it pursuant to Clause 23.2 (Assignments and transfers by the
Lenders); and

	b)	 	in relation to any New Lender, the amount of any Commitment transferred to it pursuant to
Clause 23.2 (Assignments and transfers by the Lenders),

to the extent not cancelled, reduced or transferred by it under this Agreement.

“Co-ordination Agreement” means the agreement entered into between the Borrower, the Agent (on
behalf of the Finance Parties), Geoshipping AS as owner of Geo Challenger and the mortgagees of Geo
Challenger regulating the Borrower’s ownership to the Equipment on Geo Challenger and the right to
claim redelivery of the Equipment to the Borrower upon an Event of Default or in the event of
cancellation of the Geo-Charterparty, in form and substance satisfactory to the Agent (on behalf of
the Finance Parties).

“Compliance Certificate” means a certificate substantially in the form as set out in Schedule
4 (Form of Compliance Certificate).

“Default” means an Event of Default or any event or circumstance specified in Clause 22 (Events of
Default) which would (with the expiry of a grace period, the giving of notice, the making of any
determination under the Finance Documents or any combination of any of the foregoing) be an Event
of Default.

“DOC” means in relation to a Manager a valid document of compliance issued to such Manager pursuant
to paragraph 13.2 of the ISM Code.

5

 

“Drawdown Date” means the Business Day on which the Borrower has requested drawdown of a Tranche
pursuant to this Agreement or, as the context requires, the date on which such Tranche is actually
made.

“Drawdown Notice” means the notice substantially in the form set forth in Schedule 3 (Form
of Drawdown Notice).

“Earnings” means all moneys whatsoever which are now, or later become, payable (actually or
contingently) to the Borrower and which arise out of the use of or operation of any of the Vessels,
including (but not limited to):

	a)	 	all freight, hire and passage moneys payable to the Borrower, including (without limitation)
payments of any nature under any of the Charterparties or any other charter or agreement for
the employment, use, possession, management and/or operation of any of the Vessels;

	b)	 	any claim under any guarantees related to freight and hire payable to the Borrower as a
consequence of the operation of any of the Vessels;

	c)	 	compensation payable to the Borrower in the event of any requisition of any of the Vessels or
for the use of any of the Vessels by any government authority or other competent authority;

	d)	 	remuneration for salvage, towage and other services performed by any of the Vessels payable
to the Borrower;

	e)	 	demurrage and retention money receivable by the Borrower in relation to any of the Vessels;

	f)	 	all moneys which are at any time payable under the Insurances in respect of loss of earnings;

	g)	 	if and whenever any of the Vessels is employed on terms whereby any moneys falling within
paragraph a) to f) above are pooled or shared with any other person, that proportion of the
net receipts of the relevant pooling or sharing arrangement which is attributable to such
Vessel; and

	h)	 	any other money whatsoever due or to become due to the Borrower from third parties in
relation to any of the Vessels, or otherwise.

“Earnings Accounts” means the Borrower’s accounts no. NOK: 5210 05 21644, USD: 5206 04 92794 and
GBP: 5203 04 81852 with the Agent of to which all the Earnings shall be paid, the Borrower’s use of
the amounts on the Earnings Accounts shall not be restricted in any way unless a Default has
occured.

“Environmental Approval” means any permit, licence, consent, approval and other authorisations and
the filing of any notification, report or assessment required under any Environmental Law for the
operation of any of the Vessels.

“Environmental Claim” means any claim, proceeding or investigation by any party in respect of any
Environmental Law or Environmental Approval.

6

 

“Environmental Law” means any applicable law, regulation, convention or treaty in any jurisdiction
in which the Borrower conducts business which relates to the pollution or protection of the
environment or to the carriage of material which is capable of polluting the environment.

“Equipment” means the seismic equipment to be installed on the Vessels and which shall be owned by
the Borrower.

“Event of Default” means any event or circumstance specified as such in Clause 22 (Events of
Default).

“ExRe” means Exploration Resources ASA of Damsgårdsveien 125, 5162 Laksevåg, Bergen, Norway, being
the holding company of the Borrower.

“Facility” means the five (5) year long-term facility, the terms and conditions of which are set
out in this Agreement.

“Factoring Agreement” means a factoring agreement in the amount of USD 70,000,000 (including a
declaration of pledge) entered into between the Borrower and the Agent (on behalf of the Lenders)
whereby the Borrower pledges to the Agent (on behalf of the Lenders) on first priority all claims
arising from the Borrower’s business operation as security for the Borrower’s obligations under the
Finance Documents, in form and substance satisfactory to the Agent.

“Final Maturity Date” means five (5) years from the Drawdown Date of Tranche IV, but not later than
1 June 2011

“Finance Documents” means this Agreement, the Security Documents and any other document (whether
creating a Security Interest or not) which is executed at any time by the Borrower and/or any of
the Guarantors or any other person as security for, or to establish any form of subordination to
the Finance Parties under this Agreement or any of the other documents referred to herein or
therein.

“Finance Party” means the Agent, the Arranger, the Underwriter and the Lenders.

“Financial Indebtedness” means any obligation (whether incurred as principal or as surety) for the
payment or repayment of borrowed money, whether present or future, actual or contingent.

“GAAP”
means the generally accepted accounting practice and principles in Norway and/or IFRS (if
applicable) (or the French equivalent when used in relation to CGG), as set out in the Norwegian
Accounting Act of 17 July 1998 No. 56 and the at all times prevailing accounting standards as
issued by the Norwegian Accounting Standards Committee (Norsk Regnskapsstiftelse).

“General Pledge” means a general pledge agreement (driftsl
øsørepant) in the amount of USD
70,000,000 (including a declaration of pledge) entered into between the Borrower and the Agent (on
behalf of the Finance Parties) whereby the Borrower pledges to the Agent (on behalf of the Finance
Parties) on first priority all its equipment, machinery and plant etc as security for the
Borrower’s obligations under the Finance Documents, in form and substance satisfactory to the
Agent.

“Geo Challenger” means the seismic research vessel with call sign LAPI5 with Geo Rederi AS as
registered owner and Geoshipping AS as disponent owner, both of Aastveit 12, 5106 Øvre Ervik,
Norway, and time charterered to the Borrower and sub-chartered to the Charterer.

7

 

“Geo-Charterparty” means the time charterparty made between the Borrower (as charterer) and
Geoshipping AS (as owner) for the charter of the Geo Challenger, in form and substance satisfactory
to the Agent (on behalf of the Finance Parties).

“Guarantees” means the two separate unconditional and irrevocable on-demand guarantees issued by
the Guarantors in favour of the Agent (on behalf of the Finance Parties) as security for the
Borrower’s obligations under the Finance Documents, substantially in the form as set out in
Schedule 7 (Form of Guarantees).

“Guarantors” means CGG and ExRe.

“Insurances” means, in relation to each of the Vessels and the Equipment, all policies and
contracts of insurance (which expression includes all entries of such Vessel in a protection and
indemnity or war risk association) which are from time to time during the Security Period in place
or taken out or entered into by or for the benefit of the Borrower (whether in the sole name of the
Borrower or in the joint names of the Borrower and any other person) in respect of the Vessels
and/or the Equipment or otherwise in connection with the Vessels and/or the Equipment and all
benefits thereunder (including claims of whatsoever nature and return of premiums).

“Interest Payment Date” means the last Business Day of each Interest Period.

“Interest Period” means, in relation to a Tranche, each of the successive periods determined in
accordance with Clause 9.1 (Selection of Interest Periods), and, in relation to an Unpaid Sum, each
period determined in accordance with Clause 8.3 (Default interest).

“ISM Code” means the International Safety Management Code for the Safe Operation of Ships and for
Pollution Prevent.

“ISPS Code” means the International Ship and Port Facility Security (ISPS) Code as adopted by the
International Maritime Organization’s (IMO) Diplomatic Conference of December 2002.

“Lenders” means the banks and financial institutions listed in Schedule 1 (Lenders and
Commitments) and any New Lender, which in each case has not ceased to be a Party in accordance with
the terms of this Agreement.

“LIBOR” means in relation to a Tranche:

	a)	 	the rate per annum equal to the offered quotation for deposits in USD ascertained by the
Agent to be the rate as displayed on the Reuters’ screen, page LIBOR01, at or about 11:00
hours (London time) on the applicable Quotation Day; or

	b)	 	if no such rate is available, the arithmetic mean of the rate per annum at which the Lenders
are able to acquire USD in the amount and for the Interest Period of such Tranche in the
London interbank market at or about 11:00 hours (London time) on the applicable Quotation Day,
as (in the absence of manifest error) conclusively certified by the Agent to the Borrower.

“Loan” means at any time, the aggregate amount outstanding under this Agreement, provided however
that the outstanding amount shall never exceed the Total Commitments.

“Majority Lenders” means:

8

 

	a)	 	if there are no Loan outstanding, a Lender or Lenders whose Commitments aggregate more than
66.67% of the Total Commitments (or, if the Total Commitments have been reduced to zero,
aggregated more than 66.67% of the Total Commitments immediately prior to the reduction); or

	b)	 	at any other time, a Lender or Lenders whose participations in the Loan aggregate more than
66.67% of the Loan.

“Managers” means the technical manager(s) of the Vessels, being Rieber Shipping AS for C-Orion and
Geoshipping AS for Geo Challenger, or another reputable technical manager acceptable to the Agent.

“Margin” means one point ten per cent. (1.10%) per annum.

“Market Value” means the fair market value of a Vessel in USD, being the average of valuations of
such Vessel obtained from minimum two (2) reputable and independent shipbrokers, acceptable to the
Agent. Such valuations to be made when requested by the Agent for the cost and expense of the
Borrower, with or without physical inspection of the relevant Vessel (as the Agent may require) on
the basis of a sale for prompt delivery for cash at arm’s length on normal commercial terms as
between a willing buyer and seller, on an “as is, where is” basis, free of any existing charter or
other contract of employment and/or pool arrangement.

“Material Adverse Effect” means a material adverse effect on:

	a)	 	the business, operation, assets or condition (financial or otherwise) of the Borrower and/or
any of the Guarantors (as the case may be); or

	b)	 	the ability of the Borrower and/or any of the Guarantors (as the case may be) to perform any
of its obligations under the Finance Documents.

“Mortgage” means the first priority mortgage and the deed of covenants collateral thereto (if any)
or a declaration of pledge (as the case may be), to be executed and recorded by the Borrower
against the C-Orion in the Vanuatu Ship Registry (or such other ship registry acceptable to the
Agent) as security for the Borrower’s obligations under the Finance Documents in favour of the
Agent and Security Trustee (on behalf of the Finance Parties), in form and substance satisfactory
to the Agent (on behalf of the Finance Parties).

“New Lender” has the meaning set out in Clause 23 (Changes to the Parties).

“Original Financial Statements” means the unaudited financial statements of the Borrower and each
of the Guarantors for the year ended 31 December 2005.

“Party” means a party to this Agreement (including its successors and permitted transferees).

“Quotation Day” means the day occurring two (2) Business Days prior to the commencement of an
Interest Period.

“Repayment Date” means the dates for repayment of an installment as determined according to Clause
6.1 (Repayment).

“Security Documents” means all or any security documents as may be entered into from time to time
pursuant to Clause 16 (Security).

9

 

“Security Interest” means any mortgage, charge (whether fixed or floating), encumbrance, pledge,
lien, assignment by way of security, finance lease, sale and repurchase or sale and leaseback
arrangement, sale of receivables on a recourse basis or other security interest or any other
agreement or arrangement having the effect of conferring security.

“Security Period”means the period commencing on the date of this Agreement and ending the date on
which the Agent notifies the other Finance Parties and the Borrower that:

	a)	 	all amounts which have become due for payment by the Borrower or any other party under the
Finance Documents have been paid;

	b)	 	no amount is owing or has accrued (without yet having become due for payment) under any of
the Finance Documents;

	c)	 	the Borrower has no future or contingent liability under any provision of this Agreement or
the other Finance Documents; and

	d)	 	the Agent and the Majority Lenders do not consider that there is a significant risk that any
payment or transaction under a Finance Document would be set aside, or would have to be
reversed or adjusted, in any present or possible future proceeding relating to a Finance
Document or any asset covered (or previously covered) by a Security Interest created by a
Finance Document.

“Share Pledge” means the share pledge agreement to be entered into between ExRe and the Agent
whereby all of the shares in the Borrower shall be pledged to the Agent (on behalf of the Finance
Parties) as security for ExRe’s obligations under the Guarantee and the Borrower’s obligations
under the Finance Documents.

“SMC” means a valid safety management certificate issued for each of the Vessels pursuant to
paragraph 13.7 of the ISM Code.

“SMS” means a safety management system for each of the Vessels developed and implemented in
accordance with the ISM Code and including the functional requirements duties and obligations that
follow from the ISM Code.

“Tax on Overall Net Income” means a Tax imposed on a Finance Party by the jurisdiction under the
laws of which it is incorporated, or in which it is located or treated as resident for tax
purposes, on:

	a)	 	the net income, profits or gains of that Finance Party world wide; or
	 
	b)	 	such of the net income, profits or gains of that Finance Party as are considered to arise in
or relate to or are taxable in that jurisdiction.

“Taxes” means all present and future taxes, levies, imposts, duties, charges, fees, deductions and
withholdings, and any restrictions and or conditions resulting in a charge together with interest
thereon and penalties in respect thereof and “tax” and “taxation” shall be construed accordingly.

“Total Commitments” means the aggregate of the Lenders’ Commitments, being USD 70,000,000 at
the time of this Agreement.

“Total Loss” means, in relation to any Vessel:

10

 

	a)	 	the actual, constructive, compromised, agreed, arranged or other total loss of such Vessel;
	 
	b)	 	any expropriation, confiscation, requisition or acquisition of such Vessel, whether for full
consideration, a consideration less than its proper value, a nominal consideration or without
any consideration, which is effected by any government or official authority or by any person
or persons claiming to be or to represent a governmental or official authority (excluding a
requisition for hire for a fixed period not exceeding one (1) year without any right to
extension) unless it is within one (1) month from the Total Loss Date redelivered to the full
control of the Borrower; and
	 
	c)	 	any arrest, capture, seizure or detention of such Vessel (including any hijacking or theft)
unless it is within one (1) month from the Total Loss Date redelivered to the full control of
the Borrower.

“Total Loss Date” means:

	a)	 	in the case of an actual total loss of any Vessel, the date on which it occurred or, if that
is unknown, the date when such Vessel was last heard of;

	b)	 	in the case of a constructive, compromised, agreed or arranged total loss of any Vessel, the
earlier of: (i) the date on which a notice of abandonment is given to the insurers (provided a
claim for total loss is admitted by such insurers) or, if such insurers do not forthwith admit
such a claim, at the date at which either a total loss is subsequently admitted by the
insurers or a total loss is subsequently adjudged by a competent court of law or arbitration
panel to have occurred or, if earlier, the date falling six (6) months after notice of
abandonment of such Vessel was given to the insurers; and (ii) the date of compromise,
arrangement or agreement made by or on behalf of the Borrower with such Vessel’s insurers in
which the insurers agree to treat such Vessel as a total loss; or

	c)	 	in the case of any other type of total loss, on the date (or the most likely date) on which
it appears to the Agent that the event constituting the total loss occurred.

“Tranche” means any of the Tranche I, Tranche II, Tranche III and Tranche IV.

“Tranche I” means an amount of USD 10,000,000 for the purpose set out in Clause 3.1 a).

“Tranche II” means an amount of USD 25,000,000 for the purpose set out in Clause 3.1 b).

“Tranche III” means an amount of USD 10,000,000 for the purpose set out in Clause 3.1 c).

“Tranche IV” means an amount of USD 25,000,000 for the purpose set out in Clause 3.1 d).

“Transfer Certificate” means a certificate substantially in the form as set out in Schedule
5 (Form of Transfer Certificate) or any other form agreed between the Agent and the Borrower.

“Transfer Date” means, in respect of a Transfer (as defined in Clause 23.2 (Assignments and
transfers by the Lenders), the proposed Transfer Date as set out in the Transfer Certificate
relating to the Transfer.

“Vessels” means C-Orion and Geo Challenger.

“Unpaid Sum” means any sum due and payable but unpaid by the Borrower and/or the Guarantors under
the Finance Documents.

11

 

“USD” means United States Dollars, being the lawful currency of the United States of America.

“VAT” means value added tax and any other tax of similar nature.

1.2 Construction

In this Agreement, unless the context otherwise requires:

	a)	 	Clause and Schedule headings are for ease of reference only;
	 
	b)	 	words denoting the singular number shall include the plural and vice versa;
	 
	c)	 	references to Clauses and Schedules are references, respectively, to the Clauses and
Schedules of this Agreement;
	 
	d)	 	references to a provision of law is a reference to that provision as it may be amended or
re-enacted, and to any regulations made by the appropriate authority pursuant to such law;
	 
	e)	 	references to “control” means the power to appoint a majority of the board of directors or to
direct the management and policies of an entity, whether through the ownership of voting
capital, by contract or otherwise;
	 
	f)	 	references to “indebtedness” includes any obligation (whether incurred as principal or as
surety) for the payment or repayment of borrowed money, whether present or future, actual or
contingent; and
	 
	g)	 	references to a “person” shall include any individual, firm, partnership, joint venture,
company, corporation, trust, fund, body, corporate, unincorporated body of persons, or any
state or any agency of a state or association (whether or not having separate legal
personality).

2 THE FACILITY

2.1 Facility

Subject to the terms of this Agreement, the Lenders make available to the Borrower a USD long-term
facility in the aggregate amount equal to the Total Commitments.

2.2 Maximum liability

The aggregate principal amount of the outstanding Loan, including any requested drawdown, shall not
on any requested Drawdown Date and/or on the first day of an Interest Period, exceed the Total
Commitments.

2.3 Finance Parties’ rights and obligations

The obligations of each Finance Party under the Finance Documents are several. Failure by a Finance
Party to perform its obligations under the Finance Documents does not affect the obligations of any
other Party under the Finance Documents. No Finance Party is responsible for the obligations of any
other Finance Party under the Finance Documents.

The rights of each Finance Party under or in connection with the Finance Documents are separate and
independent rights and any debt arising under the Finance Documents to a Finance Party from the
Borrower shall be a separate and independent debt. A Finance Party may, except as otherwise stated
in the Finance Documents, separately enforce its rights under the Finance Documents.

12

 

3 PURPOSE

3.1 Purpose

The Borrower shall apply all amounts borrowed by it hereunder as follows:

	a)	 	As to Tranche I; to refinance the short-term bridge facility of C-Orion dated 31 August 2005.
	 
	b)	 	As to Tranche II; to part-finance the Equipment to C-Orion.
	 
	c)	 	As to Tranche III; to part-finance the upgrading of Geo Challenger.
	 
	d)	 	As to Tranche IV; to part-finance the Equipment to Geo Challenger.

3.2 Monitoring

Without prejudice to the obligations of the Borrower under this Clause 3, no Finance Party is bound
to monitor or verify the application of any amount borrowed pursuant to this Agreement.

4 CONDITIONS PRECEDENT

4.1 Initial conditions precedent

The Borrower may not deliver the Drawdown Notice for a Tranche unless the Agent has received
originals or certified copies of all of the documents and other evidence listed in the relevant
part of Schedule 2 (Conditions precedent) applicable to such Tranche, in form and
substance satisfactory to the Agent. The Agent shall notify the Borrower and the Lenders promptly
upon being so satisfied.

4.2 Further conditions precedent

The Lenders will only be obliged to comply with Clause 5.3 (Lenders’ participation) if on the date
of the Drawdown Notice and on the proposed Drawdown Date:

	a)	 	no Default is continuing or would result from drawing of the Tranche; and
	 
	b)	 	the representations and warranties contained in Clause 17 (Representations and warranties)
deemed to be repeated on those dates are true and correct in all material respects.

4.3 Waiver of conditions precedent

The conditions specified in this Clause 4 are solely for the benefit of the Lenders and may be
waived on their behalf in whole or in part and with or without conditions by the Agent (upon
approval by the Lenders, such approval not to be unreasonably withheld or delayed).

5 DRAWDOWN

5.1 Delivery of the Drawdown Notice

The Borrower may utilise the Facility by delivering to the Agent a duly completed Drawdown Notice
no later than 10:00 hours (London time) three (3) Business Days prior to the proposed Drawdown
Date.

5.2 Completion of the Drawdown Notice

Each Drawdown Notice is irrevocable and will not be regarded as having been duly completed unless:

13

 

	a)	 	the proposed Drawdown Date is a Business Day during the Availability Period,
	 
	b)	 	the proposed Interest Period complies with Clause 9 (Interest Periods); and
	 
	c)	 	the amount of the Loan at the proposed Drawdown Date, including the amount of the relevant
Tranche covered by the Drawdown Notice, shall not exceed the Total Commitments.

Only one (1) Tranche may be requested in each Drawdown Notice. Tranche III may be drawn in
sub-tranches, as agreed with the Agent in accordance with the process of upgrading Geo Challenger.
The Tranches shall be drawn in chronologically order, unless otherwise agreed with the Agent.

