Document:

ex_344590.htm

Exhibit 10.1

 

 

 

MASTER COMMITMENT TRANSFER SUPPLEMENT

 

MASTER COMMITMENT TRANSFER SUPPLEMENT, dated as of March 7, 2022 (this “Commitment Transfer Supplement”), among PNC National Association (the “Transferor Lender”), each Purchasing Lender executing this Commitment Transfer Supplement (each, a “Purchasing Lender” and collectively the “Purchasing Lenders”), and PNC Bank, National Association (“PNC”), as agent for the Lenders (as defined below) under the Credit Agreement (as defined below).

 

WITNESSETH:

 

WHEREAS, this Commitment Transfer Supplement is being executed and delivered in accordance with Section 16.3 of the Revolving Credit and Security Agreement, dated as of August 22, 2014 (as from time to time amended, supplemented or otherwise modified in accordance with the terms thereof, the “Credit Agreement”) among ION GEOPHYSICAL CORPORATION, a Delaware corporation (“Geophysical”), ION EXPLORATION PRODUCTS (U.S.A.) INC., a Delaware corporation (“Exploration”), I/O MARINE SYSTEMS, INC., a Louisiana corporation (“Marine”), and GX TECHNOLOGY CORPORATION, a Texas corporation (“GXT”), and GX GEOSCIENCE CORPORATION, S. DE R.L. DE C.V., a Sociedad de Responsibilidad Limitada de Capital Variable organized under the laws of Mexico (“GX Mexico” and, together with Geophysical, Exploration, Marine, GXT and each Person joined thereto as a borrower from time to time, collectively, the “Borrowers”, and each a “Borrower”), the financial institutions which are now or which hereafter become a party thereto (collectively, the “Lenders” and each individually, a “Lender”) and PNC, as agent for Lenders (in such capacity, the “Agent”).

 

WHEREAS, each Purchasing Lender wishes to become a Lender party to the Credit Agreement; and

 

WHEREAS, the Transferor Lender is selling and assigning to Purchasing Lenders, all Advances, rights, duties, obligations and commitments of Transferor Lender under the Credit Agreement, except as expressly provided herein;

 

NOW, THEREFORE, the parties hereto hereby agree as follows:

 

1.    All capitalized terms used herein which are not defined shall have the meanings given to them in the Credit Agreement.

 

2.    Agent has received a counterpart signature page of this Commitment Transfer Supplement executed by Purchasing Lenders, together with fully completed Schedule I, and, contemporaneously herewith, shall transmit (x) to the Purchasing Lenders and the Transferor Lender, counterpart signature pages of this Commitment Transfer Supplement executed by Transferor Lender and Agent, and (y) to the Purchasing Lender a Transfer Effective Notice, substantially in the form of Schedule II to this Commitment Transfer Supplement (a “Transfer Effective Notice”), which includes, inter alia, a calculation of the Purchase Price (defined below). Such Transfer Effective Notice shall set forth, inter alia, the date on which the transfer effected by this Commitment Transfer Supplement shall become effective (the “Transfer Effective Date”), which date unless otherwise noted therein, shall be the first Business Day following the date such Transfer Effective Notice is received, and which effectiveness shall, as set forth in Paragraph 3 below, be subject to payment and receipt by Transferor Lender of the entire Purchase Price (defined below).

 

3.    At or before 2:00 p.m. (New York City time) on May 8, 2022 (or such later date as agreed to by Transferor Lender), Purchasing Lenders shall pay, without deduction or offset of any kind, to Transferor Lender in immediately available funds, in accordance with the wire instructions set forth on Schedule III attached hereto, an amount equal to the total purchase price, which shall be an amount equal to 100% (such portion for each Purchasing Lender being such Purchasing Lender’s “Purchased Percentage”) of the outstanding principal Advances, plus all accrued interest, costs, fees, and expenses and other amounts owing to the Transferor Lender under the Credit Agreement and the Note(s) (the “Purchase Price”). Effective upon receipt by Transferor Lender of the entire Purchase Price from the Purchasing Lenders, Transferor Lender irrevocably sells, assigns and transfers to such Purchasing Lender, without recourse, representation or warranty, and Purchasing Lender irrevocably purchases, takes and assumes from Transferor Lender, such Purchasing Lender's Purchased Percentage of the Advances and other amounts owing to the Transferor Lender under the Credit Agreement and the Note(s) together with all instruments, documents and collateral security pertaining thereto and such Purchasing Lender shall be a Lender party to the Credit Agreement for all purposes thereof. Each Purchasing Lender acknowledges and agrees that prior to and as of the date of this Commitment Transfer Supplement, Transferor Lender ceased providing, and had and has, and hereafter shall have, no further responsibility or duty of any kind to make, any loans or other funding or extensions of credit to or for Borrowers’ benefit, including without limitation the issuance of any letters of credit.

 

4.    Transferor Lender hereby agrees with each Purchasing Lender that any fees received pursuant to the Credit Agreement on or after the Transfer Effective Date shall be for the account of the relevant Purchasing Lender.

 

5.    (a)      All principal payments that would otherwise be payable from and after the Transfer Effective Date to or for the account of Transferor Lender pursuant to the Credit Agreement and the Note(s) shall, instead, be payable to or for the account of Purchasing Lenders in accordance with such Purchasing Lender’s Purchased Percentage as reflected in this Commitment Transfer Supplement (with no duty assumed by Transferor Lender or Agent with respect thereto).

