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<SEC-DOCUMENT>0000950129-05-006789.txt : 20050701
<SEC-HEADER>0000950129-05-006789.hdr.sgml : 20050701
<ACCEPTANCE-DATETIME>20050630215226
ACCESSION NUMBER:		0000950129-05-006789
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20050627
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20050701
DATE AS OF CHANGE:		20050630

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MITCHAM INDUSTRIES INC
		CENTRAL INDEX KEY:			0000926423
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359]
		IRS NUMBER:				760210849
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25142
		FILM NUMBER:		05930150

	BUSINESS ADDRESS:	
		STREET 1:		8141 SH 75 SOUTH
		STREET 2:		PO BOX 1175
		CITY:			HUNTSVILLE
		STATE:			TX
		ZIP:			77342
		BUSINESS PHONE:		9362912277

	MAIL ADDRESS:	
		STREET 1:		P O BOX 1175
		CITY:			HUNTSVILLE
		STATE:			TX
		ZIP:			77342
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>h26683e8vk.htm
<DESCRIPTION>MITCHAM INDUSTRIES, INC.
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<P align="center" style="font-size: 14pt"><B>UNITED STATES</B>

<P align="center" style="font-size: 14pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>


<P align="center" style="font-size: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>


<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>


<P align="center" style="font-size: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>



<P align="center" style="font-size: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B>


<P align="center" style="font-size: 10pt"><B>June&nbsp;30, 2005 (June&nbsp;27, 2005)</B><BR>
Date of Report (Date of earliest event reported)



<P align="center" style="font-size: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>


<P align="center" style="font-size: 24pt"><B>Mitcham Industries, Inc.</B>


<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>



<P align="center" style="font-size: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Texas</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>000-25142</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>76-0210849</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><B>8141 SH 75 South, P.O. Box 1175, Huntsville, Texas 77342</B><BR>
(Address of principal executive offices) (Zip Code)



<P align="center" style="font-size: 10pt"><B>936-291-2277</B><BR>
(Registrant&#146;s telephone number, including area code)



<P align="center" style="font-size: 10pt">(Former name or former address, if changed since last report.)



<P align="center" style="font-size: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>



<P align="left" style="font-size: 10pt">Check the appropriate box below if the Form&nbsp;8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</TD>
</TR>

</TABLE>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">








<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000"> Item&nbsp;1.01 Entry into a Material Definitive Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Item&nbsp;9.01 Financial Statements and Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002"> SIGNATURE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003"> EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="h26683exv10w1.htm">Loan Agreement dated June 27, 2005</A></TD></TR>
<TR><TD colspan="9"><A HREF="h26683exv10w2.htm">Security Agreement dated June 27, 2005</A></TD></TR>
<TR><TD colspan="9"><A HREF="h26683exv10w3.htm">Lease and Rental Assignment dated June 27, 2005</A></TD></TR>
<TR><TD colspan="9"><A HREF="h26683exv10w4.htm">Promissory Note dated June 27, 2005</A></TD></TR>
<TR><TD colspan="9"><A HREF="h26683exv99w1.htm">Press Release dated June 29, 2005</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<!-- link1 " Item&nbsp;1.01 Entry into a Material Definitive Agreement" -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;27, 2005, Mitcham Industries, Inc. (the &#147;Company&#148;) entered into a loan agreement with
First Victoria National Bank, providing a $12.5&nbsp;million senior secured revolving credit facility
for general corporate purposes (the &#147;2005 Facility&#148;). The 2005 Facility replaces the Company&#146;s
existing $4.0&nbsp;million revolving credit facility. Borrowings under the 2005 Facility bear interest
at the prime rate and interest on any outstanding balance is payable monthly. The agreement
contains certain financial covenants, including a debt to shareholder&#146;s equity ratio of a maximum
of 1.3 to 1.0 and a current assets to current liabilities ratio of 1.25 to 1.0. A copy of the
Credit Agreement is attached hereto as Exhibit&nbsp;10.1 and is incorporated herein by reference.

<!-- link1 "Item&nbsp;9.01 Financial Statements and Exhibits" -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Exhibits



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Loan Agreement, dated as of June&nbsp;27, 2005 between Mitcham Industries,
Inc. and First Victoria National Bank.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Security Agreement, dated June&nbsp;27, 2005, between Mitcham Industries,
Inc. and First Victoria National Bank.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Lease and Rental Assignment, dated June&nbsp;27, 2005, with First Victoria National Bank.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Promissory Note dated June&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">99.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Press release dated June&nbsp;29, 2005.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">-2-
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>

<!-- link1 " SIGNATURE" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="center" style="font-size: 10pt"><B>SIGNATURE</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>MITCHAM INDUSTRIES, INC.</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date: June&nbsp;30, 2005
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Billy F. Mitcham, Jr.</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Billy F. Mitcham, Jr.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive Officer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 " EXHIBIT INDEX" -->
<DIV align="left"><A NAME="003"></A></DIV>

<P align="center" style="font-size: 10pt"><U><B>EXHIBIT INDEX</B></U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loan Agreement, dated as of June&nbsp;27, 2005 between Mitcham Industries,
Inc. and First Victoria National Bank.</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Security Agreement, dated June&nbsp;27, 2005, between Mitcham Industries, Inc. and
First Victoria National Bank.</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lease and Rental Assignment, dated June&nbsp;27, 2005, with First Victoria National Bank.</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Promissory Note dated June&nbsp;27, 2005.</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press release dated June&nbsp;29, 2005.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>h26683exv10w1.htm
<DESCRIPTION>LOAN AGREEMENT DATED JUNE 27, 2005
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w1</TITLE>
</HEAD>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="right" style="font-size: 10pt"><B>EXHIBIT 10.1</B>



<P align="center" style="font-size: 10pt"><U>LOAN AGREEMENT</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS AGREEMENT made and entered into on this 27th day of June, 2005, by and between MITCHAM
INDUSTRIES, INC., a Texas corporation, with principal offices at Huntsville, in Walker County,
Texas (herein referred to as &#147;Borrower&#148;), and First Victoria National Bank, a national banking
corporation, with its offices and domicile in Victoria, Victoria County, Texas, (herein referred to
as &#147;Lender&#148;) to induce Lender to extend credit to Borrower in the amounts evidenced by the
promissory note described in Paragraph&nbsp;II A of this agreement (herein referred to as the &#147;Loan&#148;)
and evidencing the line of credit described herein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In consideration of their mutual warranties, covenants and agreements contained herein and
Lender&#146;s extension of credit to Borrower in the amount aforesaid, Borrower and Lender hereby
warrant, covenant and agree as follows:


<P align="center" style="font-size: 10pt">I. <U>WARRANTIES OF BORROWER:</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;That Borrower is a Texas corporation currently authorized to do business in the State of
Texas, and that all franchise taxes, employment taxes, withholding taxes, income taxes, sales
taxes, use taxes and all other taxes have been paid current to the date of this agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;That the execution by Borrower of this agreement and the other documents described herein
has been duly authorized by its corporate board and that all of the agreements, indentures, or
conveyances described herein to be made or undertaken by Borrower are within its corporate powers
and not prohibited by law or its governing documents.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;That this Loan Agreement and all promissory notes and security documents referenced herein
are legal, valid and binding obligations of Borrower which are enforceable against Borrower in
accordance with the respective terms thereof.


<P align="center" style="font-size: 10pt">Exhibit 10.1
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;That all audits and financial information submitted to Lender may be relied upon by Lender
as fairly representing the financial condition of the companies or individuals to which the same
relate, and that there has been no adverse change in the financial condition of Borrower subsequent
to the presentment of the financial information now held by Lender.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;That there is no litigation, arbitration or governmental or regulatory proceedings pending
or threatened against Borrower which, if adversely determined, could have a material adverse effect
on Borrower&#146;s financial condition or affect the legality, validity or enforceability of this Loan
Agreement or any promissory notes or security documents referenced herein and that Borrower has no
material contingent liabilities or material forward commitments which are not disclosed in the
financial information now held by Lender.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;That there are no other liens or encumbrances against the property given as security for
the payment of the hereinafter described loan, except for a Permitted Lien as defined herein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Permitted Lien&#148; means (a)&nbsp;Liens created by or permitted under the Security Agreement, Lease
and Rental Assignment, and such other documents and instruments under this Loan Agreement; (b)&nbsp;Liens existing on the date of this Agreement; (c)&nbsp;Liens for Taxes or
other governmental charges not at the time due and payable, or (if foreclosure, distraint sale or
other similar proceeding shall not have been initiated) which are being contested in good faith by
appropriate proceedings diligently prosecuted, so long as foreclosure, distraint, sale or other
similar proceedings have not been initiated, and in each case for which the Borrower and its
subsidiaries maintain adequate reserves in accordance with GAAP; (d)&nbsp;Liens in favor of carriers,
warehousemen, mechanics and materialmen, or other similar Liens imposed by law, which remain
payable without penalty or which are being contested in good faith by appropriate proceedings
diligently prosecuted, which proceedings have the effect of preventing


<P align="center" style="font-size: 10pt">Exhibit 10.1 - 2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">the forfeiture or sale of the property subject thereto, and in each case for which the
Borrower and its subsidiaries maintain adequate reserves in accordance with GAAP; (e)&nbsp;Liens in
connection with worker&#146;s compensation, unemployment compensation and other types of social security
(excluding Liens arising under ERISA) or Liens consisting of cash collateral securing the
Borrower&#146;s or any of its subsidiaries&#146; performance of surety bonds, bids, performance bonds and
similar obligations and, in each case, for which the Borrower and its subsidiaries maintain
adequate reserves in accordance with GAAP; (f)&nbsp;attachments, appeal bonds (and cash collateral
securing such bonds), judgments and other similar Liens, for sums not exceeding $1,000,000.00 in
the aggregate for the Borrower and its subsidiaries, arising in connection with court proceedings,
provided that the execution or other enforcement of such Liens is effectively stayed; (g)
easements, rights of way, restrictions, minor defects or irregularities in title and other similar
Liens arising in the ordinary course of business and not materially detracting from the value of
the property subject thereto and not interfering in any material respect with the ordinary conduct
of the business of the Borrower or any subsidiary; (h)&nbsp;Liens consisting of cash collateral securing
the Borrower&#146;s and its subsidiaries&#146; reimbursement obligations under letters of credit, provided
that the aggregate amount of cash collateral securing such Indebtedness does not exceed the undrawn
face amount of all such letters of credit outstanding at any one time; and (i)&nbsp;Liens arising solely
by virtue of any statutory or common law provision relating to banker&#146;s liens, rights of set-off or
similar rights and remedies and burdening only deposit accounts or other funds maintained with a
creditor depository institution, provided that no such deposit account is a dedicated cash
collateral account or is subject to restrictions against access by the depositor in excess of those
set forth by regulations promulgated by the Board of Governors of the Federal Reserve System and no
such deposit account is intended by the Borrowers to provide collateral to the depository
institution.


<P align="center" style="font-size: 10pt">Exhibit 10.1 - 3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt">II. <U>INDEBTEDNESS</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;Lender shall advance to Borrower, according to the terms thereof and subject to the
limitations expressed therein and in this agreement, the principal sum of the following promissory
note:



<P align="left" style="margin-left:3%; font-size: 10pt">One certain promissory note of even date herewith executed by Borrower and
payable to the order of Lender in the original principal sum of
$12,500,000.00, bearing interest at the rate of the Wall Street Journal
announced prime rate as such rate is determined daily by Lender according to
the specific terms of said promissory note and interest being payable in
monthly installments and one final principal payment in the amount of the
entire remaining principal balance of the note (together with any accrued
and unpaid interest). The final principal payment shall be due, together
with any unpaid interest, on the date two (2)&nbsp;years after the date of the
note with all such terms as provided in said promissory note.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;Borrower agrees to execute and deliver to Lender such promissory note in the form
prescribed by Lender and on terms described herein, evidencing the indebtedness created by such
advances.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;Borrower hereby acknowledges and agrees that Lender has and shall have the right, at any
time, without the consent of or notice to Borrower, to grant participations in all or part of the
obligations of Borrower evidenced by this note, together with any liens or collateral securing the
payment hereof. In the event Lender elects to participate any Overline Portion (as hereinafter
defined) of the obligations evidenced by this note and if Lender is unable to procure a participant
or a participant fails or refuses to advance to Borrower any Overline Portion through no fault of
Lender, it is agreed that Lender shall have no liability to Borrower to fund such Overline Portion,
nor shall Lender have any obligation to procure funds from other sources or fund any amounts that
would cause Lender to be in violation of any state or federal law with respect to Borrower being
liable to Lender in an amount in excess of that permitted by such applicable law. The term
&#147;Overline Portion&#148; shall mean the amount of loan proceeds in excess


