Document:

Exhibit 10.43

 

NOTICE OF CONFIDENTIALITY RIGHTS:  IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS:  YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER.

 

A CARBON, PHOTOGRAPHIC, FACSIMILE, OR OTHER REPRODUCTION OF THIS INSTRUMENT IS SUFFICIENT AS A FINANCING STATEMENT.

 

THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS, SECURES PAYMENT OF FUTURE ADVANCES, AND COVERS PROCEEDS OF COLLATERAL.

 

A POWER OF SALE HAS BEEN GRANTED IN THIS INSTRUMENT.  A POWER OF SALE MAY ALLOW TRUSTEE OR MORTGAGEE TO TAKE THE COLLATERAL AND SELL IT WITHOUT GOING TO COURT IN A FORECLOSURE ACTION UPON DEFAULT BY MORTGAGOR UNDER THIS INSTRUMENT.

 

 

DEED OF TRUST, SECURITY AGREEMENT, ASSIGNMENT OF RENTS AND LEASES AND FIXTURE FILING
 (TEXAS)

 

by and from

 

GLOBAL GEOPHYSICAL SERVICES, INC., a Delaware corporation,

 

(Mortgagor, Debtor and Grantor)

 

to

 

Aaron Roffwarg, an individual, as Trustee, “Trustee”

 

for the benefit of

 

BANK OF AMERICA, N.A., as Administrative Agent,

 

(Mortgagee, Beneficiary and Grantee)

 

dated as of April 30, 2010

 

	
County:
    	
Fort Bend
    
	
State:
    	
Texas
    

 

THIS INSTRUMENT IS A DEED OF TRUST AND A FIXTURE FILING AND SHOULD BE FILED FOR RECORD IN THE RECORDS WHERE DEEDS OF TRUST ON REAL ESTATE ARE RECORDED.  THIS INSTRUMENT SHOULD BE APPROPRIATELY INDEXED, NOT ONLY AS A DEED OF TRUST, BUT ALSO AS A FINANCING STATEMENT COVERING GOODS THAT ARE OR ARE TO BECOME FIXTURES ON THE REAL PROPERTY DESCRIBED HEREIN.

 

PREPARED BY:

 

Bracewell & Giuliani LLP
 711 Louisiana, Suite 2300
 Houston, Texas 77002
 Attention:  Heather Brown

 

RECORDING REQUESTED BY AND WHEN RECORDED, RETURN TO:

 

Bracewell & Giuliani LLP
 711 Louisiana, Suite 2300
 Houston, Texas 77002
 Attention:  Brandie Martin

 

 

DEED OF TRUST, SECURITY AGREEMENT, ASSIGNMENT OF RENTS AND LEASES AND FIXTURE FILING (TEXAS)

 

THIS DEED OF TRUST, SECURITY AGREEMENT, ASSIGNMENT OF RENTS AND LEASES AND FIXTURE FILING (TEXAS) (this “Deed of Trust”) is dated as of the 30th day of April, 2010, by and from GLOBAL GEOPHYSICAL SERVICES, INC., a Delaware corporation (“Mortgagor”), whose address is 13927 South Gessner Road, Missouri City, TX 77489, to Aaron Roffwarg, an individual, as trustee (“Trustee”), whose address is 711 Louisiana, Suite 2300, Houston, TX 77002, for the benefit of Bank of America, N.A., as Administrative Agent (“Mortgagee”), for the holders of the Secured Obligations (as defined below), having an address at Agency Management, 901 Main Street, 14th Floor, Dallas, Texas 75202-3714.

 

ARTICLE I
 Definitions

 

All capitalized terms used herein without definition shall have the respective meanings ascribed to them in that certain Credit Agreement dated as of April 30, 2010, among GLOBAL GEOPHYSICAL SERVICES, INC. (the “Borrower”), the financial institutions from time to time party thereto (collectively, the “Lenders” and individually, a “Lender”), and BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”), Swing Line Lender and L/C Issuer (as amended, amended and restated, supplemented, extended,  or otherwise modified from time to time, the “Credit Agreement”).  As used in this Deed of Trust, the following terms shall have the following meanings:

 

1.1                                 “Cash Collateral Accounts” means any deposit account with Mortgagee which is designated, maintained, and under the control of Mortgagee and over which Mortgagee has a security interest, and which has been established pursuant to the provisions of this Deed of Trust for the purposes described in this Deed of Trust, including for collecting, holding, disbursing, or applying certain funds, all in accordance with this Deed of Trust.

 

1.2                                 “Event of Default” shall have the meaning set forth in Article IV hereof.

 

1.3                                 “Indemnified Party” means the Mortgagee (and any sub-agent thereof), the Trustee, each Lender and the L/C Issuer, and each Related Party of any of the foregoing Persons.

 

1.4                                 “Mortgaged Property”:  All of Mortgagor’s present and future right, title and interest in and to (1) the fee interest in the real property described in Exhibit A attached hereto and incorporated herein by this reference, together with any greater estate therein as hereafter may be acquired by Mortgagor (the “Land”), (2) all improvements now owned or hereafter acquired by Mortgagor, now or at any time situated, placed or constructed upon the Land (the “Improvements”; the Land and Improvements are collectively referred to as the “Premises”), (3) all materials, supplies, equipment, apparatus and other items of personal property now owned or hereafter acquired by Mortgagor and now or hereafter attached to, installed in or used in connection with any of the Improvements or the Land, and water, gas, electrical, telephone, storm and sanitary sewer facilities and all other utilities whether or not situated in easements (the “Fixtures”), (4) all goods, accounts, general intangibles, instruments, documents, chattel paper

 

 

and all other personal property of any kind or character, including such items of personal property as defined in the UCC (defined below), now owned or hereafter acquired by Mortgagor and now or hereafter affixed to, placed upon, used in connection with, arising from or otherwise related to the Premises (the “Personalty”), (5) all reserves, escrows or impounds required under the Credit Agreement and all deposit accounts maintained by Mortgagor with respect to the Mortgaged Property (the “Deposit Accounts”), (6) all leases, licenses, concessions, occupancy agreements or other agreements (written or oral, now or at any time in effect) which grant to any Person a possessory interest in, or the right to use, all or any part of the Mortgaged Property, together with all related security and other deposits (the “Leases”), (7) all of the rents, revenues, royalties, income, proceeds, profits, security and other types of deposits, and other benefits paid or payable by parties to the Leases for using, leasing, licensing, possessing, operating from, residing in, selling or otherwise enjoying the Mortgaged Property (the “Rents”), (8) all other agreements, such as construction contracts, architects’ agreements, engineers’ contracts, utility contracts, maintenance agreements, management agreements, service contracts, listing agreements, guaranties, warranties, permits, licenses, certificates and entitlements in any way relating to the construction, use, occupancy, operation, maintenance, enjoyment or ownership of the Mortgaged Property (the “Property Agreements”), (9) all rights, privileges, tenements, hereditaments, rights-of-way, easements, appendages and appurtenances appertaining to the foregoing, (10) all property tax refunds (the “Tax Refunds”), (11) all accessions, replacements and substitutions for any of the foregoing and all proceeds thereof, howsoever arising, including from the collection, sale, lease, exchange, assignment, licensing or other disposition of such property, and all claims of Mortgagor against third parties for loss, damage or impairment of value of such property the (“Proceeds”), (12) all insurance policies, unearned premiums therefor and proceeds from such policies covering any of the above property now or hereafter acquired by Mortgagor (the “Insurance”), and (13) all awards, damages, remunerations, reimbursements, settlements or compensation heretofore made or hereafter to be made by any governmental authority pertaining to the Land, Improvements, Fixtures or Personalty (the “Condemnation Awards”).  As used in this Deed of Trust, the term “Mortgaged Property” shall mean all or, where the context permits or requires, any portion of the above or any interest therein.

 

1.5                                 “Permitted Liens”:  Liens permitted by the Credit Agreement.

 

1.6                                 “Secured Obligations”:  means (without duplication):

 

(a)                                  the Obligations; and

 

(b)                                 any increases, extensions, renewals, replacements, and rearrangements of the foregoing obligations under any amendments, supplements, and other modifications of the agreements creating the foregoing obligations, in each case, whether direct or indirect, absolute or contingent.

 

1.7                                 “UCC”:  The Uniform Commercial Code of Texas or, if the creation, perfection and enforcement of any security interest herein granted is governed by the laws of a state other than Texas, then, as to the matter in question, the Uniform Commercial Code in effect in that state.

 

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ARTICLE II
 Grant

 

2.1                                 Grant.  To secure the full and timely payment and performance of the Secured Obligations, Mortgagor GRANTS, BARGAINS, ASSIGNS, SELLS and CONVEYS, to Trustee the Mortgaged Property, subject, however, to the Permitted Liens, TO HAVE AND TO HOLD the Mortgaged Property, IN TRUST FOR MORTGAGEE, WITH POWER OF SALE, and Mortgagor does hereby bind itself, its successors and assigns to WARRANT AND FOREVER DEFEND the title to the Mortgaged Property unto Trustee, against anyone claiming by, though or under Mortgagor, but not otherwise.

 

2.2                                 Revolving Credit and Future Advances.  It is contemplated and acknowledged that the Secured Obligations may include revolving credit loans and advances from time to time, and that this Deed of Trust shall have effect as of the date hereof to secure all Secured Obligations, regardless of whether any amounts are advanced on the date hereof or on a later date or, whether having been advanced, are later repaid in part or in whole and further advances made at a later date. This Deed of Trust secures all future advances and obligations constituting Secured Obligations.

 

2.3                                 Mortgagor Remains Liable.  The granting of the liens, security interests, and assignments and the exercise by Trustee or Mortgagee of its rights hereunder shall not release Mortgagor from any obligations nor cause Trustee or Mortgagee to assume any obligations with respect to the Mortgaged Property.

 

ARTICLE III
 Warranties, Representations and Covenants

 

Mortgagor warrants, represents and covenants to Mortgagee as follows:

 

3.1                                 Incorporation of Representations and Warranties from Credit Agreement.  The representations and warranties contained in Article V of the Credit Agreement are hereby confirmed and restated, each such representation and warranty, together with all related definitions and ancillary provisions, being hereby incorporated into this Deed of Trust by reference as though specifically set forth in this Section, subject to the limitations thereon as set forth in the Credit Agreement.

 

3.2                                 Title to Mortgaged Property; Lien of this Instrument; Filings.  Mortgagor owns the Mortgaged Property free and clear of any liens, claims or interests, except the Permitted Liens and the matters described in Exhibit B attached hereto and incorporated by this reference.  This Deed of Trust creates valid, enforceable first priority liens and security interests against the Mortgaged Property, and the recording of this Deed of Trust in the real property records of Fort Bend County, Texas is the only recording or filing necessary to create a valid mortgage lien that is effective against third parties and recognized in bankruptcy on the Land.  Except for such recording and the recording described in Section 6.2, there are no recordings or filings with, or authorizations, consents, approvals, licenses, permits, privileges, or other rights granted by, any governmental authorities required to be held by Mortgagee or Mortgagor in

 

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connection with the execution and delivery of this Deed of Trust, the performance of this Deed of Trust, or the exercise of rights and remedies under this Deed of Trust.

 

3.3                                 First Lien Status.  Mortgagor shall preserve and protect the first lien and security interest status of this Deed of Trust and the other Loan Documents.  If any lien or security interest other than the Permitted Liens is asserted against the Mortgaged Property, Mortgagor shall promptly, and at its expense, (a) give Mortgagee a detailed written notice of such lien or security interest (including origin, amount and other terms), and (b) pay the underlying claim in full or take such other action so as to cause it to be released or contest the same in compliance with the requirements of the Credit Agreement (including the requirement of providing a bond or other security satisfactory to Mortgagee).  If the proceeds of the Secured Obligations are used to pay any indebtedness secured by prior liens, Mortgagee is subrogated to all of the rights and liens of the holders of such indebtedness.

 

3.4                                 Payment and Performance.  Mortgagor covenants that it shall timely pay and perform the Secured Obligations.

 

3.5                                 Replacement of Fixtures and Personalty.  Mortgagor shall not, without the prior written consent of Mortgagee, not to be unreasonably withheld, permit any of the Fixtures or Personalty owned or leased by Mortgagor to be removed at any time from the Land or Improvements, unless such item is removed in the ordinary course of Mortgagor’s business or the removed item is removed temporarily for maintenance and repair or, if removed permanently, is permitted to be removed by the Credit Agreement, or is obsolete and is replaced by an article of equal or better suitability and value, owned by Mortgagor subject to the liens and security interests of this Deed of Trust and the other Loan Documents, and free and clear of any other lien or security interest except such as may be permitted under the Credit Agreement or first approved in writing by Mortgagee.