 

(b)     All interest, fees and other amounts that would otherwise accrue for the account of Transferor Lender from and after the Transfer Effective Date pursuant to the Credit Agreement and the Note(s) shall, instead, accrue for the account of, and be payable to, Purchasing Lenders in accordance with such Purchasing Lender’s Purchased Percentage as reflected in this Commitment Transfer Supplement (with no duty assumed by Transferor Lender or Agent with respect thereto). In the event that any amount of interest, fees or other amounts accruing after the Transfer Effective Date is paid in error to the Transferor Lender, the Transferor Lender and each Purchasing Lender will make appropriate arrangements for payment by Transferor Lender to such Purchasing Lender of such amount upon receipt thereof from Borrowers.

 

6.    Each of the parties to this Commitment Transfer Supplement agrees that at any time and from time to time upon the written request of any other party, it will execute and deliver such further documents and do such further acts and things as such other party may reasonably request in order to effectuate the purposes of this Commitment Transfer Supplement.

 

7.    By executing and delivering this Commitment Transfer Supplement, Transferor Lender and Purchasing Lenders confirm to and agree with each other and Agent and Lenders as follows: (i) other than the representation and warranty that it is the legal and beneficial owner of the interest being assigned hereby free and clear of any adverse claim, Transferor Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Credit Agreement or the execution, legality, validity, enforceability or genuineness of the Credit Agreement, the Note(s) or any other instrument or document furnished pursuant thereto or the sufficiency, location, quantity, quality or value of any of the Collateral; (ii) Transferor Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of Borrowers or the performance or observance by Borrowers of any of their Obligations under the Credit Agreement, the Note(s) or any other instrument or document furnished pursuant hereto; (iii) Purchasing Lenders confirm that they have received a copy of the Credit Agreement, together with copies of such financial statements and such other documents and information as they have deemed appropriate to make its own credit analysis and decision to enter into this Commitment Transfer Supplement; (iv) Purchasing Lenders will, independently and without reliance upon Agent, Transferor Lender or any other Lenders and based on such documents and information as they shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; (v) Purchasing Lenders agree that they will perform all of their respective obligations as set forth in the Credit Agreement to be performed by each as a Lender; (vi) each Purchasing Lender represents and warrants to Transferor Lender, Lenders, Agent and Borrowers that it is either (x) entitled to the benefits of an income tax treaty with the United States of America that provides for an exemption from the United States withholding tax on interest and other payments made by Borrowers under the Credit Agreement and the Other Documents or (y) is engaged in trade or business within the United States of America; (vii) each Purchasing Lender represents and warrants (x) the sale and purchase of any Advances contemplated by this Commitment Transfer Supplement does not constitute the sale of a “security” or “securities” within the meaning of any applicable securities laws or regulations, (y) without characterizing any Advance as a “security” within the meaning of applicable securities laws or regulations, Purchasing Lenders are not purchasing any Advance with a view toward the sale or distribution thereof in violation of applicable securities laws or regulations, and (z) each Purchasing Lender is an “accredited investor” as defined in Rule 501 of Regulation D under the Securities Act of 1933, as amended; and (viii) the sale of the Advances, as contemplated by this Commitment Transfer Supplement, is made without recourse. In the event any Purchasing Lender is unable to collect any sum on account of any Advances or other Obligations from any Borrowers or any guarantor or any collateral securing any Advances, or other obligations, Purchasing Lenders shall have no recourse against or right to indemnification or contribution from Transferor Lender therefor for any reason whatsoever.

 

8.    By their execution and delivery of this Commitment Transfer Supplement and related agreements (including the separate Agency Transfer Agreement dated on March 8, 2022 (the “Agency Transfer Agreement”) by and among the Agent, Ankura Trust Company, LLC, as the replacement agent (the “Replacement Agent”), the Purchasing Lenders and the Borrowers) and by the transactions contemplated hereby and thereby, Agent and Transferor Lender do not intend to terminate or release, as to Agent and Transferor Lender, any indemnity contained in the Credit Agreement or the Other Documents given by Borrowers for the benefit of Agent, Transferor Lender or any and all other related parties, and do specifically intend that each of such indemnities shall survive the execution and delivery of this Commitment Transfer Supplement and the transactions contemplated hereby and continue to be effective for the benefit of Agent, Transferor Lender and related parties (without diminishing or altering the benefit thereof for Purchasing Lenders) and applicable to any and all actions, claims, losses, damages and expenses sustained or incurred by Agent, Transferor Lender or related parties at any time whether related to events, conditions or occurrences prior to or after the Transfer Effective Date hereof.

 

9.    Purchasing Lenders shall pay on a timely basis all transfer, filing and recording fees, taxes, costs and expenses, and any applicable documentary taxes, required to be paid by either Transferor Lender, Agent or Purchasing Lenders in connection with the assignment of the Advances, the Credit Agreement and the Other Documents and the transfer of the Collateral to the Purchaser Lenders (or any successor agent), and the transactions contemplated by this Commitment Transfer Supplement.

 

10.    Schedule I hereto sets forth the revised Revolving Commitment Percentages of Transferor Lender and the Revolving Commitment Percentage of each Purchasing Lender, as of the Transfer Effective Date, as well as administrative information with respect to each Purchasing Lender.

 

11.    This Commitment Transfer Supplement shall, in accordance with Section 5-1401 of the General Obligations Law of the State of New York, be governed by, and construed in accordance with, the laws of the State of New York.