<P align="center" style="font-size: 10pt">Exhibit 10.1 - 4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">of the amount that Lender is permitted by applicable law or Lender&#146;s loan policy limitations
to loan to Borrower.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;Notwithstanding any other provision in this agreement or the provisions of any
promissory note or other loan document to the contrary, Lender shall not charge or collect and
Lender does not intend to contract for interest in excess of that permitted by law for loans of
this kind, and to prevent such occurrence, Lender will, at maturity, or an earlier final payment of
any promissory note described above, determine the total amount of interest that can be lawfully
charged or collected by applying the highest lawful rate of interest to the full periodic balances
of principal for the period each is outstanding and unpaid and compare such amount with the total
interest that has accrued under the terms of such note, and, if necessary to prevent usury, reduce
the total amount of interest payable by Borrower to the lesser amount. If the amount of interest
that has been collected exceeds the lawful amount, Lender shall either make direct refund of such
excess to Borrower or credit it against other sums owed by Borrower to Lender, whichever Lender
deems appropriate. If at any time the rate of interest provided for in any note shall exceed the
highest lawful rate, the annual rate at which interest shall accrue on such note shall be limited
to such highest lawful rate. The highest lawful rate shall thereafter be the rate at which
interest is accrued on such note until the total amount of interest accrued equals the amount of
interest that would have accrued if the interest rate provided in such note had at all times been
in effect, after which the interest rate provided in such note, if it does not exceed the highest
lawful rate, shall apply. As used herein, the term &#147;highest lawful rate&#148; means the highest rate of
interest permitted to be charged or collected under the applicable state or federal law for this
type of loan applied to the full periodic balances of principal advances for the period each is
outstanding and unpaid.


<P align="center" style="font-size: 10pt">Exhibit 10.1 - 5
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt">III. <U>SECURITY</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;As security for the loan, Borrower shall execute and deliver to, procure for, deposit with,
and pay to Lender the following:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Security agreements, financing statements, registrations, and title
documents in form and content acceptable to Lender, executed by Borrower and
covering all assets of Borrower, including but not limited to its equipment,
accounts receivable, contracts, leases, inventory, instruments, chattel paper
and general intangibles, now owned or hereafter acquired by Borrower, and any
and all proceeds, increases, substitutions, replacements, additions, and
accessions to such assets securing the promissory note delivered by Borrower
pursuant to Paragraph&nbsp;II.A hereof, and all other and future indebtedness of
Borrower to Lender and evidencing a first lien and prior security interest in
such collateral, whether now owned or hereinafter acquired by Borrower.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Lease and Rental Assignment to Lender, in form and content acceptable
to Lender, of Borrower&#146;s rights under any leases of equipment by Borrower
hereunder which have not been paid in full.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Such other documents and instruments as Lender may require for the
perfection of liens and their registration under the laws of the State of
Texas, of the United States of America, of Canada or any other foreign nation
or province of a foreign nation.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Hazard insurance policy or policies in form and content and issued by a
company or companies with loss payable endorsements acceptable to Lender,
insuring all collateral given as security against loss or damage and against
vandalism and malicious mischief and insuring said collateral against the usual
and customary risks and hazards as Lender may request, all of such policy or
policies to be for a total amount acceptable to Lender.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Such security agreements and pledges as are required by Lender to
provide that all collateral for Borrower&#146;s other and future indebtedness to
Lender secures the indebtedness of Borrower arising from the Loan governed by
this Agreement.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">Exhibit 10.1 - 6
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;Borrower shall execute and deliver to Lender such other documents and instruments as Lender
may require to evidence the status or authority of Borrower and to evidence, govern or secure the
payment of the Loan or any portion thereof.


<P align="center" style="font-size: 10pt">IV. <U>COVENANTS OF BORROWER</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;For so long as any portion of the Loan remains unpaid, Borrower covenants and agrees as
follows:


<P align="center" style="font-size: 10pt"><U>POSITIVE COVENANTS</U>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That Borrower agrees to pay to Lender, upon demand, all expenses of
every nature incurred by Lender in connection with the consummation of the
transaction contemplated by this agreement, or the enforcement or preservation
of Lender&#146;s rights hereunder, including attorney&#146;s fees and expenses of
Lender&#146;s counsel, hazard insurance premiums, filing and recording fees, court
costs, and other fees and reasonable expenses incurred by Lender. Borrower
agrees to pay to Lender an origination fee of $5,000.00 as consideration for
the Loan.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That Borrower shall furnish or cause to be furnished at its expense to
Lender statements or reports in form and content acceptable to Lender on the
forty-fifth (45th) day after the end of each quarter for first three quarters
of Borrower&#146;s fiscal year which shall set forth an operating statement and
balance sheet for Borrower herein named as Borrower; an ageing of notes,
accounts receivable and accounts payable of Borrower for the preceding calendar
quarter. Lender shall be allowed to make reasonable inspections of all assets
securing said loan and shall further have the right to inspect the books of
Borrower or other records relating to the affairs of Borrower.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That Borrower shall furnish at its expense to Lender annually, within
ninety (90)&nbsp;days after the end of Borrower&#146;s income tax reporting year, a
report prepared and audited by a Certified Public Accountant for Borrower,
including a balance sheet, income statement, sources and uses of funds
statement, and a reconciliation of net worth.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">Exhibit 10.1 - 7
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That while Borrower is indebted to Lender hereunder Borrower will:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Perform all of its obligations to appropriate
regulatory agencies;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Punctually pay all indebtedness from time to
time owing hereunder when due;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Perform all of its obligations under the
Security Instruments described herein;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Promptly pay and discharge any and all
indebtedness or obligations when due and owing in excess of
$500,000.00, including all taxes of every kind and character,
all assessments, and other claims which might give rise to a
lien on the property given as security for this loan or impair
Borrower&#146;s obligation to conduct its business, except as it may
in good faith contest or as to which a bona fide dispute may
arise, provided provision is made to the satisfaction of Lender
for eventual payment thereof in the event that it is found that
such indebtedness or obligation or tax or claim is an
obligation of Borrower, and when such dispute or contest is
settled or determined, it will promptly pay the amount then
due.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">e.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Maintain and keep in force insurance of the
types and in the amounts customarily carried by companies in
similar lines of business, including adequate amounts of fire,
windstorm, explosion, public liability, property damage, and
workman&#146;s compensation insurance; all insurance is to be
carried by nationally reputable companies, and Borrower will
deliver to Lender from time to time, at the request of Lender,
a schedule setting forth all insurance in effect;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">f.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Maintain a standard and modern accounting
system in accordance with generally accepted principles of
accounting, permit Lender to inspect its books of account and
records at all reasonable times, furnish to Lender such
information respecting the business affairs and financial
condition of Borrower as Lender may reasonably request.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">g.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Preserve all rights, privileges, franchises,
licenses, and permits connected with its business and to the
extent of its ability will conduct its business in an orderly,
efficient</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">Exhibit 10.1 - 8
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>manner without voluntary interruptions, and comply with all
applicable laws and regulations of government agencies;<BR><BR></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">h.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Maintain, preserve and keep all properties and
equipment in good repair, working order and condition,
reasonable wear and tear excepted, and from time to time make
all necessary and proper repairs, renewals, replacements, and
improvements thereto so that at all times the efficiency and
value thereof shall be fully preserved and maintained, and
maintain leases, licenses and permits, but nothing herein
contained shall prevent Borrower from in good faith contesting
or seeking legal construction of any dispute, terms or
conditions of a contract, lease or other obligation; Lender
may, at reasonable times, visit and inspect any of the
properties of Borrower;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Maintain Borrower&#146;s financial condition in
compliance with the following ratios, measured at the end of
each quarter of the calendar year, as determined by Lender
based on generally accepted accounting principles (GAAP):</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A debt to shareholder&#146;s
equity ratio of a maximum of 1.3 to 1.0. This
ratio shall be calculated with the Borrower&#146;s
total debt being divided by the Borrower&#146;s
total shareholder equity for the resulting
ratio.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A current assets to
current liabilities ratio of a minimum of 1.25
to 1.0. This ratio shall be calculated with
the Borrower&#146;s total current assets being
divided by the Borrower&#146;s total current
liabilities for the resulting ratio.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">j.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To give notice in writing to Lender within 30
days of any proceedings by any public or private body, agency,
or authority, pending or threatened, which may have a
substantial adverse effect on Borrower, and of any litigation
involving the possibility of judgments or liabilities in excess
of an aggregate of $1,000,000.00 not covered by insurance.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That Borrower shall not incur or maintain any indebtedness or
obligations or guarantee the debts or obligations of others in a total
aggregate amount which exceeds $1,000,000.00 from any other source not related
to the</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">Exhibit 10.1 - 9
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>indebtedness to Lender described herein without the prior written approval
of Lender except for the indebtedness and obligations as a result of the
acquisition of Seamap International Holding Pte, Ltd. and the proposed contract
with the Royal Australian Navy as addressed in the Security
Agreement.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That Borrower shall furnish or cause to be furnished at its expense to
Lender, Borrowing Base Certificates in the form and content contained on the
attached Exhibit &#147;A,&#148; which is incorporated herein by reference for all
purposes, on the 20th day of each calendar month for the preceding calendar
month. Borrower shall provide and complete the information and calculations
required by the Borrowing Base Certificates, and the availability of advances
to Borrower shall be subject to and governed by the restrictions set forth in
said Borrowing Base Certificates.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That Borrower shall furnish or cause to be furnished at its expense to
Lender, an appraisal of the equipment lease pool at the end of every one (1)
year period from the date of this Loan Agreement. Said appraisal shall be
performed by an appraiser that is approved by Lender in its sole discretion.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><U>NEGATIVE COVENANTS</U>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Borrower will not, except with the prior written consent of Lender:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Permit any lien (other than for taxes not
delinquent and for taxes and other items being contested in
good faith) to exist on property given as security for this
loan or on the income or profits thereof, excepting a Permitted
Lien.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Assign any leases or the proceeds thereof to
anyone except Lender;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Borrower will take no action which would result in any change in the
form of the corporate entity of Borrower or result in any reorganization,
merger or consolidation of Borrower with any other entity during the term of
this agreement without prior written consent of Lender.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That Borrower may not assign or otherwise transfer this Agreement or
any rights hereunder, and that this Agreement shall be binding upon Borrower an
the representatives, heirs, executors, legal representatives and successors of
Borrower.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That, except after written notice to Lender and where such use and the
activities relating thereto are in material compliance with all applicable</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">Exhibit 10.1 - 10
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>laws and regulations, Borrower shall not hereafter permit any property which
is (a)&nbsp;given as security for this Loan, (b)&nbsp;used by Borrower for any
business or other activities financed by Lender or (c)&nbsp;the source of
repayment of this Loan, to be used in any way for the generation,
transportation, treatment, disbursal, storage, discharge or disposal of any
pollutants, hazardous or toxic substances, or hazardous wastes as defined or
regulated by any of the following federal statutes: (a)&nbsp;The Comprehensive
Environmental Response, Compensation and Liability Act (&#147;CERCLA&#148;), as
amended by the Superfund Amendments and Re-Authorization Act of 1986
(&#147;SARA&#148;), (b)&nbsp;the Resource Conservation and Recovery Act (&#147;RCRA&#148;), (c)&nbsp;the
Toxic Substance Control Act (&#147;TSCA&#148;), (d)&nbsp;any amendments to or regulations
promulgated by any agency under any of the above statutes, and (e)&nbsp;any other
state or federal statute or regulation for the control of hazardous or toxic
substances.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">V. <U>COVENANTS OF LENDER</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;Subject to the terms of this agreement and of the note and security instruments described
herein, Lender covenants and agrees as follows:



<P align="left" style="margin-left:6%; font-size: 10pt">Advances will be requested by Borrower via facsimile accompanied by a
current borrowing base certificate and confirmed by a telephone call to
Lender. Lender will make advance on the same day as the request is made if
the request is confirmed by 12:00 noon. Lender will make advance by 12:00
noon the following day if the request is confirmed after 12:00 noon. Lender
shall be bound to make the advances herein on the following conditions up to
the amount specified as the original principal sum of the note and subject
to the limitations described herein with respect to the note described at
Paragraph&nbsp;II A hereof and subject to making the request for such advance to
Lender as specified above and subject to the following:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Compliance by Borrower with all terms and
conditions of this Loan Agreement, with respect to said Loan
and the absence of any default by Borrower hereunder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Payment of all fees and expenses contemplated
by this Agreement.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Execution of all notes, security agreements and
other documents required by Lender.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Furnishing of financial statements evidencing
financial condition of the Borrower.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">Exhibit 10.1 - 11
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P align="center" style="font-size: 10pt">VI. <U>DEFAULT AND REMEDIES</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;The occurrence of any one of the following events of default shall, at the option
of Lender and without notice or demand, except as described hereunder, make all or such
parts of the sums owing from Borrower to Lender hereunder, as Lender in its discretion
shall determine, immediately due and payable:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Failure of Borrower to pay within 10&nbsp;days after demand any sum past due
hereunder or under the Promissory Note, Security Agreement, and Lease and Rental
Assignment of even date;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Failure of Borrower to pay upon demand any debt hereunder or under the
Promissory Note, Security Agreement, and Lease and Rental Assignment of even
date, the maturity of which has been accelerated;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower&#146;s failure to punctually perform any of the obligations, covenants,
terms, or provisions contained or referred to in this Loan Agreement or in any note
secured by this Loan Agreement or in the Security Agreement, Lease and Rental
Assignment or any other instrument relating to the indebtedness to the Lender which
remains unperformed after thirty (30)&nbsp;days of non-compliance thereof.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any warranty, representation, or statement contained in this Loan
Agreement or any other writing between the parties made or furnished to the
Lender by or on behalf of the Borrower in connection with this Loan Agreement
or any other agreement, or to induce the Lender to make a loan to the Borrower
that proves to have been false in any material respect when made or furnished.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except to the extent covered by insurance, any loss, theft, substantial
damage, destruction, sale (other than in the normal course of business),
encumbrance or seizure of or to any of the Collateral (as defined in the
Security Agreement of even date) of a total value of more than $250,000.00.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower&#146;s dissolution or merger.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower&#146;s business failure, insolvency, assignment for the benefit
of creditors, or the appointment of a receiver, or institution of either
voluntary or involuntary bankruptcy proceedings concerning the Borrower.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">Exhibit 10.1 - 12
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any statement of the financial condition of the Borrower submitted to
the Lender that proves to be false or materially inaccurate.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Receipt by the Lender of notice at any time from any third party that
the third party is acquiring or attempting to acquire a security interest of
any kind in the Collateral that is the subject of the Security Agreement of the
even date.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Failure of the Borrower to maintain its existence as a Texas
corporation.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower&#146;s removing or replacing of any of the component parts of
Collateral (as defined by the Security Agreement of even date) so as materially
to lessen its market value.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Lapse or cancellation of any insurance required by the Security
Agreement of even date, and the Borrower&#146;s failure to furnish satisfactory
proof to the Lender that satisfactory substitute policies have been obtained
within thirty (30)&nbsp;days of the termination of coverage.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The levy of any attachment, execution, or other like process against
any of Lender&#146;s collateral;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The voluntary suspension of business by Borrower;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any default by Borrower in the payment or performance of any other
obligation of Borrower to Lender, including but not limited to any event of
default under any other loan agreement between Borrower and Lender or any
failure of Borrower to timely pay any sum when due on any indebtedness owing by
Borrower to Lender, regardless of how arising, or any breach by Borrower of any
covenant in any security agreement relating to any indebtedness of Borrower to
Lender;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The failure or inability of Borrower for any reason, within a period of
90&nbsp;days after notice from Lender thereof, to correct, cure or eliminate any
conditions, circumstances, or events (whether or not caused by any action or
inaction of Borrower), which Lender determines, in good faith, to affect
Borrower or its operations or Borrower&#146;s business or financial prospects in a
manner which impairs security of Lender or Borrower&#146;s ability to perform its
obligations.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;That no waiver of any default on the part of Borrower shall be considered waiver of any
other or subsequent default and no forbearance, delay, or omission in exercising or enforcing the
rights and powers of Lender shall be construed as a waiver of such rights and


<P align="center" style="font-size: 10pt">Exhibit 10.1 - 13
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">powers, and likewise no exercise or partial exercise of any rights or powers hereunder by
Lender shall be held to preclude further exercise of such rights and powers, and every such right
and power may be exercised from time to time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;The rights, powers and remedies given to Lender hereunder shall be in addition to all
rights, powers and remedies given to Lender by law against Borrower and any other person.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;No action shall be commenced by Borrower for any claim against Lender under the terms of this Loan
Agreement or arising from the subject loan relationship unless a notice in writing specifically
setting forth the claim of Borrower shall have been given to Lender within six (6)&nbsp;months after the
occurrence of the event which Borrower alleges gave rise to such claim. Failure to give such
notice shall constitute a waiver of any such claim.


<P align="center" style="font-size: 10pt">VII. <U>GENERAL PROVISIONS</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;Any notice or demand required or permitted to be given hereunder by Lender may be given in
writing by depositing such notice in the United States Mail, postage prepaid, addressed to Borrower
at P. O. Box 1175, Huntsville, Texas 77342-1175, Attn: Billy F. Mitcham, Jr., or such other place
as Borrower shall have designated in writing. Notice shall be deemed to have been given 48 hours
after being so deposited in the United States Mail.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;This agreement shall be construed under and in accordance with the laws of the State of
Texas, and all obligations of the parties created hereunder are performable in Victoria County,
Texas. Notwithstanding the provisions of this paragraph, Chapter&nbsp;346 of the Texas Finance Code,
shall not apply to the loan governed by this agreement or any part thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;In any case, if any one or more of the provisions contained in this Agreement shall for any
reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity,


<P align="center" style="font-size: 10pt">Exhibit 10.1 - 14
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">illegality, or unenforceability shall not affect any other provision hereof and this Agreement
shall be construed as if such invalid, illegal, or unenforceable provision had never been contained
herein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;This Agreement constitutes the sole and only agreement of the parties hereto and supersedes
any prior understandings or written or oral agreements between the parties respecting the within
subject matter.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;This agreement shall apply to and govern the herein described extensions of credit and all
renewals, extensions and rearrangements of such indebtedness of Borrower to Lender.