 

3.6                                 Other Covenants.  Mortgagor agrees to comply with all the covenants, both affirmative and negative, in the Credit Agreement, and each such covenant is hereby incorporated by reference as if fully set forth herein.

 

3.7                                 Condemnation Awards and Insurance.

 

(a)                                  Condemnation Awards.  Mortgagor collaterally assigns all awards and compensation to which it is entitled for any condemnation or other taking of the Mortgaged Property, or any purchase in lieu thereof, to Mortgagee, and, upon the occurrence and continuance of an Event of Default, Mortgagee may receive such monies.

 

(b)                                 Further Acts.  Mortgagor covenants that Mortgagor shall execute and deliver such other and further instruments, and shall do such other and further acts as in the reasonable opinion of Mortgagee may be necessary to carry out more effectively the purposes of this Deed of Trust, including without limiting the generality of the foregoing, (i) prompt correction of any defect in the execution or acknowledgment of this Deed of Trust, any written instrument comprising part or all of the Secured Obligations, or any other document executed and delivered in connection herewith; (ii) prompt correction of any defect which may hereafter be discovered in the title to the Mortgaged Property, to

 

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the extent such defect would cause any representation and warranty made herein, if deemed repeated at such time, to not be true and correct; and (iii) prompt payment when due and owing of all taxes, assessments and governmental charges imposed on this Deed of Trust.

 

(c)                                  Maintenance of Lien and Security Interest.  Mortgagor covenants that Mortgagor shall maintain and preserve the Lien and security interest herein created as a valid first priority security interest on the Mortgaged Property, subject only to Permitted Liens, until the Liens created hereby are, or Mortgagor is, as the case may be, released by the applicable provisions of Section 8.4.

 

(d)                                 Change of Address.  Mortgagor shall immediately notify Mortgagee of any discontinuance of or change in the address of Mortgagor’s chief executive office or office where it keeps records concerning accounts, contract rights and general intangibles.

 

(e)                                  Insurance.  To the extent that insurance is carried by a third party operator on behalf of Mortgagor, upon request by Mortgagee, Mortgagor shall obtain and provide Mortgagee with copies of certificates of insurance showing Mortgagor as a named insured.  To the extent not prohibited by the terms of such insurance or any agreement with such third party operator (unless otherwise consented by such operator, which consent Mortgagor will use commercially reasonable efforts to obtain if requested by Mortgagee), and to the extent related coverage is not terminated or the benefits available thereunder are not otherwise prejudiced or impaired, Mortgagor hereby collaterally assigns to Mortgagee any and all monies that may become payable under any such policies of insurance by reason of damage, loss or destruction of any of the Mortgaged Property and, upon the occurrence and continuance of an Event of Default, Mortgagee may receive such monies.

 

ARTICLE IV
 Default and Foreclosure

 

4.1                                 Events of Default.  An Event of Default under the terms of the Credit Agreement shall constitute an “Event of Default” under this Deed of Trust.

 

4.2                                 Remedies.  If an Event of Default exists, Mortgagee may, at Mortgagee’s election, and in its own name or through Trustee or otherwise (all further references in this Section 4, to Mortgagee shall be deemed to refer to Mortgagee or Trustee acting on behalf of Mortgagee), exercise any or all of the following rights, remedies and recourses:

 

(a)                                  Acceleration.  Declare the Secured Obligations to be immediately due and payable, without further notice, presentment, protest, notice of intent to accelerate, notice of acceleration, demand or action of any nature whatsoever (each of which hereby is expressly waived by Mortgagor), whereupon the same shall become immediately due and payable.

 

(b)                                 Entry on Mortgaged Property.  Enter the Mortgaged Property and take exclusive possession thereof and of all books, records and accounts relating thereto or

 

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located thereon.  If Mortgagor remains in possession of the Mortgaged Property after an Event of Default and without Mortgagee’s prior written consent, Mortgagee may invoke any legal remedies to dispossess Mortgagor.

 

(c)                                  Operation of Mortgaged Property.  Hold, lease, develop, manage, operate or otherwise use the Mortgaged Property upon such terms and conditions as Mortgagee may deem reasonable under the circumstances (making such repairs, alterations, additions and improvements and taking other actions, from time to time, as Mortgagee deems necessary or desirable), and apply all Rents and other amounts collected by Mortgagee in connection therewith in accordance with the provisions of Section 4.8.

 

(d)                                 Foreclosure and Sale.  Sell or offer for sale the Mortgaged Property in such portions, order and parcels as Mortgagee may determine, with or without having first taken possession of the same, to the highest bidder for cash at public auction in accordance with the provisions of Section 51.002 of the Texas Property Code, as now or hereafter amended, or in any other manner permitted by the laws of the State of Texas.  Any such sale conducted pursuant to this Section 4.2(d) shall be made in accordance with such laws of the State of Texas relating to the sale of real estate or by the provisions of the UCC relating to the sale of collateral after default by a debtor (as such laws now exist or may be hereafter amended or succeeded), or by any other present or subsequent articles or enactments relating to the same.  With respect to any notices required or permitted under the UCC, Mortgagor agrees that ten days prior written notice shall be deemed commercially reasonable.  At any such sale whether made under the power herein contained, the UCC, any other legal requirement or by virtue of any judicial proceedings or any other legal right, remedy or recourse, (1) it shall not be necessary for Mortgagee to be physically present at or to have constructive possession of the Mortgaged Property (Mortgagor shall deliver to Mortgagee any portion of the Mortgaged Property not actually or constructively possessed by Mortgagee immediately upon demand by Mortgagee), and the title to and right of possession of any such property shall pass to the purchaser thereof as completely as if Mortgagee had been actually present and delivered to such purchaser at such sale, (2) each instrument of conveyance executed by Mortgagee shall contain a special warranty of title, binding upon Mortgagor, (3) each recital contained in any instrument of conveyance made by Mortgagee shall prima facially establish the truth and accuracy of the matters recited therein, including, without limitation, nonpayment of the Secured Obligations, advertisement and conduct of such sale in the manner provided herein and otherwise by law, and appointment of any successor Mortgagee hereunder, (4) any prerequisites to the validity of such sale shall be prima facially presumed to have been performed, (5) the receipt by Mortgagee or other party making the sale of the purchase money shall be a sufficient discharge to the purchaser or purchasers for its or their purchase money and no such purchaser or purchasers, or its or their assigns or personal representatives, shall thereafter be obligated to see to the application of such purchase money or be in any way answerable for any loss, misapplication or non-application thereof, and (6) to the fullest extent permitted by law, Mortgagor shall be completely and irrevocably divested of all of its right, title, interest, claim, equity, equity of redemption, and demand whatsoever, either at law or in equity, in and to the property sold and such sale shall be a perpetual bar both at law and in equity against Mortgagor, and against all other Persons claiming or to claim the

 

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property sold or any part thereof, by, through or under Mortgagor.  Mortgagee may be a purchaser at such sale and if Mortgagee is the highest bidder, Mortgagee may credit the portion of the purchase price that would be distributed to Mortgagee against the Secured Obligations in lieu of paying cash.

 

(e)                                  Receiver.  Make application to a court of competent jurisdiction for, and obtain from such court as a matter of strict right and without notice to Mortgagor or regard to the adequacy of the Mortgaged Property for the repayment of the Secured Obligations, the appointment of a receiver of the Mortgaged Property, and Mortgagor irrevocably consents to such appointment.  Any such receiver shall have all the usual powers and duties of receivers in similar cases, including the full power to rent, maintain and otherwise operate the Mortgaged Property upon such terms as may be approved by the court, and shall apply such Rents in accordance with the provisions of Section 4.8.

 

(f)                                    Other.  Exercise all other rights, remedies and recourses granted under the Loan Documents or otherwise available at law or in equity.

 

4.3                                 Separate Sales.  The Mortgaged Property may be sold in one or more parcels and in such manner and order as Mortgagee, in its sole discretion, may elect; the right of sale arising out of any Event of Default shall not be exhausted by any one or more sales.  Supplementing Section 4.2 hereof, Mortgagee may choose to dispose of some or all of the Mortgaged Property which consists solely of real property in any manner then permitted by applicable law.  In its discretion, Mortgagee may also or alternatively choose to dispose of some or all of the Mortgaged Property, in any combination consisting of both real and personal property, together in one sale to be held in accordance with the law and procedures applicable to real property, as permitted by Section 9.604 of the Texas Uniform Commercial Code.  Mortgagor agrees that such a sale of personal property together with real property constitutes a commercially reasonable sale of personal property.

 

4.4                                 Remedies Cumulative, Concurrent and Nonexclusive.  Mortgagee shall have all rights, remedies and recourses granted in the Loan Documents and available at law or equity (including the UCC), which rights (a) shall be cumulative and concurrent, (b) may be pursued separately, successively or concurrently against Mortgagor or others obligated under the Loan Documents, or against the Mortgaged Property, or against any one or more of them, at the sole discretion of Mortgagee, (c) may be exercised as often as occasion therefor shall arise, and the exercise or failure to exercise any of them shall not be construed as a waiver or release thereof or of any other right, remedy or recourse, and (d) are intended to be, and shall be, nonexclusive.  No action by Mortgagee in the enforcement of any rights, remedies or recourses under the Loan Documents or otherwise at law or equity shall be deemed to cure any Event of Default.

 

4.5                                 Release of and Resort to Collateral.  Mortgagee may release, regardless of consideration and without the necessity for any notice to or consent by the holder of any subordinate lien on the Mortgaged Property, any part of the Mortgaged Property without, as to the remainder, in any way impairing, affecting, subordinating or releasing the lien or security interest created in or evidenced by the Loan Documents or their status as a first and prior lien and 

 

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security interest in and to the Mortgaged Property.  For payment of the Secured Obligations, Mortgagee may resort to any other security in such order and manner as Mortgagee may elect.

 

4.6                                 Waiver of Redemption, Notice and Marshalling of Assets.  To the fullest extent permitted by law, Mortgagor hereby irrevocably and unconditionally waives and releases (a) all benefit that might accrue to Mortgagor by virtue of any present or future statute of limitations or law or judicial decision exempting the Mortgaged Property from attachment, levy or sale on execution or providing for any stay of execution, exemption from civil process, redemption or extension of time for payment, (b) all notices of any Event of Default or of any election by Mortgagee to exercise or the actual exercise of any right, remedy or recourse provided for under the Loan Documents except as otherwise set forth in this Deed of Trust, and (c) any right to a marshalling of assets or a sale in inverse order of alienation.

 

4.7                                 Discontinuance of Proceedings.  If Mortgagee shall have proceeded to invoke any right, remedy or recourse permitted under the Loan Documents and shall thereafter elect to discontinue or abandon it for any reason, Mortgagee shall have the unqualified right to do so and, in such an event, Mortgagor and Mortgagee shall be restored to their former positions with respect to the Secured Obligations, the Loan Documents, the Mortgaged Property and otherwise, and the rights, remedies, recourses and powers of Mortgagee shall continue as if the right, remedy or recourse had never been invoked, but no such discontinuance or abandonment shall waive any Event of Default which may then exist or the right of Mortgagee thereafter to exercise any right, remedy or recourse under the Loan Documents for such Event of Default.

 

4.8                                 Application of Proceeds.  The proceeds of any sale of the Mortgaged Property or any part thereof, after the occurrence and during the continuance of an Event of Default, whether under the power of sale herein granted and conferred or by virtue of judicial proceedings, may be, at the reasonable discretion of the Mortgagee (i) held by the Mortgagee in one or more Cash Collateral Accounts as cash collateral for the Secured Obligations or (ii) applied to the Secured Obligations in the order set forth in Section 8.03 of the Credit Agreement.  Any surplus cash collateral or cash proceeds held by Mortgagee after payment in full of the Secured Obligations shall be paid over to Mortgagor or to whomever may be lawfully entitled to receive such surplus.

 

4.9                                 Occupancy After Foreclosure.  Any sale of the Mortgaged Property or any part thereof in accordance with Section 4.2(d) will divest all right, title and interest of Mortgagor in and to the property sold.  Subject to applicable law, any purchaser at a foreclosure sale will receive immediate possession of the property purchased.  If Mortgagor retains possession of such property or any part thereof subsequent to such sale, Mortgagor will be considered a tenant at sufferance of the purchaser, and will, if Mortgagor remains in possession after demand to remove, be subject to eviction and removal, forcible or otherwise, with or without process of law.