 

12.    THE PARTIES HERETO, ON BEHALF OF THEMSELVES AND THEIR SUCCESSORS AND ASSIGNS, AGREE THAT ANY SUIT, ACTION OR PROCEEDING, WHETHER CLAIM OR COUNTERCLAIM, BROUGHT OR INSTITUTED BY OR AGAINST ANY PARTY HERETO OR ANY SUCCESSOR OR ASSIGN OF ANY PARTY HERETO, ARISING OUT OF OR IN ANY WAY RELATING TO THIS COMMITMENT TRANSFER SUPPLEMENT, OR ANY FACTS OR CIRCUMSTANCES IN WHICH THIS COMMITMENT TRANSFER SUPPLEMENT IS INVOLVED IN ANY WAY, SHALL BE TRIED ONLY BY A COURT AND NOT BY A JURY. EACH PARTY HERETO KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY SUCH SUIT, ACTION OR PROCEEDING. EACH OF THE PARTIES HERETO REPRESENTS AND WARRANTS THAT THIS WAIVER OF THE RIGHT TO A JURY TRIAL HAS BEEN MADE AFTER CONSULTATION WITH LEGAL COUNSEL.

 

13.    Each Purchasing Lender represents, warrants and covenants to Transferor Lender and Agent that: (a) no Covered Entity (i) is a Sanctioned Person; (ii) has any of its assets in a Sanctioned Jurisdiction or in the possession, custody or control of a Sanctioned Person; or (iii) directly or indirectly (A) does business in or with, or (B) derives any of its operating income from investments in or transactions with, or (C) engages in any transactions or other dealings with or for the benefit of any Sanctioned Person or Sanctioned Jurisdiction; (b) the funds used to purchase the Advances are not derived from any unlawful activity; and (c) each Covered Entity is in compliance with, and no Covered Entity engages directly or indirectly in any dealings or transactions prohibited by the laws of the United States, including but not limited to any Anti-Terrorism Laws or Anti-Corruption Laws. Each Covered Entity has conducted its business in compliance with all Anti-Corruption Laws and has instituted and maintains policies and procedures designed to ensure compliance with such Laws. Purchasing Lenders covenant and agree that it will not directly or indirectly use the Advances or any proceeds thereof for any purpose which would breach any Anti-Corruption Laws in any jurisdiction in which any Covered Entity conducts business. As used herein: “Anti-Corruption Law” means the United States Foreign Corrupt Practices Act of 1977, as amended, and any other similar anti-corruption Law or regulations administered or enforced in any jurisdiction in which the Purchasing Lenders or any of their respective Subsidiaries conduct business. “Anti-Terrorism Laws” means any Law in force or hereinafter enacted related to terrorism, money laundering, or economic sanctions, including the Bank Secrecy Act, 31 U.S.C. § 5311 et seq., the USA PATRIOT Act, the International Emergency Economic Powers Act, 50 U.S.C. 1701, et seq., the Trading with the Enemy Act, 50 U.S.C. App. 1, et seq., 18 U.S.C. § 2332d, and 18 U.S.C. § 2339B; “Covered Entity” means (a) Purchasing Lender, their respective affiliates and subsidiaries, all owners of the foregoing, and all brokers or other agents of such Purchasing Lender acting in any capacity in connection with the transactions contemplated by this Commitment Transfer Supplement and (b) each Person that directly or indirectly controls a Person described in clause (a) above. For purposes of this definition, control of a Person means the direct or indirect (x) ownership of, or power to vote, 25% or more of the issued and outstanding equity interests having ordinary voting power for the election of directors of such Person or other Persons performing similar functions for such Person, or (y) power to direct or cause the direction of the management and policies of such Person whether by ownership of equity interests, contract or otherwise.; “Embargoed Property” means any property; (a) beneficially owned, directly or indirectly, by a Sanctioned Person; (b) that is due to or from a Sanctioned Person; (c) in which a Sanctioned Person otherwise holds any interest; (d) that is located in a Sanctioned Jurisdiction; or (e) that otherwise would cause any actual or possible violation by Transferor Lender of any applicable Anti-Terrorism Law if the Transferor Lender was to obtain an encumbrance on, lien on, pledge of, or security interest in such property, or provide services in consideration of such property. “Law” means any law(s) (including common law), constitution, statute, treaty, regulation, rule, ordinance, opinion, issued guidance, release, ruling, order, executive order, injunction, writ, decree, bond, judgment, authorization or approval, lien or award of or any settlement arrangement, by agreement, consent or otherwise, of any Official Body, foreign or domestic. “Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Official Body or other entity. “OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury. “Official Body” means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank) and any group or body charged with setting financial accounting or regulatory capital rules or standards (including the Financial Accounting Standards Board, the Bank for International Settlements or the Basel Committee on Banking Supervision or any successor or similar authority to any of the foregoing).“Reportable Compliance Event” means that (1) any Covered Entity becomes a Sanctioned Person, or is charged by indictment, criminal complaint, or similar charging instrument, arraigned, custodially detained, penalized or the subject of an assessment for a penalty, or enters into a settlement with an Official Body in connection with any or receives an inquiry from regulatory or law enforcement officials, in connection with any Anti-Terrorism Law or Anti-Corruption Law, or any predicate crime to any Anti-Terrorism Law or Anti-Corruption Law, or has knowledge of facts or circumstances to the effect that is reasonably likely that implicating any aspect of its operations represents a violation of any Anti-Terrorism Law or Anti-Corruption Law; (2) any Covered Entity engages in a transaction that has caused or may cause the Transferor Lender to be in violation of any Anti-Terrorism Laws or Anti-Corruption Laws, including a Covered Entity’s funds used to purchase the Advances being derived from, directly or indirectly, a Sanctioned Person or Sanctioned Jurisdiction; (3) any Collateral becomes Embargoed Property; “Sanctioned Jurisdiction” means a country, territory, or region subject to a sanctions program administered by OFAC; and “Sanctioned Person” means (a) a Person that is the subject of sanctions administered by OFAC or the U.S. Department of State (“State”), including by virtue of being: (i) named on OFAC’s list of “Specially Designated Nationals and Blocked Persons”; (ii) organized under the laws of, ordinarily resident in, or physically located in a Sanctioned Jurisdiction; (iii) owned or controlled 50% or more in the aggregate by one or more Persons that are the subject of sanctions administered by OFAC; (b) a Person that is the subject of sanctions imposed by any Official Body of a jurisdiction whose laws apply to this Commitment Transfer Supplement. Purchasing Lenders have provided, and has caused each other Covered Entity to provide, to Transferor Lender, any and all certifications and information that Transferor Lender has requested to confirm compliance by Purchasing Lenders and each other Covered Entity with Anti-Terrorism Laws including, without limitation, (i) in the case of an individual purchaser, his or her name and home address; (ii) in the case of an entity purchaser that is not a publicly traded entity, the name, address and taxpayer identification number of such entity and of each other Covered Entity; and (iii) such information about Purchasing Lenders’ source of funds as Transferor Lender may request to ensure compliance with Anti-Terrorism Laws. No sale of the Advances shall be consummated until Purchasing Lenders have provided all required information to Transferor Lender’s sole satisfaction.

