Document:

exv10w7

 

EXHIBIT 10.7

EMPLOYEE CONFIDENTIALITY, TRADE SECRETS

AND NONCOMPETITION AGREEMENT

	 	 	 	 	 
	
	 	

	 	

	Employee	 	
Employee No.
	 	Hire Date

Recitals

	A.	 	BioReliance Corporation and its subsidiaries and affiliates (
collectively, the “Corporation”) is involved in a broad range of
biological research, testing and manufacturing services.
	 
	B.	 	The Employee recognizes that the Corporation’s success in a highly
competitive marketplace depends upon maintaining the confidentiality of
its proprietary information, trade secrets, and client and prospective
client information. The Employee also recognizes that, while employed by
the Corporation, he/she will have access to and might become familiar with
various proprietary and confidential information and trade secrets
relating to, owned by and regularly used in the operation of the
Corporation and its affiliated entities including, but not limited to,
processes, formulas, designs, customer lists, business contacts, methods
of operation, results of analysis, business, marketing and pricing plans
and strategies, financial data, costs, revenues and similar information
(“Confidential Information”). The Employee acknowledges that his/her
employment with the Corporation will, of necessity, provide him/her with
specialized knowledge and familiarity with such Confidential Information
which, if used in competition with the Corporation or any of its
affiliated entities could cause serious harm to the Corporation.

Agreements

IN CONSIDERATION OF the Corporation’s agreement to employ the Employee, and the
Employee’s agreement to accept employment with the Corporation, the parties
acknowledge the receipt of sufficient consideration and agree as follows:

Section 1. Exclusive Services

		
	 	While employed by the Corporation, the Employee shall devote his or her
complete business time, attention, energies, efforts and skills to the
Corporation’s business; shall not engage, directly or indirectly, in any
other business activity without the express written consent of the
Corporation’s Chief Executive Officer and shall not, directly or
indirectly (either as an employee, employer, consultant, agent or in any
other capacity), engage or participate in any business that is in any
manner whatsoever in, or the Employee knows to be contemplating entering
into, competition with business of the Corporation or any of its
affiliated entities.

 

 

     Section 2. Non-Disclosure of Confidential Information; Corporation Documents

	 	(a)	 	Non-Disclosure. The Employee shall maintain the
confidentiality of all Confidential Information and shall not
disclose, either directly or indirectly, Confidential Information to
any person, firm or business, or use Confidential Information, except
as required in the course of employment with the Corporation or as
authorized in writing by the Corporation’s Chief Executive Officer,
during the term of such employment or at any time thereafter.
Similarly, the Employee shall maintain the confidentiality of all
Confidential Information of any third party with whom the Corporation
has a business relationship, provided that such Confidential
Information is disclosed to the Employee in the course of the
Employee’s employment with the Corporation.
	 
	 	(b)	 	Exception to Non-Disclosure. This section shall not apply to,
and the Employee may use or discuss freely, any Confidential
Information which is now, or subsequently becomes, in the public
domain, provided the employee’s actions did not cause such
information to enter into the public domain.
	 
	 	(c)	 	Corporation Property. All files, records, documents, drawings,
equipment and other similar items relating in any manner to the
Corporation’s business, whether prepared by the Employee or otherwise
coming into his or her possession (collectively,
“Documents”), shall
remain the exclusive property of the Corporation and shall not be
removed without the prior written consent of the Corporation’s Chief
Executive Officer, and upon termination of employment, the Employee
shall immediately return any and all Documents, or reproductions of
such Documents, to the Corporation.

Section 3. Rights to Intellectual Property

	 	(a)	 	Ownership. Any and all inventions, processes, discoveries,
know-how, improvements, patent rights, letters patent, programs,
copyrights, trademarks, trade names, service marks and applications
thereof, in the United States and all other countries, and any and
all rights and interest in, to and under the same, made, invented,
acquired or possessed by the Employee, resulting or arising out of,
directly or indirectly, the services performed by the Employee for
the Corporation (the “Intellectual Property”), shall be promptly
disclosed to the Corporation and shall be the exclusive property of
the Corporation.

	 	 	 
	Employee Confidentiality, Trade Secrets
and Noncompetition Agreement	 	
Page 2 of 5

 

 

	 	(b)	 	Assignment of Intellectual Property. The Employee shall, without
additional compensation (unless authorized by the Corporation),
execute all documents, and perform any and all other acts necessary
or desired by the Corporation, to fully and completely vest and
confirm in the Corporation all rights contemplated by Section 3(a)
of this Agreement. The failure of the Corporation to execute the
documents or perform the acts required to vest in the Corporation
all rights contemplated by Section 3(a) shall not constitute a
waiver of the Corporation of any rights available under this
agreement.
	 