5.3 Lenders’ participation

Upon receipt of the Drawdown Notice, the Agent shall notify each Lender of the details of the
requested Tranche and the amount of each Lender’s participation in such Tranche. If the conditions
set out in this Agreement have been met, each Lender shall no later than 10:00 hours (London time)
on the relevant Drawdown Date make available to the Agent for the account of the Borrower an amount
equal to its participation in such Tranche to be advanced pursuant to the Drawdown Notice.

6 REPAYMENT

6.1 Repayment

The Borrower shall repay the Loan in ten (10) equal semi-annual consecutive instalments each in the
amount of USD 7,000,000. The first instalment is due and payable six months after the Drawdown Date
of Tranche IV, however not later than 1 December 2006.

6.2 Final repayment

The Borrower shall in any event repay the Loan and all other amounts outstanding under the Finance
Documents in full on the Final Maturity Date.

6.3 Re-borrowing

The Borrower may not re-borrow any part of the Loan which has been repaid.

7 PREPAYMENT AND CANCELLATION

7.1 Mandatory prepayment — Total Loss or sale of C-Orion

If the C-Orion is sold or becomes a Total Loss, the Tranche I and Tranche II shall be prepaid and
all the remaining instalments shall be reduced by 50% each:

	a)	 	in case of a sale, on or before the date on which the sale is completed by delivery of the
C-Orion to the buyer; or

	b)	 	in the case of a Total Loss, on the earlier of the date falling ninety (90) days after the
Total Loss Date and the receipt by the Agent (on behalf of the Finance Parties) of the
proceeds of Insurance relating to such Total Loss (or in the event of a requisition for title
of C-Orion, immediately after the occurrence of such requisition of title).

7.2 Mandatory prepayment — termination of the Geo-Charterparty, Total Loss or sale of Geo
Challenger

If the Geo-Charterparty is terminated prior to the Final Maturity Date or Geo Challenger is sold
(except if sold to the Borrower under the purchase option of the Geo-Charterparty) or becomes a

14

 

Total Loss, the Tranche III and Tranche IV shall be prepaid and all the remaining instalments shall
be reduced by 50% each:

	a)	 	in case of termination of the Geo-Charterparty, on or before the date on which such
termination is effective;

	b)	 	in case of a sale (except if sold to the Borrower under the purchase option of the
Geo-Charterparty), on or before the date on which the sale is completed by delivery of the Geo
Challenger to the buyer; or

	c)	 	in the case of a Total Loss, on the earlier of the date falling ninety (90) days after the
Total Loss Date and the receipt by the Agent (on behalf of the Finance Parties) of the
proceeds of Insurance relating to such Total Loss (or in the event of a requisition for title
of Geo Challenger, immediately after the occurrence of such requisition of title).

7.3 Mandatory prepayment — illegality

If it becomes unlawful in any applicable jurisdiction for a Lender to perform any of its
obligations as contemplated by this Agreement or to fund or maintain its participation in any
Tranche:

	a)	 	that Lender shall promptly notify the Agent upon becoming aware of that event;
	 
	b)	 	the Agent shall promptly notify the Borrower (specifying the obligations the performance of
which is thereby rendered unlawful and the law giving rise to the same) upon receipt of
notification in accordance with paragraph a) above; and
	 
	c)	 	upon the Agent notifying the Borrower, that Lenders’ Commitment and participation in such
Tranche will be immediately cancelled; and
	 
	d)	 	the Borrower shall prepay that Lender’s participation in the Tranches made to the Borrower on
the last day of the Interest Period for each Tranche occurring after the Agent has notified
the Borrower or, if earlier, the date specified by the Lender in the notice delivered to the
Agent (being no earlier than the last day of any applicable grace period permitted by law).

7.4 Voluntary prepayment

The Borrower may, if it gives the Agent not less than five (5) Business Days prior notice, prepay
the whole or any part of the Loan (but if in part, being an amount of minimum USD 5,000,000 and in
multiples of USD 1,000,000).

7.5 Voluntary cancellation

The Borrower may, if it gives the Agent not less than five (5) Business Days prior notice, cancel
any undrawn Tranches.

7.6 Terms and conditions for prepayments and cancellation

7.6.1 Irrevocable notice

Any notice of prepayment or cancellation by the Borrower under this Clause 7 shall be irrevocable
and, unless a contrary indication appears in this Agreement, shall specify the date upon which the
prepayment or cancellation is to be made.

15

 

7.6.2 Additional payments

Any prepayment under this Agreement shall be made together with accrued interest on the amount
prepaid and, subject to any Break Costs, without premium or penalty.

7.6.3 Time of prepayment and cancellation

The Borrower shall not repay or prepay all or any part of the Loan or cancel all or any Tranches
except at the times and in the manner expressly provided for in this Agreement.

7.6.4 No reinstatement

No Tranche cancelled under this Agreement may subsequently be reinstated.

7.6.5 No re-borrowing

Any amount prepaid pursuant to this Clause 7 may not be re-borrowed.

7.6.6 Forwarding of notice of prepayment and cancellation

If the Agent receives a notice under this Clause 7 it shall promptly forward a copy of that notice
to the Borrower or the affected Lender, as appropriate.

7.6.7 Application

Any amount voluntary prepaid or cancelled shall be applied against the remaining instalments set
forth in Clause 6.1 (Repayment) in inverse order of maturity and shall reduce rateably each
Lenders’ Commitment.

8 INTEREST

8.1 Calculation of interest

The rate of interest for each Tranche for each Interest Period is the percentage rate per annum
which is the aggregate of:

	a)	 	the Margin; and
	 
	b)	 	LIBOR.

It is not possible to calculate the effective interest rate on the Facility in advance. The Lenders
are nevertheless, according to the Finance Contracts Act (Finansavtaleloven) obliged to give a
representative example. Based on utility of 100% of the relevant Tranche and a 6 months LIBOR of
5.068 % per annum, the effective interest rate will be 6.520 %.

8.2 Payment of interest

The Borrower shall pay accrued interest on the Loan on each Interest Payment Date (and if the
Interest Period is longer than six (6) months, on the date falling at six (6) monthly intervals
after the first day of the Interest Period).

8.3 Default interest

In the event that any payment to be made under the Finance Documents by the Borrower to any Lender
is not received by the Agent on the due date therefore, interest will be charged by such Lender
from the due date until the date that payment is received at a rate which is equal to the aggregate
of (i) the Margin, (ii) a default funding charge of one per cent (1.00%) per annum and (iii) the
rate at which deposits from one Business Day to the next in an amount approximately equal to the
defaulted amount due to such Lender are offered to such Lender in the London interbank

16

 

market at approximately 11:00 hours (London time) on the due date for payment and on each
succeeding Business Day until payment in full of the amount due is received by such Lender;
provided that if the Agent determines that such default may be reasonably expected to continue
unremedied for a period exceeding one (1) week then it may require by notice to the Borrower that
the funding cost shall be determined by reference to the rate at which deposits are offered as
aforesaid for periods of such length (not exceeding three (3) months) as it may designate. Interest
charged under this Clause 8.3 shall be payable on demand and unless so paid shall be added to the
defaulted amount at the end on each month following the due date for payment of such amount.

8.4 Notification of rates of interest

The Agent shall promptly notify the Lenders and the Borrower of the determination of a rate of
interest under this Agreement.

9 INTEREST PERIODS

9.1 Selection of Interest Periods

	a)	 	The Borrower may select an Interest Period for a Tranche in the Drawdown Notice for that
Tranche.

	b)	 	The Borrower may select an Interest Period of one (1), three (3) or six (6) months or any
such other period agreed between the Borrower and the Agent (on behalf of the Lenders).

	c)	 	If an Interest Period would otherwise overrun the Final Maturity Date, such Interest Period
shall be shortened so that it ends on the Final Maturity Date.

	d)	 	Each Interest Period for a Tranche shall start on the relevant Drawdown Date.

9.2 Non-Business Day

If an Interest Period would otherwise end on a day which is not a Business Day, that Interest
Period will instead end on the next Business Day in that calendar month (if there is one) or the
preceding Business Day (if there is not).

9.3 Merger of Tranches

	a)	 	On the Drawdown Date for Tranche II or as soon as practicable thereafter, Tranche I and
Tranche II shall in all respects be merged.

	b)	 	On the Drawdown Date for Tranche III or as soon as practicable thereafter, the Loan and
Tranche III shall in all respects be merged.

	c)	 	On the Drawdown Date for Tranche IV or as soon as practicable thereafter, the Loan and
Tranche IV shall in all respects be merged.

9.4 Notification of Interest Periods

The Agent will notify the Borrower and the Lenders of the Interest Periods determined in accordance
with this Clause 9.

10 CHANGES TO THE CALCULATION OF INTEREST

10.1 Market disruption

	a)	 	If a Market Disruption Event occurs in relation to a Tranche for any Interest Period, then
the rate of interest on each Lender’s share of that Tranche for the Interest Period shall be
the rate per annum which is the sum of:

17

 

	 	(i)	 	the Margin; and
	 
	 	(ii)	 	the rate notified to the Agent by that Lender as soon as practicable and in
any event before interest is due to be paid in respect of that Interest Period, to be
that which expresses as a percentage rate per annum the cost to that Lender of
funding its participation in such Tranche from whatever source it may reasonably
select, the Lenders always to use reasonable endeavour to find the best rates
available.

	b)	 	In this Agreement, “Market Disruption Event” means:

	 	(i)	 	at or about 11:00 hours (London time) on the Quotation Day for the relevant
Interest Period LIBOR is not available; or
	 
	 	(ii)	 	before close of business in London on the Quotation Day for the relevant
Interest Period, the Agent receives notifications from a Lender or Lenders (whose
participations in a Tranche exceed fifty per cent. (50.00%) of such Tranche) that the
cost to it or them of obtaining matching deposits in the London interbank market
would be in excess of LIBOR.

10.2 Alternative basis of interest or funding

If a Market Disruption Event occurs and the Agent or the Borrower so requires, the Agent and the
Borrower shall enter into negotiations (for a period of not more than thirty (30) days) with a view
to agreeing a substitute basis for determining the rate of interest. Any alternative basis agreed
pursuant to this Clause 10.2 shall, with the prior consent of all the Lenders and the Borrower, be
binding on all Parties. If no such alternative basis is agreed within said thirty (30) days, the
rate of interest shall be determined in accordance with Clause 10.1 (Market disruption).

10.3 Break Costs

The Borrower shall, within three (3) Business Days of demand by a Finance Party, pay to that
Finance Party its Break Cost attributable to all or any part of a Tranche or Unpaid Sum being paid
by the Borrower on a day other than a Repayment Date for such Tranche or Unpaid Sum.

Each Lender shall, as soon as reasonably practicable after a demand by the Agent, provide a
certificate confirming the amount of its Break Cost for any Interest Period in which they accrue.

11 FEES

11.1 Commitment fee

The Borrower shall pay to the Agent (for distribution to the Lenders) a commitment fee computed at
the rate of zero point fifty per cent. (0.50%) per annum on any undrawn and uncancelled part of the
Facility, accruing from 14 February 2006 and up until the Drawdown Date of Tranche IV.

The accrued commitment fee is payable on the Drawdown Date of Tranche IV. Accrued commitment fee
shall also be payable on any cancelled Tranche at the date such cancellation comes into effect.

11.2 Flat fee

The Borrower shall pay to the Agent (for distribution to the Underwriter, the Arranger and the
Lenders) a flat fee of zero point thirtyfive per cent. (0.35%) of the Total Commitments payable on
the Drawdown Date of Tranche I.

18

 

11.3 Agency Fee

The Borrower shall pay to the Agent NOK 50,000 per year, payable for the first time at the Drawdown
Date of Tranche I, and then annually thereafter.

12 TAX GROSS-UP AND INDEMNITIES

12.1 Taxes

12.1.1 No withholding

All payments by the Borrower and/or the Guarantors under the Finance Documents shall be made free
and clear of and without deduction or withholding for or on account of any Tax or any other
governmental or public payment imposed by the laws of any jurisdiction from which or through which
such payment is made, unless a Tax deduction or withholding is required by law.

12.1.2 Tax gross-up

The Borrower and/or the Guarantors shall promptly upon becoming aware that it must make a Tax
deduction or withholding (or that there is any change in the rate or the basis of a Tax deduction
or withholding) notify the Agent accordingly. Similarly, a Lender shall notify the Agent on
becoming so aware in respect of a payment payable to that Lender. If the Agent receives such
notification from a Lender it shall notify the Borrower and that Lender.

If a Tax deduction or withholding is required by law to be made by the Borrower and/or the
Guarantors:

	a)	 	the amount of the payment due from the Borrower and/or the Guarantors shall be increased to
an amount which (after making any Tax deduction or withholding) leaves an amount equal to the
payment which would have been due if no Tax deduction or withholding had been required; and

	b)	 	the Borrower and/or the Guarantors shall make that Tax deduction or withholding within the
time allowed and in the minimum amount required by law.

Within thirty (30) days of making either a Tax deduction or withholding or any payment required in
connection with that Tax deduction or withholding, the Borrower and/or the Guarantors shall deliver
to the Agent for the Finance Party entitled to the payment evidence reasonably satisfactory to that
Finance Party that the Tax deduction or withholding has been made or (as applicable) any
appropriate payment paid to the relevant taxing authority.

12.2 Tax indemnity

The Borrower shall (within three (3) Business Days of demand by the Agent) pay to the Agent for the
account of the relevant Finance Party an amount equal to the loss, liability or cost which a
Finance Party determines will be or has been (directly or indirectly) suffered for or on account of
any Tax by such Finance Party in respect of a Finance Document, save for any Tax on Overall Net
Income assessed on a Finance Party or to the extent such loss, liability or cost is compensated
under Clause 12.1 (Tax gross-up).

12.3 VAT

All amounts set out, or expressed to be payable under a Finance Document by any Party to a Finance
Document shall be deemed to be exclusive of any VAT. If VAT is chargeable, the Borrower shall pay
to the Agent for the account of such Finance Party (in addition to the amount required pursuant to
the Finance Documents) an amount equal to such VAT.

19

 

13 INCREASED COSTS

13.1 Increased Costs

The Borrower shall, upon demand from the Agent, pay for the account of a Finance Party the amount
of any Increased Cost incurred by that Finance Party or any of its affiliates as a result of (i)
the introduction of or any change in (or in the interpretation, administration or application of)
any law or regulation (including any laws and regulations implementing new or modified capital
adequacy requirements) or (ii) compliance with any law or regulation made after the date of this
Agreement.

In this Agreement, the term “Increased Costs” means:

	a)	 	a reduction in the rate of return from the Facility or on a Finance Party’s (or its
affiliate’s) overall capital;
	 
	b)	 	an additional or increased cost; or
	 
	c)	 	a reduction of any amount due and payable under any Finance Document,

which is incurred or suffered by a Finance Party or any of its affiliates to the extent that it is
attributable to that Finance Party having entered into its Commitments or funding or performing its
obligations under any Finance Document.

A Finance Party intending to make a claim pursuant to this Clause 13.1 shall notify the Agent of
the event giving rise to the claim, following which the Agent shall promptly notify the Borrower.
Each Finance Party shall as soon as practicable after a demand by the Agent, provide a confirmation
showing the amount of its Increased Costs.

13.2 Exceptions

Clause 13.1 (Increased Costs) does not apply to the extent any Increased Costs is:

	a)	 	attributable to a Tax deduction or withholding required by law to be made by the Borrower;
	 
	b)	 	compensated for by Clause 12.1 (Tax gross-up) or Clause 12.2 (Tax Indemnity); or
	 
	c)	 	attributable to the wilful breach by the relevant Finance Party or its affiliates of any law
or regulation.

14 OTHER INDEMNITIES

14.1 Currency indemnity

If any sum due from the Borrower under the Finance Documents (a “Sum”), or any order, judgement or
award given or made in relation to a Sum, has to be converted from the currency (the “First
Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the
purpose of:

	a)	 	making or filing a claim or proof against the Borrower;
	 
	b)	 	obtaining or enforcing an order, judgement or award in relation to any litigation or
arbitration proceedings,

the Borrower shall as an independent obligation, within three (3) Business Days of demand,
indemnify each Finance Party to whom that Sum is due against any cost, loss or liability arising
out

20

 

of or as a result of the conversion including any discrepancy between (A) the rate of exchange used
to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of
exchange available to that person at the time of its receipt of that Sum.

The Borrower waives any right it may have in any jurisdiction to pay any amount under the Finance
Documents in a currency or currency unit other than that in which it is expressed to be payable.

14.2 Other indemnities

The Borrower shall within three (3) Business Days of demand, indemnify each Finance Party against
any costs, direct loss or liability incurred by that Finance Party as a result of:

	a)	 	the occurrence of any Event of Default;
	 
	b)	 	a failure by the Borrower to pay any amount due under the Finance Documents on its due date,
including without limitation, any cost, loss or liability arising as a result of Clause 25
(Sharing among the Finance Parties);
	 
	c)	 	funding, or making arrangements to fund, its participation in a Tranche requested by the
Borrower in a Drawdown Notice if such drawdown is not effected by reason of the operation of
any one or more of the provisions of this Agreement (other than by reason of default or
negligence by that Lender alone); or
	 
	d)	 	an amount not being prepaid in accordance with a notice of prepayment given by the Borrower.

14.3 Indemnity to the Agent

The Borrower shall promptly indemnify the Agent against any cost, direct loss or liability incurred
by the Agent (acting reasonably) as a result of:

	a)	 	investigating any event which it reasonably believes is a possible Event of Default; or
	 
	b)	 	acting or verifying any notice, request or instruction which it reasonably believes to be
genuine, correct or appropriately authorised.

15 COSTS AND EXPENSES

15.1 Transaction expenses

The Borrower shall promptly on demand pay to the Agent and the Arranger the amount of all costs and
expenses (including internal and external legal fees/costs) reasonably incurred by any of them in
connection with the negotiation, preparation, printing, perfection, execution, registration and
syndication of:

	a)	 	this Agreement and any other documents referred to in this Agreement; and
	 
	b)	 	any other Finance Documents executed after the date of this Agreement.

15.2 Amendment and enforcement costs, etc

The Borrower shall, within three (3) Business Days of demand, reimburse the Agent or another
Finance Party for the amount of all costs and expenses (including legal fees) reasonably incurred
by it in connection with:

	a)	 	the granting of any release, waiver or consent under the Finance Documents;

21

 

	b)	 	any amendment or variation of any of the Finance Documents; and
	 
	c)	 	the preservation, protection, enforcement or maintenance of, or attempt to preserve or
enforce, any of the rights of the Finance Parties under the Finance Documents.

15.3 Survival of termination

The Borrower’s obligation to pay any fees and expenses under any of the Finance Document shall
survive the termination date of this Agreement.

16 SECURITY

16.1 Security — Loans

The Borrower’s obligations and liabilities under this Agreement, including (without limitation) the
Borrower’s obligation to repay the Loan together with all unpaid interest, default interest,
commissions, charges, expenses and any other derived liability whatsoever of the Borrower towards
the Lenders and the Agent in connection with this Agreement, shall at any time until all amounts
due to the Lenders and the Agent hereunder have been paid and/or repaid in full, be secured by:

	a)	 	the Mortgage;
	 
	b)	 	the Factoring Agreement;
	 
	c)	 	the General Pledge;
	 
	d)	 	the Co-ordination Agreement;
	 
	e)	 	the Assignment of Insurances;
	 
	f)	 	the Assignment of Charterparties and Earnings;
	 
	g)	 	the Guarantees; and
	 
	h)	 	the Share Pledge.

The Borrower undertakes to ensure that the above Security Documents are being duly executed by the
parties thereto in favour of the Agent (on behalf of the Finance Parties) on or about the date of
this Agreement, legally valid and in full force and effect, and to execute or procure the execution
of such further documentation as the Agent may reasonable require in order for the relevant Finance
Parties to maintain the security position envisaged hereunder.

17 REPRESENTATIONS AND WARRANTIES

17.1 Representations and warranties by the Borrower

The Borrower represents and warrants to each Finance Party as follows:

17.1.1 Status

The Borrower is a limited liability company (aksjeselskap), duly incorporated and validly existing
under the laws of Norway and has the power to own its assets and carry on its business as it is
currently being conducted. The Borrower is 100.00% owned by ExRe.

22

 

ExRe is a limited liability company, duly incorporated and validly existing under the laws of
Norway and has the power to own its assets and carry on its business as it is currently being
conducted. ExRe is ultimately 100.00% owned and controlled by CGG.

CGG is a limited liability company, duly incorporated and validly existing under the laws of France
and has the power to own its assets and carry on its business as it is currently being conducted.

17.1.2 Binding obligations

The Finance Documents to which any of the Borrower and/or the Guarantors is a party constitute
legal, valid, binding and enforceable obligations, and save as provided herein or therein and/or as
have been or shall be completed prior to the relevant Drawdown Date, no registration, filing,
payment of tax or fees or other formalities are necessary or desired to render the Finance
Documents enforceable against the Borrower and/or the Guarantors (as the case may be), and for the
Mortgage to constitute a valid and enforceable first priority mortgages over the C-Orion.