 

 

14.    Purchasing Lenders acknowledge that Agent and Transferor Lender have or may have, but will not be giving Purchasing Lenders access to or transferring to Purchasing Lenders, certain documents and information regarding the Advances, the Credit Agreement and Other Documents, the Borrowers and the Collateral securing the Advances, including, without limitation, (a) any reports, memoranda, loan servicing files and records, or any other documents generated internally by Agent or Transferor Lender or any predecessor holder of the Advances including, without limitation, any document stating in any way the value of any collateral securing the Advances or any portion thereof or any conclusions or determinations of Agent or Transferor Lender or any predecessor holder of the Advances with respect to the net recovery value of the Advances; (b) any attorney-client privilege that exists or existed between the Agent and Transferor Lender and their respective attorneys prior to the date of this Commitment Transfer Supplement and any confidential communications between Agent or Transferor Lender or any predecessor holder of the Advances (or any agent or vendor of either) and its respective attorneys which are subject to the attorney-client privilege and any documents which are privileged as attorney-work product of such attorney; (c) any other documents which were intended to be confidential and to which no Loan Party has heretofore been afforded access; or (d) any personal financial statements of any Borrower, which documents and information that may not be known to Purchasing Lenders and that might be material to Purchasing Lenders’ decision to acquire the Advances, including documents and information such as credit approvals, charge-off reports, non-performing asset reports, and rating change memoranda, written officer comments regarding the Borrowers’ respective character or credit issues, attorney-client correspondence, or other information to or from attorneys or prepared in anticipation of litigation, and references to the “net to bank” or “net investment” balance on an Advance (collectively, the “Excluded Information”). Purchasing Lenders have decided to buy the Advances notwithstanding their lack of knowledge of the Excluded Information, and Purchasing Lenders acknowledge and agree that Agent and Transferor Lender will have no liability to Purchasing Lenders for nondisclosure of any Excluded Information, as long as such Excluded Information does not affect the truth or accuracy of any representation or warranty made by Transferor Lender in this Commitment Transfer Supplement.

 

15.    After the Transfer Effective Date, Purchasing Lenders shall not (a) institute, prosecute or defend any legal action in the name of Transferor Lender, (b) misrepresent or conceal from any person the identity of Purchasing Lenders as the purchaser of the Advances, whether through misrepresentation or nondisclosure, or otherwise, or (c) make any commitment or take any action in the name of or on behalf of Transferor Lender.

 

16.    Purchasing Lenders, together with its successors and assigns, shall, jointly and severally, indemnify, save and keep Agent, and any parent, subsidiary, participant, co-lender and affiliate of Agent, and their respective officers, directors, employees, agents, attorneys, professionals, successors and assigns (each an “Indemnified Person”) harmless against any and all liabilities, claims, actions or causes of action, assessments, losses, fines, penalties, costs, damages and expenses, including reasonable attorneys’ fees, sustained or incurred by any Indemnified Person as a result of, or arising out of, or by virtue of: (a) the inaccuracy or breach of any representation, warranty or covenant made or given by any Purchasing Lender in this Commitment Transfer Supplement; and (b) any act or omission of any Purchasing Lender resulting in any claim, demand or assertion that Agent, subsequent to the Transfer Effective Date, engaged in or authorized any unlawful collection practices in connection with the Advances; it being acknowledged that each party shall promptly notify the other after receiving notice or knowledge of any such claim, demand or assertion.