	 	(c)	 	Employee’s Unpatented Inventions. Within seven (7) days of the
Hiring Date referred to above, the Employee shall provide the
Corporation with a list describing all unpatented inventions made or
conceived by the Employee prior to the date of this agreement. The
Corporation shall attach this list to, and maintain a copy of the
list with, this Agreement. Any inventions described on the list
shall be excluded from the requirement of this Section 3 and shall
remain the exclusive property of the Employee.

Section 4. Noncompetition

	 	(a)	 	Non-Compete. While employed by the Corporation, and for a
period of one year after the termination or expiration thereof, the
Employee will not directly or indirectly:

	 	 	 
	(i)	 	as an individual proprietor, partner,
stockholder, officer, employee, director, joint venturer,
investor, lender, or in any other capacity whatsoever (other
than as the holder of not more than one percent (1%) of the
total outstanding stock of a publicly held Corporation),
engage in the business of developing, producing, marketing
or selling services or products of the kind or type
developed or being developed, produced, marketed or sold by
the Corporation while the Employee was employed by the
Corporation; or
	 	 	 
	(ii)	 	recruit, solicit or induce, or attempt to
induce, any employee or employees of the Corporation to
terminate their employment with, or otherwise cease their
relationship with, the Corporation; or
	 	 	 
	(iii)	 	solicit, divert or take away, or attempt
to divert or to take away, the business or patronage of any
of the clients, customers or accounts, or prospective
clients, customers or accounts, of the Corporation which
were contacted, solicited or served by the Employee while
employed by the Corporation

	 	 	 
	Employee Confidentiality, Trade Secrets
and Noncompetition Agreement	 	
Page 3 of 5

 

 

	 	(b)	 	Enforceability. If any restriction set forth in this Section 4
is found by any court of competent jurisdiction to be unenforceable
because it extends for too long a period of time or over too great a
range of activities or in too broad a geographic area, it shall be
interpreted to extend only over the maximum period of time, range of
activities or geographic area as to which it may be enforceable.
	 
	 	(c)	 	Reasonable Restrictions. The restrictions contained in this
Section 4 are necessary for the protection of the business and
goodwill of the Corporation and are considered by the employee to be
reasonable for such purpose and are not an unreasonable restriction
on the Employee’s livelihood. The employee agrees that any breach of
this Section 4 will cause the Corporation substantial and irreparable
damage and therefore, in the event of any such breach, in addition to
such other remedies which may be available, the Corporation shall
have the right to seek specific performance and injunctive relief.

Section 5. Other Obligations

		
	 	Except as otherwise disclosed to the Corporation’s Chief Executive Officer
in writing prior to the execution of this Agreement, the execution and
performance of this Agreement by the Employee, and the performance by the
Employee of his or her employment responsibilities with the Corporation,
will not conflict with or result in a breach of or a default under any
terms, condition, or provisions of any contract or agreement, including,
but not limited to, any employment, confidentiality or non-competition
agreements, to which the Employee is a party.

Section 6. Remedies

		
	 	In the event of a breach or a threatened breach of this Agreement by the
Employee, or, in the event the Employee’s employment with the Corporation
breaches any other contract to which the Employee is a party, the
Corporation shall be entitled to all remedies available at law and equity,
including recovery from the Employee of all damages, costs and expenses
incurred by the Corporation in protecting or enforcing its rights
hereunder, including reasonable attorney’s fees. Nothing in this
Agreement shall be deemed a waiver of the Corporation of any rights
available under any law, including Maryland Uniform Trade Secrets Act.

	 	 	 
	Employee Confidentiality, Trade Secrets
and Noncompetition Agreement	 	
Page 4 of 5

 

 

Section 7. Miscellaneous

	 	(a)	 	Governing Law. This Agreement shall be constructed in
accordance with, and shall be governed by, the laws of the State of
Maryland.
	 
	 	(b)	 	Separability. The invalidity or unenforceability of any
provision of this Agreement shall not impair the validity or
enforceability of any other provision.
	 
	 	(c)	 	Entire Agreement. This Agreement embodies the entire agreement
and understanding of the parties with respect to the subject matter
contained herein. This Agreement supersedes any and all prior
agreements and understandings between the parties with respect to
such subject matter.
	 
	 	(d)	 	Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their
successors and assigns.

IN WITNESS WHEREOF, the parties have executed this Agreement as of ______, 2000.