17.1.3 No conflict with other obligations

The entry into and performance by each of the Borrower and the Guarantors of, and the transactions
contemplated by, the Finance Documents do not and will not conflict with:

	a)	 	any law or regulation or any order or decree of any governmental agency or court by which
the Borrower and/or the Guarantors (as the case may be) is bound;
	 
	b)	 	any constitutional documents of the Borrower and/or the Guarantors (as the case may be); or
	 
	c)	 	any agreement or document to which any of them is a party or by which any of them or any of
their assets are bound.

17.1.4 Power and authority

Each of the Borrower and the Guarantors has the power to enter into, perform and deliver, and has
taken all necessary actions to authorise its entry into, performance and delivery of, the Finance
Documents to which any of them is a party and the transactions contemplated by those Finance
Documents.

17.1.5 Authorisations and consents

All authorisations, approvals, consents and other matters, official or otherwise, required by the
Borrower and/or the Guarantors in connection with the entering into, performance, validity and
enforceability of the Finance Documents and the transactions contemplated hereby and thereby have
been obtained or effected and are in full force and effect.

17.1.6 Taxes

Each of the Borrower and the Guarantors has complied with all material taxation laws in all
jurisdictions where it is subject to taxation and have paid all material Taxes and other amounts
due to governments and other public bodies. No claims are being asserted against any of them with
respect to any Taxes or other payments due to public or governmental bodies. Neither the Borrower
nor any of the Guarantors is required to make any withholdings or deductions for or on account of
Tax from any payment any of them may make under any of the Finance Documents.

17.1.7 No Default

No Event of Default is continuing or might reasonably be expected to result from the making of any
Loan. No other event or circumstances is outstanding which constitutes a default or (with the
expiry

23

 

of a grace period, giving of notice or the making of any determination or any combination of the
foregoing) might constitute a default under any other agreement or instrument which is binding on
the Borrower or any of the Guarantors or to which the Borrower’s or any of the Guarantors’ assets
are subject which might have a Material Adverse Effect.

17.1.8 No misleading information

Any factual information, documents, exhibits or reports relating to the Borrower and/or the
Guarantors and which have been furnished to the Finance Parties by or on behalf of the Borrower or
the Guarantors (as the case may be) are complete and correct in all material respects and do not
contain any misstatement of fact or omit to state a fact making such information, exhibits or
reports misleading in any material respect.

17.1.9 Original Accounts

	a)	 	Complete and correct. The Original Financial Statements fairly and accurately represent the
assets, liabilities and the financial condition of the Borrower and the Guarantors and have
been prepared in accordance with GAAP consistently applied.

	b)	 	No undisclosed liabilities. As of the date of the Original Financial Statements, none of the
Borrower or the Guarantors had any material liabilities, direct or indirect, actual or
contingent, and there is no material, unrealised or anticipated losses from any unfavourable
commitments not disclosed by or reserved against in the Original Financial Statements or in
the notes thereto.

	c)	 	No material change. Since the date of the Original Financial Statements, there has been no
material adverse change in the business, operations, assets or condition (financial or
otherwise) of the Borrower and/or the Guarantors.

17.1.10 Pari passu ranking

The Borrower’s and/or the Guarantors’ (as the case may be) payment obligations under the Finance
Documents rank at least pari passu with the claims of all their other unsecured and unsubordinated
creditors, except for obligations preferred by mandatory law applying to companies generally.

17.1.11 No proceedings pending or threatened

No litigation, arbitration or administrative proceedings of or before any court, arbitral body or
agency, which if adversely determined, might reasonably be expected to have a Material Adverse
Effect, have been started or threatened against the Borrower and/or any of the Guarantors.

17.1.12 No existing Security Interest

Save as described in Clause 16 (Security), no Security Interest exists over all or any of the
present or future revenues or assets of the Borrower.

17.1.13 No immunity

The execution and delivery by the Borrower and/or any of the Guarantor (as the case may be) of each
Finance Document to which any of them is a party constitute, and their exercise of their respective
rights and performance of their respective obligations under each Finance Document will constitute,
private and commercial acts performed for private and commercial purposes, and none of the Borrower
or any of the Guarantors will (except for bankruptcy or any similar proceedings) be entitled to
claim for themselves or any or all of their assets immunity from suit, execution, attachment or
other legal process in any other proceedings taken in Norway and/or France (as the case may be) in
relation to any Finance Document.

24

 

17.1.14 No winding-up

None of the Borrower or any of the Guarantors has taken any corporate action nor have any other
steps been taken or legal proceedings been started or threatened against any of them for their
reorganisation, winding-up, dissolution or administration or for the appointment of a receiver,
administrator, administrative receiver, trustee or similar officer of any of them or any or any of
their assets.

17.1.15 Environmental compliance

The Borrower and the Guarantors (as the case may be) have performed and observed in all material
respects all Environmental Laws, Environmental Approvals and all other material covenants,
conditions, restrictions or agreements directly or indirectly concerned with any contamination,
pollution or waste or the release or discharge of any toxic or hazardous substance in connection
with the Vessels.

17.1.16 Environmental Claims

No Environmental Claim has been commenced or is threatened against the Borrower or any of the
Guarantors where that claim would be reasonably likely, if adversely determined, to have a Material
Adverse Effect.

17.1.17 ISM Code and ISPS Code Compliance

All requirements of the ISM Code and the ISPS Code as they relate to the Borrower, the Managers and
the Vessels have been complied with in all material respects.

17.1.18 The Vessels

C-Orion will on the first Drawdown Date be:

	a)	 	in the absolute ownership of the Borrower free and clear of all encumbrances (other than
current crew wages and the Mortgage) and the Borrower will be the sole, legal and beneficial
owner of C-Orion;
	 
	b)	 	registered in the name of the Borrower with the Vanuatu Ship Registry under the laws and flag
of Vanuatu;
	 
	c)	 	operationally seaworthy in every way and fit for service; and
	 
	d)	 	classed with ABS (or such other classification society as acceptable to the Agent), free of
all overdue requirements and recommendations.

Geo Challenger will on the first Drawdown Date be:

	e)	 	in the registered ownership of Geo Rederi AS, with Geoshipping AS as disponent owner, and
with the Borrower as time charterer in accordance with the Geo-Charterparty:
	 
	f)	 	registered with the Norwegian International Ship Registry under the laws and flag of Norway
(or such other flag or registry as acceptable to the Agent);
	 
	g)	 	operationally seaworthy in every way and fit for service; and
	 
	h)	 	classed with DnV (or such other classification society as acceptable to the Agent), free of
all overdue requirements and recommendations.

25

 

17.1.19 No money laundering

Each of the Borrower and the Guarantors is acting for its own account in relation to the Facility
and in relation to the performance and the discharge of its obligations and liabilities under the
Finance Documents and the transactions and other arrangements effected or contemplated by the
Finance Documents to which any of the Borrower and/or the Guarantors is a party, and the foregoing
will not involve or lead to contravention of any law, official requirement or other regulatory
measure or procedure implemented to combat money laundering (as defined in Article 1 of the
Directive (91/308/EEC) and Directive 2001/97 of the European Parliament and of 4 December 2001
amending Council Directive 91/308).

	17.2	 	Repetition

The representations and warranties set out in this Clause 17 are deemed to be made by the Borrower
on the date of this Agreement and shall be deemed to be repeated with reference to the facts and
circumstances then existing:

	a)	 	on the date of a Drawdown Notice;
	 
	b)	 	on each Drawdown Date;
	 
	c)	 	on the first day of each Interest Period; and
	 
	d)	 	in each Compliance Certificate forwarded to the Agent pursuant to Clause 18.1.2 (Compliance
certificate) (or, if no such Compliance Certificate is forwarded, on each day such certificate
should have been forwarded to the Agent at the latest).

	18	 	INFORMATION UNDERTAKINGS

	18.1	 	General

The Borrower gives the undertakings set out in this Clause 18 to each Finance Party and such
undertakings shall remain in force throughout the Security Period.

18.1.1 Financial statements

The Borrower shall supply to the Agent in sufficient copies for all of the Lenders:

	a)	 	as soon as the same become available, but in any event within one hundred and eighty (180)
days after the end of each of its financial years, the audited financial statements of the
Borrower and each of the Guarantors for that financial year;
	 
	b)	 	as soon as the same become available, but in any event within ninety (90) days after the end
of each half-year, the unaudited semi-annual financial statements of the Borrower and each of
the Guarantors.

18.1.2 Compliance Certificate

The Borrower shall supply to the Agent, with each set of financial statements delivered pursuant to
Clause 18.1.1 b) (Financial statements), a Compliance Certificate signed by an authorised officer
of the Borrower and each of the Guarantors setting out (in reasonable detail) computations as to
compliance with Clause 19 (Financial covenants) as at the date at which those financial statements
were drawn up.

26

 

18.1.3 Requirements as to financial statements

The Borrower shall procure that each set of financial statements delivered pursuant to Clause
18.1.1 (Financial statements) is prepared using GAAP, accounting practices and financial reference
periods consistent with those applied in the preparation of the Original Financial Statements for
the Borrower and the Guarantors unless, in relation to any set of financial statements, it notifies
the Agent that there has been a change in GAAP, the accounting practices or reference periods and
its (or the Guarantors’ (as the case may be)) auditors deliver to the Agent:

	a)	 	a description of any change necessary for those financial statements to reflect GAAP,
accounting practices and reference periods upon which the Borrower’s or the Guarantors’ (as
the case may be) Original Financial Statements were prepared; and
	 
	b)	 	sufficient information, in form and substance as may be reasonably required by the Agent, to
enable the Lenders to determine whether Clause 19 (Financial covenants) has been complied with
and make an accurate comparison between the financial position indicated in those financial
statements and the Borrower’s or the Guarantors’ (as the case may be) Original Financial
Statements.

Any reference in this Agreement to those financial statements shall be construed as a reference to
those financial statements as adjusted to reflect the basis upon which the Original Financial
Statements were prepared.

18.1.4 Information — miscellaneous

The Borrower shall notify the Agent and/or supply to the Agent (in sufficient copies for all the
Lenders, if the Agent so requests):

	a)	 	promptly upon becoming aware of them, the details of any litigation, arbitration or
administrative proceedings which are current, threatened or pending against the Borrower
and/or any of the Guarantors, and which might, if adversely determined, have a Material
Adverse Effect; and
	 
	b)	 	promptly, such further information regarding the business, operations, assets and conditions
(financial or otherwise) of the Borrower and/or any of the Guarantors as any Finance Party
(through the Agent) may reasonably request.

18.1.5 Notification of default

The Borrower shall notify the Agent of any Default (and the steps, if any, being taken to remedy
it) promptly upon becoming aware of its occurrence.

18.1.6 Notification of Environmental Claims

The Borrower shall inform the Agent in writing as soon as reasonably practicable upon becoming
aware of the same:

	a)	 	if any Environmental Claim has been commenced or (to the best of the Borrower’s knowledge and
belief) is threatened against the Borrower, any of the Guarantors or any of the Vessels; and
	 
	b)	 	of any fact and circumstances which will or are reasonably likely to result in any
Environmental Claim being commenced or threatened against the Borrower, any of the Guarantors
or any of the Vessels,

27

 

where the claim would be reasonably likely, if determined against the Borrower, any of the
Guarantors or any of the Vessels, to have a Material Adverse Effect.

	19	 	FINANCIAL COVENANTS

	19.1	 	Definitions

For the purposes of the financial covenants set out herein related to ExRe, the following
definitions shall apply:

	a)	 	“Equity” means at any time the aggregate of:

	 	(i)	 	the amount paid up or credited as paid up on the issued share capital of
ExRe; and
	 
	 	(ii)	 	the amount standing to the credit of the capital and revenue reserves of
ExRe, based on the latest published audited balance sheet of ExRe, but adjusted by,
without double-counting:

	 	A 	 	adding any amount standing to the credit of the profit
and loss account of ExRe for the period ending on the date of the latest
balance sheet to the extent not included in item (ii) above;
	 
	 	B 	 	adding any loans from shareholders of ExRe if such loans
are fully subordinated to this Agreement and there is no payment of
interests and instalments;
	 
	 	C 	 	deducting any dividend or other distribution declared, recommended or made by ExRe;
	 
	 	D 	 	deducting any amount attributable to an upward revaluation of assets;
	 
	 	E 	 	reflecting any variation in the amount of the issued
share capital of the Borrower and the capital and revenue reserves of ExRe
after the date of the latest balance sheet;
	 
	 	F 	 	including any amount attributable to minority interests; and
	 
	 	G 	 	excluding any amount attributable to deferred taxation.

	b)	 	“Equity Ratio” means, at any time, the ratio of Equity to Total Assets.
	 
	c)	 	“Total Assets” means, at any time, the aggregate balance sheet total assets.

For the purposes of the financial covenants set out herein related to CGG, the following
definitions shall apply:

	d)	 	“Consolidated Cashflow” means for any Relevant Period CGG’s consolidated earnings, before:

	 	i.	 	any interest, discounts or other fees incurred or payable in respect of
Financial Indebtedness;
	 
	 	ii.	 	any provision on account of taxation;

28

 

	 	iii.	 	any item treated as exceptional or extraordinary items; and
	 
	 	iv.	 	any amount attributable to depreciation of tangible assets and the amortisation of intangible assets;

	 	 	after taking into account the net effect of:

	 	i.	 	any extraordinary or exceptional item received or paid in cash;
	 
	 	ii.	 	any taxes received or paid in cash;
	 
	 	iii.	 	any capital expenditure paid or required to be paid;
	 
	 	iv.	 	any net cash items received or paid (or required to be paid) in
relation to the sale or purchase (as the case may be) of any business or assets;
	 
	 	v.	 	any decrease or increase in consolidated net working capital;
	 
	 	vi.	 	any capital injection in the form of equity and/or fully
subordinated loans received by CGG (on a consolidated basis);
	 
	 	vii.	 	dividends received in cash from associated companies or other fixed
assets investments or any dividends paid;
	 
	 	viii.	 	realised exchange gains or losses charged; and
	 
	 	ix.	 	any non-cash items expensed or credited.

	e)	 	“Consolidated Interest Coverage Ratio” means, at any time, the ratio of CGG’s Consolidated
Cash Flow to the Consolidated Interest Expense (deducting all interest payments which have to
be capitalised).
	 
	f)	 	“Consolidated Interest Expense” means all interest, commissions, periodic fees and other
financing charges (whether, in each case, paid, payable or capitalised) incurred by CGG (on a
consolidated basis) during a Relevant Period (including the interest element payable under any
finance lease).
	 
	g)	 	“Relevant Period” means each period of twelve (12) months.

	19.2	 	Financial covenants

19.2.1 Equity Ratio

The Borrower undertakes to ensure that ExRe’s Equity Ratio (on a consolidated basis) is not at any
time less than thirty per cent (30.00%).

19.2.2 Positive working capital

The Borrower shall at all times ensure that ExRe’s (on a consolidated basis) current assets
(including any undrawn portion under available credit lines) exceed its current liabilities
(including next year’s instalments on long-term debts and capital lease obligations), all as
determined in accordance with GAAP.

19.2.3 Consolidated Interest Coverage Ratio

The Borrower shall ensure that CGG’s Consolidated Interest Coverage Ratio is not at any time below
3.00:1.00.

29

 

	20	 	GENERAL UNDERTAKINGS

	20.1	 	General

The Borrower gives the undertakings set out in this Clause 20 to each Finance Party and such
undertakings shall remain in force throughout the Security Period.

20.1.1 Authorisations etc.

The Borrower shall promptly:

	a)	 	obtain, comply and do all that is necessary to maintain in full force and effect; and
	 
	b)	 	supply certified copies to the Agent (if so requested) of,

any authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or
registration required under any law or regulation of its jurisdiction of incorporation to enable it
or the Guarantor to perform their respective obligations under the Finance Documents and to ensure
the legality, validity, enforceability or admissibility in evidence in their respective
jurisdictions of incorporation of any Finance Document.

20.1.2 Compliance with laws

The Borrower shall comply and shall procure the compliance by the Guarantors in all respects with
all laws to which any of them may be subject, if failure so to comply would materially impair their
ability to perform their respective obligations under the Finance Documents.

20.1.3 Pari passu ranking

The Borrower shall ensure and procure that the Guarantors ensure that their obligations under the
Finance Documents do and will rank at least pari passu with all their other present and future
unsecured and unsubordinated obligations, except for those obligations which are preferred by
mandatory law applying to companies generally in the jurisdictions of their incorporation or in the
jurisdiction in the ports of calls.

20.1.4 Title

	a)	 	The Borrower shall hold legal title to and own the entire beneficial interest in the C-Orion,
the Equipment, the Insurances and the Earnings, free of all Security Interest and other
interests and rights of every kind, except for those created by the Finance Documents and as
set out in Clause 20.1.5 (Negative pledge).
	 
	b)	 	ExRe shall at all times be the direct or indirect owner of 100.00% of the shares in the
Borrower, and CGG shall at all times be the direct or indirect owner of 100.00% of the shares
in ExRe.

20.1.5 Negative pledge

The Borrower shall not, create or permit to subsist any Security Interest over the C-Orion nor upon
any of its present or future undertakings, property, assets, rights or revenues, other than:

	a)	 	Security Interest under the Security Documents;
	 
	b)	 	Security Interests arising in the ordinary course of business; and
	 
	c)	 	Security Interests consented to in writing by the Agent (acting upon instructions from the
Majority Lenders).

30

 

Furthermore, the Borrower shall procure that no further Security Interests than those already in
effect at the date of this Agreement shall be created or permitted to subsist over the following
assets:

	a)	the shares in Exploration Vessel Resources AS;
	 
	b)	the shares in Exploration Vessel Resources II AS;
	 
	c)	the vessels owned by Exploration Vessel Resources AS; and
	 
	d)	the vessels owned by Exploration Vessel Resources II AS.

The Borrower undertakes to duly notify the relevant entities of this negative pledge, and if
required by the Agent (on behalf of the Finance Parties) to obtain confirmations from such entities
acknowledging such negative pledge.

20.1.6 Earnings Accounts

The Borrower shall hold and maintain its Earnings Accounts with the Agent and procure that all
Earnings are paid to the Earnings Accounts.

20.1.7 Disposals

The Borrower shall not sell, transfer or otherwise dispose of the whole or any part of its interest
in the Vessels without the prior written consent of the Agent (on behalf of the Lenders).

20.1.8 Change of business

The Borrower shall ensure that no substantial change is made to the general nature of the business
of the Borrower from that carried out at the date of this Agreement.

20.1.9 No mergers etc.

The Borrower shall not enter into any merger, amalgamation, consolidation with or into any other
person or be the subject of reconstruction (in each case except where the Borrower is the surviving
entity) or any de-merger, split-up or divest, without the prior written consent of the Lenders.

20.1.10 Environmental compliance

The Borrower shall (and shall procure that the Guarantor will) comply in all material respects with
all Environmental Laws subject to the terms and conditions of any Environmental Approval and obtain
and maintain any Environmental Approval.

20.1.11 Management

The Borrower shall procure that the Manager(s) shall remain the managers of the Vessels and there
shall be no change to such management without the prior written consent of the Agent.

20.1.12 Finance Documents

The Borrower shall procure that none of the Finance Documents are amended or terminated, or any
waiver or any material terms thereof are agreed thereunder without the prior written consent of the
Agent (on behalf of the Finance Parties).

20.1.13 Listing

CGG shall remain listed on the Paris Stock Exchange and New York Stock Exchange (NYSE).

31

 

20.1.14 Inter-company loans

In the event that the Borrower is granted any inter-company loans from the Guarantors or any of
their related companies, all such loans shall be subordinated to this Facility, and all such
inter-company loans shall be documented in an agreement which shall be provided to the Agent (on
behalf of the Finance Parties).

	21	 	VESSEL COVENANTS

	21.1	 	General

The Borrower gives the undertakings set out in this Clause 21 to each Finance Party and such
undertakings shall remain in force throughout the Security Period.