 

Each Indemnified Person may defend any such claim or cause of action brought or asserted against such Indemnified Person arising out of any of the foregoing at the expense of Purchasing Lenders, with counsel designated by such Indemnified Person and to the exclusion of Purchasing Lenders. Alternatively, such Indemnified Person may call upon Purchasing Lender to defend any such action at Purchasing Lenders’ sole cost and expense. Such Indemnified Person may, in such Indemnified Person’s sole and exclusive discretion, adjust, settle, or compromise any such claim or cause of action made upon or brought against such Indemnified Person, and Purchasing Lenders shall indemnify such Indemnified Person for any such amounts adjusted, settled or compromised, as well as all costs and expenses, including reasonable attorneys’ fees incurred in connection therewith. Purchasing Lenders acknowledge and agree that Purchasing Lenders’ obligations hereunder are unconditional, unlimited and shall survive the Transfer Effective Date and continue in full force and effect at all times after the Transfer Effective Date unless specifically terminated in writing by a duly authorized officer of Agent.

 

17.    Transferor Lender shall deliver to Ropes & Gray LLP, counsel to the Purchasing Lenders, the original Note(s) held by it.

 

18.    This Commitment Transfer Supplement is for the sole benefit of Purchasing Lenders and Transferor Lender and their respective successors and, in the case of Purchasing Lenders, permitted assigns, and nothing herein, express or implied, is intended to or shall confer upon Borrowers or any other person any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Commitment Transfer Supplement.

 

19.    If any term or provision of this Commitment Transfer Supplement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Commitment Transfer Supplement or invalidate or render unenforceable such term or provision in any other jurisdiction.

 

20.    This Commitment Transfer Supplement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. Facsimile, scanned pdf, or other generally recognized electronic signatures shall be effective as originals.

 

21.    This Commitment Transfer Supplement, including all exhibits, schedules, lists and other documents referred to herein which form a part hereof, contains the entire understanding of the parties hereto with respect to the subject matter contained herein. All prior or contemporaneous oral or written agreements pertaining to the subject matter hereof are superseded.

 

[Signature Page Follows]

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Commitment Transfer Supplement to be executed by their respective duly authorized officers on the date set forth above.

 

PNC BANK, NATIONAL ASSOCIATION, as Transferor Lender

 

By:         /s/ Kayla Reuter                                          

Name:    Kayla Reuter     

Title:      Vice President  

 

 

 

PNC BANK, NATIONAL ASSOCIATION, as

Agent

 

By:         /s/ Kayla Reuter                                          

Name:    Kayla Reuter     

Title:      Vice President

      

 

 

 

 

REDACTED, as a Purchasing Lender

By: Redacted

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By:       Redacted                                                             

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By:       Redacted                                                                

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By:       Redacted                                                                 

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By:       Redacted                                                                

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By:       Redacted                                                                

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By:       Redacted                                                                

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By:       Redacted                                                               

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By:       Redacted                                                                 

Name:ex_344591.htm

Exhibit 10.2

 

AGENCY TRANSFER AGREEMENT

 

This Agency Transfer Agreement (this “Agreement”), dated as of March 8, 2022, is executed by and among (i) ION GEOPHYSICAL CORPORATION, a Delaware corporation (“Geophysical”), ION EXPLORATION PRODUCTS (U.S.A.), INC., a Delaware corporation (“Exploration”), I/O MARINE SYSTEMS, INC., a Louisiana corporation (“Marine”), GX TECHNOLOGY CORPORATION, a Texas corporation (“GXT”), GX GEOSCIENCE CORPORATION, S. DE R.L. DE C.V., a Sociedad de Responsabilidad Limitada de Capital Variable organized under the laws of Mexico (“GX Geoscience” and, together with Geophysical, Exploration, Marine and GXT, collectively, “Borrowers”), (ii) the undersigned Guarantors (collectively, the “Guarantors”), (ii) the financial institutions a party hereto as lenders under the Credit Agreement referred to below (collectively, the “Purchasing Lenders” and each individually a “Purchasing Lender”), (iii) PNC Bank, National Association, a National Banking Association (“PNC”), as the existing Agent under the Credit Agreement referred to below (in such capacity, “Existing Agent”) and (iv) Ankura Trust Company, LLC, a Delaware limited liability company (“Ankura”), as the successor Agent under the Credit Agreement referred to below (in such capacity, “Replacement Agent”).

 

WHEREAS, Existing Agent is the Agent (as defined in the Credit Agreement referred to below) for itself and other Lenders under a certain Revolving Credit and Security Agreement dated as of August 22, 2014 (as amended, restated, amended and restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”; capitalized terms used but not defined herein shall have the meanings given to such terms in the Credit Agreement) among Borrowers, the financial institutions which are now or which thereafter become a party thereto (collectively, the “Lenders” and each individually, a “Lender”), and Existing Agent, as agent for Lenders (in such capacity, “Agent”);

 

WHEREAS, the Transferor Lender and the Purchasing Lenders (each as defined in the Commitment Transfer Supplement referred to below) entered into a certain Master Commitment Transfer Supplement, dated as of March 7, 2022 (the “Commitment Transfer Supplement”), pursuant to which the Transferor Lender is selling and transferring to Purchasing Lenders and Purchasing Lenders are purchasing and assuming from the Transferor Lender all of the Advances owing to the Transferor Lender, as well as the rights, duties, obligations and commitments of the Transferor Lender under the Credit Agreement and related agreements and documents, all subject to the terms and conditions of such Commitment Transfer Supplement;

 

WHEREAS, subject to payment and prior receipt by Transferor Lender of the entire Purchase Price (as defined in the Commitment Transfer Supplement) (i) Existing Agent is resigning as Agent and is to be replaced as Agent under the Credit Agreement and (ii) in connection with such resignation, Existing Agent is to be paid all of the fees and expenses owing to Existing Agent, and in furtherance of such resignation, the Purchasing Lenders, which Purchasing Lenders represent constitute the Required Lenders under the Credit Agreement, have decided to appoint Replacement Agent as successor Agent under the Credit Agreement and Replacement Agent has agreed to become the successor Agent under the Credit Agreement, all subject to the terms and conditions hereinafter set forth;

 

WHEREAS, the parties desire to memorialize such agency transfer and replacement appointment under and subject to the terms and conditions hereof; and

 

WHEREAS, the Loan Parties are executing this Agreement to reflect their acknowledgement and approval of the terms hereof.