 

4.10                           No Mortgagee in Possession.  Neither the granting of the liens, security interests, and assignments hereunder, including the assignment of Rents and Leases under Article 5 and the granting of security interests under Article 6, nor the enforcement of any of the remedies under this Article 4 or any other remedies afforded to Mortgagee under the Loan Documents, at law or in equity, shall cause Mortgagee to be deemed or construed to be a mortgagee in possession of the Mortgaged Property, to obligate Mortgagee to lease the Mortgaged Property or 

 

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attempt to do so, or to take any action, incur any expense, or perform or discharge any obligation, duty or liability whatsoever under any of the Leases or otherwise.

 

4.11                           Costs and Expenses.  All costs or expenses (including reasonable attorneys’ fees) incurred by Mortgagee (either by it directly or on its behalf by the Trustee or by any receiver appointed hereunder in accordance herewith) in protecting and enforcing its rights hereunder shall constitute part of the Secured Obligations and be secured by this Deed of Trust.  All amounts due under this Section 4.11 shall be payable no later than 10 Business Days after demand therefor.

 

ARTICLE V
 Assignment of Rents and Leases

 

5.1                                 Assignment.  In furtherance of and in addition to the assignment made by Mortgagor in Section 2.1 of this Deed of Trust, Mortgagor hereby absolutely and unconditionally assigns, sells transfers and conveys to Trustee (for the benefit of Mortgagee) and to Mortgagee all of its right, title and interest in and to all Leases, whether now existing or hereafter entered into, and all of its right, title and interest in and to all Rents.  This assignment is an absolute assignment and not an assignment for additional security only.  So long as no Event of Default shall have occurred and be continuing, Mortgagor shall have a revocable license from Trustee and Mortgagee to exercise all rights extended to the landlord under the Leases, including the right to receive and collect all Rents and to hold the Rents in trust for use in the payment and performance of the Secured Obligations and to otherwise use the same.  The foregoing license is granted subject to the conditional limitation that no Event of Default shall have occurred and be continuing.  Upon the occurrence and during the continuance of an Event of Default, whether or not legal proceedings have commenced, and without regard to waste, adequacy of security for the Secured Obligations or solvency of Mortgagor, the license herein granted shall automatically expire and terminate, without notice to Mortgagor by Trustee or Mortgagee (any such notice being hereby expressly waived by Mortgagor to the extent permitted by applicable law).

 

5.2                                 Perfection Upon Recordation.  Mortgagor acknowledges that Mortgagee and Trustee have taken all actions necessary to obtain, and that upon recordation of this Deed of Trust Mortgagee and Trustee shall have, to the extent permitted under applicable law, a valid and fully perfected, first priority, present assignment of the Rents arising out of the Leases and all security for such Leases.  Mortgagor acknowledges and agrees that upon recordation of this Deed of Trust Trustee’s and Mortgagee’s interest in the Rents shall be deemed to be fully perfected, “choate” and enforced as to Mortgagor and to the extent permitted under applicable law, all third parties, including, without limitation, any subsequently appointed trustee in any case under Title 11 of the United States Code (the “Bankruptcy Code”), without the necessity of commencing a foreclosure action with respect to this Deed of Trust, making formal demand for the Rents, obtaining the appointment of a receiver or taking any other affirmative action.

 

5.3                                 Bankruptcy Provisions.  Without limitation of the absolute nature of the assignment of the Rents hereunder, Mortgagor, Trustee and Mortgagee agree that (a) this Deed of Trust shall constitute a “security agreement” for purposes of Section 552(b) of the Bankruptcy Code, (b) the security interest created by this Deed of Trust extends to property of Mortgagor acquired before the commencement of a case in bankruptcy and to all amounts paid as Rents and 

 

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(c) such security interest shall extend to all Rents acquired by the estate after the commencement of any case in bankruptcy.

 

5.4                                 No Merger of Estates.  So long as part of the Secured Obligations secured hereby remain unpaid and undischarged, the fee and leasehold estates to the Mortgaged Property shall not merge, but shall remain separate and distinct, notwithstanding the union of such estates either in Mortgagor, Mortgagee, any tenant or any third party by purchase or otherwise.

 

ARTICLE VI
 Security Agreement

 

6.1                                 Security Interest.  This Deed of Trust constitutes a “security agreement” on personal property within the meaning of the UCC and other applicable law and with respect to the Personalty, Fixtures, Leases, Rents, Deposit Accounts, Property Agreements, Tax Refunds, Proceeds, Insurance and Condemnation Awards.  To this end, Mortgagor grants to Mortgagee a first and prior security interest in the Personalty, Fixtures, Leases, Rents, Deposit Accounts, Property Agreements, Tax Refunds, Proceeds, Insurance, Condemnation Awards and all other Mortgaged Property which is personal property to secure the payment and performance of the Secured Obligations, and agrees that Mortgagee shall have all the rights and remedies of a secured party under the UCC with respect to such property.  Any notice of sale, disposition or other intended action by Mortgagee with respect to the Personalty, Fixtures, Leases, Rents, Deposit Accounts, Property Agreements, Tax Refunds, Proceeds, Insurance and Condemnation Awards sent to Mortgagor at least ten days prior to any action under the UCC shall constitute reasonable notice to Mortgagor.

 

6.2                                 Financing Statements.  The true and correct name of Mortgagor as listed in its organizational documents is the name specified on the signature page of this Deed of Trust.  Mortgagor is organized under the laws of Delaware, and its chief executive office is at the address set forth in the first paragraph of this Deed of Trust.  In addition to the recording of this Deed of Trust as described in Section 3.2, the filing of the appropriate financing statement against the name of Mortgagor in the office of the Secretary of State of Mortgagor’s state of organization is the only filing or recording necessary to perfect the security interests purported to be granted hereunder on the Personalty, Fixtures, Leases, Rents, Property Agreements, Tax Refunds, Proceeds, Insurance, Condemnation Awards, and all other Mortgaged Property which is personal property to the extent that the security interest can be perfected under the UCC by filing.  Mortgagor shall execute and deliver to Mortgagee, in form and substance satisfactory to Mortgagee, such financing statements and such further assurances as Mortgagee may, from time to time, reasonably consider necessary to create, perfect and preserve Mortgagee’s security interest hereunder and Mortgagee may cause such statements and assurances to be recorded and filed, at such times and places as may be required or permitted by law to so create, perfect and preserve such security interest.

 

ARTICLE VII
 Concerning the Trustee

 

7.1                                 Certain Rights.  With the approval of Mortgagee, Trustee shall have the right to select, employ and consult with counsel.  Trustee shall have the right to rely on any instrument, 

 

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document or signature authorizing or supporting any action taken or proposed to be taken by it hereunder, believed by it in good faith to be genuine.  Trustee shall be entitled to reimbursement for actual, reasonable expenses incurred by it in the performance of its duties and to reasonable compensation for Trustee’s services hereunder as shall be rendered.  Mortgagor shall, from time to time, pay the compensation due to Trustee hereunder and reimburse Trustee for, and indemnify, defend and save Trustee harmless against, all losses, claims, damages, liabilities and related expenses (including the fees, charges and disbursements of any counsel for Trustee) of any kind or nature whatsoever which may at any time be imposed on, incurred by or asserted against Trustee in any way relating to or arising out of or in connection with the execution, delivery, performance or administration of this Deed of Trust, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY, OR SOLE NEGLIGENCE OF TRUSTEE; provided that such indemnity shall not be available to Trustee to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of Trustee or (y) result from a claim brought by the Mortgagor or any other Loan Party against an Indemnitee for a breach in bad faith of Trustee’s obligations hereunder or under any other Credit  Document, if the Mortgagor or such other Loan Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction.

 

7.2                                 Retention of Money.  All moneys received by Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be segregated in any manner from any other moneys (except to the extent required by law), and Trustee shall be under no liability for interest on any moneys received by Trustee hereunder.

 

7.3                                 Successor Trustees.  The Trustee may resign in writing addressed to Mortgagee or be removed at any time with or without cause by an instrument in writing duly executed by Mortgagee.  In case of the death, resignation or removal of the Trustee, a successor Trustee may be appointed by Mortgagee by instrument of substitution complying with any applicable requirements of Law, and in the absence of any requirement, without other formality other than an appointment and designation in writing.  The appointment and designation will vest in the named successor Trustee all the estate and title of the Trustee in all of the Mortgaged Property and all of the rights, powers, privileges, immunities and duties hereby conferred upon the Trustee.  All references herein to the Trustee will be deemed to refer to any successor Trustee from time to time acting hereunder.

 

7.4                                 Perfection of Appointment.  Should any deed, conveyance or instrument of any nature be required from Mortgagor by any successor Trustee to more fully and certainly vest in and confirm to such successor Trustee estates, rights, powers and duties provided for herein, then, upon request by such Trustee, all such deeds, conveyances and instruments shall be made, executed, acknowledged and delivered and shall be caused to be recorded and/or filed by Mortgagor.

 

7.5                                 Trustee Liability.  Except in the case of Trustee’s gross negligence, willful misconduct, or breach in bad faith of Trustee’s obligations hereunder or any other Loan Document as determined by a court of competent jurisdiction by final and nonappealable 

 

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judgment, in no event or circumstance shall Trustee or any substitute Trustee hereunder be personally liable under or as a result of this Deed of Trust for any action by Trustee (or any substitute Trustee) in the exercise of the powers hereby granted or otherwise.

 

ARTICLE VIII
 Miscellaneous

 

8.1                                 Attorney-in-Fact.  Mortgagor hereby irrevocably appoints Mortgagee and its successors and assigns, as its attorney-in-fact, which agency is coupled with an interest and with full power of substitution, (a) to execute and/or record any notices of completion, cessation of labor or any other notices that Mortgagee deems appropriate to protect Mortgagee’s interest, if Mortgagor shall fail to do so within ten days after written request by Mortgagee, (b) upon the issuance of a deed pursuant to the foreclosure of this Deed of Trust or the delivery of a deed in lieu of foreclosure, to execute all instruments of assignment, conveyance or further assurance with respect to the Leases, Rents, Deposit Accounts, Property Agreements, Tax Refunds, Proceeds, Insurance and Condemnation Awards in favor of the grantee of any such deed and as may be necessary or desirable for such purpose, (c) to prepare, execute and file or record financing statements, continuation statements, applications for registration and like papers necessary to create, perfect or preserve Mortgagee’s security interests and rights in or to any of the Mortgaged Property, and (d) while any Event of Default exists, to perform any obligation of Mortgagor hereunder, however:  (1) Mortgagee shall not under any circumstances be obligated to perform any obligation of Mortgagor; (2) any sums advanced by Mortgagee in such performance shall be added to and included in the Secured Obligations and shall bear interest at the rate or rates at which interest is then computed on the Secured Obligations; (3) Mortgagee, as such attorney-in-fact, shall only be accountable for such funds as are actually received by Mortgagee; and (4) Mortgagee shall not be liable to Mortgagor or any other person or entity for any failure to take any action which it is empowered to take under this Section 8.1.

 

8.2                                 Advances by Mortgagee.  Each and every covenant of Mortgagor herein contained shall be performed by Mortgagor solely at Mortgagor’s expense.  If Mortgagor fails to perform any of the covenants of whatsoever kind or nature contained in this Deed of Trust, Mortgagee (either by it directly or on its behalf by the Trustee or any receiver appointed hereunder) may, but will not be obligated to perform the same on Mortgagor’s behalf, and Mortgagor hereby agrees to repay the expenses of Mortgagee or the Trustee, including any reasonable attorneys’ fees incurred in connection therewith, on demand plus interest thereon from the date of the advance until reimbursement of Mortgagee or the Trustee at the Default Rate.  In addition, Mortgagor hereby agrees to repay on demand any costs and expenses, including reasonable attorneys’ fees, incurred by Mortgagee or the Trustee and in accordance with the terms of this Deed of Trust, including such costs and expenses, including reasonable attorneys’ fees, incurred pursuant to Section 4.2, Section 4.11, Section 8.2 or Section 8.3 hereof, plus interest on the amounts thereof from time to time remaining unpaid from the date of the advance by Mortgagee or the Trustee until reimbursement of Mortgagee or the Trustee at the Default Rate.  Such amounts will be in addition to any other sum of money which, pursuant to the terms and conditions of the written instruments comprising part of the Secured Obligations, is due and owing.  No such performance by Mortgagee will be deemed to relieve Mortgagor from any default hereunder.