21.1.1 Insurance

	a)	 	The Borrower shall maintain or ensure that C-Orion is insured against such risks, including
but not limited to, Hull and Machinery, Protection & Indemnity (including maximum cover for
pollution liability as normally adopted by the industry for similar vessels), Hull Interest
and/or Freight Interest and War Risk insurances, in such amounts, on such terms and with such
insurers as the Agent shall approve. Similarly, the Borrower shall ensure that its investments
in Geo Challenger are sufficiently secured through Geoshipping AS’ insurances with the
Borrower entered as co-assured for an amount as approved by the Agent, such approval not to be
unreasonably withheld. Furthermore, the Borrower shall maintain or ensure that the Equipment
is insured against all customary risks for similar Equipment, in such amounts, on such terms
and with such insurers as the Agent shall approve.
	 
	b)	 	The value of the Hull and Machinery insurance for C-Orion shall cover at least eighty per
cent. (80.00%) of the Market Value and the aggregate insurance value of C-Orion (except
Protection & Indemnity), shall be at least equal to the higher of the Market Value of the
C-Orion and one hundred and twenty per cent. (120.00%) of Tranche I.
	 
	c)	 	The Borrower shall procure that the Agent (on behalf of the Finance Parties) is noted as
first priority mortgagee in the insurance contracts for the C-Orion and the Equipment,
together with the confirmation from the underwriters to the Agent thereof that the notice of
assignment with regards to the Insurances and the loss payable clauses are noted in the
insurance contracts and that standard letters of undertaking are executed by the insurers.
	 
	d)	 	Not later than at the expiry date of the relevant Insurances the Borrower shall procure the
delivery to the Agent of a certificate from the insurance broker(s) through whom the
Insurances referred to in paragraph a) have been renewed and taken out in respect of the
Vessels with insurance values as required by paragraph b), that such Insurances are in full
force and effect and that the Agent (on behalf of the Finance Parties) have been noted by the
relevant insurers.
	 
	e)	 	If any of the Insurances referred to in paragraph a) form part of a fleet cover, the Borrower
shall procure that the insurers shall undertake to the Agent that they shall not cancel this
Insurance for reason of non-payment of premiums for other vessels under such fleet cover or of
premiums for such other insurances, and shall undertake to issue a separate policy in respect
of any of the Vessels if and when so requested by the Agent.
	 
	f)	 	The Borrower shall procure that the Vessels always are employed in conformity with the terms
of the instruments of Insurances (including any warranties expressed or implied

32

 

	 	 	therein) and comply with such requirements as to extra premium or otherwise as the
insurers may prescribe.
	 
	g)	 	The Borrower will not make any change to the Insurances described under paragraph a) and b)
above without the prior written consent of the Agent (on behalf of the Lenders), such consent
not to be unreasonably withheld.

21.1.2 Classification and repairs

The Borrower shall keep each of the Vessels in a good, safe and efficient condition consistent with
first class ownership and management practice and in particular:

	a)	 	so as to maintain its class at the highest level with DnV, ABS or another classification
society approved by the Agent, free of overdue recommendations and qualifications; and
	 
	b)	 	so as to comply with the laws and regulations (statutory or otherwise) applicable to vessels
registered under the flag state of the Vessels or to vessels trading to any jurisdiction to
which any of the Vessels may trade from time to time.

21.1.3 Restrictions on chartering, appointment of Managers etc.

The Borrower shall not, without the prior written consent of the Agent:

	a)	 	let the Vessels on bareboat charter for any period, except under the Charterparties;
	 
	b)	 	enter into any agreement related to the chartering and operation of any of the Vessels
exceeding twelve (12) months, except under the Charterparties;
	 
	c)	 	appoint a Manager for the C-Orion that is not acceptable to the Agent; or
	 
	d)	 	change the classification society of C-Orion, or allow Geoshipping AS to change the
classification society of Geo Challenger.

21.1.4 Notification of certain events

The Borrower shall, as soon as it becomes aware of same, immediately notify the Agent of:

	a)	 	any accident to any of the Vessels involving repairs where the costs will or is likely to
exceed EUR 1,000,000 (or the equivalent in any other currency);
	 
	b)	 	any requirement or recommendation made by any insurer or classification society or by any
competent authority which is not, or cannot be, complied with immediately or within the
relevant time limit, if any;
	 
	c)	 	any exercise or purported exercise of any lien on any of the Vessels, the Earnings or the
Insurances;
	 
	d)	 	any occurrence as a result of which any of the Vessels has become or is, by the passing of
time or otherwise, likely to become a Total Loss; and
	 
	e)	 	any claim for a material breach of the ISM Code or the ISPS Code being made against the
Borrower or otherwise in connection with the C-Orion.

33

 

21.1.5 Operation of the Vessels

	a)	 	The Borrower shall comply, or procure the compliance in all material respects with the ISM
Code and the ISPS Code, all Environmental Laws and all other laws or regulations relating to
the C-Orion, its ownership, operation and management or to the business of the Borrower and
shall not employ any of the Vessels nor allow their employment:

	 	(i)	 	in any manner contrary to law or regulation in any relevant jurisdiction
including but not limited to the ISM Code; and
	 
	 	(ii)	 	in the event of hostilities in any part of the world (whether war is
declared or not), in any zone which is declared a war zone by any government or by
the war risk insurers of any of the Vessels unless the Borrower has (at its expense)
effected any special, additional or modified insurance cover which shall be necessary
or customary for first class shipowners trading vessels within the territorial waters
of such country at such time and has provided evidence of such cover to the Agent.

	 	 	Without limitation to the generality of this Clause 21.1.5, the Borrower shall comply or
procure compliance, with, as applicable, all requirements of the International Convention
for the Safety of Life at Sea (SOLAS) 1974 as adopted, amended or replaced from time to
time including, but not limited to, the STCW 95, the ISM Code or the ISPS Code.
	 
	b)	 	The Vessels shall be employed under the Charterparties, and the Charterparties shall not be
amended or varied without the prior written consent of the Agent (on behalf of the Lenders).
The Charterparties shall be approved by the Agent (on behalf of the Finance Parties) and the
agreed rates of hire in the Charterparties shall ensure the Borrower’s debt service ability to
the satisfaction of the Agent (on behalf of the Finance Parties).

21.1.6 ISM Code compliance

The Borrower will:

	a)	 	procure that each of the Vessels remains subject to a SMS for the duration of the Facility;
	 
	b)	 	procure that a valid and current SMC is maintained for each of the Vessels for the duration
of the Facility;
	 
	c)	 	if not itself, procure that the Manager(s) of the Vessels maintains a valid and current DOC
for the duration of the Facility;
	 
	d)	 	notify the Agent in writing as soon as it becomes aware of same of any actual or threatened
withdrawal, suspension, cancellation or modification of the SMC of any of the Vessels or of
the DOC of any of the Manager(s); and
	 
	e)	 	notify the Agent in writing as soon as it becomes aware of same of any “accident” or “major
non-conformity”, each as those terms is defined in the Guidelines in the application of the
IMO International Safety Management Code issued by the International Chamber of Shipping and
International Shipping Federation.

21.1.7 Inspections and class records

	a)	 	The Borrower shall permit, and shall procure that any charterers permit, one person appointed
by the Agent and/or each of the Lenders (for the account of such Lender(s)) to

34

 

	 	 	inspect the Vessels once a year for the account of the Borrower upon the Agent giving
prior written notice.
	 
	b)	 	The Borrower shall instruct the classification society to send to the Agent, following a
written request from the Agent, copies of all class records held by the classification society
in relation to the Vessels.

21.1.8 Surveys

The Borrower shall submit to or cause the Vessels to be submitted to such periodic or other surveys
as may be required for classification purposes and to ensure full compliance with regulations of
the relevant flag state of the Vessels and to supply or cause to be supplied to the Agent copies of
all survey reports and confirmations of class issued in respect thereof whenever such is required
by the Agent, however limited to once a year.

21.1.9 Arrest

The Borrower shall promptly pay and discharge, or (as to the Geo Challenger) use its best
endeavours to ensure that Geoshipping AS promptly pays and discharges:

	a)	 	all liabilities which give or may give rise to maritime or possessory liens on or claims
enforceable against any of the Vessels, the Earnings or the Insurances;
	 
	b)	 	all tolls, taxes, dues, fines, penalties and other amounts charged in respect of any of the
Vessels, the Earnings or the Insurances; and
	 
	c)	 	all other outgoings whatsoever in respect of any of the Vessels, the Earnings and the
Insurances,

and forthwith upon receiving a notice of arrest of any of the Vessels, or their detention in
exercise or purported exercise of any lien or claim, the Borrower shall procure their release by
providing bail or providing the provision of security or otherwise as the circumstances may
require.

21.1.10 Total Loss

In the event that any of the Vessels shall suffer a Total Loss, the Borrower shall, within a period
of ninety (90) days after the Total Loss Date, obtain and present to the Agent, a written
confirmation from the relevant insurers that the claim relating to the Total Loss has been accepted
in full, and the Insurance proceeds shall be applied in prepayment of the relevant Tranches in
accordance with Clause 7.1 (Mandatory prepayment — Total Loss or sale of C-Orion) and/or Clause 7.2
(Mandatory prepayment — termination of the Geo-Charterparty or Total Loss or sale of Geo
Challenger).

21.1.11 Flag, name and registry

The Borrower shall not, without the prior written consent of the Agent (on behalf of the Finance
Parties), change the flag or registry of any of the Vessels.

21.1.12 The Equipment

The Equipment shall be installed on board the Vessels and shall not be removed therefrom without
the prior witten consent of the Agent (on behalf of the Lenders). In the event that the Agent (on
behalf of the Lenders) consents to the removal of any of the Equipment from the respective Vessel,
the Borrower shall provide satisfactory security or cash collateral of sufficient value so that the
Lenders’ position is not deteriorated.

35

 

21.1.13 Assignment of Charterer’s external charterparties

In the event that the Charterer enters into charterparties for the Vessels with any companies
outside the CGG-group with a duration of 12 months or more, the Borrower shall notify the Agent (on
behalf of the Finance Parties) in advance, and the Agent (on behalf of the Finance Parties) is
entitled to require an assignment of such charterparties to be provided as additional security for
the Borrower’s and the Guarantors obligations under the Finance Documents. If required, the
Borrower shall procure that such assignment is established and effected as soon as possible, and
not later than the commencement of the relevant charterparty.

	22	 	EVENTS OF DEFAULT

	22.1	 	General

Each of the events or circumstances set out in this Clause 22 is an Event of Default.

22.1.1 Non-payment

The Borrower does not pay on the due date any amount payable pursuant to a Finance Document at the
place and in the currency in which it is expressed to be payable unless:

	a)	 	its failure to pay is caused by administrative or technical error affecting the transfer of
funds despite timely payment instructions by the Borrower; and
	 
	b)	 	payment is made within three (3) Business Days of its due date.

22.1.2 Financial covenants

Any requirement in Clause 19 (Financial covenants) is not satisfied and this is continuing for more
than ten (10) days.

22.1.3 Other obligations

	a)	 	The Borrower does not comply with any provision of the Finance Documents (other than those
referred to in Clause 22.1 (Non-payment) and 22.1.2 (Financial covenants)), except if the
failure to comply is capable of remedy and is remedied within three (3) Business Days of the
Agent giving notice to the Borrower or the Borrower becoming aware of the failure to comply.
	 
	b)	 	No Event of Default under paragraph a) above in relation to Clause 21.1.9 (Arrest) will occur
if the failure to comply is capable of remedy and is remedied within ten (10) Business Days of
the Agent giving notice to the Borrower or the Borrower becoming aware of the failure to
comply.

22.1.4 Misrepresentations

Any representation or statement made or deemed to be made by the Borrower in the Finance Documents
or any other document delivered by or on behalf of the Borrower and/or the Guarantor under or in
connection with any of the Finance Documents is or proves to have been incorrect or misleading in
any material respect when made or deemed to be made.

22.1.5 Cross default

Any Financial Indebtedness of the Borrower and/or any of the Guarantors or their subsidiaries in a
principal amount higher than EUR 2,500,000 is not paid when due (or within any applicable grace
period provided for in the original agreement, if any, evidencing the same) or becomes prematurely
payable or capable of being prematurely declared payable as a consequence of a default with respect
thereto or is cancelled or suspended by a creditor of the Borrower or any of the Guarantors.

36

 

22.1.6 Insolvency

	a)	Any of the Borrower or the Guarantors is unable or admits inability to pay its debts as they
fall due, suspends making payments on any of its debts or, by reason of actual or anticipated
financial difficulties, commences negotiations with one or more of its creditors with a view
to rescheduling any of its indebtedness.
	 
	b)	The value of the assets of the Borrower and/or any of the Guarantors is less than its
liabilities (taking into account contingent and prospective liabilities).
	 
	c)	A moratorium is declared in respect of any indebtedness of the Borrower and/or any of the
Guarantors.

22.1.7 Insolvency proceedings

Any corporate action, legal proceedings or other procedure or step is taken in relation to:

	a)	 	the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution,
administration or reorganisation (by way of voluntary arrangement, scheme or arrangement or
otherwise) of the Borrower and/or any of the Guarantors;
	 
	b)	 	a composition, compromise, assignment or arrangement with any creditor of the Borrower and/or
any of the Guarantors;
	 
	c)	 	the appointment of a liquidator, receiver, administrative receiver, administrator or other
similar officer in respect of the Borrower and/or any of the Guarantors; or
	 
	d)	 	enforcement of any Security Interest over any assets of the Borrower and/or any of the
Guarantors.

22.1.8 Creditor’s process

Any expropriation, attachment, sequestration, distress or execution affects any asset or assets of
the Borrower and/or any of the Guarantors and is not discharged within thirty (30) days and has a
Material Adverse Effect.

22.1.9 Unlawfulness

It is or becomes unlawful for the Borrower and/or any of the Guarantors to perform any of their
respective obligations under the Finance Documents.

22.1.10 Permits

Any licence, consent, permission or approval required in order to enforce, complete or perform any
of the Finance Documents is revoked, terminated or modified having a Material Adverse Effect.

22.1.11 Litigation

There is current, pending or threatened any claims, litigation, arbitration or administrative
proceedings against the Borrower and/or any of the Guarantors which might, if adversely determined,
have a Material Adverse Effect.

	22.2	 	Acceleration

Upon the occurrence of an Event of Default, the Agent may, and shall if so directed by the Majority
Lenders, by written notice to the Borrower:

	a)	 	cancel the Total Commitments whereupon they shall immediately be cancelled;

37

 

	b)	 	declare that all or part of the Loan together with accrued interest, and all other amounts
accrued or outstanding under the Finance Documents, be either immediately due and payable
and/or payable upon demand, whereupon they shall become either immediately due and payable or
payable on demand; and/or
	 
	c)	 	start enforcement in respect of the Security Interests established by the Security
Documents; and/or
	 
	d)	 	take any other action, with or without notice to the Borrower, exercise any other right or
pursue any other remedy conferred upon the Agent or the Finance Parties by any of the Finance
Documents or by any applicable law or regulation or otherwise as a consequence of such Event
of Default.

	23	 	CHANGES TO THE PARTIES

	23.1	 	No assignment by the Borrower

The Borrower may not assign or transfer or have assumed any part of, or any interest in, its rights
and/or obligations under the Finance Documents.

	23.2	 	Assignments and transfers by the Lenders

A Lender (the “Existing Lender”) may at any time assign, transfer or have assumed its rights or
obligations under the Finance Documents (a “Transfer”) to:

	a)	 	another Existing Lender or an affiliate of an Existing Lender; or
	 
	b)	 	with the approval of the Borrower (such approval not to be unreasonably withheld and shall
not be required in case an Event of Default has occurred and is continuing) to another bank or
financial institution or to a trust, fund or other entity which is regularly engaged in or
established for the purpose of making, purchasing or investing in loans, securities or other
financial assets (the “New Lender”).

	23.3	 	Limitations of responsibility of Existing Lenders

23.3.1 Borrower’s performance, etc

Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and
assumes no responsibility to the New Lender for:

	a)	 	the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or
any other documents;
	 
	b)	 	the financial condition of the Borrower;
	 
	c)	 	the performance and observance by the Borrower of its obligations under the Finance Documents
or any other documents; or
	 
	d)	 	the accuracy of any statements (whether written or oral) made in or in connection with the
Finance Documents or any other document.

23.3.2 New Lender’s own credit appraisal, etc

Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

	a)	 	has made (and will continue to make) its own independent investigation and assessment of the
financial condition and affairs of the Borrower and its related entities in connection with

38

 

	 	 	its participation in this Agreement and has not relied exclusively on any information
provided to it by the Existing Lender in connection with any Finance Document; and
	 
	b)	 	will continue to make its own independent appraisal of the creditworthiness of the Borrower
and its related entities whilst any amount is or may be outstanding under the Finance
Documents or any Commitment is in force.

23.3.3 Re-transfer to an Existing Lender, etc

Nothing in any Finance Document obliges an Existing Lender to:

	a)	 	accept a re-transfer from a New Lender of any of the rights and obligations assigned or
transferred under this Clause 23; or
	 
	b)	 	support any losses directly or indirectly incurred by the New Lender by reason of the
non-performance by the Borrower of its obligations under the Finance Documents or otherwise.

	23.4	 	Procedure for transfer

Any Transfer shall be effected as follows:

	a)	 	the Existing Lender must notify the Agent of its intention to transfer all or part of its
rights and obligations by delivering a duly completed Transfer Certificate to the Agent duly
executed by the Existing Lender and the New Lender;
	 
	b)	 	subject to Clause 23.2 (Assignments and transfers by the Lenders), the Agent shall as soon as
reasonable possible after receipt of a Transfer Certificate execute the Transfer Certificate
and deliver a copy of the same to each of the Existing Lender and the New Lender; and
	 
	c)	 	subject to Clause 23.2 (Assignments and transfers by the Lenders), the Transfer shall become
effective on the Transfer Date.

	23.5	 	Effects of the Transfer

On the Transfer Date:

	a)	 	to the extent that in the Transfer Certificate the Existing Lender seeks to transfer its
rights and obligations under the Finance Documents, the Borrower and the Existing Lender shall
be released from further obligations to one another under the Finance Documents and their
respective rights against one another under the Finance Documents shall be cancelled (the
“Discharged Rights and Obligations”);
	 
	b)	 	the Borrower and the New Lender shall assume obligations towards one another and/or acquire
rights against one another which differ from the Discharged Rights and Obligations only
insofar as the Borrower and the New Lender have assumed and/or acquired the same in place of
the Borrower and the Existing Lender;
	 
	c)	 	the Agent, the Arranger, the New Lender and the other Lenders shall acquire the same rights
and assume the same obligations between themselves as they would have acquired and assumed had
the New Lender been an original Lender hereunder with the rights and/or obligations acquired
or assumed by it as a result of the Transfer and to that extent the Agent, the Arranger and
the Existing Lender shall each be released from further obligations to each other under the
Finance Documents; and

39

 

	d)	 	the New Lender shall become a Party as a “Lender”.

	23.6	 	Further assurances

The Borrower undertakes to procure that in relation to any Transfer, the Borrower shall (at its own
cost) at the request of the Agent execute such documents as may in the discretion of the Agent be
necessary to ensure that the New Lender attains the benefit of the Finance Documents.

	23.7	 	Disclosure of information

Any Lender may disclose:

	a)	 	to any of its affiliates and a potential assignee;
	 
	b)	 	to whom that Lender enters into (or may potentially enter into) any sub-participation in
relation to, or any other transaction under which payments are to be made by reference to,
this Agreement or the Borrower; and
	 
	c)	 	to whom, to the extent that, information is required to be discloses by any applicable law,

such information about the Borrower and the Finance Documents as that Lender shall consider appropriate.

	24	 	ROLE OF THE AGENT, SECURITY TRUSTEE AND THE ARRANGER

	24.1	 	Appointment and authorisation of the Agent and Security Trustee

	a)	 	Each other Finance Party appoints the Agent to act as its agent under and in connection with
the Finance Documents, and for purposes of the Mortgage, each other Finance Party appoints the
Agent as Security Trustee with respect to the Mortgage.
	 
	b)	 	Each other Finance Party authorises the Agent and the Security Trustee to exercise the
rights, powers, authorities and discretions specifically given to the Agent or Security
Trustee under or in connection with the Finance Documents together with any other incidental
rights, powers, authorities and discretions.
	 
	c)	 	The Security Trustee shall hold the rights as mortgagee under the Mortgage in trust for the
Finance Parties, and its obligations as Security Trustee shall be limited as described in
Section 24.2.

	24.2	 	Duties of the Agent and Security Trustee

The Agent and the Security Trustee shall not have any duties or responsibilities except those
expressly set forth in the Finance Documents, and the duties of the Agent and the Security Trustee
under the Finance Documents are solely mechanical and administrative in nature. The Agent and
Security Trustee shall:

	a)	 	promptly forward to a Party the original or a copy of any document which is delivered to it
in its capacity as Agent or Security Trustee for the attention of that Party by another Party;
	 
	b)	 	supply the other Finance Parties with all material information which the Agent or Security
Trustee receives from the Borrower;
	 
	c)	 	if it receives notice from a Party referring to this Agreement, describing an Event of
Default and stating that the circumstance is an Event of Default, promptly notify the Finance
Parties; and

40

 

	d)	 	if it receives sufficient information; promptly notify the Lenders of the occurrence of any
Event of Default arising under Clause 22 (Events of Default).

	24.3	 	Role of the Arranger

Except as specifically provided in the Finance Documents, the Arranger has no obligations of any
kind to any other Party under or in connection with any Finance Document.

	24.4	 	Relationship

Except with respect to the Mortgage, the relationship between the Agent and the other Finance
Parties is that of agent and principal only. Except with respect to the Mortgage, nothing in this
Agreement shall be construed as to constitute the Agent or the Finance Parties as trustee or
fiduciary for any other person. None of the Agent , the Security Trustee or any of the Finance
Parties shall be bound to account to any Finance Party for any sum or the profit element of any sum
received by it for its own account. The fiduciary duties of the Security Trustee are limited as
described in Section 24.2 above.