<P align="center" style="font-size: 10pt">Exhibit 10.1 - 15
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EXECUTED on the date first hereinabove mentioned in Victoria, Victoria County, Texas.


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">MITCHAM INDUSTRIES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">BILLY F. MITCHAM, JR.&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Its: President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="right" style="font-size: 10pt">BORROWER



<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">FIRST VICTORIA NATIONAL BANK<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top"> &nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;&nbsp;Its</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<P align="right" style="font-size: 10pt">LENDER




<P align="center" style="font-size: 10pt">Exhibit 10.1 - 16
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">THE STATE OF TEXAS
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#167;
</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">COUNTY OF WALKER
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#167;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This instrument was acknowledged before me on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005, by BILLY F.
MITCHAM, JR. as President of MITCHAM INDUSTRIES, INC., on behalf of said corporation.

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    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Notary Public, State of Texas</TD>
</TR>
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    <TD>&nbsp;</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">STATE OF TEXAS
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#167;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">COUNTY OF VICTORIA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#167;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This instrument was acknowledged before me on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005, by
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, as <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> of First Victoria National
Bank, on behalf of said corporation.

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    <TD width="1%">&nbsp;</TD>
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    <TD width="4%">&nbsp;</TD>
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    <TD width="4%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
</TR>

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    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Notary Public, State of Texas</TD>
</TR>
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</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">
</DIV>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>h26683exv10w2.htm
<DESCRIPTION>SECURITY AGREEMENT DATED JUNE 27, 2005
<TEXT>
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<TITLE>exv10w2</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="right" style="font-size: 10pt"><B>EXHIBIT 10.2</B>



<P align="center" style="font-size: 10pt"><U>SECURITY AGREEMENT</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Security Agreement is made between <B>MITCHAM INDUSTRIES, INC.</B>, located at P. O. Box 1175,
Huntsville, Texas 77342-1175, referred to in this Security Agreement as the &#145;&#145;Debtor,&#146;&#146; and <B>FIRST
VICTORIA NATIONAL BANK, </B>located at 101 S. Main Street, Victoria, Texas 77901, referred to in this
Agreement as the &#145;&#145;Secured Party.&#146;&#146; Secured Party and Debtor enter into this Security Agreement on
June&nbsp;27, 2005 on the following terms and conditions:


<P align="center" style="font-size: 10pt">I. CREATION OF SECURITY INTEREST



<P align="left" style="font-size: 10pt"><B>Grant of Interest to Secure Obligations of Debtor</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;For value received, the Debtor grants to the Secured Party a security interest in the
Collateral described in Paragraph&nbsp;2 of this Security Agreement, to secure each and all of the
following:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Debtor&#146;s note of $12,500,000.00 to the Secured Party of this same date, payable as to
principal and interest as provided in the note, and all indebtedness and liabilities of the Debtor
to the Secured Party at any time arising under the terms of the note.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Future advances to be evidenced by similar notes to be made by the Secured Party to the
Debtor at the Secured Party&#146;s option.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;All expenditures by the Secured Party for taxes, insurance, repairs to and maintenance of
the Collateral, and all costs and expenses incurred by the Secured Party in the collection and
enforcement of the note and other indebtedness of the Debtor.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;All liabilities, debts, and other duties of the Debtor to the Secured Party now existing
or later incurred, matured or unmatured, direct or contingent, and any renewals, extensions, and
substitutions of these liabilities, debts, or other duties.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Collateral</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The following described property is referred to in this Security Agreement as the
&#145;&#145;Collateral&#146;&#146;: all assets of Debtor, including but not limited to its equipment, accounts
receivable, contracts, leases, inventory, instruments, chattel paper and general intangibles, now
owned or hereafter acquired by Debtor, and any and all proceeds, increases, substitutions,
replacements, additions and accessions to such assets.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Security Interest in Proceeds</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;The Debtor grants to the Secured Party a security interest in and to all proceeds,
increases, substitutions, replacements, additions, and accessions to the Collateral. The inclusion
of proceeds in this Security Agreement does not authorize the Debtor to sell, lease, dispose of, or
otherwise use the Collateral without the express, written consent of the Secured Party, except as
otherwise provided in paragraph 13 of this Security Agreement, or in the Loan Agreement.


<P align="center" style="font-size: 10pt">Exhibit 10.2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt">II. WARRANTIES AND REPRESENTATIONS OF DEBTOR



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debtor warrants, covenants, and agrees as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Credit Information</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;All information supplied and statements made by the Debtor in any financial, credit, or
accounting statement or application for credit prior to, contemporaneously with, or subsequent to
the execution of this Security Agreement are true, correct, and complete.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Title</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Except for the security interest granted by this Security Agreement, the Debtor has, or on
acquisition will have, full title to the Collateral free from any lien, security interest,
encumbrance, or claim except for a Permitted Lien as defined in the Loan Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>No Other Secured Transactions</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;No other security agreement has been made and no security interests, other than the ones
created by this Security Agreement, has attached to or been perfected in the Collateral or in any
part of the Collateral except for (i)&nbsp;those security interests created in favor of Seamap
International Holding Pte, Ltd. as a result of the acquisition of Seamap
International Holding Pte, Ltd. and (ii)&nbsp;any which may
hereinafter arise from the issuance of letters of credit in connection with the proposed contract
between Borrower or its subsidiaries and the Royal Australian Navy. Debtor will provide to Secured
Party copies of all security interests and obligations of Debtor as a result of the acquisition of
Seamap International Holding Pte, Ltd.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;Except for any financing statements or other registered instruments reflecting the security

interests to be filed by the Secured Party or Debtor in connection with this Security Agreement, no
financing statement or other instrument covering the Collateral, or any part of the Collateral, has
been authorized by the Debtor to be filed in any jurisdiction in the United States of America or
other foreign nation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Conflicting Claims</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;Within the Debtor&#146;s knowledge, no dispute, right of setoff, counterclaim, or defense exists
with respect to any part of the Collateral.