 

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8.3                                 Defense of Claims.  Mortgagor shall promptly notify Mortgagee in writing of the commencement of any legal proceedings affecting Mortgagor’s title to any material portion of the Mortgaged Property, Mortgagee’s Lien on any material portion of the Mortgaged Property, or which, if determined adversely to Mortgagor, could reasonably be expected to result in a Material Adverse Effect, and shall take such action, as may be reasonably necessary to preserve Mortgagor’s title thereto and Mortgagee’s or the Trustee’s Lien therein.  If Mortgagor fails or refuses to so defend Mortgagor’s or Mortgagee’s or the Trustee’s rights to the Mortgaged Property, Mortgagee may, but shall not have obligation to take such action on behalf of and in the name of Mortgagor as Mortgagee may deem reasonably necessary to preserve such interests therein.  Moreover, Mortgagee (either by it directly or on its behalf by the Trustee or any receiver appointed hereunder) may take such independent action in connection therewith as it may deem reasonably necessary, including the right to employ independent counsel and to intervene in any suit affecting Mortgagee’s or the Trustee’s Lien on the Mortgaged Property.  All costs and expenses, including reasonable attorneys’ fees, incurred by Mortgagee or Trustee pursuant to this Section 8.3 shall be included in the Secured Obligations secured by this Deed of Trust and shall be payable no later than 10 Business Days after demand therefor.

 

8.4                                 Release of Liens; Termination.

 

(a)                                  Liens granted to or held by Mortgagee or Trustee under this Deed of Trust shall be released as follows: (i) with respect to all such Liens, when the Aggregate Commitments have been fully and finally terminated and all the Secured Obligations have been indefeasibly paid in full (other than contingent indemnification obligations and obligations and liabilities under Secured Cash Management Agreements and Secured Hedge Agreements as to which arrangements satisfactory to the applicable Cash Management Bank or Hedge Bank shall have been made) and all Letters of Credit have expired or terminated (other than Letters of Credit as to which other arrangements satisfactory to the Administrative Agent and the L/C Issuer shall have been made); and (ii) with respect to any Lien on the Mortgaged Property that is Disposed of or to be Disposed of as part of or in connection with any Disposition permitted under the Credit Agreement or under any other Loan Document, at the request and sole expense of the Mortgagor, the Administrative Agent shall promptly execute and deliver to Mortgagor all releases or other documents necessary or desirable for the release of the Lien.

 

(b)                                 Mortgagor shall be released from its obligations hereunder as follows: when the Aggregate Commitments have been fully and finally terminated and all the Secured Obligations have been indefeasibly paid in full (other than contingent indemnification obligations and obligations and liabilities under Secured Cash Management Agreements and Secured Hedge Agreements as to which arrangements satisfactory to the applicable Cash Management Bank or Hedge Bank shall have been made) and all Letters of Credit have expired or terminated (other than Letters of Credit as to which other arrangements satisfactory to the Administrative Agent and the L/C Issuer shall have been made).

 

(c)                                  Mortgagee will, at Mortgagor’s expense, promptly execute and deliver such documents and notices and take such other actions as Mortgagor may reasonably request to evidence the release of any Lien or of Mortgagor in accordance with this Section 8.4, which documents and notices shall be binding on Trustee (and his substitutes, successors and assigns) whether or not Trustee shall join in such documents and notices).  Any execution and delivery 

 

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of termination statements or documents pursuant to this Section 8.4 shall be without recourse to or warranty by Mortgagee or Trustee.  No consent of any Cash Management Bank or Hedge Bank (except in such Person’s capacity as a Lender, if applicable) shall be required for any release of the Mortgaged Property or Mortgagor pursuant to this Section 8.4.

 

8.5                                 Renewals, Amendments and Other Security.  Without notice or consent of Mortgagor required hereunder, renewals and extensions of the written instruments constituting part or all of the Secured Obligations may be given at any time and amendments may be made to agreements relating to any part of such written instruments or the Mortgaged Property (except for this Deed of Trust).  Mortgagee may take or hold other security for the Secured Obligations without notice to or consent of Mortgagor.  The acceptance of this Deed of Trust by Mortgagee shall not waive or impair any other security Mortgagee may have or hereafter acquire to secure the payment of the Secured Obligations nor shall the taking of any such additional security waive or impair the Lien and security interests herein granted.  The Trustee and Mortgagee may resort first to such other security or any part thereof, or first to the security herein given or any part thereof, or from time to time to either or both, even to the partial or complete abandonment of either security, and such action will not be a waiver of any rights conferred by this Deed of Trust.  This Deed of Trust may not be amended, waived or modified except in a written instrument executed by both Mortgagor and Mortgagee.

 

8.6                                 Security Agreement, Financing Statement and Fixture Filing.  This Deed of Trust will be deemed to be and may be enforced from time to time as an assignment, chattel mortgage, contract, deed of trust, financing statement, real estate mortgage, or security agreement, and from time to time as any one or more thereof if appropriate under applicable state Law.  AS A FINANCING STATEMENT, THIS DEED OF TRUST IS INTENDED TO COVER ALL OF THE MORTGAGED PROPERTY.  THIS DEED OF TRUST SHALL BE EFFECTIVE AS A FINANCING STATEMENT FILED AS A FIXTURE FILING WITH RESPECT TO FIXTURES INCLUDED WITHIN THE MORTGAGED PROPERTY.  This Deed of Trust shall be filed in the real estate records or other appropriate records of the county or counties in the state in which any part of the Mortgaged Property is located as well as the Uniform Commercial Code records of the Secretary of State or other appropriate office of the state in which any of the Mortgaged Property or Mortgagor is located.  At Mortgagee’s reasonable request, Mortgagor shall deliver financing statements covering the Mortgaged Property and Fixtures, which financing statements may be filed in the Uniform Commercial Code records of the Secretary of State or other appropriate office of the state in which any of the Mortgaged Property or Mortgagor is located or in the county where any of the Mortgaged Property is located.  Furthermore, Mortgagor hereby irrevocably authorizes Mortgagee, at any time and from time to time, to file in any applicable Uniform Commercial Code jurisdiction any financing statement or document and amendments thereto, without the signature of Mortgagor where permitted by Law, in order to perfect or maintain the perfection of any security interest granted under this Deed of Trust.  A photographic, carbon, facsimile or other reproduction of this Deed of Trust shall be sufficient as a financing statement.

 

8.7                                 Unenforceable or Inapplicable Provisions.  If any term, covenant, condition or provision hereof is invalid, illegal or unenforceable in any respect, the other provisions hereof will remain in full force and effect and will be liberally construed in favor of the Trustee and Mortgagee in order to carry out the provisions hereof.

 

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8.8                                 Rights Cumulative.  Each and every right, power and remedy herein given to the Trustee or Mortgagee will be cumulative and not exclusive, and each and every right, power and remedy whether specifically herein given or otherwise existing may be exercised from time to time and as often and in such order as may be deemed expedient by the Trustee or Mortgagee, as the case may be, and the exercise, or the beginning of the exercise, of any such right, power or remedy will not be deemed a waiver of the right to exercise, at the same time or thereafter, any other right, power or remedy.  No delay or omission by the Trustee or Mortgagee in the exercise of any right, power or remedy will impair any such right, power or remedy or operate as a waiver thereof or of any other right, power or remedy then or thereafter existing.

 

8.9                                 Waiver by Mortgagee.  None of the terms or provisions of this Deed of Trust may be waived, amended, supplemented or otherwise modified except in accordance with Section 10.01 of the Credit Agreement.  No consent of any Cash Management Bank or Hedge Bank (except in such Person’s capacity as a Lender, if applicable) shall be required for any waiver, amendment, supplement or other modification to this Deed of Trust.

 

8.10                           Terms.  The term “Mortgagor” as used in this Deed of Trust will be construed as singular or plural to correspond with the number of persons executing this Deed of Trust as Mortgagor.  If more than one person executes this Deed of Trust as Mortgagor, his, her, its, or their duties and liabilities under this Deed of Trust will be joint and several.  The terms “Mortgagee” and “Mortgagor” as used in this Deed of Trust include the heirs, executors or administrators, successors, representatives, receiver, trustees and permitted assigns of those parties.  Unless the context otherwise requires, terms used in this Deed of Trust which are defined in the Uniform Commercial Code of Texas are used with the meanings therein defined.

 

8.11                           Counterparts.  This Deed of Trust may be executed in any number of counterparts, each of which will for all purposes be deemed to be an original and all of which, when taken together, shall constitute one contract.

 

8.12                           Governing Law.  This Deed of Trust shall be governed by and construed in accordance with federal Law and, to the extent not inconsistent therewith, the Laws of the State of Texas without reference to its conflicts-of-laws principles.

 

8.13                           Notice.  All notices required or permitted to be given by Mortgagor or Mortgagee or Trustee shall be made in the manner set forth in the Credit Agreement and shall be addressed as follows:

 

Mortgagor:                                                                                   Global Geophysical Services, Inc.

13927 South Gessner Road

Missouri City, TX 77489

 

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Mortgagee:                                                                                  Bank of America, N.A.
 Agency Management
 901 Main Street, 14th Floor
 Mail Code: TX1-492-14-11
 Dallas, TX 75202-3714
 Attention: Michelle Diggs
 Facsimile: (214) 290-9423

 

Trustee:                                                                                                    Aaron Roffwarg
 711 Louisiana
 Suite 2300
 Houston, TX 77002

 

Any notices to be given to the

Trustee shall also be delivered to Mortgagee.

 

8.14                           Successors and Assigns.

 

(a)                      This Deed of Trust is binding upon Mortgagor, Mortgagor’s successors and permitted assigns, and shall be binding on and inure to the benefit of each Secured Party, and the provisions hereof shall likewise be covenants running with the land.

 

(b)                     Subject to clause (d) below, this Deed of Trust shall be transferable, with the same force and effect and to the same extent as the Secured Obligations may be transferable pursuant to and in accordance with the Credit Agreement, it being understood that, upon the transfer or assignment by any Secured Party of any of the Secured Obligations pursuant to and in accordance with the Credit Agreement, the legal holder of such Secured Obligations shall have all of the rights granted to the assigning Secured Party under this Deed of Trust.  Mortgagor specifically agrees that upon any transfer of all or any portion of the Secured Obligations, this Deed of Trust shall secure the existing Secured Obligations of Mortgagor so transferred to the transferee and any and all Secured Obligations to such transferee thereafter arising.

 

(c)                      Mortgagor hereby recognizes and agrees that the holders of the Secured Obligations (or any of them) may, from time to time, one or more times, transfer all or any portion of the Secured Obligations to one or more third parties, to the extent permitted by and in accordance with the Credit Agreement.  Such transfers may include, but are not limited to, sales of participation interests in such Secured Obligations in favor of one or more third parties, to the extent permitted by and made in accordance with the Credit Agreement.  Upon any transfer of all or any portion of the Secured Obligations in accordance with the Credit Agreement and subject to clause (d) below (but not in the case of any sale of participations), the Mortgagee may transfer and deliver any and/or all of the Mortgaged Property in its possession pursuant hereto to the transferee of such Secured Obligations and such Mortgaged Property shall secure any and all of the Secured Obligations then existing and thereafter arising, and after any such transfer has taken place, the Mortgagee shall be fully discharged from any and all future liability and responsibility to the Mortgagor with respect to such Mortgaged Property so transferred, and the transferee thereafter shall be vested with all the powers, rights and duties of the transferor with respect to such Mortgaged Property.

 

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(d)                                 Notwithstanding anything to the contrary contained herein, including the provisions of clauses (b) and (c) above, when any Cash Management Bank or Hedge Bank assigns or otherwise transfers any interest held by it under any Secured Cash Management Agreement or Secured Hedge Agreement, as applicable, to any other Person pursuant to the terms of such agreement, that other Person shall thereupon become vested with all the benefits held by such Cash Management Bank or Hedge Bank, as applicable, under this Deed of Trust only if such Person is also then a Lender or an Affiliate of a Lender.

 

8.15                           Article and Section Headings.  The article and section headings in this Deed of Trust are inserted for convenience of reference and shall not be considered a part of this Deed of Trust or used in its interpretation.