	24.5	 	Business with the Borrower

The Agent, Security Trustee and the Arranger may accept deposits from, lend money to and generally
engage in any kind of banking or other business with the Borrower.

	24.6	 	Rights and discretions of the Agent and Security Trustee

	a)	 	The Agent and Security Trustee may rely on:

	 	(i)	 	any representation, notice or document believed by it to be genuine,
correct and appropriately authorised; and
	 
	 	(ii)	 	any statement made by a director, authorised signatory or employee of any
person regarding any matters which may reasonably be assumed to be within his
knowledge or within his power to verify.

	b)	 	The Agent and Security Trustee may assume (unless it has received notice to the contrary in
its capacity as Agent and Security Trustee for the Lenders) that:

	 	(i)	 	no Event of Default has occurred (unless it has actual knowledge of an
Event of Default under Clause 22.1 (Non-payment)); and
	 
	 	(ii)	 	any right, power, authority or discretion vested in any Party or the
Majority Lenders has not been exercised.

	c)	 	The Agent and Security Trustee may engage, pay for and rely on the advise or services of any
lawyers, accountants, surveyors or other experts.
	 
	d)	 	The Agent and Security Trustee may act in relation to the Finance Documents through its
personnel and agents.
	 
	e)	 	The Agent and Security Trustee may disclose to any other Party any information it reasonably
believes it has received as agent or Security Trustee under this Agreement.
	 
	f)	 	Notwithstanding any other provision of any Finance Document to the contrary, neither the
Agent, the Security Trustee nor the Arranger is obliged to do or omit to do anything if it
would or might in its reasonable opinion constitute a breach of any law or regulation or a
breach of duty of confidentiality or render it liable to any person.

41

 

	24.7	 	Majority Lenders’ instructions

	 	a)	 	Unless a contrary indication appears in a Finance Document, the Agent and Security Trustee
shall (i) exercise any right, power, authority or discretion vested in it as Agent or Security
Trustee in accordance with any instructions given to it by the Majority Lenders (or, if so
instructed by the Majority Lenders, refrain from exercising any right, power, authority or
discretion vested in it as Agent or Security Trustee) and (ii) not be liable for any act (or
omission) if it acts in accordance with an instruction of the Majority Lenders.
	 
	 	b)	 	Unless a contrary indication appears in a Finance Document, any instructions given by the
Majority Lenders will be binding on all the Finance Parties.
	 
	 	c)	 	The Agent and Security Trustee may refrain from acting in accordance with the instructions of
the Majority Lenders (or, if appropriate, the Lenders) until it has received such security as
it may require for any cost, loss or liability (together with any associated VAT) which it may
incur in complying with the instructions.
	 
	 	d)	 	In the absence of instructions from the Majority Lenders (or, if appropriate, the Lenders)
the Agent and Security Trustee may act (or refrain from acting) as it considers to be in the
best interest of the Lenders.
	 
	 	e)	 	Neither the Agent nor the Security Trustee is not authorised to act on behalf of a Lender
(without first obtaining that Lender’s consent) in any legal or arbitration proceedings
relating to any Finance Document.

	24.8	 	Responsibility for documentation

Neither the Agent, Security Trustee nor the Arranger:

	a)	 	is responsible for the adequacy, accuracy and/or completeness of any information (whether
oral or written) supplied by the Agent, the Security Trustee the Arranger, the Borrower or any
other person in or in connection with any Finance Document; or
	 
	b)	 	is responsible for the legality, validity, effectiveness, adequacy or enforceability of any
Finance Document or any other agreement, arrangement or document entered into, made in
anticipation of or in connection with any Finance Document.

	24.9	 	Exclusion of liability

	a)	 	Without limiting paragraph b) below, the Agent or Security Trustee will not be liable for any
action taken by it under or in connection with any Finance Document, unless directly caused by
its gross negligence or wilful misconduct.
	 
	b)	 	No Party (other than the Agent or Security Trustee) may take any proceedings against any
officer, employee or agent of the Agent or Security Trustee in respect of any claim it might
have against the Agent or Security Trustee or in respect of any act or omission of any kind by
that officer, employee or agent in relation to any Finance Document and any officer, employee
and agent of the Agent and the Security Trustee may rely on this Clause.
	 
	c)	 	Neither the Agent nor the Security Trustee will be liable for any delay (or any related
consequences) in crediting an account with an amount required under the Finance Documents to
be paid by the Agent or the Security Trustee if the Agent or the Security Trustee has taken
all necessary steps as soon as reasonably practicable to comply with the

42

 

	 	 	regulations or operating procedures of any recognised clearing or settlement system used
by the Agent or Security Trustee for that purpose.
	 
	d)	 	Nothing in this Agreement shall oblige the Agent, Security Trustee or the Arranger to carry
out any “know your customer” or other checks in relation to any person on behalf of any Lender
and each Lender confirms to the Agent, Security Trustee and the Arranger that it is solely
responsible for any such checks it is required to carry out and that it may not rely on any
statement in relation to such checks made by the Agent, Security Trustee or the Arranger.

	24.10	 	Lenders’ indemnity to the Agent and Security Trustee

Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments
are then reduced to zero, to its share of the Total Commitments immediately prior to their
reduction to zero) indemnify the Agent and Security Trustee, within three (3) Business Days of
demand, against any cost, loss or liability incurred by the Agent or Security Trustee (otherwise
than by reason of the Agent’s or the Security Trustee’s gross negligence or wilful misconduct) in
acting as Agent or Security Trustee under the Finance Documents (unless the Agent or Security
Trustee has been reimbursed by the Borrower pursuant to a Finance Document).

	24.11	 	Resignation of the Agent and/or Security Trustee

	a)	 	The Agent and/or Security Trustee may resign and appoint one of its affiliates as successor
by giving notice to the other Finance Parties and the Borrower.
	 
	b)	 	Alternatively the Agent and/or Security Trustee may resign by giving notice to the other
Finance Parties and the Borrower in which case the Majority Lenders (after consultation with
the Borrower) may appoint a successor Agent and/or Security Trustee.
	 
	c)	 	If the Majority Lenders have not appointed a successor Agent and/or Security Trustee in
accordance with paragraph b) above within thirty (30) days after notice of resignation was
given, the Agent and/or Security Trustee (after consultation with the Borrower) may appoint a
successor Agent and/or Security Trustee.
	 
	d)	 	The retiring Agent and/or Security Trustee shall, at its own cost, make available to the
successor Agent and/or Security Trustee such documents and records and provide such assistance
as the successor Agent and/or Security Trustee may reasonably request for the purposes of
performing its functions as Agent and/or Security Trustee under the Finance Documents.
	 
	e)	 	The Agent’s and/or Security Trustee’s resignation notice shall only take effect upon
appointment of a successor.
	 
	f)	 	Upon the appointment of a successor, the retiring Agent and/or Security Trustee shall be
discharged from any further obligation in respect of the Finance Documents but shall remain
entitled to the benefit of this Clause 24. Its successor and each of the other Parties shall
have the same rights and obligations amongst themselves as they would have had if such
successor had been an original Party.
	 
	g)	 	After consultation with the Borrower, the Majority Lenders may, by notice to the Agent and/or
Security Trustee, require it to resign in accordance with paragraph b) above. In this event,
the Agent and/or Security Trustee shall resign in accordance with paragraph b) above.

43

 

	24.12	 	Confidentiality

	a)	 	In acting as agent and security trustee for the Finance Parties, the Agent and Security
Trustee shall be regarded as acting through its agency division which shall be treated as a
separate entity from any other of its divisions or departments.
	 
	b)	 	If information is received by another division or department of the Agent or Security
Trustee, it may be treated as confidential to that division or department and the Agent and/or
Security Trustee shall not be deemed to have notice of it.

	24.13	 	Credit appraisal by the Lenders

Without affecting the responsibility of the Borrower for information supplied by it or on its
behalf in connection with any Finance Document, each Lender confirms to the Agent, Security Trustee
and the Arranger that it has been, and will continue to be, solely responsible for making its own
independent appraisal and investigation of all risks arising under or in connection with any
Finance Document, including (without limitation):

	a)	 	the financial condition, status and nature of the Borrower;
	 
	b)	 	the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and
any other agreement, arrangement or document entered into, made or executed in anticipation
of, under or in connection with any Finance Document; and
	 
	c)	 	whether that Lender has recourse, and the nature and extent of that recourse, against any
Party or any of its respective assets under or in connection with any Finance Document, the
transactions contemplated by the Finance Documents or any other agreement, arrangement or
document, entered into, made or executed in anticipation of, under or in connection with any
Finance Document.

	24.14	 	Conduct of business of the Finance Parties

No provision of this Agreement will:

	a)	 	interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in
whatever manner it thinks fit;
	 
	b)	 	oblige any Finance Party or the Security Trustee to investigate or claim any credit, relief,
remission or repayment available to it or to the extent, order or manner of any claim; or
	 
	c)	 	oblige any Finance Party or the Security Trustee to disclose any information relating to its
affairs (tax or otherwise) or any computations in respect of Tax.

	25	 	SHARING AMONG THE FINANCE PARTIES

	25.1	 	Payment to Finance Parties

If a Finance Party or the Security Trustee (a “Recovering Finance Party”) receives or recovers any
amount from the Borrower other than in accordance with Clause 26 (Payment mechanics) and applies
that amount to a payment due under the Finance Documents then:

	a)	 	the Recovering Finance Party shall promptly, within three (3) Business Days, notify details
of the receipt or recovery to the Agent;
	 
	b)	 	the Agent shall determine whether the receipt or recovery is in excess of the amount the
Recovering Finance Party would have been paid had the receipt or recovery been received

44

 

	 	 	by or made by the Agent and distributed in accordance with Clause 26 (Payment mechanics),
without taking account of Tax which would be imposed on the Agent in relation to the
receipt, recovery or distribution; and
	 
	c)	 	the Recovering Finance Party shall, within three (3) Business Days of demand by the Agent,
pay to the Agent an amount (the “Sharing Payment”) equal to such receipt or recovery less any
amount which the Agent determines may be retained by the Recovering Finance Party as its share
of any payment to be made, in accordance with Clause 26.5 (Partly payments).

	25.2	 	Redistribution of payments

The Agent shall treat the Sharing Payment as if it had been paid by the Borrower and distribute it
between the Finance Parties (other than the Recovering Finance Party) in accordance with Clause
26.5 (Partial payments).

	25.3	 	Recovering Finance Party’s rights

	a)	 	On a distribution by the Agent under Clause 25.2 (Redistribution of payments), the Recovering
Finance Party will be subrogated to the rights of the Finance Parties which have shared in the
redistribution.
	 
	b)	 	If and to the extent that the Recovering Finance Party is not able to rely on its rights
under paragraph a) above, the Borrower shall be liable to the Recovering Finance Party for a
debt equal to the Sharing Payment which is immediately due and payable.

	25.4	 	Reversal of redistribution

If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes
repayable and is repaid by that Recovering Finance Party, then:

	a)	 	each Finance Party which has received a share of the relevant Sharing Payment pursuant to
Clause 25.2 (Redistribution of payments) shall, upon request of the Agent, pay to the Agent
for the account of that Recovering Finance Party an amount equal to the appropriate part of
its share of the Sharing Payment (together with an amount as is necessary to reimburse that
Recovering Finance Party for its proportion of any interest on the Sharing Payment which that
Recovering Finance Party is required to pay); and
	 
	b)	 	that Recovering Finance Party’s rights of subrogation in respect of any reimbursement shall
be cancelled and the Borrower will be liable to the reimbursing Finance Party for the amount
so reimbursed.

	25.5	 	Exceptions

	a)	 	This Clause 25 shall not apply to the extent that the Recovering Finance Party would not,
after making any payment pursuant to this Clause, have a valid and enforceable claim against
the Borrower.
	 
	b)	 	A Recovering Finance Party is not obliged to share with any other Finance Party any amount
which the Recovering Finance Party has received or recovered as s result of taking legal
proceedings, if:

	 	(i)	 	it notified that other Finance Party of the legal proceedings; and

45

 

	 	(ii)	 	that other Finance Party had an opportunity to participate in those legal
or arbitration proceedings but did do so as reasonably practicable having received
notice and did not take separate legal or arbitration proceedings.

	26	 	PAYMENT MECHANICS

	26.1	 	Payments to the Agent

All payments by the Borrower or a Lender under the Finance Documents shall be made:

	a)	 	to the Agent to its account with such office or bank as the Agent may from time to time
designate in writing to the Borrower or a Lender for this purpose; and
	 
	b)	 	for value on the due date at such times and in such funds as the Agent may specify to the
Party concerned as being customary at the time for settlement of transactions in the relevant
currency in the place of payment.

	26.2	 	Distributions by the Agent

Each payment received by the Agent under the Finance Documents for another Party shall, subject to
Clause 26.3 (Distributions to the Borrower) and 26.4 (Clawback), be made available by the Agent as
soon as practicable after receipt to the Party entitled to receive payment in accordance with this
Agreement, to such account as that Party may notify to the Agent by not less than five (5) Business
Days’ notice.

	26.3	 	Distributions to the Borrower

The Agent may (with the consent of the Borrower or in accordance with Clause 27 (Set-off)), apply
any amount received by it for the Borrower in or towards payment (on the date and in the currency
and funds of receipt) of any amount due from the Borrower under the Finance Documents or in or
towards purchase of any amount of currency to be so applied.

	26.4	 	Clawback

	a)	 	Where a sum is to be paid to the Agent under the Finance Documents for distribution to
another Party, the Agent is not obliged to pay that sum to that other Party until it has been
able to establish to its satisfaction that it has actually received that sum.
	 
	b)	 	If the Agent pays an amount to another Party and it proves to be the case that the Agent had
not actually received that amount, then the Party to whom that amount was paid by the Agent
shall on demand refund the same amount to the Agent, together with interest on that amount
from the date of payment to the date of receipt by the Agent, calculated by the Agent to
reflect its cost of funds.

	26.5	 	Partial payments

If the Agent receives a payment that is insufficient to discharge all the amounts then due and
payable by the Borrower under the Finance Documents, the Agent shall apply that payment towards the
obligations of the Borrower under the Finance Documents in the following order:

	a)	 	firstly, in or towards payment pro rata of any unpaid fees, costs and expenses of the
Agent under the Finance Documents;
	 
	b)	 	secondly, in or towards payment pro rata of any accrued interest (including default
interest), fee or commissions due but unpaid under this Agreement;

46

 

	c)	 	thirdly, in or towards payment pro rata of any principal due but unpaid under this
Agreement; and
	 
	d)	 	fourthly, in or towards payment pro rata of any other sum due but unpaid under the
Finance Documents.

	26.6	 	Application following an Event of Default

On either (i) the completion of a sale of a Vessel, either by forced auction or private treaty, or
(ii) the receipt of any monies by the Agent pursuant to the sale proceeds of such Vessel (as the
case may be), as well as any other proceeds received by the Agent under any of the other Finance
Documents, such monies shall be applied in the following order:

	a)	 	firstly, in respect of all costs and expenses whatsoever incurred in connection with
or about incidental to the said sale;
	 
	b)	 	secondly, in or towards satisfaction of all prior claims (being any claims,
liabilities or debts owed or taking priority in respect of such proceeds over the Security
Interests constituted by the Security Documents) secured on such Vessel;
	 
	c)	 	thirdly, in or towards payment pro rata of all sums owed to the Finance Parties under
the Finance Documents; and
	 
	d)	 	fourthly, the balance, if any to the Borrower or to its order.

	26.7	 	No set-off by the Borrower

All payments to be made by the Borrower under the Finance Documents shall be calculated and be made
without (and free and clear of any deduction for) set-off or counterclaim.

	26.8	 	Payment on non-Business Days

	a)	 	Any payment which is due to be made on a day that is not a Business Day shall be made on the
next Business Day in the same calendar month (if there is one) or the preceding Business Day
(if there is not).
	 
	b)	 	During any extension of the due date for payment of any principal or Unpaid Sum under this
Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the
original due date.

	26.9	 	Currency of account

The Borrower shall pay:

	a)	 	any amount payable under this Agreement, except as otherwise provided for herein, in USD; and
	 
	b)	 	all payments of Costs and Taxes in the currency in which the same were incurred.

	27	 	SET-OFF

A Finance Party may, to the extent permitted by applicable law, set off any matured obligation due
from the Borrower under the Finance Documents (to the extent beneficially owned by that Finance
Party) against any matured obligations owed by that Finance Party to the Borrower, regardless of
the place of payment, booking branch or currency of either obligation. If the obligations are in

47

 

different currencies, the Finance Party may convert either obligation at a market rate of exchange
in its usual course of business for the purpose of the set-off.

	28	 	NOTICES

	28.1	 	Communication in writing

Any communication to be made under or in connection with the Finance Documents shall be made in
writing and, unless otherwise stated, may be made by telefax or letter. Any such notice or
communication addressed as provided in Clause 28.2 (Addresses) will be deemed to be given or made
as follows:

	a)	 	if by letter, when delivered at the address of the relevant Party;
	 
	b)	 	if by telefax, when received.

However, a notice given in accordance with the above but received on a day which is not a Business
Day or after 16:00 hours in the place of receipt will only be deemed to be given at 9:00 hours on
the next Business Day in that place.

	28.2	 	Addresses

Any communication or document to be made under or in connection with the Finance Documents shall be
made or delivered to the address and telefax number of each Party and marked for the attention of
the department or persons set out below and, in case of any New Lender, to the address notified to
the Agent:

	 	 	 
	If to the Agent:
	 	DnB NOR Bank ASA

SOL Bergen

Att: Credit Administration

Lars Hilles gate 30

N-5020 Bergen, Norway

Telefax No: +47 55 21 19 24
	 
	If to the Borrower:
	 	Exploration Investment Resources II AS

Damsgardsv.125, 5162 Laksevaag, Bergen, Norway

Att: C.F.O Rakel Simmenes and/or Chairman of the Board Jean-Pierre Sabbagh

Telefax No: +47 55 94 77 51
	 
	 
	 	With copy to Guarantor CGG (however, such copy shall not be a
requirement in order for a notice to be valid under this Agreement)
	 
	 
	 	1 rue Leon Migaux, 91300 Massy, France
	 
	 
	 	Attn: Finance Division Corporate Yves Goulard and/or Legal Division Services Olivier Louf
	 
	 
	 	Fax N°: +33 (1) 64 47 39 39

or any substitute address and/or telefax number and/or marked for such other attention as the Party
may notify to the other Agent (or the Agent may notify the other Parties if a change is made by the
Agent) by not less than five (5) Business Days’ prior notice.

48

 

	28.3	 	Communication with the Borrower

All communication from or to the Borrower shall be sent through the Agent.

	28.4	 	Language

Communication to be given by one Party to another under the Finance Documents shall be given in the
English language or, if not in English and if so required by the Agent, be accompanied by a
certified English translation and, in this case, the English translation shall prevail unless the
document is a statutory or other official document.

	29	 	CALCULATIONS

All sums falling due by way of interest, fees and commissions under the Finance Documents accrue
from day-to-day and shall be calculated on the basis of the actual number of days elapsed and a
calendar year of 360 days (or 365 days where applicable) and for the actual number of days elapsed.
The calculations made by the Agent of any interest rate or any amount payable pursuant to this
Agreement shall be conclusive and binding upon the Borrower in the absence of any manifest error.

	30	 	MISCELLANEOUS

	30.1	 	Partial invalidity

If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or
enforceability of the remaining provisions nor the legality, validity or enforceability of such
provisions under any law of any other jurisdiction will in any way be affected or impaired.

	30.2	 	Remedies and waivers

No failure to exercise, nor any delay in exercising on the part of any Finance Party, any right or
remedy under the Finance Documents shall operate as a waiver, nor shall any single or partial
exercise of any right or remedy prevent any further or other exercise or the exercise of any other
right or remedy. The rights and remedies provided in this Agreement are cumulative and not
exclusive of any rights or remedies provided by law.

	30.3	 	Amendments and waivers

	30.3.1	 	Required consents

	a)	 	Subject to Clause 30.3.2 (Exceptions), any term of the Finance Documents may be amended or
waived only with the written consent of the Majority Lenders and the Borrower and any such
amendment will be binding on all Parties.
	 
	b)	 	The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by
this Clause.

	30.3.2	 	Exceptions

An amendment to or waiver that has the effect of changing or which relates to:

	a)	 	the definition of “Majority Lenders”;
	 
	b)	 	an extension of the date of any payment of any amount under the Finance Documents;
	 
	c)	 	a reduction in the Margin or a reduction in the amount of any payment of principal, interest,
fees or commission payable;

49

 

	d)	 	an increase in or extension of any Commitment;
	 
	e)	 	a term of the Finance Documents which expressly requires the consent of all the Lenders;
	 
	f)	 	a proposed substitution or replacement of the Borrower; or
	 
	g)	 	a change of Clauses 2.2 (Nature of a Finance party’s rights and obligations), 16 (Security),
21.1.1 (Insurance), 19 (Financial covenants), 23 (Changes to the Parties) and this Clause
30.3,

shall not be made without the prior written consent of all the Lenders.