 

THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

 

1.     Subject to payment and prior receipt by Transferor Lender of the entire Purchase Price (as defined in the Commitment Transfer Supplement), Existing Agent resigns as Agent under the Credit Agreement and, as requested by the Purchasing Lenders, any and all rights, claims, interests, duties and obligations, as well as all liens and rights related thereto, are assigned and transferred, without representation, warranty (including without limitation as to the validity, priority, enforceability or perfection of any liens securing any of the Obligations) or recourse of any kind or nature, to Replacement Agent as of the Effective Date (as defined below) and by reason thereof, Replacement Agent shall succeed to all such rights, claims, interest, duties, obligations and liens of Existing Agent under the Credit Agreement and the Other Documents. Purchasing Lenders acknowledge and consent to such agency transfer and unconditionally agree that, except to the extent expressly set forth herein and in Section 14.4 of the Credit Agreement, Existing Agent shall have no further duties, responsibilities or obligations of any kind, in its capacity as Agent, under or in connection with the Credit Agreement. Notwithstanding anything to the contrary contained in this Agreement, until such time as all Collateral in the “possession” or “control” (as defined in the UCC) of the Existing Agent or any agents or bailee thereof) has been assigned or otherwise transferred to the Replacement Agent, the Existing Agent shall continue to hold such Collateral and will continue to possess all such Collateral, including all proceeds thereof, as bailee for, and for the benefit and on behalf of, the Replacement Agent and any assigns for the purpose of perfecting the security interest granted under the Credit Agreement and the Other Documents until such transfer is completed; provided, that Existing Agent shall have no duties or obligations with respect to such Collateral other than to hold such Collateral until such transfer is completed.

 

2.     Pursuant to Section 14.4 of the Credit Agreement, effective as of the Effective Date, (i) the Purchasing Lenders hereby appoint Ankura to act as Replacement Agent, (ii) Ankura hereby accepts the appointment to act as Replacement Agent under the Credit Agreement and the Other Documents, and (iii) the Borrowers and the Purchasing Lenders hereby waive the 60 days’ prior written notice of resignation required by Section 14.4 of the Credit Agreement and any other inconsistency or conflict with the provisions in Section 14.4 of the Credit Agreement with respect to the resignation of PNC as Existing Agent and the appointment of Ankura as the Replacement Agent.

 

3.     Replacement Agent’s appointment as successor Agent and the assignment and assumption of the Liens and security interests described above shall be effective upon the later of the date on which (x) Transferor Lender receives the entire Purchase Price (as defined in the Commitment Transfer Supplement) in accordance with the terms of the Commitment Transfer Supplement, and (y) all of the following conditions have been satisfied (such date, the “Effective Date”): (i) Existing Agent and Replacement Agent receive duly executed counterparts (in accordance with Section 12 hereof) of this Agreement that, when taken together, bear the signatures of Existing Agent, the Loan Parties, Replacement Agent and the Purchasing Lenders; (ii) Replacement Agent and Borrowers shall have executed and delivered a fee letter in relation to the annual agency fee and any other related fees paid to Replacement Agent by Borrowers (the “Replacement Agent Fee Letter”); (iii) Replacement Agent shall have received payment in immediately available funds of its accrued and unpaid fees pertaining to its role as successor Agent under the Credit Agreement and Other Documents, including any fees pursuant to the Replacement Agent Fee Letter; and (iv) Replacement Agent shall have received the Seventh Amendment to Revolving Credit and Security Agreement, duly executed by the Borrowers, the Purchasing Lenders, and Replacement Agent. Replacement Agent acknowledges and agrees that the foregoing conditions (i) through (iv) have been satisfied as of the date of this Agreement.

 

4.     At Loan Parties’ cost and expense, the parties hereto shall execute and deliver such other agreements and documents as may be reasonably necessary to effectuate the foregoing and carry out the terms hereof, including to facilitate the transfer of information to Replacement Agent in connection with the Credit Agreement and the Other Documents. No filing fees in connection with the transactions described herein shall be the responsibility of the Existing Agent. If on or after the Effective Date, the Existing Agent receives any proceeds of Collateral in its capacity as a predecessor Agent under the Credit Agreement, (i) the Existing Agent shall forward such proceeds or funds to the Replacement Agent, in its capacity as successor Agent, in accordance with the written instructions given by the Replacement Agent to the Existing Agent on the date hereof at the expense of the Borrowers, and (ii) the Existing Agent shall incur no liability in connection therewith to the extent such proceeds or funds are accorded treatment that would not constitute gross negligence or willful misconduct on the part of the Existing Agent. The Existing Agent authorizes the Replacement Agent to file Uniform Commercial Code amendment statements, assignments of intellectual property security agreements, or other assignment instruments, assigning all of the Existing Agent's security interests under the Credit Agreement and the Other Documents to the Replacement Agent in its capacity as successor Agent as may be reasonably appropriate and necessary to effect the assignments contemplated by the Commitment Transfer Supplement and this Agreement, so long as the Replacement Agent first provides copies of any such proposed filings to Existing Agent. Replacement Agent acknowledges that it has received copies of the Credit Agreement and Other Documents listed on Schedule II hereto.