	 	 	 	 
	 	 	BioReliance Corporation
	 
	 	 	By:	 
	 	 	 	

	 
	 	 	
Name:	 
	 	 	 	

	 	 	Title:	 
	 	 	 	

	 	 	 	 
	 	 	

	 	 	
Employee Signature
	 	 	 	 
	 	 	

	 	 	
Employee Printed Name

9/25/00

	 	 	 
	Employee Confidentiality, Trade Secrets
and Noncompetition Agreement	 	
Page 5 of 5<PAGE>
                                                                    EXHIBIT 10.1
                               BANK OF TEXAS, N.A.
                          5956 Sherry Lane, Suite 1100
                               Dallas, Texas 75225

August 7, 2002

TOREADOR RESOURCES CORPORATION
TOREADOR EXPLORATION & PRODUCTION INC.
TOREADOR ACQUISITION CORPORATION
TORMIN, INC.
4809 Cole Avenue, Suite 108
Dallas, Texas 75205

         Re:      Third Amendment to Loan Agreement

Ladies and Gentlemen:

         This letter (this "Amendment") amends the loan agreement dated February
16, 2001, among TOREADOR RESOURCES CORPORATION, a Delaware corporation, TOREADOR
EXPLORATION & PRODUCTION INC., a Texas corporation, TOREADOR ACQUISITION
CORPORATION, a Delaware corporation, and TORMIN, INC., a Delaware corporation
(collectively "Borrowers"), and BANK OF TEXAS, NATIONAL ASSOCIATION ("Bank"), a
national banking association, as amended by the First Amendment dated November
8, 2001, and a Second Amendment dated May 9, 2002 (the "Loan Agreement").
Capitalized terms below have the meanings assigned in the Loan Agreement.

         1. Borrowing Base, Tranches, and Rates. (a) Effective as of the date of
this Amendment, Bank has set the Borrowing Base at $21,850,000.00, and Bank has
set the MCR at $150,000 per month, until reset by Bank in connection with the
next redetermination of the Borrowing Base. The next scheduled redetermination
of the Borrowing Base will be November 1, 2002. The amount of Tranche A as of
the date of this Amendment is $20,000,000.00.

                  (b) The first three sentences of Subsection (ii) of Section
1(a) of the Loan Agreement are amended to modify the interest rates and thus to
read as follows:

                           "(ii) Until Tranche B is paid in full, all amounts
         owed on the Revolving

<PAGE>

TOREADOR RESOURCES CORPORATION, et al
August 7, 2002
Page 2 of 6

         Note shall bear interest from the date advanced until paid or until
         default or maturity at a fluctuating rate equal to the sum of the
         Stated Rate, plus one percent (1.0%), but subject to the default rate
         set forth in the Revolving Note. After Tranche B is paid in full, all
         amounts owed on the Revolving Loan shall bear interest from the date
         advanced until paid or until default or maturity at the rates elected
         by Borrowers from the following options under the terms of the
         Revolving Note: (i) the difference between the Stated Rate less the
         Applicable Margin, or (ii) the sum of the LIBOR Rate plus the LIBOR
         Spread. The Applicable Margin and the LIBOR Spread will vary as set
         forth below based on the ratio, expressed as a percentage, of (i) the
         sum of the average principal balance owing on the Revolving Note for
         the prior quarter, plus the face amount of all outstanding Letters of
         Credit, to (ii) the then-current Borrowing Base:

<Table>
<Caption>
                  % of Borrowing Base              Applicable Margin   LIBOR Spread
                  -----------------------------------------------------------------
<S>                                                <C>                 <C>
                  Greater than or equal to 85%           0.25%            2.75%
                  Between 75% and 85% inclusive          1.00%            2.00%
                  Less than 75%                          1.25%            1.75% . . . ."
</Table>

                  (c) Subsection (b) of Section 1 of the Loan Agreement is
amended to change the Borrowing Base and to extend the due date for Tranche B
and thus to read as follows:

                           "(b) Subject to the terms and conditions of the Loan
         Agreement, Borrowers may borrow, repay, and reborrow on a revolving
         basis from time to time during the period commencing on the date hereof
         and continuing through 11:00 a.m. (Dallas, Texas time) on February 16,
         2006 (the "Termination Date"), such amounts as Borrowers may request
         under the Revolving Loan; provided, however, the total principal amount
         outstanding at any time shall not exceed the lesser of (i) the
         aggregate sums permitted under the Borrowing Base, which is set at
         $21,850,000.00 as of the date of this Amendment, (ii) after November 1,
         2002, the aggregate sums permitted under Tranche A, or (iii)
         $75,000,000. Notwithstanding any provision in the Loan Agreement or the
         Revolving Note to the contrary, all amounts outstanding on Tranche B
         must be paid in full on or before November 1, 2002; and all sums
         advanced under the Revolving Loan, together with all accrued but unpaid
         interest thereon, shall be due and payable in full on the Termination
         Date."