An amendment or waiver which relates to the rights or obligations of the Agent or the Arranger may
not be effected without the consent of the Agent or the Arranger.

	30.4	 	Disclosure of information and confidentiality

Each of the Finance Parties may disclose to each other or to their professional advisers any kind
of information which the Finance Parties have acquired under or in connection with any Finance
Document. The Parties are obliged to keep confidential all information in respect of the terms and
conditions of this Agreement. This confidentiality obligation shall not apply to any information
which:

	a)	 	is publicised by a Party as required by applicable laws and regulations;
	 
	b)	 	has entered the public domain or is publicly known, provided that such information is not
made publicly known by the receiving Party of such information; or
	 
	c)	 	was or becomes, as the Party is able to demonstrate by supporting documents, available to the
such Party on a non-confidential basis prior to the disclosure thereof.

	30.5	 	Conflicting provisions

In case of conflict between this Agreement and the terms of any of the Security Documents, the
terms and conditions of this Agreement shall prevail.

	31	 	GOVERNING LAW AND ENFORCEMENT

	31.1	 	Governing law

This Agreement shall be governed by Norwegian law.

	31.2	 	Jurisdiction

	a)	 	For the benefit of each Finance Party, the Borrower agrees that the courts of Bergen, Norway,
have jurisdiction to settle any disputes arising out of or in connection with the Finance
Documents including a dispute regarding the existence, validity or termination of this
Agreement, and the Borrower accordingly submits to the non-exclusive jurisdiction of the
Bergen District Court (Bergen tingrett).
	 
	b)	 	Nothing in this Clause 31.2 shall limit the right of the Finance Parties to commence
proceedings against the Borrower in any other court of competent jurisdiction. To the extent
permitted by law, the Finance Parties may take concurrent proceedings in any number of
jurisdictions.

50

 

* * *

This Agreement has been duly executed in four (4) original copies on the date stated at the
beginning of this Agreement.

51

 

SCHEDULE 1

LENDERS AND COMMITMENTS

Tranche I:

	 	 	 	 	 	 	 	 	 
	Lender	 	Commitment	 	 	%	 
	DnB NOR Bank ASA
	 	USD 10,000,000	 	 	 	100%	 
	[l]
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Total:
	 	USD 10,000,000	 	 	 	100.00%	
	 
	 	 	 	 	 	 

Tranche II:

	 	 	 	 	 	 	 	 	 
	Lender	 	Commitment	 	 	%	 
	DnB NOR Bank ASA
	 	USD 25,000,000	 	 	 	100%	 
	[l]
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Total:
	 	USD 25,000,000	 	 	 	100.00%	 
	 
	 	 	 	 	 	 

Tranche III:

	 	 	 	 	 	 	 	 	 
	Lender	 	Commitment	 	 	%	 
	DnB NOR Bank ASA
	 	USD 10,000,000	 	 	 	100%	 
	[l]
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Total:
	 	USD 10,000,000	 	 	 	100.00%	 
	 
	 	 	 	 	 	 

Tranche IV:

	 	 	 	 	 	 	 	 	 
	Lender	 	Commitment	 	 	%	 
	DnB NOR Bank ASA
	 	USD 25,000,000	 	 	 	100%	 
	[l]
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Total:
	 	USD 25,000,000	 	 	 	100.00%	 
	 
	 	 	 	 	 	 

52

 

SCHEDULE 2

CONDITIONS PRECEDENT

Tranche I:

	1	 	CORPORATE AUTHORISATIONS
	 
	1.1	 	In respect of the Borrower:

	a)	 	Certificate of Incorporation (firmaattest);
	 
	b)	 	Articles of Association (vedtekter);
	 
	c)	 	Resolutions passed at a board meeting of the Borrower evidencing:

	 	(i)	 	the approval of the terms of, and the transactions contemplated by, the
Finance Documents to which it is a party; and
	 
	 	(ii)	 	the authorisation of its appropriate officer or officers or other
representatives to execute the Finance Documents and any other documents necessary
for the transactions contemplated by the Finance Documents, on its behalf; and

	d)	 	Power of Attorney, to the extent not covered under 1.1. (c).

	1.2	 	In respect of each of the Guarantors:

	a)	 	Certificate of Incorporation;
	 
	b)	 	Articles of Association;
	 
	c)	 	Resolutions passed as a board meeting and/or shareholders meeting of the Guarantor
evidencing:

	 	(i)	 	the approval of the terms of, and the transactions contemplated by, the
Guarantee; and
	 
	 	(ii)	 	the authorisation of its appropriate officer or officers or other
representatives to execute the Guarantee on its behalf; and

	d)	 	Power of Attorney (notarised if requested by the Agent), to the extent not covered under
1.2. (c).

	2	 	AUTHORISATIONS

All approvals, authorisations and consents required by any government or other authorities for the
Borrower and/or the Guarantor to enter into and perform their respective obligations under this
Agreement and/or any of the Finance Documents to which any of them is a party.

	3	 	THE C-ORION

In respect of the C-Orion:

	a)	 	The relevant CGG-Charterparty;

53

 

	b)	 	Evidence (by way of transcript of registry) that the C-Orion is, or will be, registered in
the name of the Borrower in the Vanuatu Ship Registry, that the Mortgage has been, or will in
connection with the drawdown of the Tranche be, executed and recorded with its intended first
priority against the C-Orion and that no other encumbrances, maritime liens, mortgages or
debts whatsoever are registered against the C-Orion;
	 
	c)	 	An updated class certificate related to the C-Orion from the relevant classification society,
confirming that the vessel is classed with the highest class in accordance with Clause 21.1.2
(Classification and repairs), free of extensions and overdue recommendations;
	 
	d)	 	Copies of insurance policies/cover notes documenting that insurance cover has been taken out
in respect of the C-Orion in accordance with Clause 21.1.1 (Insurance), and evidencing that
the Agent’s (on behalf of the Finance Parties) Security Interest in the insurance policies
have been noted in accordance with the relevant notices as required under the Assignment of
Insurances;
	 
	e)	 	Agreements with the Managers;
	 
	f)	 	The C-Orion’s current SMC;
	 
	g)	 	The Manager’s current DOC; and
	 
	h)	 	The ISPS certificate.

	4	 	FINANCE DOCUMENTS

	a)	 	The Agreement;
	 
	b)	 	The Guarantees;
	 
	c)	 	The Factoring Agreement;
	 
	d)	 	The General Pledge;
	 
	e)	 	The Co-ordination Agreement;
	 
	f)	 	The Share Pledge, including notice, acknowledgment and power of attorney thereunder;
	 
	g)	 	The Assignment of Insurances;
	 
	h)	 	The Assignment of Charterparties and Earnings;
	 
	i)	 	As to C-Orion; Notice of Assignment of Charterparty and Earnings and the Charterers’
acknowledgement thereof;
	 
	j)	 	As to C-Orion; Notice of Assignment of Insurances and the insurers’ acknowledgement thereof;
and
	 
	k)	 	The Mortgage (including the deed of covenants (if relevant)).

	5	 	MISCELLANEOUS

	a)	 	The Drawdown Notice at least three (3) Business Days prior to the Drawdown Date;

54

 

	b)	 	Evidence that all fees referred to in Clause 11 (Fees), as are payable on or prior to the
first Drawdown Date, have or will be paid on its due date;
	 
	c)	 	A Compliance Certificate confirming that the Borrower is in compliance with the financial
covenants as set out in Clause 19 (Financial covenants);
	 
	d)	 	All necessary documentation and information as to the corporate structure and to the
financial structure and condition of the Borrower and the Guarantors;
	 
	e)	 	The total amount on the Earnings Accounts shall be positive; and
	 
	f)	 	Any other documents as reasonably requested by the Agent.

	6	 	LEGAL OPINIONS

	a)	 	A legal opinion as regards French law matters issued by Ince & Co;
	 
	b)	 	A legal opinion as regards Vanuatu law matters issued by Healy & Bailie;
	 
	c)	 	A legal opinion as regards Norwegian law matters issued by Thommessen Krefting Greve Lund AS;
and
	 
	d)	 	Any such other favourable legal opinions in form and substance satisfactory to the Agent from
lawyers appointed by the Agent on matters concerning all relevant jurisdictions.

Tranche II:

	1	 	TRANCHE I DOCUMENTS

The documents set out under Schedule 2 — Tranche I above.

	2	 	THE EQUIPMENT

	a)	 	Documentation acceptable to the Agent confirming that the Borrower has invested approximately
USD 30,000,000 on the Equipment to and upgrading of the C-Orion.
	 
	b)	 	Insurances as to the Equipment for C-Orion.

	3	 	MISCELLANEOUS

	a)	 	The Drawdown Notice at least three (3) Business Days prior to the Drawdown Date;
	 
	b)	 	A Compliance Certificate confirming that the Borrower is in compliance with the financial
covenants as set out in Clause 19 (Financial covenants);
	 
	c)	 	Any other documents as reasonably requested by the Agent.

55

 

Tranche III:

	1	 	TRANCHE I AND II DOCUMENTS

The documents set out under Schedule 2 — Tranche I and Tranche II above.

	2	 	THE GEO CHALLENGER

In respect of the Geo Challenger:

	a)	 	The Geo-Charterparty;
	 
	b)	 	The relevant CGG-Charterparty;
	 
	c)	 	An updated class certificate related to the Geo Challenger from the relevant classification
society, confirming that the vessel is classed with the highest class in accordance with
Clause 21.1.2 (Classification and repairs), free of extensions and overdue recommendations;
	 
	d)	 	Copies of insurance policies/cover notes documenting that insurance cover has been taken out
in respect of the Geo Challenger in accordance with Clause 21.1.1 (Insurance), and evidencing
that the Agent’s (on behalf of the Finance Parties) Security Interest in the insurance
policies have been noted in accordance with the relevant notices as required under the
Assignment of Insurances;
	 
	e)	 	Agreements with the Managers;
	 
	f)	 	The Geo Challenger’s current SMC;
	 
	g)	 	The Manager’s current DOC; and
	 
	h)	 	The ISPS certificate.

	3	 	FINANCE DOCUMENTS

	a)	 	As to Geo Challenger; Notice of Assignment of Charterparty and Earnings and the
Charterers’/Geoshipping AS’ acknowledgements thereof; and
	 
	b)	 	As to Geo Challenger; Notice of Assignment of Insurances and the insurers’ acknowledgement
thereof.

	4	 	MISCELLANEOUS

	a)	 	The Drawdown Notice at least three (3) Business Days prior to the Drawdown Date;
	 
	b)	 	A Compliance Certificate confirming that the Borrower is in compliance with the financial
covenants as set out in Clause 19 (Financial covenants);
	 
	c)	 	Any other documents as reasonably requested by the Agent.

56

 

Tranche IV:

	1	 	TRANCHE I, II AND III DOCUMENTS

The documents set out under Schedule 2 — Tranche I, Tranche II and Tranche III above.

	2	 	THE EQUIPMENT

	a)	 	Documentation acceptable to the Agent confirming that the Borrower has invested approximately
USD 65,000,000 on the Equipment to and upgrading of the Geo Challenger.
	 
	b)	 	Insurances as to the Equipment for Geo Challenger.

	3	 	MISCELLANEOUS

	a)	 	The Drawdown Notice at least three (3) Business Days prior to the Drawdown Date;
	 
	b)	 	Evidence that all fees referred to in Clause 11 (Fees), as are payable on or prior to the
Drawdown Date of Tranche IV, have or will be paid on its due date;
	 
	c)	 	A Compliance Certificate confirming that the Borrower is in compliance with the financial
covenants as set out in Clause 19 (Financial covenants);
	 
	d)	 	Any other documents as reasonably requested by the Agent.

57

 

SCHEDULE 3

FORM OF DRAWDOWN NOTICE

	To: 	 	DnB NOR Bank ASA, as Agent
	 
	From:	 	Exploration Investment Resources II AS, as Borrower
	 
	Date:	 	[l]

EXPLORATION INVESTMENT RESOURCES II AS — USD 70,000,000 LONG-TERM FACILITY AGREEMENT DATED 29 MARCH 2006 (THE “AGREEMENT”)

We refer to Clause 5.1 (Delivery of the Drawdown Notice) of the Agreement. Terms defined in the
Agreement shall have the same meaning when used in this Drawdown Notice.

	1	 	You are hereby irrevocably notified that we wish to make the following drawdown of Tranche [l]:
	 
	 	 	Proposed Drawdown Date:  	[               ]
	 
	 	 	Principal Amount:  	[               ]
	 
	 	 	Interest Period:  	[               ]
	 
	2	 	The proceeds of the Loan shall be credited to [l] [insert name and number of account].
	 
	3	 	We confirm that, as of the date hereof (i) each condition specified in Clause 4 (Conditions
Precedent) of the Agreement is satisfied; (ii) each of the representations and warranties set
out in Clause 17 (Representations and warranties) of the Agreement is true and correct; and
(iii) no event or circumstances has occurred and is continuing which constitute or may
constitute an Event of Default.

Yours sincerely

for and on behalf of

EXPLORATION INVESTMENT RESOURCES II AS

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	Name:  	 	 	 
	Title:  	[authorised officer] 	 	 

58

 

SCHEDULE 4

FORM OF COMPLIANCE CERTIFICATE

	To: 	 	DnB NOR Bank ASA, as Agent
	 
	From: 	 	Exploration Investment Resources II AS, as Borrower

Exploration Resources ASA and Compagnie Générale de Géophysique as Guarantors
	 
	Date: 	 	[l] [To be delivered no later than one hundred and eighty (180)/ninety (90) days after each reporting date]

EXPLORATION INVESTMENT RESOURCES II AS — USD 70,000,000 LONG-TERM FACILITY AGREEMENT DATED 29 MARCH 2006 (THE “AGREEMENT”)

We refer to the Agreement. Terms defined in the Agreement have their defined meanings when used in
this Compliance Certificate.

	1	 	We hereby represent and warrant that at the date of this Compliance Certificate, we are in
compliance with Clause 19 (Financial covenants) of the Agreement and that no Event of Default
has occurred.
	 
	2	 	Without limiting the generality of paragraph 1 above, we hereby further represent and warrant
as follows.
	 
	2.1	 	For the purpose of Clause 19.2.1 (Equity Ratio), we confirm that ExRe’s Equity Ratio on a
consolidated basis is [l]% (minimum 30%). We confirm as per the latest financial
statements, ExRe’s Equity on a consolidated basis is NOK [l] and ExRe’s Total Assets on
a consolidated basis are NOK [l].
	 
	2.2	 	For the purpose of Clause 19.2.2 (Positive working capital), we confirm that on a
consolidated basis ExRe has a positive working capital, and that as per the latest financial
statements of ExRe, the:

	 	a)	 	current assets (including any undrawn portion under available credit lines)
are NOK [l]; and
	 
	 	b)	 	current liabilities (including next year’s instalments on long-term debts
and capital lease obligations) are NOK [l].

	 	 	all as determined in accordance with GAAP.
	 
	2.3	 	For the purpose of Clause 19.2.3 (Consolidated Interest Coverage Ratio), we confirm that
CGG’s Consolidated Interest Coverage Ratio is [l] (minimum 3.00:1.00). As per the latest
financial statements, CGG’s Consolidated Cash Flow is [l] and CGG’s Consolidated
Interest Expense is [l].

This Compliance Certificate shall be governed by and construed in accordance with Norwegian law.

59

 

Yours sincerely

for and on behalf of

Exploration Investment Resources II AS

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	Name:  	 	 	 
	Title:  	[authorised officer] 	 	 

Compagnie Générale de Géophysique

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	Name:  	 	 	 
	Title:  	[authorised officer] 	 	 

Exploration Resources ASA

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	Name:  	 	 	 
	Title:  	[authorised officer] 	 	 

60

 

SCHEDULE 5

FORM OF TRANSFER CERTIFICATE

	To: 	 	DnB NOR Bank ASA, as Agent
	 
	From: 	 	[l] (the “Existing Lender” and [l] (the “New Lender”)
	 
	Date: 	 	[l]

EXPLORATION INVESTMENT RESOURCES II AS — USD 70,000,000 LONG-TERM FACILITY AGREEMENT DATED 29 MARCH 2006 (THE “AGREEMENT”)

We refer to the Agreement. Terms defined in the Agreement have the same meaning in this Transfer
Certificate unless given a different meaning in this Transfer Certificate.

With reference to Clause 23 (Changes to the Parties):

	1	 	The Existing Lender, in its capacity as Lender under the Agreement, confirms that it
participates with [l] per cent. of the Total Commitments.
	 
	2	 	The Existing Lender hereby transfers to the New Lender [l] per cent. of the Total
Commitments as specified in the Schedule hereto, and of the equivalent rights and interest in
all Finance Documents, and the New Lender hereby accepts such transfer from the Existing
Lender in accordance with the terms set out herein and Clause 23 (Changes to the Parties) of
the Agreement and assumes the same obligations to the other Finance Parties as it would have
been under if it was an original Lender.
	 
	3	 	The proposed Transfer Date is [l], as from which date the Transfer of such portion of
the Total Commitments shall take full legal effect.
	 
	4	 	The New Lender confirms that it has received a copy of the Agreement, together with such
other information as it has required in connection with this transaction. The New Lender
expressly acknowledges and agrees to the limitations on the Existing Lender’s responsibility
set out in Clause 23.3 (Limitations of responsibility of Existing Lenders) of the Agreement.
	 
	5	 	The New Lender hereby undertakes to the Existing Lender and the Borrower that it will perform
in accordance with the terms and conditions of the Agreement all those obligations which will
be assumed by it upon execution of this Transfer Certificate.
	 
	6	 	The address, telefax number and attention details for notices, as well as the account details
of the New Lender, are set out in the Schedule.
	 
	7	 	This Transfer Certificate is governed by Norwegian law, with Bergen City Court (Bergen
tingrett) as legal venue.

61

 

The Schedule

Commitments/rights and obligations to be transferred

	 	 	 	 	 
	I
	 	Existing Lender:	 	[l]
	II
	 	New Lender:	 	[l]
	III
	 	Total Commitments of Existing Lender:	 	USD [l]
	IV
	 	Aggregate amount transferred:	 	USD [l]
	V
	 	Total Commitments of New Lender:	 	USD [l]
	VI
	 	Transfer Date:	 	[l]

Administrative Details/Payment Instructions of New Lender

Notices to New Lender:

	 	 	[l]
	 
	 	 	[l]
	 
	 	 	Att: [l]
	 
	 	 	Telefax no: [l]

[Insert relevant office address, telefax number and attention details for notices and payments to
the New Lender.]

Account details of New Lender: [Insert relevant account details of the New Lender.]

	 	 	 	 	 	 	 
	Existing Lender:	 	New Lender:
	[l]	 	[l]
	 
	By:  	 	 	By:  	 
	Name:  	 	 	Name:  	 
	Title:  	 	 	Title:  	 

This Transfer Certificate is accepted and agreed by the Agent (on behalf of the Majority Lenders)
and the Borrower and the Transfer Date is confirmed as
[       ].

	 	 	 	 	 	 	 
	Agent:	 	Borrower:
	DnB NOR Bank ASA	 	Exploration Investment Resources II AS
	 
	By:  	 	 	By:  	 
	Name:  	 	 	Name:  	 
	Title:  	 	 	Title:  	 

62

 

SCHEDULE 6 A

FORM OF ASSIGNMENT OF INSURANCES

THIS ASSIGNMENT OF INSURANCES (the “Insurance Assignment”) is made on 29 March 2006 between:

	(1)	 	Exploration Investment Resources II AS of Damsgardsv. 125, 5162 Laksevaag, Bergen, Norway,
organisation number 984 670 303, as assignor (the “Assignor”); and
	 
	(2)	 	DnB NOR Bank ASA of Lars Hillesgt. 30, N-5020 Bergen, Norway, organisation number 984 851 006
as agent on behalf of the Finance Parties (as defined in the Agreement as referred to below)
(the “Agent”).

Background:

	(A)	 	Pursuant to the terms and conditions of a loan agreement dated 29 March 2006 (the
“Agreement”) between Exploration Investment Resources II AS as borrower (the “Borrower”), the
banks and financial institutions listed in schedule 1 thereto as lenders (the “Lenders”), DnB
NOR Bank ASA as arranger (the “Arranger”), DnB NOR Bank ASA as underwriter (the “Underwriter”)
and DnB NOR Bank ASA agent for the Lenders (the “Agent”), the Lenders have agreed to make
available to the Borrower a long-term facility in the amount of USD 70,000,000 (the “Loan”);
and
	 
	(B)	 	it is a condition precedent to the Lenders making the Loan available to the Borrower that the
Assignor executes and delivers, inter alia, this Insurance Assignment and grants the Security
Interests set out herein as security for its obligations towards the Finance Parties under the
Finance Documents (as defined in the Agreement).

NOW THEREFORE:

	1.	 	INTERPRETATION
	 
	1.1	 	Definitions

In this Insurance Assignment, including the preamble hereto (unless the context otherwise
requires), any term or expression defined in the preamble shall have the meanings ascribed to it
therein. In addition, terms and expressions not defined herein but whose meanings are defined in
the Agreement shall have the meanings set out therein.