 

8.16                           Usury Not Intended.  It is the intent of Mortgagor and Mortgagee in the execution and performance of this Deed of Trust, the Credit Agreement and the other Loan Documents to contract in strict compliance with applicable usury laws governing the Secured Obligations including such applicable usury laws of the State of Texas and the United States of America as are from time-to-time in effect.  In furtherance thereof, Mortgagee and Mortgagor stipulate and agree that none of the terms and provisions contained in this Deed of Trust, the Credit Agreement or the other Loan Documents shall ever be construed to create a contract to pay, as consideration for the use, forbearance or detention of money, interest at a rate in excess of the maximum non-usurious rate permitted by applicable law and that, in determining whether the interest contracted for, charged, or received by a holder of Loans exceeds the maximum non-usurious rate permitted by applicable law, such Person may, to the extent permitted by applicable law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Secured Obligations.  In the event that, notwithstanding the foregoing, under any circumstances the aggregate amounts taken, reserved, charged, received or paid on the Secured Obligations, include amounts which by applicable law are deemed interest which would exceed the maximum non-usurious rate permitted by applicable law, then such excess shall be deemed to be a mistake and Mortgagee shall credit the same on the principal of the Secured Obligations (or if the Secured Obligations shall have been paid in full, refund said excess to Mortgagor).

 

8.17                           Credit Agreement.  To the fullest extent possible, the terms and provisions of the Credit Agreement shall be read together with the terms and provisions of this Deed of Trust so that the terms and provisions of this Deed of Trust do not conflict with the terms and provisions of the Credit Agreement; provided, however, notwithstanding the foregoing, in the event that any of the terms or provisions of this Deed of Trust conflict with any terms or provisions of the Credit Agreement, the terms or provisions of the Credit Agreement shall govern and control for all purposes; provided that the inclusion in this Deed of Trust of terms and provisions supplemental to the rights or remedies in favor of the Mortgagee not addressed in the Credit Agreement shall not be deemed to be a conflict with the Credit Agreement and all such additional terms, provisions, supplemental rights or remedies contained herein shall be given full force and effect.

 

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8.18                           Due Authorization.  Mortgagor hereby represents and warrants to Mortgagee and Trustee that the obligations of Mortgagor under this Deed of Trust are the valid, binding and legally enforceable obligations of Mortgagor, except as enforceability may be limited by Debtor Relief Laws and similar laws affecting creditor’s rights generally or providing relief for debtors and subject to general principles of equity, and that the execution, and delivery of this Deed of Trust by Mortgagor and the performance by Mortgagor of all of the terms and conditions to be observed and performed by it hereunder have been duly and validly authorized by all necessary corporate or equivalent action of Mortgagor, and that Mortgagor has duly executed and delivered this Deed of Trust.

 

8.19                           No Offsets, Etc.  Mortgagor hereby represents, warrants, and covenants to Mortgagee and Trustee that there are no offsets, counterclaims or defenses at law or in equity against this Deed of Trust or the indebtedness secured hereby.

 

8.20                           Bankruptcy Limitation.  Notwithstanding anything contained herein to the contrary, it is the intention of Mortgagor, Mortgagee and the holders of the Secured Obligations that the amount of the Secured Obligation secured by Mortgagor’s interests in any of its property shall be in, but not in excess of, the maximum amount permitted by fraudulent conveyance, fraudulent transfer and other similar law of any governmental authority applicable to Mortgagor.  Accordingly, notwithstanding anything to the contrary contained in this Deed of Trust or in any other agreement or instrument executed in connection with the payment of any of the Secured Obligations, the amount of the Secured Obligations secured by Mortgagor’s interests in any of its property pursuant to this Deed of Trust shall be limited to an aggregate amount equal to the largest amount that would not render Mortgagor’s obligations hereunder or the Liens and security interest granted to Mortgagee hereunder subject to avoidance under Section 548 of the United States Bankruptcy Code or any comparable provision of any other applicable Law.

 

8.21                           Waiver of Consequential Damages, Etc.  To the fullest extent permitted by applicable law, Mortgagor shall not assert, and hereby waives, any claim against any Indemnified Party, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Deed of Trust, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof.  No Indemnified Party above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed to such unintended recipients by such Indemnified Party through telecommunications, electronic or other information transmission systems in connection with this Deed of Trust or the other Loan Documents or the transactions contemplated hereby or thereby other than for direct or actual damages resulting from the gross negligence or willful misconduct of such Indemnified Party as determined by a final and nonappealable judgment of a court of competent jurisdiction.

 

8.22                           DEFICIENCY JUDGMENT. MORTGAGEE HAS THE RIGHT TO PROCEED TO OBTAIN AND COLLECT DEFICIENCY JUDGMENT, TOGETHER WITH FORECLOSURE OF THE MORTGAGED PROPERTY UNDER APPLICABLE TEXAS LAW.

 

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8.23                           Other Security Documents.  The Mortgaged Property hereunder may be covered by multiple security documents in favor of Mortgagee governed by different laws.  Mortgagee may elect to pursue its rights against the Mortgaged Property under this Deed of Trust or any such security document in any jurisdiction, without waiving Mortgagee’s rights under this Deed of Trust or any other security document.

 

8.24                           No Oral Agreements.  THIS WRITTEN AGREEMENT AND THE WRITTEN DOCUMENTS RELATED TO THE SECURED OBLIGATIONS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

 

 

THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

[Signature page follows.]

 

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IN WITNESS WHEREOF, Mortgagor has on the date set forth in the acknowledgement hereto, effective as of the date first above written, caused this instrument to be fully EXECUTED AND DELIVERED by authority duly given.

 

 

	
MORTGAGOR:
    	
 
    	
GLOBAL   GEOPHYSICAL SERVICES, INC.
    
	
 
    	
 
    	
a   Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   P. Mathew Verghese
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:   P. Mathew Verghese
    
	
 
    	
 
    	
Title:   Senior VP and Chief Financial Officer
    
	
STATE   OF TEXAS
    	
§
    
	
 
    	
§
    
	
COUNTY   OF FORT BEND
    	
§
    

 

This instrument was executed before me on this 30th day of April, 2010, by P. Mathew Verghese, Senior VP and Chief Financial Officer of Global Geophysical Services, Inc., a Delaware corporation, on behalf of said corporation.

 

Witness my hand and official seal.

 

 

	
 
    	
/s/ Traci Ann Cooper
    
	
 
    	
 
    
	
 
    	
Notary   Public
    
	
 
    	
 
    
	
 
    	
My   Commission expires: 02/03/2013
    

 

 

Signature Page to Deed of Trust, Security Agreement, Assignment of Rents and Leases and Fixture Filing

Fort Bend County, Texas

 

 

EXHIBIT A

 

LEGAL DESCRIPTION OF PREMISES LOCATED AT 13927 SOUTH GESSNER ROAD, MISSOURI CITY, TEXAS 77489

 

FORT BEND COUNTY, TEXAS

 

All of GLOBAL GEOPHYSICAL INDUSTRIAL PARK, a subdivision of 17.5284 acre, as set forth on map or plat thereof recorded under Slide No. 20060274 of the Plat Records of Fort Bend County, Texas.

 

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EXHIBIT B

 

PERMITTED ENCUMBRANCES

 

1.                                       Restrictive Covenants recorded in/under Slide No. 20060274 of the Plat Records of FORT BEND County, Texas, but omitting any covenant or restriction based on race, color, religion, sex, handicap, familial status, or national origin.

 

2.                                       Building set back line thirty (30) feet in width along the property lines common with South Gessner Road as shown on plat recorded in Slide No. 20060274 of the Plat Records of Fort Bend County, Texas.

 

3.                                       Building set back line ten (10) feet in width adjacent to Industrial Drive as shown on the plat recorded in Slide No. 20060274 of the Plat Records of Fort Bend County, Texas.

 

4.                                       Drainage easement 12.5 feet in width along the most southeasterly property line, as shown on the plat recorded in Slide No. 20060274 of the Plat Records of Fort Bend County, Texas.

 

5.                                       Drainage easement thirty (30) feet in width along the easterly property line as shown on plat recorded in Slide No. 20060274 of the Plat Records of Fort Bend County, Texas.

 

6.                                       Utility easement ten (10) feet in width together with an aerial easement eleven (11) feet, six (6) inches wide from a plane sixteen feet above the ground upwards, adjacent thereto, as shown on plat recorded in Slide No. 20060274 of the Plat Records of Fort Bend County, Texas and as affected by Release Of Easement executed by CenterPoint Energy Houston Electric, LLC, et al., recorded under Fort Bend County Clerk’s File No. 2006015765.

 

7.                                       Utility easement ten (10) feet in width southwest of and adjoining the 30’ drainage easement along the easterly property line, together with an aerial easement eleven (11) feet, six (6) inches wide from a plane sixteen feet above the ground upwards, adjacent thereto, as shown on plat recorded in Slide No. 20060274 of the Plat Records of Fort Bend County, Texas.

 

8.                                       Utility easement ten (10) feet in width southwest of and adjoining the 30’ drainage easement along the southerly portion of the easterly property line, together with an aerial easement five (5) feet wide from a plane sixteen (16) feet above the ground upwards, adjacent thereto, as shown on plat recorded in Slide No. 20060274 of the Plat Records of Fort Bend County, Texas.

 

9.                                       Utility easement ten (10) feet in width along the northwesterly property line together with an aerial easement adjoining thereto five (5) feet wide from a plane twenty (20) feet above the ground upward, as shown on plat recorded in Slide No. 20060274 of the Plat Records of Fort Bend County, Texas.

 

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10.                                 Storm sewer easement thirty (30) feet in width along the southwest property line as shown on plat recorded in Slide No. 20060274 of the Plat Records of Fort Bend County, Texas.

 

11.                                 Water main easement ten (10) feet in width southeast of and adjacent to the above cited ten (10) foot utility easement as shown on plat recorded in Slide No. 20060274 of the Plat Records of Fort Bend County, Texas and as affected by Abandonment Of Waterline Easement executed by Fort Bend County Water Control And Improvement District No. 2 recorded under Fort Bend County Clerk’s File No. 2006015667.

 

12.                                 Access easement forty (40) feet in width as shown on plat recorded in Slide No. 20060274 of the Plat Records of Fort Bend County, Texas and as affected by Abandonment Of Waterline Easement executed by Fort Bend County Water Control And Improvement District No. 2 recorded under Fort Bend County Clerk’s File No. 2006015667.

 

13.                                 Utility easement 14 feet in width along a southwesterly property line as shown on the plat recorded in Slide No. 20060274 of the Plat Records of Fort Bend County, Texas.

 

14.                                 2/3rds of all oil, gas and other minerals as set out in instrument recorded in Volume 234, Page 622 of the Deed Records of Fort Bend County, Texas.

 

15.                                 All oil, gas and other minerals as set out in instrument recorded in Volume 553, Page 833 of the Deed Records of Fort Bend County, Texas. Surface rights waived with provisions for drill site designation and surface protection as set out therein.

 

16.                                 1/6th of all oil, gas and other minerals as set out in instrument recorded in Volume 1096, Page 102 of the Official Records of Fort Bend County, Texas.

 

17.                                 All of the oil, gas and other minerals as set out in instruments recorded in/under Clerk’s File No. 9406436 and 9481638 of the Real Property Records of Fort Bend County, Texas.

 

18.                                 The following matters as shown on survey dated February 14, 2006 and last revised on March 28, 2006 by Kenneth A. Gruller, RPLS No. 5476, of Reno & Associates Professional Land Surveying under Drawing No. 45-0419:

 

a.                                            Easements, or lesser rights, by virtue of traffic, underground cable, and highway signs adjacent to South Gessner Road.

 

b.                                           Backslope interceptor along the northerly portion of subject property.

 

19.                                 The following matters as shown on survey dated March 6, 2006 and last revised on March 30, 2006 by Kenneth A. Gruller, RPLS No. 5476, of Reno & Associates Professional Land Surveyors, under Drawing No. 45-0606:

 

a.                                            Swale/ditch along the southeasterly portion of subject property lying outside the boundaries of the dedicated drainage easement.

 

2Exhibit 10.44

 

FIRST PREFERRED FLEET MORTGAGE

 

by

 

GLOBAL GEOPHYSICAL SERVICES, INC.