                  (d) Notwithstanding any provisions to the contrary in the Loan
Agreement or the Revolving Note, until Tranche B is paid in full, all amounts
owed on the Revolving Note shall bear interest from the date advanced until paid
or until default or maturity at a fluctuating rate equal to the sum of the
Stated Rate, plus one percent (1.0%), but subject to the default rate set forth
in the Revolving Note.

<PAGE>

TOREADOR RESOURCES CORPORATION, et al
August 7, 2002
Page 3 of 6

         2. Letter of Credit Fees. The last sentence of Subsection (d) of
Section 1 of the Loan Agreement is amended to change the fees for Letters of
Credit and thus to read as follows:

                  "Borrowers agree to pay to Bank a Letter of Credit fee equal
         to (i) $500 issuing fee per Letter of Credit, due at issuance, plus
         (ii) until Tranche B is paid in full, three and three quarters percent
         (3.75%) per annum, or plus (iii) after Tranche B is paid in full, the
         percentages per annum shown below, calculated on the aggregated stated
         amount of each Letter of Credit for the stated duration thereof
         (computed on the basis of actual days elapsed as of each year consisted
         of 360 days), payable quarterly in arrears on the last day of each
         calendar quarter. The annual Letter of Credit fee will vary as set
         forth below based on the ratio, expressed as a percentage, of (i) the
         sum of the average principal balance owing on the Revolving Note for
         the prior quarter, plus the face amount of all outstanding Letters of
         Credit, to (ii) the then-current Borrowing Base:

<Table>
<Caption>
                  % of Borrowing Base                         Letter of Credit Fee
                  ----------------------------------------------------------------
<S>                                                           <C>
                  Greater than or equal to 85%                      2.75%
                  Between 75% and 85% inclusive                     2.00%
                  Less than 75%                                     1.75%"
</Table>

         3. Distributions to Madison Oil Company. Subsection (k) of Section 6 of
the Loan Agreement is amended to restrict distributions to Madison Oil Company
and thus to read as follows:

                  "(k) Not make any loans, advances, dividends, or other
         distributions to any party, including without limitation, shareholders,
         officers, directors, subsidiaries, and affiliates, and any profit
         sharing or retirement plan, except so long as there is not a default
         under this Loan Agreement or any other Loan Documents, (i) Borrowers
         may distribute to their shareholders an amount not to exceed $100,000
         in the aggregate, and (ii) Borrowers may distribute amounts to Madison
         Oil Company or its subsidiaries only with Bank's prior written consent;
         and not purchase, acquire, redeem, or retire any stock of Borrowers;
         and not permit any transaction or contract with any affiliates or
         related parties, except at arms length and on market terms."

         4. Fees. In connection with this Amendment and the extension of Tranche
B, Borrowers agree to pay to Bank an amendment fee in the amount of $75,000.00.
All fees are non-refundable and earned by Bank upon execution of this Amendment.

         5. Collateral. (a) As security for the Notes, Borrowers previously
executed the Security Documents. Borrowers ratify and confirm the Security
Documents, acknowledge that they are valid, subsisting, and binding, and agree
that the Security Documents secure payment of the Notes and Loans.

<PAGE>

TOREADOR RESOURCES CORPORATION, et al
August 7, 2002
Page 4 of 6

                  (b) As additional security for the Notes, Toreador Exploration
& Production Inc. will execute and deliver a Deed of Trust and Security
Agreement in Proper Form, covering oil and gas properties located in Meade
County, Kansas. This additional deed of trust will constitute one of the
"Security Documents" as defined in the Loan Agreement.

         6. Conditions Precedent. (a) The obligation of Bank to make any further
advance on the Revolving Loan is subject to Borrower's satisfaction, in Bank's
sole discretion, of the following conditions precedent:

                           (1) the negotiation, execution, and delivery of Loan
Documents in Proper Form, including, but not limited to, the following:

                                    (i) this Amendment; and

                                    (ii) the Kansas Deed of Trust.

                           (2) satisfactory evidence that Bank holds perfected
liens and security interests in all collateral for the Loans, subject to no
other liens or security interests.

                           (3) there being no order or injunction or other
pending or threatened litigation in which there is a reasonable possibility, in
Bank's judgment, of a decision which could materially adversely affect the
ability of Borrowers to perform under the Loan Documents.

                           (4) Bank shall have completed and approved a review
of title to, and the status of the environmental condition of, Borrower's oil
and gas properties, and the results of such review shall be acceptable to Bank
in its sole discretion.