	1.2	 	Construction

In this Insurance Assignment, unless the context otherwise requires:

	a)	 	reference to Clauses or Appendices are to be construed as references to clauses or appendices
of this Insurance Assignment unless otherwise stated;
	 
	b)	 	references to (or to any specified provision of) this Insurance Assignment or any other
document shall be construed as references to this Insurance Assignment, that provision or that
document as from time to time amended; and
	 
	c)	 	words importing the plural shall include the singular and vice versa.

63

 

	2	 	ASSIGNMENT OF INSURANCES
	 
	2.1	 	Assignment

To secure the payment and the discharge of the Assignor’s obligations under the Finance Documents
and the payment of all sums which from time to time may become due thereunder, and to secure the
performance and observance of and compliance with all the covenants, terms and conditions contained
in the Finance Documents, the Assignor hereby assigns the Insurances to the Agent (on behalf of the
Finance Parties) on first priority.

	2.2	 	Notice and acknowledgement, etc.

The Assignor undertakes to insure and keep the Vessels and the Equipment fully insured in
accordance with Clause 21.1.1 (Insurance) of the Agreement; and

	 	a)	 	in the event that the Insurances, or any one of them, have been taken out on conditions
other than the Norwegian Marine Insurance Plan of 1996, version 2003 (as amended from time
to time) (the “Plan”), to give all the relevant insurers notice in the form of Appendix 1
(A) hereto, and procure that the said insurers acknowledge receipt of such notice in the
form of Appendix 1 (B) hereto or give such other form of notice and procure such other form
of acknowledgement as the Agent shall require in writing to the Assignor; and
	 
	 	b)	 	in the event that the Insurances, or any one of them, have been taken out according to
the Plan, to procure written statements from all the relevant insurers and/or approved
brokers confirming that the Agent (on behalf of the Finance Parties) has been duly
registered as co-insured first priority mortgagee on all such insurance policies taken out
for the Vessels and that notice according to the Plan has been duly received by all the
relevant insurers.

	2.3	 	Loss Payable

Claims related to the Insurances in respect of an actual or constructive or agreed or arranged or
compromised total loss or requisition for title or other compulsory acquisition of any of the
Vessels and claims payable in respect of a major casualty, that is to say any claim (or the
aggregate of which) exceeding 5% of the Vessel’s Market Value, shall be payable to the Agent.
Subject thereto all other claims, unless and until the insurers have received notice from the Agent
of an Event of Default which is unremedied under the Agreement in which event all claims shall be
payable directly to the Agent up to the Lenders’ mortgage interest, shall be released directly for
the repair, salvage or other charges involved or to the Assignor as reimbursement if it has fully
repaired the damage and paid all of the salvage or other charges or otherwise in respect of
Assignor’s actual costs in connection with repair, salvage and/or other charges. Any amounts paid
to the Assignor directly shall be paid to the Earnings accounts.

	3	 	PERFECTION

The Assignor agrees that at any time and from time to time upon the written request of the Agent,
it will promptly and duly execute and deliver to the Agent any and all such further instruments and
documents as the Agent (on behalf of the Finance Parties) may reasonably deem necessary or
desirable to register this Insurance Assignment in any applicable registry, and to maintain and/or
perfect the Security Interest created by this Insurance Assignment and the rights and powers herein
granted.

64

 

	4	 	ASSIGNMENT

The Agent may assign or transfer its rights hereunder to any person to whom the rights and
obligations of the Agent and the Lenders under the Agreement are wholly or partially assigned in
accordance with Clause 23 (Changes to the Parties) of the Agreement.

	5	 	NO FURTHER ASSIGNMENT OR PLEDGE

The Assignor shall not, unless prior written consent has been obtained from the Agent, be entitled
to further assign or pledge the Insurances.

	6	 	ADDITIONAL AND CONTINUING SECURITY

The Security Interest contemplated by this Insurance Assignment shall be in addition to any other
Security Interest granted in accordance with the Agreement, and shall be a continuing security in
full force and effect as long as any obligations are outstanding under the Finance Documents.

	7	 	NOTICES

Any communication or document to be made under or in connection with this Insurance Assignment
shall be made or delivered to the address and telefax number and marked for the attention of the
department or persons set out below:

	 	 	 
	If to the Agent:

	 	DnB NOR Bank ASA

SOL Bergen

Att: Credit Administration

Lars Hilles gate 30

N-5020 Bergen, Norway

Telefax No: +47 55 12 19 24
	 
	 	 
	If to the Assignor:

	 	Exploration Investment Resources II AS

Damsgardsv.125, 5162 Laksevaag, Bergen, Norway

Att: C.F.O Rakel Simmenes and/or Chairman of the Board Jean-Pierre Sabbagh

Telefax No: +47 55 94 77 51

or any substitute address and/or telefax number and/or marked for such other attention as the
Assignor may notify to the Agent (or the Agent may notify the Assignor if a change is made by the
Agent) by not less than five (5) Business Days’ prior notice.

	8	 	GOVERNING LAW — JURISDICTION
	 
	8.1	 	Governing law

This Insurance Assignment shall be governed by and construed in accordance with the laws of Norway.

	8.2	 	Jurisdiction

	a)	 	For the benefit of the Agent and the other Finance Parties, the Assignor agrees that the
courts of Bergen, Norway, have jurisdiction to settle any disputes arising out of or in
connection with this Insurance Assignment including a dispute regarding the existence,
validity or termination of this Insurance Assignment, and the Assignor accordingly submits to
the non-exclusive jurisdiction of the Bergen District Court (Bergen tingrett).

65

 

	b)	 	Nothing in this Clause 8.2 shall limit the right of the Finance Parties to commence
proceeding against the Assignor in any other court of competent jurisdiction. To the extent
permitted by law, the Finance Parties may take concurrent proceedings in any number of
jurisdictions.

	 	 	 	 	 	 	 
	Assignor:	 	Agent:
	Exploration Investment Resources II AS	 	DnB NOR Bank ASA
	 
	By:  	 	 	By:  	 
	Name:  	 	 	Name:  	 
	Title:  	 	 	Title:  	 

66

 

Appendix 1 (A)

FORM OF NOTICE OF ASSIGNMENT

(Assignment of Insurances)

	To: 	 	The Insurers

MV “[        ]”

Exploration Investment Resources II AS as owner/bareboat charterer (the “Owner”) of MV C-Orion and
MV Geo Challenger respectively (together the “Vessels”) hereby gives you notice that all payments
due to us from you in respect of the Vessels have been (by way of security) assigned to DnB NOR
Bank ASA, Lars Hillesgt. 30, N-5020 Bergen, Norway, as Agent for certain other banks (the
"Mortgagee”) according to an Assignment of Insurances dated 29 March 2006 related to a loan
agreement dated 29 March 2006 (the “Agreement”), and that all payments due to us under our
policy(-ies) with yourselves must be made in accordance with the instruction, from time to time, of
the Mortgagee.

Please note that all claims related to the insurances in respect of claims payable in respect of a
major casualty, that is to say any claim (or the aggregate of which) exceeding 5% of the Vessel’s
fair market value, shall be payable to the Mortgagee and be applied by the Mortgagee in accordance
with the terms of the Agreement. Subject thereto all other claims, unless and until the insurers
have received notice from the Mortgagee of a default which is unremedied under the Agreement in
which event all claims shall be payable directly to the Mortgagee up to their mortgage interest,
shall be released directly for the repair or other charges involved or to the Owner as
reimbursement if it has fully repaired the damage and paid all of the charges or otherwise in
respect of the Owner’s actual costs in connection with repair and/or other charges. Any amounts
paid to the Owner directly shall be paid to the Earnings accounts, account no. [l] with the
Mortgagee.

Please note that this instruction may not be varied except with the prior written consent of the
Mortgagee.

Please confirm your acknowledgement of the terms of this notice by completing the Acknowledgement
attached hereto. Please return the signed and dated Acknowledgement to the Mortgagee at the address
set out above.

Place and date: [l], [l]

Yours sincerely

for and on behalf of

Exploration Investment Resources II AS

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	Name:  	 	 	 
	Title:  	[authorised officer] 	 	 

67

 

Appendix 1 (B)

FORM OF ACKNOWLEDGEMENT

(Assignment of Insurances)

	To: 	 	DnB NOR Bank ASA

SOL Bergen

Att: Credit Administration

Lars Hillesgt. 30

N-5020 Bergen

Norway

Att.: [l]

We hereby acknowledge receipt of a Notice of Assignment (the “Notice”) from Exploration Investment
Resources II AS (the “Owner”) dated [l] related to MV C-Orion and MV Geo Challenger (the
“Vessels”).

We have duly noted and do accept that our payments due to the Owner, under the insurance
policy(-ies) taken out for the Vessels as an Owners’ Entry pursuant to our rules, shall be made in
accordance with the instructions set out in the Notice, including the Loss Payable clause therein,
and payment due to the mortgagees will be made to such account as from time to time instructed by
DnB NOR Bank ASA, Lars Hillesgt. 30, N-5020 Bergen, Norway, which bank has been duly noted by
ourselves as the first priority mortgagee of the said Vessel on its own behalf and on behalf of
certain other banks as agent therefore.

Place and date: [l]

Yours sincerely

for and on behalf of

[INSURERS]

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	Name:  	 	 	 
	Title:  	[authorised officer] 	 	 

68

 

SCHEDULE 6 B

FORM OF ASSIGNMENT OF EARNINGS AND CHARTERPARTIES

THIS ASSIGNMENT OF EARNINGS AND CHARTERPARTIES (the “Assignment”) is made on 29 March 2006
between:

	(1)	 	Exploration Investment Resources II AS of Damsgardsv.125, 5162 Laksevaag, Bergen, Norway,
organisation number 984 670 303, as assignor (the “Assignor”); and
	 
	(2)	 	DnB NOR Bank ASA of Lars Hillesgt 30, N-5020 Bergen, Norway, organisation number 984 851 006,
as facility agent on behalf of the Finance Parties (as defined in the Agreement as referred to
below) (the “Agent”).

Background:

	(A)	 	Pursuant to the terms and conditions of a loan agreement dated 29 March 2006 (the
“Agreement”) between Exploration Investment Resources II AS as borrower (the “Borrower”), the
banks and financial institutions listed in schedule 1 thereto as lenders (the “Lenders”), DnB
NOR Bank ASA as arranger (the “Arranger”), DnB NOR Bank ASA as underwriter (the “Underwriter”)
and DnB NOR Bank ASA agent for the Lenders (the “Agent”), the Lenders have agreed to make
available to the Borrower a long-term facility in the amount of USD 70,000,000 (the “Loan”);
and
	 
	(B)	 	it is a condition precedent to the Lenders making the Loan available to the Borrower that the
Assignor executes and delivers, inter alia, this Assignment and grants the Security Interests
set out herein as security for its obligations towards the Finance Parties under the Finance
Documents (as defined in the Agreement).

NOW THEREFORE:

	1	 	INTERPRETATION
	 
	1.1	 	Definitions

In this Assignment, including the preamble hereto (unless the context otherwise requires), any term
or expression defined in the preamble shall have the meanings ascribed to it therein. In addition,
terms and expressions not defined herein but whose meanings are defined in the Agreement shall have
the meanings set out therein.

	1.2	 	Construction

In this Assignment, unless the context otherwise requires:

	 	a)	 	reference to Clauses or Appendices are to be construed as references to clauses or
appendices of this Assignment unless otherwise stated;
	 
	 	b)	 	references to (or to any specified provision of) this Assignment or any other document
shall be construed as references to this Assignment, that provision or that document as from
time to time amended; and
	 
	 	c)	 	words importing the plural shall include the singular and vice versa.

69

 

	2	 	ASSIGNMENT OF EARNINGS AND CHARTERPARTIES
	 
	2.1	 	Assignment

To secure the payment and the discharge of the Assignor’s obligations under the Finance Documents
and the payment of all sums which from time to time may become due thereunder, and to secure the
performance and observance of and compliance with all the covenants, terms and conditions contained
in the Finance Documents, the Assignor hereby assigns to the Agent (on behalf of the Finance
Parties) on first priority all its rights, title and benefits to and under:

	 	a)	 	the Earnings, and
	 
	 	b)	 	the Charterparties.

	2.2	 	Notice and acknowledgement, etc.

The Assignor undertakes promptly to give notice of the assignment of the Earnings and the
CGG-Charterparties to the Charterer and any other third party from which any of the Earnings may
become payable in the form set out in Appendix 1 (A) and procure that any recipient of such notice
duly acknowledges receipt of the notice in the form set out in Appendix 1 (B), and furthermore to
give notice of the assignment of the Geo-Charterparty to Geoshipping AS in the form set out in
Appendix 2 (A) and procure that Geoshipping AS duly acknowledges receipt of the notice in the form
set out in Appendix 2 (B).

	3	 	BORROWER’S UNDERTAKINGS

The Borrower undertakes with the Agent (on behalf of the Finance Parties) during the Security
Period:

	a)	 	not to agree to any variation of the Charterparties or grant any release or waiver to the
Charterer and/or Geoshipping AS (as applicable) of any of their obligations under the
Charterparties without the prior written consent of the Agent;
	 
	b)	 	to duly perform its obligations under the Charterparties and to use its best endeavours to
ensure that the Charterer and/or Geoshipping AS (as applicable) duly performs its obligations
under the Charterparties;
	 
	c)	 	not to terminate the Charterparties for any reason whatsoever or withdraw the Vessel from
hire under the Charterparties;
	 
	d)	 	if any court or tribunal having jurisdiction declares, or any rule of law renders any part of
this Assignment invalid or unenforceable to execute any further documents required by the
Agent to maintain the security created by this Assignment.

	4	 	ENFORCEMENT

Upon the occurrence of an Event of Default which is continuing, the Lenders shall be entitled to
put into force and exercise as and when they may see fit any and every power possessed by them by
virtue of the assignment contained in Clause 2 hereof and in particular:

	a)	 	to assume and take over all the Borrower’s rights and obligations under the Charterparties,
by providing written notice of such to the Charterer and/or Geoshipping AS (as applicable);
	 
	b)	 	to enforce any of their respective rights under the Charterparties or to agree with the
Charterer and/or Geoshipping AS (as applicable) to terminate the same on such terms and

70

 

	 	 	conditions as the Lenders and the Charterer and/or Geoshipping AS (as applicable) may
mutually agree;
	 
	c)	 	to assign all rights, titles, interests and benefits in and under the Charterparties; and
	 
	d)	 	to collect, recover or compromise and give a good discharge for any money payable to the
Borrower by the Charterer and/or Geoshipping AS (as applicable) or any damages recoverable by
the Borrower from the Charterer and/or Geoshipping AS (as applicable) under the Charterparties
or in connection therewith.

	5	 	PERFECTION

The Assignor agrees that at any time and from time to time upon the written request of the Agent,
it will promptly and duly execute and deliver to the Agent any and all such further instruments and
documents as the Agent (on behalf of the Finance Parties) may reasonably deem necessary or
desirable to register this Assignment in any applicable registry, and to maintain and/or perfect
the Security Interest created by this Assignment and the rights and powers herein granted.

	6	 	ASSIGNMENT

The Agent may assign or transfer its rights hereunder to any person to whom the rights and
obligations of the Agent and the Lenders under the Agreement are wholly or partially assigned in
accordance with Clause 23 (Changes to the Parties) of the Agreement.

	7	 	NO FURTHER ASSIGNMENT OR PLEDGE

The Assignor shall not, unless prior written consent has been obtained from the Agent, be entitled
to further assign or pledge the Earnings and/or the Charterparties.

	8	 	ADDITIONAL AND CONTINUING SECURITY

The Security Interest contemplated by this Assignment shall be in addition to any other Security
Interest granted in accordance with the Agreement and shall be a continuing security in full force
and effect as long as any obligations are outstanding under the Agreement.

	9	 	NOTICES

Any communication or document to be made under or in connection with this Assignment shall be made
or delivered to the address and telefax number of each Party and marked for the attention of the
department or persons set out below:

	 	 	 
	If to the Agent:

	 	DnB NOR Bank ASA

SOL Bergen

Att: Credit Administration

Lars Hilles gate 30

N-5020 Bergen, Norway

Telefax No: +47 55 21 19 24
	 
	 	 
	If to the Assignor:

	 	Exploration Investment Resources II AS

Damsgardsv.125, 5162 Laksevaag, Bergen, Norway

Att: C.F.O Rakel Simmenes and/or Chairman of the Board Jean-Pierre Sabbagh

Telefax No: +47 55 94 77 51

71

 

or any substitute address and/or telefax number and/or marked for such other attention as the Party
may notify to the other Agent (or the Agent may notify the other Parties if a change is made by the
Agent) by not less than five (5) Business Days’ prior notice.

	10	 	GOVERNING LAW — JURISDICTION

This Assignment shall be governed by and construed in accordance with the laws of Norway.

The Borrower and the Finance Parties accept Bergen City Court (Bergen tingrett) as non-exclusive
venue, but this choice shall not prevent the Agent (on behalf of the Finance Parties) to enforce
any rights under this Assignment against assets of the Assignor wherever they may be found.

	 	 	 	 	 	 	 
	Assignor:	 	Agent:
	Exploration Investment Resources II AS	 	DnB NOR Bank ASA
	 
	By:  	 	 	By:  	 
	Name:  	 	 	Name:  	 
	Title:  	 	 	Title:  	 

72

 

Appendix 1 (A)

FORM OF NOTICE OF ASSIGNMENT

(Assignment of Earnings and Charterparty)

	To: 	 	CGG Marine, of 1, rue Léon Migaux, 91341 Massy Cedex, France

MV C-Orion and MV Geo Challenger

We refer to the bare boat charterparties dated 30 December 2005 and [l] respectively (the
"Charterparties”) made between you and us, whereby we agreed to let and you agreed to take on
charter for the period and upon the terms and conditions therein mentioned MV C-Orion and MV Geo
Challenger.

We hereby give you notice that:

	 	a)	 	by an assignment dated 29 March 2006 (the “Assignment”) made between us and DnB NOR Bank
ASA of Lars Hillesgt 30, N-5020 Bergen, Norway, acting as agent on behalf of certain other
banks (the “Agent”), related to a loan agreement of even date (the “Agreement”), we have
assigned absolutely and have agreed to assign absolutely to and in favour of the Agent all
our rights, title and interest, present and future, to the Charterparties and to all
payments to be made to us under the Charterparties, including in respect of any breach by
you thereunder;
	 
	 	b)	 	you are hereby irrevocably authorised and instructed to make all payments under the
Charterparties to our account with the Agent, being account no NOK: 5210 05 21644, USD: 5206
04 92794 and GBP: 5203 04 81852 (free of any set-off or other deduction other than as
allowed in the Charterparties) until such time as the Agent shall direct to the contrary
whereupon all instructions or demands for actions shall be made by the Agent and payments
are due to the Agent or as it may direct;
	 
	 	c)	 	the Assignment includes provisions that no amendments, termination or cancellation shall
be made to the Charterparties (nor shall you be released from any of your obligations
thereunder without the prior written consent of the Agent) and that we shall remain liable
to perform all our obligations under the Charterparties and that the Agent shall be under no
obligations of any kind whatsoever in respect thereof; and
	 
	 	d)	 	the Agent, or such party that the Agent may appoint, shall at any time hereafter be
entitled, but shall not be obliged, to assume and take over all of our rights and
obligations under the Charterparties by providing written notice of such to yourselves.

The authority and instructions herein contained cannot be revoked or varied by us without the
written consent of the Agent. The provisions of this notice shall be governed by Norwegian law.

73

 

[Place and date]
 

Yours
sincerely

for and on behalf of

Exploration Investment Resources II AS

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	Name:  	 	 	 
	Title:  	[authorised officer] 	 	 

74

 

Appendix 1 (B)

FORM OF ACKNOWLEDGEMENT

(Assignment of Earnings and Charterparties)

	To: 	 	DnB NOR Bank ASA

SOL Bergen

Att: Credit Administration

Lars Hillesgt 30

N-5020 Bergen

Norway

Attn: [l]

We acknowledge receipt of the above Notice of Assignment dated [l] 2006 from Exploration Investment
Resources II AS. Terms used herein shall have the same meaning as defined therein.

We agree to the assignment set out therein and undertake to be bound by the terms thereof. We
confirm that we have received no notice of any previous assignment or pledge of the Charterparties
or of all or any part of the charter hire and any monies payable thereunder.

We further confirm that all written statements containing instructions or demanding actions or
payments under the Charterparties may until further notice from the Agent to the contrary be made
by Exploration Investment Resources II AS and after such notice these instructions shall be given
or demands shall be made by the Agent. Payments shall be made to the accounts as specified in the
Notice of Assignment.

We have noted and agree that the Agent, or such party as the Agent may appoint, shall at any time
hereafter be entitled, but shall not be obliged, to assume and take over all of Exploration
Investment Resources II AS’ rights and obligations under the Charterparties by providing written
notice of such to ourselves.

This acknowledgement and confirmation shall be governed by Norwegian law.