 

to

 

BANK OF AMERICA, N.A.,

as
 Administrative Agent

 

Dated April 30, 2010

 

United States Vessels

 

Global Mirage

 

Global Quest

Global Vision

James H. Scott

Global Longhorn

Lori B

 

 

This FIRST PREFERRED FLEET MORTGAGE (this “Mortgage”) is made this 30th day of April, 2010, by GLOBAL GEOPHYSICAL SERVICES, INC., a Delaware corporation (the “Shipowner”) with an address at: 13927 South Gessner Road, Missouri City, Texas 77489 to BANK OF AMERICA, N.A, with an address at 901 Main Street, 14th Floor, Dallas, Texas 75202-3714, as Administrative Agent (together with its successors and assigns, the “Mortgagee”).

 

WHEREAS:

 

1.             The Shipowner is a party to the Credit Agreement dated as of April 30, 2010 (as the same may be amended, supplemented or otherwise modified from time to time, the “Credit Agreement”) among the Shipowner, as borrower, BANK OF AMERICA, N.A, as Administrative Agent, Swing Line Lender, and L/C Issuer, CREDIT SUISSE, as Syndication Agent, BANC OF AMERICA SECURITIES LLC, as Sole Lead Arranger and Sole Book Manager and the other Lenders (as defined therein), party thereto, pursuant to which the Lenders have agreed from time to time to extend credit and/or issue letters of credit for the benefit of the Borrower in an aggregate amount up to Fifty Million United States Dollars (US$50,000,000.00), which amount is the principal amount of this Mortgage.  Capitalized terms used herein and not otherwise defined are used herein as defined in the Credit Agreement, a copy of the form of which, including certain exhibits, is annexed hereto as Exhibit A and made a part hereof.

 

2.             The Shipowner is the sole owner of the whole of the United States flag vessels described on Schedule I attached hereto and made a part hereof (the “Vessels”), each of which is duly documented in the name of the Shipowner under the laws and flag of the United States of America, qualified to engage in the trade specified.

 

3.             The Shipowner, in order to secure its obligations under the Credit Agreement and the other Loan Documents, and the payment of all other sums of money (whether for principal, premium, if any, interest, fees, expenses, indemnities or otherwise) from time to time payable by the Shipowner under this Mortgage and the other Loan Documents to which it is a party, and to secure the performance and observance of all agreements, covenants and provisions contained in this Mortgage and the other Loan Documents, in each case whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding (collectively, the “Obligations”), has duly authorized the execution and delivery of this Mortgage.

 

NOW, THEREFORE, to secure the prompt payment of the Obligations and the performance and observance of all agreements, covenants and provisions of the Shipowner contained in the Credit Agreement, this Mortgage and the other Loan Documents, the Shipowner has granted, mortgaged, pledged, confirmed, and set over, and by these presents does grant, mortgage, pledge, confirm, and set over unto the Mortgagee the whole of the Vessels, together with all of the boilers, engines, generators, drilling machinery and equipment, pumps and pumping equipment, machinery, masts, spars, sails, boats, anchors, cables, chains, rigging, tackle, outfit, apparel, furniture, fittings, equipment, spares, fuel, stores and all other

 

 

appurtenances thereunto appertaining or belonging, and also any and all additions, improvements and replacements hereafter made in or to each such Vessel, or any part thereof, or in or to her equipment and appurtenances aforesaid.

 

TO HAVE AND TO HOLD all and singular the above mortgaged and described property unto the Mortgagee and its successors and assigns, to its and its successors’ and permitted assigns’ own use, benefit, advantage and profit forever;

 

PROVIDED, HOWEVER, and these presents are upon the condition that, when the Aggregate Commitments have been fully and finally terminated and all the Obligations have been paid in full (or, with respect to contingent indemnification obligations and obligations and liabilities under Secured Cash Management Agreements and Secured Hedge Agreements, as to which arrangements satisfactory to the applicable Cash Management Bank or Hedge Bank shall have been made) and all Letters of Credit have expired or terminated (or, as to which other arrangements satisfactory to the Administrative Agent and the L/C Issuer shall have been made), this Mortgage and the estate and rights hereby granted shall cease to be binding and be void, otherwise to remain in full force and effect.

 

IT IS HEREBY COVENANTED, DECLARED AND AGREED that the property above described is to be held subject to the further covenants, conditions, provisions, terms and uses hereinafter set forth.

 

ARTICLE I

COVENANTS OF THE SHIPOWNER

 

The Shipowner covenants and agrees with the Mortgagee as follows:

 

SECTION 1.1                         The Shipowner will make payment when due of all Obligations from time to time payable by the Shipowner under the Credit Agreement and the other Loan Documents and will observe, perform and comply with the covenants, terms and conditions herein and in the Credit Agreement and the other Loan Documents, on its part to be observed, performed or complied with.

 

SECTION 1.2                         The Shipowner is and shall remain duly qualified to own, document and operate each Vessel under the applicable laws and regulations of the United States endorsed for the respective trade in which it is engaged from time to time.  Each Vessel is duly documented in the name of the Shipowner as owner under the laws of the United States.

 

SECTION 1.3                         The Shipowner lawfully owns and is lawfully possessed of each Vessel free from any Lien, charge or encumbrance whatsoever (except for this Mortgage and the Liens permitted pursuant to Section 7.01 of the Credit Agreement (the “Collateral Permitted Liens”)), and will warrant and defend the title and possession thereto and to every part thereof for the benefit of the Mortgagee against the claims and demands of all Persons whomsoever.

 

SECTION 1.4                         The Shipowner will cause this Mortgage to be duly filed and recorded and will comply with and satisfy all of the provisions and requirements of Chapter 313 of Title 46 of the United States Code and the regulations in effect thereunder from time to time, as amended, in order to establish, perfect and maintain this Mortgage as a valid, enforceable and

 

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duly perfected first preferred mortgage Lien thereunder upon the Vessels and upon all renewals, replacements and improvements made in or to the same for the amount of the Obligations.

 

SECTION 1.5                         The Shipowner will not (a) cause or permit any Vessel to be operated in any manner contrary to law, (b) engage in any unlawful trade or violate any law, (c) carry any cargo that will expose any Vessel to penalty, confiscation, forfeiture, capture or condemnation, or (d) do, or suffer or permit to be done, anything which can or may injuriously affect the registration or enrollment of any Vessel under the laws and regulations of the United States.  The Shipowner will at all times keep each Vessel duly documented as a vessel flagged under Chapter 121 of Title 46 of the United States Code or other applicable law of the United States, eligible for the trade  of the United States in which it is engaged from time to time, except as otherwise consented to in advance in writing by Mortgagee in its sole discretion.

 

SECTION 1.6                         Neither the Shipowner, any charterer, the master of any Vessel nor any other Person has or shall have any right, power or authority to create, incur or permit to be placed or imposed or continued upon any Vessel any Lien whatsoever other than this Mortgage and Collateral Permitted Liens.

 

SECTION 1.7                         The Shipowner will place, and at all times and places will retain, a properly certified copy of this Mortgage on board each Vessel with her papers and will cause such certified copy and such Vessel’s marine document to be exhibited to any and all Persons having business therewith which might give rise to any Lien thereon other than Collateral Permitted Liens, and to any representative of the Mortgagee; and the Shipowner will place and keep prominently displayed in the chart room and in the master’s cabin of each Vessel, or in the case of a rig, in a prominent place aboard the rig, or in such location as the rig’s papers are kept, a framed printed notice in plain type reading as follows:

 

“NOTICE OF MORTGAGE

 

This Vessel is covered by a First Preferred Fleet Mortgage to BANK OF AMERICA, N.A, as Administrative Agent.  Under the terms of said Mortgage, neither the Shipowner, any charterer, the master of this Vessel nor any other person has any right, power or authority to create, incur or permit to be imposed upon this Vessel any lien whatsoever other than Collateral Permitted Liens (as defined in the First Preferred Fleet Mortgage).”

 

SECTION 1.8                         Except for this Mortgage and Collateral Permitted Liens, the Shipowner will not suffer to be continued any Lien, encumbrance or charge on any Vessel.

 

SECTION 1.9                         (a)           If a libel be filed against any Vessel or any Vessel be otherwise attached, arrested, levied upon or taken into custody under process or color of legal authority for any cause whatsoever, the Shipowner will promptly notify the Mortgagee and promptly (but in any event within 15 days) will cause such Vessel to be released and all Liens thereon other than this Mortgage and Collateral Permitted Liens to be discharged (except to the extent that the claim giving rise to such Lien shall concurrently be contested by the Shipowner in good faith by appropriate proceedings that shall not affect the release of such Vessel) and will promptly notify the Mortgagee thereof in the manner aforesaid.

 

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(b)           If the Shipowner shall fail or neglect to furnish proper security or otherwise to obtain the release of such Vessel from libel, arrest, levy, seizure or attachment within the time period required by Section 1.9(a) above, the Mortgagee or any Person acting on behalf of the Mortgagee may furnish security to obtain the release of such Vessel and by so doing shall not be deemed to cure the default of the Shipowner.

 

SECTION 1.10                       (a)           The Shipowner, at its own expense or at the expense of any charterer, shall keep each Vessel so long as it shall remain subject to the terms of this Mortgage insured for an amount not less than its full insurable value, against the risks of fire, explosion and marine perils (including without limitation a collision or Four-Fourths Running Down Clause and Inchmaree Clause and against all other risks customarily insured on a Vessel of this type and size, including but not limited to strikes, riots and civil commotion coverage, and in the amount of not less than $5,000,000.00, including excess P. & I. coverage against the P. & I. risks customarily covered. The Shipowner may eliminate from the Hull and P. & I. insurance any risks ordinarily covered thereunder, provided that it insures such risks under a separate or different form of policy; and the P. & I. insurance as to coverage of the Shipowner’s employees, if any, may be excess insurance over any Employers Liability and/or Voluntary Workmen’s Compensation Insurance if provided by or on behalf of the Mortgagee. Where the valuation of any Vessel in any policy of insurance required hereunder may be pertinent, such valuation shall not exceed the amount insured thereby, and policy franchises or deductible averages shall not exceed the sum of $100,000.00 as to each loss covered by hull insurance and $100,000.00 as to each loss covered by P. & I. insurance. Excess liability, increased value, disbursements and other forms of total loss insurance, in such amounts as marine underwriters may allow, may be carried as part of the total amount of the hull insurance required hereunder.

 

(b)           The Shipowner may select its own insurance brokers (unless such brokers are unsatisfactory to the Mortgagee) and all such policies must be through such brokers on policy forms approved by the Mortgagee and from companies in good standing and satisfactory to the Mortgagee. Certificates for all insurance herein provided for and receipts for the payment of the premiums thereon shall be delivered to the Mortgagee promptly upon request.

 

(c)           All insurance policies must be issued in the joint names of the Shipowner and the Mortgagee and be payable to them as their respective interests may appear. The interest of the Mortgagee is hereby declared to be the unpaid balance of the principal and interest of the Obligations outstanding and any unpaid amounts secured by the lien of this Mortgage, and in the event of a total loss of a Vessel, actual or constructive, as constructive total loss is defined in the policies of insurance procured hereunder, the Mortgagee shall be paid first the amount of its interest in such insurance with preference to and priority over the Shipowner and any person claiming under or from the Shipowner, and any balance shall be paid to the Shipowner. If such a total loss of a Vessel shall occur, the Shipowner and the Mortgagee shall join in a payment order directing the interested underwriter to pay the proceeds of the insurance applicable to such total loss in the manner herein provided. The proceeds of all other insurance shall be paid to the Shipowner and the Mortgagee jointly, but in any event and whether or not the Shipowner be in default under this Mortgage, the Mortgagee shall make available to the Shipowner by an appropriate payment order directed to the interested underwriter the proceeds of all insurance to pay any outstanding bill for repairing the Vessel and/or outstanding third party claim, provided that the Shipowner must pay the amount of the deductible; or to reimburse the Shipowner in

 

4

 

whole or in part for any expenditures the Shipowner may have made for repairing the Vessel and/or to pay any third party claim, but the Mortgagee, as a condition precedent to such reimbursement of the Shipowner, may require the Shipowner to furnish the Mortgagee with receipted bills or waivers of liens against the Vessel for repairing the Vessel and/or waivers of liens or appropriate releases for the third party claims, or in either event to furnish or pay the applicable deductible average. If the Shipowner does not complete repairs to the Vessel or pay third party claims, or in either event furnish and/or pay the deductible, then the Mortgagee shall be entitled to receive the proceeds of any insurance applicable to such loss and upon payment shall credit the net proceeds of any insurance as provided in Section 2.11.