                           (5) Bank's receipt and review, with results
satisfactory to Bank and its counsel, of information regarding litigation, tax,
accounting, insurance, pension liabilities (actual or contingent), real estate
leases, material contracts, debt agreements, property ownership, and contingent
liabilities of Borrowers and any subsidiaries.

                  (b) Bank will not be obligated to make any advance on the
Loans, if, prior to the time that a loan or advance is made, (i) there has been
any material adverse change in any Borrowers' financial condition since the
most-recent financial statements furnished to Bank, (ii) any representations or
warranties made by any Borrowers in the Loan Agreement or the other Loan
Documents is untrue or incorrect as of the date of the advance or loan, (iii)
Bank has not received all Loan Documents appropriately executed by Borrowers and
all other proper parties, (iv) Bank has requested that Borrowers execute
additional loan or security documents and those documents have not yet been
properly executed, delivered, and recorded, or (v) an Event of Default has
occurred.

<PAGE>

TOREADOR RESOURCES CORPORATION, et al
August 7, 2002
Page 5 of 6

         7. Confirmations. Borrowers hereby represent to Bank that all
representations and warranties of Borrowers set forth in Section 5 of the Loan
Agreement are true and correct as of the date of execution of this Amendment;
and that Borrowers are in compliance as of the date of execution of this
Amendment with all covenants set forth in Section 6 of the Loan Agreement, all
financial covenants set forth in Section 7 of the Loan Agreement, and all
reporting requirements set forth in Section 8 of the Loan Agreement.

         8. Validity and Defaults. The Loan Agreement, as amended, remains in
full force and effect. Borrowers acknowledge that the Loan Agreement, the Notes,
and the Security Documents are valid, subsisting, and binding upon Borrowers; no
uncured breaches or defaults exist under the Loan Agreement, as amended; and no
event has occurred or circumstance exists which, with the passing of time or
giving of notice, will constitute a default or breach under the Loan Agreement,
as amended. Borrowers ratify the Loan Agreement, as amended.

         9. Fax Provision. This Amendment and the related Loan Documents may be
executed in counterparts, and Bank is authorized to attach the signature pages
from the counterparts to copies for Bank and Borrowers and filing counterparts.
At Bank's option, this Amendment and the related Loan Documents may also be
executed by Borrowers in remote locations with signature pages faxed to Bank.
Borrowers agree that the faxed signatures are binding upon Borrowers, and
Borrowers further agree to promptly deliver the original signatures for this
Amendment and the related Loan Documents by overnight mail or expedited
delivery. It will be an Event of Default if they fail to promptly deliver all
required original signatures.

         10. Captions. Captions are for convenience only and should not be used
in interpreting this Amendment.

         11. Final Agreement. (a) In connection with the Loans, Borrowers and
Bank have executed and delivered this Amendment and the Loan Documents
(collectively the "Written Loan Agreement").

                  (b) It is the intention of Borrowers and Bank that this
paragraph be incorporated by reference into each of the Loan Documents.
Borrowers and Bank each warrant and represent that their entire agreement with
respect to the Loans is contained within the Written Loan Agreement, and that no
agreements or promises have been made by, or exist by or among, Borrowers and
Bank that are not reflected in the Written Loan Agreement.

<PAGE>

TOREADOR RESOURCES CORPORATION, et al
August 7, 2002
Page 6 of 6

                  (c) THE LOAN AGREEMENT, AS AMENDED, REPRESENTS THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN AGREEMENTS BETWEEN THE PARTIES.

         If the foregoing correctly sets forth your understanding of our
agreement, please sign and return one copy of this letter.

                                      Yours very truly,

                                      BANK OF TEXAS, NATIONAL ASSOCIATION

                                  By: /s/ Timothy E. Merrell
                                      -----------------------------------------
                                      Timothy E. Merrell,
                                      Senior Vice President

Agreed on this 7th day of August, 2002:

BORROWERS:

TOREADOR RESOURCES CORPORATION

By:      /s/ Douglas W. Weir
         -------------------------------------
         Douglas W. Weir, Vice President

TOREADOR EXPLORATION & PRODUCTION INC.

By:      /s/ Douglas W. Weir
         -------------------------------------
         Douglas W. Weir, Vice President

TOREADOR ACQUISITION CORPORATION

By:      /s/ Douglas W. Weir
         -------------------------------------
         Douglas W. Weir, Vice President

TORMIN, INC.

By:      /s/ Douglas W. Weir
         -------------------------------------
         Douglas W. Weir, Vice President

Exhibits:
None

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