 

5.     Information Regarding Status of Credit Agreement and Other Documents. The Existing Agent hereby certifies to the Replacement Agent that:

 

(a)         Possessory Collateral. To the actual knowledge after reasonable investigation of the relationship manager of Existing Agent currently managing the Loan Parties’ credit facility, Schedule I sets forth a complete and accurate list of all possessory Collateral delivered to Existing Agent and all control agreements, security and intellectual property filings and other filings or documents related to Liens on the Collateral or the creation or perfection thereof that have been delivered or entered into by the Existing Agent on or prior to the date hereof.

 

(b)         Credit Agreement and Other Documents. To the actual knowledge after reasonable investigation of the relationship manager of Existing Agent currently managing the Loan Parties’ credit facility, (i) Schedule II sets forth the Credit Agreement and each Other Document which is in the possession of the Existing Agent or to which the Existing Agent is a party, and (ii) as of the date hereof there have been no written amendments, supplements or consents to the Credit Agreement and the Other Documents except as otherwise set forth on Schedule II. Electronic copies of execution versions of the Credit Agreement and each such Other Document, together with all exhibits and schedules thereto, have been delivered to Replacement Agent prior to the date hereof. Notwithstanding anything to the contrary contained in this Agreement, the Existing Agent will have no obligation to deliver any fee or engagement letter entered into in connection with the Credit Agreement between the Existing Agent (or any of the Existing Agent’s affiliates) and any of the Loan Parties.

 

6.     Exculpation of Replacement Agent. The Loan Parties and the Purchasing Lenders acknowledge and agree that:

 

(a)         Replacement Agent shall bear no responsibility or liability for any actions taken or omitted to be taken by PNC while it served as Existing Agent under the Credit Agreement and the Other Documents or for any other actions, omissions, events, or claims related to the Credit Agreement and the Other Documents which occurred or arose prior to the Effective Date (including, without limitation, calculations, determinations, or distributions made under the Credit Agreement and the Other Documents prior to the Effective Date).

 

(b)         Nothing in this Agreement or in the Commitment Transfer Supplement shall be deemed a termination of the rights, benefits, immunities, exculpatory provisions and indemnities in favor of the Existing Agent (collectively, the “Protective Provisions”) of the Credit Agreement or any Other Document (including, without limitation, Article XIV and Sections 16.5 and 16.9 of the Credit Agreement), which provisions shall survive for the benefit of Existing Agent and shall also continue in effect for the benefit of the Replacement Agent and their respective Indemnified Parties, in respect of any actions taken or omitted to be taken by any of them while acting in such capacities.

 

(c)         The Protective Provisions shall apply with respect to any and all losses, claims, damages, liabilities, costs and expenses that Replacement Agent or any of its Indemnified Parties suffers, incurs or is threatened with arising out of or relating to (i) the preparation, negotiation, execution and delivery of this Agreement and the other instruments and agreements provided for herein, (ii) the performance of the parties hereto of their respective obligations hereunder, (iii) the consummation of the transactions, succession and assignment contemplated hereby or (iv) any actions, omissions, events, occurrences or claims described in clause 6(a) above.

 

(d)         Replacement Agent shall be entitled to conclusively rely upon, and shall not incur any liability for relying upon (including, without limitation, for the purpose of making any calculation, determination, or distribution under the Credit Agreement and the Other Documents), the records and other information supplied to it by any Lender, Existing Agent, Borrowers, or any other Loan Parties. Without limiting the generality of the foregoing, Replacement Agent (i) shall be entitled to conclusively rely upon, and shall not incur any liability for relying upon, the list of Other Documents (including the UCC filings and other filings in respect of the Collateral) described on Schedule I and Schedule II, and (ii) shall not be deemed to have any knowledge or notice of any Other Document (including any other UCC filings or other filings in respect of the Collateral) that is not described on Schedule I or Schedule II until it has actually received a copy or notice of such Other Document.

 

(e)         The Purchasing Lenders hereby acknowledge and agree that Ankura, in succeeding to the position of Agent, (i) has undertaken no analysis of the Credit Agreement and the Other Documents or the Collateral and (ii) has made no determination as to (x) the validity, enforceability, effectiveness, perfection, or priority of any Liens granted or purported to be granted pursuant to the Credit Agreement and the Other Documents or (y) the accuracy or sufficiency of the documents, filings, recordings and other actions taken to create, perfect, maintain or continue the existence, perfection or priority of the Liens granted or purported to be granted pursuant to the Credit Agreement and the Other Documents. Ankura shall be entitled to assume that, as of the date hereof, all Liens purported to be granted and perfected pursuant to the Credit Agreement and the Other Documents are valid and perfected Liens having the priority intended by the Lenders and the Credit Agreement and the Other Documents.

 

7.     Borrowers hereby direct the Existing Agent to, and the Existing Agent agrees to, at the Borrowers’ sole expense, deliver to the Replacement Agent within a reasonable time period (but, in any event, within five Business Days (or such longer period of time to which the Replacement Agent may agree in its reasonable discretion)) after the Effective Date each note, stock certificate, stock powers, instrument or other item or document listed on Schedule I hereto that was physically delivered to the Existing Agent and its in its possession, custody and control as of the Effective Date.