 

(d)           The Shipowner will maintain all such insurance in full force and effect and it will not take or allow any act of omission or commission which will in any way invalidate, void or suspend any insurance herein provided to be maintained. Each policy of insurance required to be maintained by the Shipowner hereunder shall be endorsed with the undertaking of the insurance company or underwriters issuing such policy to the effect that such policy shall not lapse, expire, terminate or be canceled for any reason whatsoever without at least ten (10) days prior written notice to the Mortgagee. The Shipowner shall, within a reasonable period of time, pay for any material loss of or damage to any Vessel by any cause whatsoever, and shall discharge or obtain the release of any third party claims whatsoever which would constitute a material prior or competing lien against any Vessel, not covered by insurance or for which no reimbursement or incomplete reimbursement is secured from the insurance.

 

SECTION 1.11                       (a)           Except while any Vessel is undergoing repairs, maintenance or is in lay up, the Shipowner will at all times and without cost or expense to the Mortgagee maintain and preserve, or cause to be maintained and preserved, each Vessel (i) in good running order and repair, so that each Vessel shall be, insofar as due diligence can make her so, tight, staunch, strong and well and sufficiently tackled, apparelled, furnished, equipped and in every respect seaworthy and (ii) in at least as good condition as when this Mortgage was executed, ordinary wear and tear excepted; and will keep each Vessel, or cause her to be kept, in such condition as will entitle her to such classification rating with the American Bureau of Shipping or other classification society of like standing reasonably acceptable to the Mortgagee (each, a “Classification Society”) that companies engaged in the operation of  vessels of the same type, size, age and flag as the Vessels maintain respecting their vessels with such Classification Society.  Notwithstanding the foregoing, if any Vessel is affected by any loss or damage or any condemnation or taking of such Vessel or a portion or component thereof, the Shipowner shall make all necessary repairs and replacements to such respective Vessel.

 

(b)           Each Vessel shall, and the Shipowner covenants that it will, at all times comply with all applicable laws, rules and regulations to the extent set forth in the Credit Agreement, and each Vessel shall have on board as and when required thereby certificates showing compliance therewith.

 

(c)           The Shipowner may, in the ordinary course of maintenance, repair or overhaul of any Vessel, remove any item of property constituting a part of such Vessel, provided such item of property is replaced to the extent necessary to maintain such Vessel in the condition required herein or in the Credit Agreement.  Any such replacement item of property, shall, without necessity of further act, become part of such Vessel and subject to this Mortgage.

 

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SECTION 1.12                       Without giving at least 60 days’ prior written notice thereof to the Mortgagee, the Shipowner will not change the name, official number, the home port or class of any Vessel.  The Shipowner will not change the flag of any Vessel without the prior written consent of the Mortgagee.

 

SECTION 1.13                       The Shipowner will not sell, mortgage or transfer any Vessel except as permitted by the Credit Agreement.  The Shipowner will not charter any Vessel on a demise or bareboat basis unless the Shipowner has, if reasonably requested by the Mortgagee, delivered to the Mortgagee an assignment of earnings in form and substance reasonably satisfactory to the Mortgagee; provided that a contract executed as a bareboat charter of less than six (6) months’ duration shall not be deemed to be a demise or bareboat charter for this purpose.

 

SECTION 1.14                       The Shipowner agrees that, if the Shipowner fails to perform covenants or obligations under this Mortgage, including, without limitation, its obligations with respect to insurance, the discharging of Liens, taxes, dues, assessments, governmental charges, fines, penalties lawfully imposed, repairs, reasonable attorneys’ fees, and other obligations that are not Collateral Permitted Liens, during the existence of an Mortgage Event of Default (as hereafter defined), the Mortgagee may, but shall not be obligated to, perform the Shipowner’s obligations under this Mortgage, and any reasonable expenses incurred by the Mortgagee in performing the Shipowner’s obligations shall be paid by the Shipowner within ten (10) Business Days of demand.  Any such performance by the Mortgagee may be made by the Mortgagee in reasonable reliance on any statement, invoice or claim, without inquiry into the validity or accuracy thereof.  The amount and nature of any expense of the Mortgagee hereunder shall be conclusively established by a certificate of any officer of the Mortgagee absent manifest error, and such amount shall be included in the Obligations, secured by this Mortgage.

 

SECTION 1.15                       In the event that at any time and from time to time this Mortgage or any provisions hereof shall be deemed invalidated in whole or in part by reason of any present or future law or any decision of any authoritative court, or if the documents at any time held by the Mortgagee shall be deemed by the Mortgagee for any reason insufficient to carry out the true intent and spirit of this Mortgage, then the Shipowner, forthwith upon the request of the Mortgagee, will execute, on its own behalf, such other and further assurances and documents as reasonably requested by the Mortgagee to more effectually subject the Vessels to the payment of the principal sum of the Obligations, as in this Mortgage provided, and the performance of the terms and provisions of this Mortgage.

 

SECTION 1.16                       In the event of the requisition (whether of title or use), condemnation, sequestration, seizure or forfeiture of any Vessel by any Governmental Authority or by anyone else, the Shipowner will give prompt written notice thereof to the Mortgagee, and any payments in respect thereof shall be paid to the Shipowner, and the Shipowner shall cause any such payment to be applied to the Obligations to the extent required by, and in accordance with, the terms of the Loan Documents.

 

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ARTICLE II
 EVENTS OF DEFAULT AND REMEDIES

 

SECTION 2.1                         In case (i) a default shall have occurred and be continuing under Section 1.9(a) herein, (ii) a default shall have occurred and be continuing under this Mortgage for a period of fifteen (15) days after written notice by Mortgagee to Mortgagor, (iii) the Mortgagor shall have removed or attempted to remove any Vessel beyond the trading limits as set forth in the policies of insurance referenced in Section 1.10 herein or shall have abandoned a Vessel in a foreign port, or (iv) an Event of Default shall have occurred and be continuing as defined in the Credit Agreement, then, in each and every such case (each referred to herein as a “Mortgage Event of Default”), the Mortgagee shall have the right to:

 

(a)           declare immediately due and payable all of the Obligations (in which case all of the same shall be immediately due), and bring suit at law, in equity or in admiralty, as it may be advised, to recover judgment for the Obligations and collect the same out of any and all property of the Shipowner whether covered by this Mortgage or otherwise;

 

(b)           exercise all of the rights and remedies in foreclosure and otherwise given to mortgagees by the provisions of applicable law, including but not limited to, the provisions of Chapter 313 of Title 46 of the United States Code and the regulations in effect thereunder from time to time, as amended;

 

(c)           take and enter into possession of any Vessel, at any time, wherever the same may be, without court decision or other legal process and without being responsible for loss or damage, and the Shipowner or other Person in possession forthwith upon demand of the Mortgagee shall surrender to the Mortgagee possession of such Vessel and the Mortgagee may, without being responsible for loss or damage, hold, lay up, lease, charter, operate or otherwise use such Vessel for such time and upon such terms as it may deem to be for its best advantage, and demand, collect and retain all hire, freights, earnings, issues, revenues, income, profits, return premiums, salvage awards or recoveries, recoveries in general average, and all other sums due or to become due in respect of such Vessel or in respect of any insurance thereon from any Person whomsoever, accounting only for the net profits, if any, arising from such use of such Vessel and charging upon all receipts from the use of such Vessel or from the sale thereof by court proceedings or pursuant to Section 2.1(e) below, all costs, expenses, charges, damages or losses by reason of such use; and if at any time the Mortgagee shall avail itself of the right herein given it to take any Vessel, the Mortgagee shall have the right to dock such Vessel for a reasonable time at any dock, pier or other premises of the Shipowner without charge, or to dock them at any other place at the cost and expense of the Shipowner, and the Mortgagee shall have the right to require the Shipowner to deliver, and the Shipowner shall on demand, at its own cost and expense, deliver to the Mortgagee such Vessel as demanded; and the Shipowner hereby irrevocably instructs the masters of each Vessel so long as this Mortgage is outstanding to deliver such Vessel to the Mortgagee as demanded;

 

(d)           inspect and make copies of all original class records held by the Classification Society relating to any Vessel; and/or

 

(e)           take and enter into possession of any Vessel, at any time, wherever the same may be, without legal process, and if it seems desirable to the Mortgagee and without being responsible for loss or damage, sell such Vessel, at any place and at such time as the Mortgagee may specify and in such manner and such place (whether by public or private sale) as the

 

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Mortgagee may deem advisable (without necessity of bringing the Vessel to the place designated for such sale), free from any claim by the Shipowner in admiralty, in equity, at law or by statute, after first giving notice of the time and place of any public sale with a general description of the property in the following manner:

 

(i)            by publishing such notice for 10 consecutive days in a daily newspaper of general circulation published in New York City;

 

(ii)           if the place of sale should not be New York City, then also by publication of a similar notice in a daily newspaper, if any, published at the place of sale; and

 

(iii)          by mailing a similar notice to the Shipowner at its last known address on the day of first publication;

 

and notice of the time and place of any private sale by mailing such notice to the Shipowner at its last known address.

 

SECTION 2.2                         Any sale of any Vessel or any share therein made in pursuance of Section 2.1 of this Mortgage, whether under the power of sale hereby granted or any judicial proceedings, shall operate to divest all right, title and interest of any nature whatsoever of the Shipowner therein and thereto and shall bar any claim from the Shipowner, its successors and assigns, and all Persons claiming by, through or under them.  No purchaser shall be bound to inquire whether notice has been given, or whether any default has occurred, or as to the propriety of the sale, or as to the application of the proceeds thereof.  In the case of any such sale, the Mortgagee shall be entitled, for the purpose of making settlement or payment for the property purchased, to use and apply the Obligations in order that there may be credited against the amount remaining due and unpaid thereon the sums payable out of the net proceeds of such sale with respect to the Obligations after allowing for the costs and expense of sale and other charges; and thereupon such purchaser shall be credited, on account of such purchase price, with the net proceeds that shall have been so credited with respect to the Obligations.  At any such sale, the Mortgagee may bid for and purchase such property and upon compliance with the terms of sale may hold, retain and dispose of such property without further accountability therefor.

 

SECTION 2.3                         The Mortgagee is hereby appointed attorney-in-fact of the Shipowner to execute and deliver to any purchaser aforesaid, and is hereby vested with full power and authority to make, after the occurrence and during the continuation of a Mortgage Event of Default, in the name and on behalf of the Shipowner, a good conveyance of the title to each Vessel so sold.  In the event of any sale of any Vessel under Section 2.1, under any power contained under Section 2.1, the Shipowner will, if and when required by the Mortgagee, execute such form of conveyance of such Vessel and other related documents, as the Mortgagee may direct or approve.  The powers and authority granted to the Mortgagee herein have been given for a valuable consideration and are hereby declared to be irrevocable.

 

SECTION 2.4                         The Mortgagee is hereby appointed attorney-in-fact of the Shipowner in the name of the Shipowner to, after the occurrence and during the continuation of a Mortgage Event of Default, demand, collect, receive, compromise and sue for, so far as may be permitted by law, all freights, hire, earnings, issues, revenues, income and profits of any Vessel

 

8

 

and all amounts due from underwriters under any insurance thereon as payments of losses or as return premiums or otherwise, salvage awards and recoveries of any Vessel, recoveries in general average or otherwise in respect of any Vessel, and all other sums in respect of any Vessel, due or to become due at the time of the occurrence and during the continuation of any Mortgage Event of Default, or in respect of any insurance thereon, from any Person whomsoever, and to make, give and execute in the name of the Shipowner acquittances, receipts, releases or other discharges for the same, whether under seal or otherwise, and to endorse and accept in the name of the Shipowner all checks, notes, drafts, warrants, agreements and other instruments in writing with respect to the foregoing.  The powers and authority granted to the Mortgagee herein have been given for a valuable consideration and are hereby declared to be irrevocable.

 

SECTION 2.5                         Whenever any right to enter and take possession of any Vessel accrues to the Mortgagee pursuant to this Article 2, it may require the Shipowner to deliver, and the Shipowner shall on demand, at its own cost and expense, deliver to the Mortgagee such Vessel as demanded.  If any legal proceedings shall be taken to enforce any right under this Mortgage, the Mortgagee shall be entitled as a matter of right to the appointment of a receiver of such Vessel and of the freights, hire, earnings, issues, revenues, income and profits due or to become due and arising from the operation thereof.