<P align="center" style="font-size: 10pt">III. TREATMENT, USE, AND PROTECTION OF COLLATERAL



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Location and Identification</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;The Collateral will remain in the Debtor&#146;s possession or control at all times at the
Debtor&#146;s risk of loss and will remain at the address shown at the beginning of this Security
Agreement, where the Secured Party may inspect it at any time. Except for its temporary removal in
connection with its ordinary use, the Debtor will not remove the Collateral from the above address
without obtaining the prior written consent of the Secured Party. This paragraph shall not apply
to that portion of the Collateral that consists of equipment and/or inventory leased, sold and/or
disposed in the ordinary course of business as specified in Paragraph&nbsp;13.


<P align="center" style="font-size: 10pt">Exhibit 10.2 - 2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;The Debtor will at all times keep accurate and complete records of the Collateral and its
proceeds including the location of the Collateral and the names and addresses of other entities
having possession of the Collateral.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Sale, Assignment, or Transfer of Collateral</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;Without the prior written consent of the Secured Party, the Debtor will not do any of the
following acts:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Sell, lease, assign, encumber, transfer, or dispose of the Collateral or its proceeds
except that the Debtor may lease, sell or dispose of equipment and/or inventory in the ordinary
course of business as specified in Paragraph&nbsp;13.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Create in favor of anyone, except the Secured Party, any other security interest in the
Collateral, or in any part of the Collateral, or otherwise encumber or permit it to become subject
to any lien, attachment, execution, or other legal or equitable process except for a Permitted Lien
as defined in the Loan Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;The Debtor will keep the Collateral and proceeds free from unpaid charges, including
taxes, until this Security Agreement and all debts it secures have been fully satisfied.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Lease or Sale of Equipment and/or Inventory</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;Debtor may lease, sell and/or dispose of equipment and/or inventory only in the ordinary
course of business, on terms and at prices that are customary and reasonable for the industry, but
not otherwise. Debtor may, in good faith, determine the suitable and appropriate terms and prices
for the leases, sales and/or other disposition of equipment and/or inventory. Debtor will not
engage in any bulk sales or other bulk disposition or transfer of equipment and/or inventory (other
than equipment that is obsolete or worn out) or offer products at discounts not in the ordinary
course of business without obtaining the prior written consent of Secured Party.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Insurance</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;The Debtor will insure the Collateral with nationally reputable insurance companies
against the casualties and in the amounts the Secured Party reasonably requires. The policy or
policies will include a loss payable clause in favor of the Debtor and Secured Party, as their
relative interests require. Additionally, the Secured Party is authorized to collect sums that may
become due under any policy, and to apply the funds to the obligations secured by this Security
Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Protection of Collateral</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;The Debtor will keep the Collateral in good order and repair and will not waste, misuse,
or destroy the Collateral, in whole or in part. However, this provision does not prohibit ordinary
wear and tear resulting from the Collateral&#146;s intended use. The Debtor will not use the Collateral
in violation of any statute or ordinance.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;The Secured Party has the right to examine and inspect the Collateral at any reasonable
time without notice.


<P align="center" style="font-size: 10pt">Exhibit 10.2 - 3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Taxes</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;The Debtor will pay promptly when due all taxes and assessments on the Collateral, or in
connection with its use and operation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Reimbursement of Expenses</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;At its option, the Secured Party may discharge taxes, liens, interest, or perform or cause
to be performed for and on behalf of the Debtor any actions and conditions, obligations, or
covenants that the Debtor has failed or refused to perform. Secured Party may pay for the repair,
maintenance, and preservation of the Collateral. All sums so expended, including but not limited
to, attorney&#146;s fees, court costs, agent&#146;s fees, or commissions, or any other costs or expenses,
will bear interest from the date of payment at the rate of ten percent (10%) per annum and will be
payable at the place designated in debtor&#146;s note and will be secured by this Security Agreement.
Debtor will immediately reimburse Secured Party for any and all expenses incurred in these actions.


<P align="center" style="font-size: 10pt">IV. OBLIGATIONS OF DEBTOR



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Performance</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;The Debtor agrees to perform fully all of the Debtor&#146;s duties under and in connection with
each transaction to which the Collateral, in whole or in part, relates.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;The Debtor will punctually and properly perform all of the Debtor&#146;s covenants, duties, and
liabilities under any other security agreement, loan agreement, lease and rental assignment,
mortgage, deed of trust, collateral pledge agreement, or contract of any kind now or hereafter
existing as security for or in connection with payment of the debt or obligation owing.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.&nbsp;The Debtor will pay the note secured by this Security Agreement and any renewal or
extension of that note. The Debtor will also pay any other indebtedness secured by this Security
Agreement in accordance with the terms and provisions of that indebtedness. The Debtor will repay
immediately all sums extended by the Secured Party in accordance with the terms and provisions of
this Security Agreement, the loan agreement, the note, the lease and rental assignment, and any
other instrument relating to the indebtedness to the Secured Party.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Decrease in Value of Collateral</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.&nbsp;If , at any time, the Collateral is determined by independent appraisal to have a fair
market value of less than 125% of the balance then owing on the obligations of Debtor described in
Paragraph&nbsp;2, the Debtor will either provide enough additional Collateral to satisfy the Secured
Party or reduce the total indebtedness by an amount sufficient to satisfy the Secured Party.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Change of Circumstances</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.&nbsp;The Debtor will promptly notify the Secured Party of any change in fact or circumstance
represented by the Debtor in this Security Agreement or in any other document furnished by the
Debtor to the Secured Party in connection with the Collateral or obligation owing.