 

8.     This Agreement and the other instruments and agreements provided for herein shall be considered to be Other Documents, and the Credit Agreement shall, where the context requires, be read and construed throughout so as to incorporate this Agreement and such other instruments and agreements.

 

9.     This Agreement may be amended or its terms waived only by an agreement approved in writing by the party against whom enforcement is sought.

 

10.    This Agreement is for the sole and exclusive benefit of the Existing Agent and Replacement Agent and none of the provisions of this Agreement shall be deemed for the benefit of the Loan Parties or any other person or entity.

 

11.    This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts to be performed wholly within the State of New York.

 

12.    This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same final executed Agreement. Any counterpart may be delivered by facsimile or by other electronic format, each of which shall have the same force and effect as if bearing original signatures.

 

13.    THE PARTIES HERETO PROMISE AND AGREE THAT ANY SUIT, ACTION OR PROCEEDING, WHETHER CLAIM OR COUNTERCLAIM, BROUGHT OR INSTITUTED BY OR AGAINST ANY PARTY HERETO ARISING OUT OF OR IN ANY WAY RELATING TO THIS AGREEMENT SHALL BE TRIED ONLY BY A COURT OF COMPETENT JURISDICTION AND EACH PARTY HERETO THEREFORE KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN CONNECTION HEREWITH.

 

14.    ALL ACTIONS OR PROCEEDINGS IN ANY WAY, MANNER OR RESEPCT, ARISING OUT OF OR FROM, RELATED TO OR IN CONNECTION WITH THIS AGREEMENT, THE OTHER DOCUMENTS OR THE COLLATERAL SHALL BE LITIGATED IN COURTS HAVING SITUS WITHIN THE BOROUGH OF MANHATTAN, COUNTY OF NEW YORK, STATE OF NEW YORK. EACH OF THE LOAN PARTIES HEREBY CONSENTS AND SUBMITS TO THE JURISDICTION OF ANY LOCAL, STATE OR FEDERAL COURTS LOCATED WITHIN SAID CITY AND STATE. EACH OF THE LOAN PARTIES HEREBY WAIVES ANY RIGHT IT MAY HAVE TO TRANSFER OR CHANGE THE VENUE OF ANY LITIGATION BROUGHT AGAINST ANY LOAN PARTY BY ANY SECURED PARTY IN ACCORDANCE WITH THIS SECTION.

 

[Signatures Begin on Next Page]

 

 

 

IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed by its authorized representative as of the date first written above.

 

EXISTING AGENT:                     PNC BANK, NATIONAL ASSOCIATION

 

            By:              /s/ Kayla Reuter                                 

            Name:         Kayla Reuter

            Title:           Vice President

 

 

 

[Signatures continue on following page(s)]

 

 

 

 

 

REPLACEMENT AGENT:          ANKURA TRUST COMPANY, LLC

 

 By:           /s/ Krista Gutalo                                    

 Name:     Krista Gutalo

 Title:       Managing Director

 

 

 

[Signatures continue on following page(s)]

 

 

 

BORROWERS:

ION GEOPHYSICAL CORPORATION

 

By:         /s/ Michael Morrison                              

Name:    Michael Morrison

Title:      EVP & CFO

 

 

ION EXPLORATION PRODUCTS (U.S.A.), INC.

 

By:         /s/ Michael Morrison                                                                      

Name:    Michael Morrison

Title:      EVP & CFO

 

 

I/O MARINE SYSTEMS, INC.

 

By:         /s/ Michael Morrison                                                                      

Name:    Michael Morrison

Title:      Vice President

 

 

GX TECHNOLOGY CORPORATION

 

By:         /s/ Michael Morrison                                                                      

Name:    Michael Morrison

Title:      Vice President

 

 

GX GEOSCIENCE Corporation, S. DE R.L. DE C.V.

 

By:         /s/ Michael Morrison                                                                        

Name:    Michael Morrison

Title:      Vice President and Attorney-in-Fact

 

GUARANTORS:

GX TECHNOLOGY SISMICA DO BRASIL LTDA.

 

By:        /s/ Nilo Cunha Furtada De Mendonca                                                     

Name:    Nilo Cunha Furtada De Mendonca

Title:      Manager and Legal Representative     

 

 

ION INTERNATIONAL S.À R.L.

 

By:         /s/ Mark Evans                                                                                    

Name:     Mark Evans      

Title:       Category A Manager    

 

 

I/O LUXEMBOURG S.À R.L.

 

By:         /s/ Mark Evans                                                                                   

Name:     Mark Evans     

Title:       Category A Manager  

 

 

ION INTERNATIONAL HOLDINGS, L.P., acting

by its General Partner, ION Exploration Products (U.S.A.), Inc.

 

By:         /s/ Michael Morrison                                                                        

Name:     Michael Morrison         

Title:       Director, Vice President   

 

I/O UK HOLDINGS LIMITED

 

By:          /s/ Alistair Arnot                                                                            

Name:     Alistair Arnot

Title:       Director, Secretary

 

 

 

PURCHASING LENDERS:

 

 

	 	
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			By:  /s/ Redacted                                                  

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			By:/s/ Redacted                                                       

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			By: /s/ Redacted                                                        

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			By: /s/ Redacted                                                       

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			By: /s/ Redacted                                                         

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			By: /s/ Redacted                                                        

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			By: /s/ Redacted                                                        

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