 

SECTION 2.6                         The Shipowner authorizes and empowers the Mortgagee or its appointees or any of them to, after the occurrence and during the continuation of a Mortgage Event of Default, appear in the name of the Shipowner, its successors and assigns, in any court of any country or nation of the world where a suit is pending against any Vessel because of or on account of an alleged Lien against such Vessel from which such Vessel has not been released and to take such proceedings as to them or any of them may seem proper towards the defense of such suit and the purchase or discharge of such Lien, and all expenditures made or incurred by them or any of them for the purpose of such defense or purchase or discharge shall be a debt due from the Shipowner, its successors and assigns, to the Mortgagee, and shall be secured by the Lien of this Mortgage in like manner and extent as if the amount and description thereof were written herein.

 

SECTION 2.7                         The Shipowner covenants that at any time that any Obligations shall be due and payable (whether by acceleration or otherwise), the Mortgagee may demand the payment thereof; and in case the Shipowner shall fail to pay the same forthwith upon such demand, the Mortgagee shall be entitled to recover judgment for the whole amount so due and unpaid, together with such further amounts as shall be sufficient to cover the reasonable compensation to the Mortgagee’s agents, attorneys and counsel and any necessary advances, expenses and liabilities made or incurred by it hereunder.  All moneys collected by the Mortgagee under this Section 2.7 shall be applied by the Mortgagee in accordance with the terms of Section 6.6 of the Security Agreement.

 

SECTION 2.8                         Each and every power and remedy herein given to the Mortgagee shall be cumulative and shall be in addition to every other power and remedy herein given or now or hereafter existing at law, in equity, in admiralty, by statute or under any Loan Document or other agreement, and each and every power and remedy whether herein given or otherwise existing may be exercised from time to time and as often and in such order as may be deemed

 

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expedient by the Mortgagee, and the exercise or the beginning of the exercise of any power or remedy shall not be construed to be a waiver of the right to exercise at the same time or thereafter any other power or remedy.  No delay or omission by the Mortgagee in the exercise of any right or power or in the pursuance of any remedy accruing upon any Mortgage Event of Default shall impair any such right, power or remedy or be construed to be a waiver of any such Mortgage Event of Default or to be an acquiescence therein; nor shall the acceptance by the Mortgagee of any security or of any payment of or on account of the Obligations after any Mortgage Event of Default or of any payment on account of any past Mortgage Event of Default be construed to be a waiver of any right to take advantage of any future Mortgage Event of Default or of any past Mortgage Event of Default not completely cured thereby.

 

SECTION 2.9                         If at any time after a Mortgage Event of Default and prior to the actual sale of any Vessel by the Mortgagee or prior to any foreclosure proceedings, the Shipowner offers to cure completely all Events of Default and to pay all expenses, advances and damages to the Mortgagee consequent on such Events of Default, with interest at a rate equal to the Default Rate, then the Mortgagee may, but shall be under no obligation to, accept such offer, cure and payment and restore the Shipowner to its former position, but such action shall not affect any subsequent Mortgage Event of Default or impair any rights consequent thereon.

 

SECTION 2.10                       In case the Mortgagee shall have proceeded to enforce any right, power or remedy under this Mortgage by foreclosure, entry or otherwise, and such proceedings shall have been discontinued or abandoned for any reason or shall have been determined adversely to the Mortgagee, then and in every such case the Shipowner and the Mortgagee shall be restored to their former positions and rights hereunder with respect to the property subject or intended to be subject to this Mortgage, and all rights, remedies and powers of the Mortgagee shall continue as if no such proceedings had been taken.

 

SECTION 2.11                       The proceeds of any sale of any Vessel and the net earnings of any charter operation or drilling contract or other use of any Vessel by the Mortgagee under any of the powers herein specified in this Article II, as well as any and all other moneys received by the Mortgagee pursuant to or under any of the provisions of Article I hereof or this Article II or in any proceedings pursuant to this Article II, shall be held and applied by the Mortgagee from time to time as provided in Section 6.6 of the Security Agreement.  In the event that the proceeds and amounts referred to above received by the Mortgagee are insufficient to pay in full the Obligations, the Mortgagee shall be entitled to collect the balance from the Shipowner or from any other Person or entity liable therefor.

 

SECTION 2.12                       Unless and until one or more Events of Default shall occur and be continuing, the Shipowner (a) shall be suffered and permitted to retain actual possession and use of the Vessel and (b) to the extent permitted by Section 7.05 of the Credit Agreement shall have the right, from time to time, in its discretion, and without application to the Mortgagee, and without obtaining a release thereof by the Mortgagee, to dispose of, free from the Lien hereof, any boilers, engines, generators, drilling machinery and equipment, pumps and pumping equipment, machinery, masts, spars, sails, rigging, boats, anchors, cables, chains, tackle, out fit, apparel, furniture, fittings, equipment, spares, fuel, stores or any other appurtenances of any Vessel, provided such item of property is replaced and such Vessel is maintained in the condition

 

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required herein and in the Credit Agreement, and such replacement item, if any, shall forthwith become subject to the Lien of this Mortgage as a first preferred mortgage thereon.

 

ARTICLE III
 SUNDRY PROVISIONS

 

SECTION 3.1                         The maximum principal amount that may be outstanding under this Mortgage at any time is Fifty Million United States Dollars (US$50,000,000), and for purposes of recording this Mortgage, the total amount of this Mortgage is Fifty Million United States Dollars (US$50,000,000), premium (if any) and interest and performance of mortgage covenants.  There is no separate discharge amount.

 

SECTION 3.2                         All of the covenants, promises, stipulations and agreements of the Shipowner in this Mortgage contained shall bind the Shipowner and its successors and assigns and shall inure to the benefit of the Mortgagee and its successors and assigns.  In the event of any assignment of this Mortgage, the term “Mortgagee” as used in this Mortgage shall be deemed to mean any such assignee.

 

SECTION 3.3                         Wherever and whenever herein any right, power or authority is granted or given to the Mortgagee, such right, power or authority may be exercised in all cases by the Mortgagee or such agent or agents as it may appoint, and the act or acts of such agent or agents when taken shall constitute the act of the Mortgagee hereunder.

 

SECTION 3.4                         (a)           In the event that any provision of this Mortgage shall be deemed invalid or unenforceable by reason of any present or future law or any decision of any court of competent jurisdiction, the validity and enforceability of any other provision hereof shall not be affected thereby.  Any such invalidity or unenforceability of any provision of this Mortgage in any jurisdiction or nation shall not render such provision invalid or unenforceable under the laws of any other jurisdiction or nation.

 

(b)           In the event that this Mortgage or any of the documents or instruments which may from time to time be delivered hereunder or any provision hereof shall be deemed invalidated by present or future law of any nation or by decision of any court, this shall not affect the validity and/or enforceability of all or any other parts of this Mortgage, or such documents or instruments and, in any such case, the Shipowner covenants and agrees that, on demand, it will execute and deliver such other and further agreements and/or documents and/or instruments and do such things as the Mortgagee in its sole reasonable discretion may deem to be necessary to carry out the true intent of this Mortgage.

 

(c)           Anything herein to the contrary notwithstanding, it is intended that nothing herein shall waive the preferred status of this Mortgage and that, if any provision of this Mortgage or portion thereof shall be construed to waive the preferred status of this Mortgage, then such provision to such extent shall be void and of no effect and shall cease to be a part of this Mortgage, without affecting the remaining provisions, which shall remain in full force and effect.

 

SECTION 3.5                         The Shipowner irrevocably submits itself to the non-exclusive jurisdiction of any of the courts of the State of New York sitting in New York City and of the United Stated District Court of the Southern District of New York, and any appellate court from

 

11

 

any thereof, for the purposes of (and solely for the purposes of) any suit, action or other proceeding arising out of, or relating to, this Mortgage or any of the transactions contemplated hereby, hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard in such New York State or Federal court and hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason whatsoever, that such suit, action or proceeding is brought in an inconvenient forum, or that the venue of such suit, action or proceeding is improper, or that this Mortgage or the subject matter hereof may not be enforced in or by such courts.  The Shipowner hereby irrevocably consents to the service of any and all process in any such suit, action or proceeding by the mailing of copies of such process to the Shipowner at its address listed in Section 3.10 hereof. The Shipowner agrees that a final judgment in any such action, suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Section 3.5 shall affect the right of the Mortgagee to serve legal process in any other manner permitted by law or affect the right of the Mortgagee to bring any action or proceeding against the Shipowner or its property in the courts of any other jurisdiction.

 

SECTION 3.6                         This Mortgage may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument.

 

SECTION 3.7                         The term “Dollars” or the symbol “$” as used herein shall mean Dollars in any coin or currency of the United States of America which at the time of payment shall be legal tender for public and private debts.

 

SECTION 3.8                         Upon the termination of this Mortgage pursuant to the proviso to the Habendum Clause hereof, the Mortgagee, forthwith upon the request of the Shipowner, will execute, on its own behalf, such other and further assurances and documents as requested by the Shipowner to effect such termination and to remove the Lien of record of this Mortgage, all at the cost and expense of the Shipowner.

 

SECTION 3.9                         THE SHIPOWNER HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS MORTGAGE.

 

SECTION 3.10                       All notices or other communications required or permitted to be made or given hereunder shall be made in writing and personally delivered to an officer or other responsible employee of the addressee, or sent, by registered air mail, return receipt requested, postage prepaid, facsimile transmission, or other direct written electronic means to the applicable address set forth under such party’s name below, or to such other address as each party hereto may from time to time designate to the others in such manner:

 

12

 

If to the Mortgagee:

 

BANK OF AMERICA, N.A.
 Agency Management Service
 901 Main Street
 Dallas, Texas 75202
 Attention:  Michelle Diggs
 Facsimile:  (214) 290-4126

 

If to the Shipowner:

 

GLOBAL GEOPHYSICAL SERVICES, INC.
 13927 South Gessner Road

Missouri City, Texas 77489

Attention:  Jerry Dresner
 Facsimile:  (713) 808-7757

 

Any communication personally delivered shall be deemed to have been validly and effectively given or delivered on the date of such delivery.  Any communication transmitted by facsimile or by registered air mail shall be deemed to have been validly and effectively given or delivered on the day when received.

 

SECTION 3.11                       If any Vessel is sold, transferred, conveyed or otherwise disposed of in a manner permitted by the Credit Agreement, such Vessel shall, upon request of the Mortgagee and at the Mortgagee’s sole cost and expense, be promptly released in writing by the Mortgagee from the Lien of this Mortgage, and all covenants and agreements of this Mortgage, and such release shall not affect the Mortgagee’s Lien on the remaining Vessels.

 

[Signature page follows.]

 

13

 

IN WITNESS WHEREOF, the Shipowner has executed this Mortgage on the day and year first above written.

 

	
 
    	
GLOBAL   GEOPHYSICAL SERVICES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   P. Mathew Verghese
    
	
 
    	
 
    	
 
    
	
 
    	
Name:   P. Mathew Verghese
    
	
 
    	
Title:   Senior VP and Chief Financial Officer
    
	
 
    
	
STATE OF TEXAS
    	
§
    
	
 
    	
§
    
	
COUNTY OF FORT BEND
    	
§
    
				

 

 

On this 30th day of April, 2010, before me personally appeared P. Mathew Verghese, to me known, who being by me duly sworn, did depose and say that s/he resides at 13927 S. Gessner Rd., Missouri City, TX 77489; that s/he is an authorized individual of GLOBAL GEOPHYSICAL SERVICES, INC., the limited liability company described in and which executed the foregoing instrument; and that s/he signed her/his name thereto by order of the Board of Directors of said limited liability company and that said instrument is the act and deed of said limited liability company.

 

 

	
 
    	
/s/   Traci Ann Cooper
    
	
 
    	
 
    
	
 
    	
Notary   Public
    
	
 
    	
 
    
	
 
    	
My   Commission expires: 02/03/2013
    

 

Signature Page to First Preferred Fleet Mortgage

 

 

EXHIBIT A
 TO
 FIRST PREFERRED FLEET MORTGAGE

 

[Copy of the Credit Agreement with certain exhibits]

 

 

SCHEDULE I
 TO
 FIRST PREFERRED FLEET MORTGAGE

 

DESCRIPTION OF THE VESSELS

 

	
Vessel Name
    	
 
    	
Official Number
    
	
Global   Mirage
    	
 
    	
1060662
    
	
Global   Quest
    	
 
    	
1050795
    
	
Global   Vision
    	
 
    	
1058458
    
	
James   H. Scott
    	
 
    	
1172960
    
	
Global   Longhorn
    	
 
    	
1208913
    
	
Lori   B
    	
 
    	
1111303

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