[Place and date]

 

Yours sincerely

for and on behalf of

CGG Marine

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	Name:  	 	 	 
	Title:  	[authorised officer] 	 	 

75

 

Appendix 2 (A)

FORM OF NOTICE OF ASSIGNMENT

(Assignment of Charterparty)

	To: 	 	Geoshipping AS

MV Geo Challenger

We refer to the time charterparty dated ["] (the “Charterparty”) made between you and us, whereby you agreed to let and we agreed to take on charter for the period and upon the terms and conditions therein mentioned MV Geo Challenger.

We hereby give you notice that:

	 	a) 	 	by an assignment dated 29 March 2006 (the “Assignment”)
 made between us and DnB NOR
Bank ASA of Lars Hillesgt 30, N-5020 Bergen,
Norway, acting as agent on behalf of
certain other banks (the “Agent”), related to a loan agreement of even date (the “Agreement”), we have assigned absolutely and have agreed to assign absolutely to and in favour of the Agent all our rights, title and interest, present and future, to the Charterparties and to all payments to be made to us under the Charterparties, including in respect of any breach by you thereunder;
	 
	 	b) 	 	the Assignment includes provisions that no amendments, termination or cancellation shall be made to the Charterparty (nor shall you be released from any of your obligations thereunder without the prior written consent of the Agent) and that we shall remain liable to perform all our obligations under the Charterpartiy and that the Agent shall be under no obligations of any kind whatsoever in respect thereof; and
	 
	 	c) 	 	the Agent, or such party that the Agent may appoint, shall at any time hereafter be entitled, but shall not be obliged, to assume and take over all of our rights and obligations under the Charterparty, including the purchase option, by providing written notice of such to yourselves.

The authority and instructions herein contained cannot be revoked or varied by us without the written consent of the Agent. The provisions of this notice shall be governed by Norwegian law.

[Place and date]
 

Yours
sincerely

for and on behalf of

Exploration Investment Resources II AS

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	Name:  	 	 	 
	Title:  	[authorised officer] 	 	 

76

 

Appendix 2 (B)

FORM OF ACKNOWLEDGEMENT

(Assignment of Charterparty)

	 	 	 
	To:

	 	DnB NOR Bank ASA
	 

	 	SOL Bergen
	 

	 	Att: Credit Administration
	 

	 	Lars Hillesgt 30
	 

	 	N-5020 Bergen
	 

	 	Norway
	 

	 	Attn: [•]

We acknowledge receipt of the above Notice of Assignment dated [•] 2006 from Exploration Investment
Resources II AS. Terms used herein shall have the same meaning as defined therein.

We agree to the assignment set out therein and undertake to be bound by the terms thereof. We
confirm that we have received no notice of any previous assignment or pledge of the Charterparty or
of all or any part of any monies payable thereunder.

We further confirm that all written statements containing instructions or demanding actions or
payments under the Charterparty may until further notice from the Agent to the contrary be made by
Exploration Investment Resources II AS and after such notice these instructions shall be given or
demands shall be made by the Agent.

We have noted and agree that the Agent, or such party as the Agent may appoint, shall at any time
hereafter be entitled, but shall not be obliged, to assume and take over all of Exploration
Investment Resources II AS’ rights and obligations under the Charterparty, including the purchase
option, by providing written notice of such to ourselves.

This acknowledgement and confirmation shall be governed by Norwegian law.

[Place and date]

Yours sincerely

for and on behalf of

Geoshipping AS

By:                                         

Name:

Title: [authorised officer]

77

 

SCHEDULE 7

FORM OF GUARANTEE

THIS GUARANTEE (the “Guarantee”) is executed on 29 March 2006 by:

COMPAGNIE GÉNÉRALE de GÉOPHYSIQUE a limited liability company organised and existing under the laws
of France with a capital of EUR [•] having its registered office at 1, rue Léon Migaux, 91341
Massy Cedex, France registered with the [•] under the number [•] (the “Guarantor ”)

[or, in a separate identical guarantee:]

EXPLORATION RESOURCES ASA a limited liability company organised and existing under the laws of
Norway with a capital of NOK [•] having its registered office at Damsgårdsveien 125, NO-5162
Laksevåg, Bergen, Norway registered with the Foretaksregisteret under the number NO 987 264 020
(the “Guarantor”)

IN FAVOUR OF

DNB NOR BANK ASA, of Lars Hillesgt. 30, P.O. Box 7100, N-5020 Bergen, Norway (the “Agent”), acting
on behalf of the Finance Parties (as defined in the Agreement referred to below).

Background:

	(A)	 	Pursuant to the terms and conditions of a loan agreement dated 29 March 2006 (the
“Agreement”) between Exploration Investment Resources II AS as borrower (the “Borrower”), the
banks and financial institutions listed in schedule 1 thereto as lenders (the “Lenders”), DnB
NOR Bank ASA as arranger (the “Arranger”), DnB NOR Bank ASA as underwriter (the “Underwriter”)
and DnB NOR Bank ASA agent for the Lenders (the “Agent”), the Lenders have agreed to make
available to the Borrower a long-term facility in the amount of USD 70,000,000 (the “Loan”);
and

	(B)	 	it is a condition precedent to the Lenders making the Loan available to the Borrower that the
Guarantor executes and delivers, inter alia, this Guarantee in favour of the Agent (on behalf
of the Finance Parties) and grants the Security Interests set out herein as security for its
obligations towards the Finance Parties under the Finance Documents (as defined in the
Agreement).

NOW THEREFORE:

1 TERMS AND EXPRESSIONS

In this Guarantee including the preamble hereto, unless the context otherwise requires, any term or
expression defined in the preamble shall have the meaning described to it therein. In addition
terms and expressions defined in the Agreement shall unless the context otherwise requires have the
same meaning when used in this Guarantee.

2 GUARANTEE AND INDEMNITY

2.1 Guarantee Obligations

In order to secure the Borrower’s obligations and liabilities (the “Obligations”) under or pursuant
to the Finance Documents, the Guarantor as primary obligor (“Selvskyldnerkausjonist”) as and for
its own debt and not merely as surety, and jointly and severally with the Borrower hereby
guarantees to the Agent (on behalf of the Finance Parties) to be responsible for and hereby
guarantee to the Agent (on behalf of the Finance Parties) the due and punctual payment by the
Borrower (as and when due under the Finance Documents by acceleration, demand or otherwise) of the
Obligations

78

 

and any part thereof on the terms set out in the Finance Documents plus interest thereon,
calculated from the date a demand is received under this Guarantee and until payment is made at the
default rate according to the Agreement and cost and expenses incurred by any of the Finance
Parties in connection with collection under or enforcement of this Guarantee.

2.2 Demand Guarantee

The Guarantor unconditionally and irrevocably undertakes immediately on the first written demand by
the Agent from time to time to make payment in accordance with its obligations under Clause 2.1
without any right of recourse, objections or reference to any underlying rights and/or obligations
of whatsoever nature, including but not limited to the Finance Documents where such demand is
accompanied by a statement of the Agent that a payment has fallen due in respect of the
Obligations, and that the Borrower has failed to make such payment when due (for whatsoever
reason). Each of such payments so demanded shall be made by the Guarantor immediately to such
account(s) as the Agent may from time to time notify in writing.

2.3 Indemnity

The Guarantor unconditionally undertakes immediately on demand by the Agent from time to time to
indemnify and hold harmless the Finance Parties in respect of any direct loss incurred any of the
Finance Parties as a result of the Finance Documents or any provision thereof being or becoming
invalid or unenforceable for any reason whatsoever up to the maximum amount which would otherwise
be payable in the event such invalidity or unenforceability had not occurred.

2.4 Scope of Liability

The Guarantor’s liability shall be limited to USD 70,000,000 plus interest, cost, fees and expenses
under the Finance Documents.

2.5 Guarantee Period

This Guarantee is a continuing guarantee and shall remain in force until all sums which may be or
become payable by the Borrower under the Finance Documents have been paid in full.

2.6 Number of Claims

There is no limit on the number of claims that may be made by the Agent (on behalf of the Finance
Parties) under this Guarantee.

2.7 Survival of the Guarantor’s Liability

	(a)	 	The Guarantor’s liability to the Finance Parties under this Guarantee shall not be
discharged, impaired or otherwise affected by reason of any of the following events or
circumstances (regardless of whether any such events or circumstances occur with or without
the Guarantor’s knowledge or consent):

	 	(i)	 	any time, forbearance or other indulgence given or agreed by the Finance
Parties with the Borrower or any third party in respect of any of its obligations under
the Finance Documents;
	 
	 	(ii)	 	any legal limitation, disability or incapacity of the Borrower or any third
party related to the Finance Documents;
	 
	 	(iii)	 	any invalidity, irregularity, unenforceability, imperfection or avoidance of
or any defect in any security granted by, or the obligations of any party to any of the
Finance Documents, or any amendment to or variation thereof, or of any other document
or security comprised therein;
	 
	 	(iv)	 	the liquidation, bankruptcy or dissolution (or proceedings analogous thereto)
or the appointment of a receiver for the Borrower or any third party, or the occurrence
of any circumstances whatsoever affecting the liability of any party to discharge its
obligations under any of the Finance Documents;

79

 

	 	(v)	 	any challenge, dispute or avoidance by any liquidator of the Borrower or any
third party in respect of any claim by the Borrower by right of subrogation in any such
liquidation;
	 
	 	(vi)	 	any release, discharge, renewal, amendment, extension, compromise exchange or
realisation of any security, obligation or term of any of the Finance Documents, or any
further security for the obligations of the Borrower under the Finance Documents;
	 
	 	(vii)	 	any failure on the part of the Finance Parties (whether intentional or not) to
take or perfect any security agreed to be taken under or in relation to any of the
Finance Documents; or
	 
	 	(viii)	 	any other act, matter or thing which might otherwise constitute a legal discharge of
the obligations of the Borrower under the Finance Documents.

	(b)	 	The Guarantor specifically waives all rights under the provisions of the Norwegian Financial
Services Act of 25 June 1999 no. 46 not being mandatory provisions, including the following
provisions (the main contents of the relevant provisions being as indicated in the brackets):

	 	(i)	 	§ 62 (1) (a) (to be notified of any security the giving of which was a
precondition for the Facility, but which has not been validly granted or has
lapsed);
	 
	 	(ii)	 	§ 63 (1) — (2) (to be notified of any event of default under the Finance
Documents and to be kept informed thereof);
	 
	 	(iii)	 	§ 63 (3) (to be notified of any extension granted to the Borrower in
payment of principal and/or interest);
	 
	 	(iv)	 	§ 63 (4) (to be notified of the Borrower’s bankruptcy proceedings or debt
reorganisation proceedings and/or any application for the latter);
	 
	 	(v)	 	§ 65 (3) (that the consent of the Guarantor is required for the Guarantor
to be bound by amendments to the Finance Documents that may be detrimental to the
Guarantor’s interest);
	 
	 	(vi)	 	§ 66 (1) — (2) (that the Guarantor shall be released from liabilities
hereunder if security which was given, or the giving of which was a precondition for
the Facility, is released by the Finance Parties without the consent of the
Guarantor);

	 	(vii)	 	§ 66 (3) (that the Guarantor shall be released from its liabilities
hereunder if, without its consent, security the giving of which was a precondition
for the Facility, was not validly granted);
	 
	 	(viii)	 	§ 67 (2) (about reduction of the Guarantor’s liabilities hereunder);

	 	(ix)	 	§ 67 (4) (that the Guarantor’s liabilities hereunder shall lapse after 10
years, as the Guarantor shall remain liable hereunder as long as any amount is
outstanding under the Finance Documents);
	 
	 	(x)	 	§ 70 (as the Guarantor shall have no right of subrogation into the rights
of the Lender under the Finance Documents until and unless the Finance Parties shall
have received all amounts due or to become due to them under the Finance Documents);
	 
	 	(xi)	 	§ 71 (as the Finance Parties shall have no liability first to make demand
upon or seek to enforce remedies against the Borrower or any other security provided
in respect of the Borrower’s liabilities under the Finance Documents before
demanding payment under or seeking to enforce the security created hereunder);

	 	(xii)	 	§ 72 (as all interest and default interest due under the Finance
Documents shall be secured hereunder);

80

 

	 	(xiii)	 	§ 73 (1) — (2) (as all costs and expenses related to a default under the Finance
Documents shall be secured hereunder); and
	 
	 	(xiv)	 	§ 74 (1) — (2) (as the Guarantor shall make no claim against the
Borrower for payment until and unless the Finance Parties first shall have received
all amounts due or to become due to them under the Finance Documents).

3 REPRESENTATIONS AND WARRANTIES

3.1 Representation and Warranties

The Guarantor hereby represents and warrants to the Agent (on behalf of the Finance Parties) that:

3.1.1 Status

it is organised and exists as a company with limited liability and has full power to carry on its
business as it is now being conducted;

3.1.2 Powers and Authority

it has the power to enter into and perform, and has taken all necessary corporate or other action
to enter into and perform, its obligations under this Guarantee;

3.1.3 Legal Validity

this Guarantee constitutes the legal, valid and binding obligations of it enforceable in accordance
with its terms;

3.1.4 Non-conflict

the execution and delivery of, and the performance of the provisions of this Guarantee by it does
not and will not contravene (i) any applicable law or regulation or (ii) any contractual
restriction binding on it or any of its assets or (iii) any of its constitutional documents;

3.1.5 Disputes

other than as disclosed in annual or quarterly statements or otherwise to the Agent (on behalf of
the Finance Parties) in writing, no action, suit, proceeding, litigation or dispute is pending or
threatened against it or any of its property or assets before any court, board of arbitration or
administrative agency nor is there subsisting any judgment or award given against it before any
court, board of arbitration or administrative agency which, in either case, could or might result
in any material adverse change in its business condition (financial or otherwise);

3.1.6 Authorizations

all official authorizations or consents required for it to enter into and perform its obligations
under this Guarantee have been obtained and are in full force and effect;

3.1.7 No Default

no event of default is outstanding or would result from the making of this Guarantee;

3.2 Repetition

The representations and warranties set out in this Clause 3 are made by the Guarantor on the date
of this Guarantee and are deemed to be repeated on every day thereafter.

4 CONTINUING GUARANTEE

This Guarantee shall be:

	(a)	 	a continuing guarantee remaining in full force and effect until the Guarantee period has
expired pursuant to Clause 2.5 and

	(b)	 	in addition to and not in substitution for any other security held by the Finance Parties
from time to time in respect of the Obligations under the Finance Documents or any part
thereof.

81

 

5 EXCLUSION OF GUARANTOR’S RIGHTS

	(a)	 	Until the Obligations have been paid in full, the Guarantor shall not be entitled to share in
or succeed to or benefit from (by subrogation or otherwise) any rights which the Finance
Parties may have in respect of the Obligations or any security therefore or all or any of the
proceeds of such rights or security.

	(b)	 	Payment under this Guarantee shall be made free and clear of any set-off for counterclaim,
taxes or charges of any kind.

6 ENFORCEMENT

6.1 No Formalities

The Finance Parties shall not be obliged before taking steps to enforce this Guarantee against the
Guarantor:

	(a)	 	to obtain judgment against the Borrower or any third party in any court or other tribunal;
	 
	(b)	 	to make or file any claim in a bankruptcy or liquidation of the Borrower or any third party;
or
	 
	(c)	 	to take any action whatsoever against the Borrower or any third party under any of the
Finance Documents, except giving notice of payment of the relevant part of the Obligations;

and the Guarantor hereby waives all such formalities or rights to which it would otherwise be
entitled or which the Finance Parties would otherwise first be required to satisfy or fulfil before
proceeding or making demand against the Guarantor hereunder. The Agent (on behalf of the Finance
Parties) may take such action as it in its own discretion may consider appropriate against any
other person or parties and securities to recover moneys due and payable in respect of the
Obligations.

7 UNDERTAKINGS

The Guarantor undertakes from the date of this Guarantee and as long as any amount is outstanding
under the Finance Documents that it shall inform the Agent (on behalf of the Finance Parties)
forthwith of any event which, in its reasonable opinion, might adversely affect its ability to
perform its obligations under this Guarantee or constitute an event of default

8 EVENTS OF DEFAULT

8.1 There shall be an Event of Default if:

	(a)	 	the Guarantor is in default of (i) any of its obligations or undertaking under this Guarantee
and/or the Agreement or (ii) is in default of any other financial indebtness it may have in a
principal amount higher than EUR 2,500,000, which in the opinion of the Agent (on behalf of
the Finance Parties), in a material way may effect the Guarantor’s ability to perform its
obligations under this Guarantee, provided always that such default can not be declared unless
the Guarantor has received a written notice thereof stating that in an event of default there
will be declared if not the situation causing the event of default has been remedied within
three (3) Banking Days; or

	(b)	 	the Guarantor stops or suspends payment of its debts or is unable to or admits inability to
pay its debts as they fall due; or

	(c)	 	the Guarantor enters into a payment default situation, debt settlement, bankruptcy or
insolvency proceedings, or cease or threatens to cease its business activities; or

	(d)	 	there is an Event of Default under the Finance Documents.

8.2 Acceleration

The Agent (on behalf of the Finance Parties) may at any time after the occurrence of an Event of
Default take all or any of the following action:

82

 

	(a)	 	demand that the Guarantor pays to the Agent (on behalf of the Finance Parties) an amount
equal to the maximum of Guarantor’s liability, and/or

	(b)	 	in case of non-compliance of any payment obligation of the Borrower pursuant to the
Agreement, be entitled to enforce, in its sole discretion, all or any part of the Security
Documents as may be required to provide full indemnification of the Finance Parties in respect
of any amount due but not paid.

9 CROSS DEFAULT

We are aware of and agree that any breach by us of the obligations stated herein automatically
implies an Event of Default under the Agreement.

10 ASSIGNMENT

The Agent may assign or transfer its rights hereunder to any person to whom the rights and
obligations of the Agent and the Lenders under the Agreement are wholly or partially assigned in
accordance with Clause 23 (Changes to the Parties) of the Agreement.

11 ADDITIONAL AND CONTINUING SECURITY

The Security Interest contemplated by this Guarantee shall be in addition to any other Security
Interest granted in accordance with the Agreement and shall be a continuing security in full force
and effect as long as any obligations are outstanding under the Agreement.

The Borrower’s obligations under the Agreement is secured by the following securities:

	a)	 	the Mortgage;
	 
	b)	 	the Factoring Agreement;
	 
	c)	 	the General Pledge;
	 
	d)	 	the Co-ordination Agreement;
	 
	e)	 	the Assignment of Insurances;
	 
	f)	 	the Assignment of Charterparties and Earnings;
	 
	g)	 	the Guarantees; and
	 
	h)	 	the Share Pledge.

12 NOTICES

Any communication or document to be made under or in connection with this Assignment shall be made
or delivered to the address and telefax number of each Party and marked for the attention of the
department or persons set out below:

	 	 	 
	If to the Agent:

	 	DnB NOR Bank ASA
	 

	 	SOL Bergen
	 

	 	Att: Credit Administration
	 

	 	Lars Hilles gate 30
	 

	 	N-5020 Bergen, Norway
	 

	 	Telefax No: +47 55 21 19 24

83

 

	 	 	 
	If to the Guarantor:

	 	COMPAGNIE GÉNÉRALE de GÉOPHYSIQUE
	 

	 	1, rue Léon Migaux
	 

	 	91341 Massy Cedex
	 

	 	France
	 

	 	Fax no. +33 1 64 47 30 89
	 

	 	Attn: Finance Manager
	 
	 	 
	[alternatively:]

	 	EXPLORATION RESOURCES ASA
	 

	 	Damsgårdsveien 125
	 

	 	NO-5162 Laksevåg, Norway
	 

	 	Fax no. +47 56 11 31 01
	 

	 	Attn: Finance Manager

or any substitute address and/or telefax number and/or marked for such other attention as the Party
may notify to the other Agent (or the Agent may notify the other Parties if a change is made by the
Agent) by not less than five (5) Business Days’ prior notice.

13 GOVERNING LAW — JURISDICTION

This Guarantee shall be governed by and construed in accordance with the laws of Norway.

The Guarantor accepts Bergen City Court (Bergen tingrett) as non-exclusive venue, but this choice
shall not prevent the Agent (on behalf of the Finance Parties) to enforce any rights under this
Guarantee against assets of the Guarantor wherever they may be found.

We have received a copy of the Agreement.

In witness whereof the Guarantor has duly executed this Guarantee the day and year first written
above.

SIGNED for and on behalf of

COMPAGNIE GÉNÉRALE de GÉOPHYSIQUE/ EXPLORATION RESOURCES ASA

                                        

Name:

Title:

84

 

***

SIGNATORIES

Borrower:

Exploration Investment Resources II AS

By:                                         

Name:

Title:

Lenders:

DnB NOR Bank ASA

By:                                         

Name:

Title:

Arranger:

DnB NOR Bank ASA

By:                                         

Name:

Title:

Agent:

DnB NOR Bank ASA

By:                                         

Name:

Title:

Underwriter:

DnB NOR Bank ASA

By:                                         

Name:

Title:

85

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]