<P align="center" style="font-size: 10pt">Exhibit 10.2 - 4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Change of Place of Business</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.&nbsp;The Debtor will promptly notify the Secured Party of any change of the Debtor&#146;s chief
place of business, or place where records concerning accounts and other contract rights are kept.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Notice of Pending Action</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.&nbsp;The Debtor will promptly notify the Secured Party of any claim, action, or proceeding
affecting title to the Collateral, or any part of the Collateral, or the security interest in the
Collateral. On the written request of the Secured Party, Debtor will appear in and defend any such
action or proceeding, at Debtor&#146;s cost.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Default In Connection With Other Obligations</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.&nbsp;The Debtor will promptly notify the Secured Party if Debtor defaults on any other
financial or legal obligation in excess of $250,000.00 owing to any person, entity, or government
agency.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Records and Accounts</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.&nbsp;The Debtor will keep proper books of record and account in accordance with sound and
generally accepted accounting principles (GAAP), consistently applied. The books will be open to
inspection by the Secured Party during normal business hours.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Debtor will provide financial statements in form and content acceptable to the Secured Party
from time to time as may be requested by the Secured Party.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.&nbsp;The Debtor will permit the Secured Party, and the accountants or other agents it
designates, to visit and inspect the Debtor&#146;s properties, assets, and books, and to discuss the
Collateral and the Debtor&#146;s affairs and finances with the Debtor or the Debtor&#146;s officers at such
reasonable times as the Secured Party may designate, and to make and take away copies of the
Debtor&#146;s records. The Secured Party is entitled to make unannounced spot checks to verify that
Collateral is being used, maintained, or transferred only in accordance with the terms of this
Security Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Further Reports and Assurances</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.&nbsp;The Debtor will deliver to the Secured Party, as requested, documents, lists,
descriptions, certificates, and other information necessary or proper to keep the Secured Party
fully informed with respect to the descriptions of the Collateral.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.&nbsp;The Debtor will promptly execute and deliver to the Secured Party all assignments,
certificates, supplemental documents, writings, and assurances, and do all other acts or things
reasonably requested by the Secured Party to fully evidence, perfect, and protect, assure, or
enforce the security interests created by this Security Agreement including but not limited to any
necessary instruments required in any other state or foreign nation or province of a foreign
nation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.&nbsp;The Debtor will sign and execute, if necessary, with the Secured Party any financing
statement or other document necessary to protect the security interests under this Security
Agreement against the rights or interests of third persons. Debtor will reimburse Secured Party


<P align="center" style="font-size: 10pt">Exhibit 10.2 - 5
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">for the cost of filing any and all financing statements or amendments or other instruments
necessary to protect Secured Party&#146;s interests in the Collateral. The Debtor specifically
authorizes the Secured Party to file financing statements, financing statement addendum, along
with any necessary attachments, and amendments in the records of the Secretary of State of Texas or
any other public records to perfect the security interests in the Collateral including but limited
to any necessary instruments required in any other state or foreign nation or province of a foreign
nation.


<P align="center" style="font-size: 10pt">V.&nbsp;TIME OF PERFORMANCE AND WAIVER


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Time of the Essence</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.&nbsp;In performing any act under this Security Agreement and the note it secures, time is of
the essence.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Waiver</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.&nbsp;The Secured Party&#146;s acceptance of partial or delinquent payments or the failure or delay
of the Secured Party to exercise any right or remedy is not a waiver of any obligation of the
Debtor or right of the Secured Party, nor will it constitute a waiver of any other similar default
occurring subsequently.


<P align="center" style="font-size: 10pt">VI. EVENTS OF DEFAULT



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.&nbsp;An event of default under this Security Agreement is the occurrence of any one of the
events of default set forth in the Loan Agreement of even date between Debtor and Secured Party.


<P align="center" style="font-size: 10pt">VII. REMEDIES



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>UCC Remedies Available</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.&nbsp;On or after the occurrence of any event of default, as specified in Article&nbsp;VI of this
Security Agreement, the Secured Party may declare all obligations secured immediately due and
payable and may proceed to enforce their payment. The Secured Party may exercise any and all of the
rights and remedies provided by the Texas Business and Commerce Code, as well as other rights and
remedies either at law or in equity possessed by the Secured Party, whether in the State of Texas,
or in any other state, foreign nation or foreign province of a foreign nation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Self-Help</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36.&nbsp;On or after the occurrence of any event of default, the Secured Party will have the right
to remove the Collateral from the premises of the Debtor. For purposes of removal and possession,
the Secured Party or its representatives may enter any premises of the Debtor without legal
process. The Debtor hereby waives and releases the Secured Party of and from any and all claims in
connection with any such entry and removal of collateral.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Disposition of Collateral</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.&nbsp;On or after the occurrence of any event of default, the Secured Party may require the
Debtor to assemble the Collateral and make it available to the Secured Party at any place to be


<P align="center" style="font-size: 10pt">Exhibit 10.2 - 6
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">designated by the Secured Party that is reasonably convenient to the Secured Party. Unless the
Collateral is perishable, threatens to decline speedily in value, or is of a type customarily sold
on a recognized market, the Secured Party will give the Debtor reasonable notice, as required by
the Texas Business and Commerce Code, of the time and place of any public sale of the collateral,
or of the time after which any private sale or any other intended disposition of the collateral is
to be made. Expenses of retaking, holding, preparing for sale, selling, or the like include the
Secured Party&#146;s reasonable attorney&#146;s fees and legal expenses.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Secured Party&#146;s Rights Cumulative</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38.&nbsp;All rights and remedies of the Secured Party under this Security Agreement are cumulative
of each other and of every other right or remedy the Secured Party may otherwise have at law or in
equity or under any other contract or document for the enforcement of its security interests or the
collection of the debt. The exercise of one or more rights or remedies, whether under the laws of
the State of Texas or of another jurisdiction including that of a foreign nation or province of a
foreign nation, will not prejudice or impair the concurrent or subsequent exercise of other rights
or remedies.


<P align="center" style="font-size: 10pt">VIII. SATISFACTION OF OBLIGATION



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39.&nbsp;On full and final payment of the obligation, Debtor will deliver a written notice of
termination to Secured Party. On receipt of that notice by the Secured Party, this Security
Agreement will terminate and Secured Party will promptly release the Collateral upon verification
of full and final payment of the obligations of Debtor. However, no account debtor on any of the
Collateral is obligated to make inquiry as to the termination of this agreement, but is fully
protected in making payment directly to the Secured Party.


<P align="center" style="font-size: 10pt">IX. MISCELLANEOUS PROVISIONS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Definitions</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40.&nbsp;All terms used in this agreement that are defined in the Texas Business and Commerce Code
have the same meaning in this agreement as in that Code.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Governing Law</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.&nbsp;This agreement is to be construed in accordance with the Texas Business and Commerce Code
and other applicable laws of the State of Texas. All obligations of the parties created under this
Security Agreement are performable in Victoria County, Texas.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Partial Invalidity</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42.&nbsp;If any of the provisions in this Security Agreement is for any reason held to be invalid,
illegal, or unenforceable in any respect, this holding will not affect the validity of any other
provision of this Security Agreement. This agreement will be construed as if the invalid, illegal,
or unenforceable provision had never been included.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Entire Agreement</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43.&nbsp;This Security Agreement is the sole agreement of the parties and supersedes any prior
understandings or written or oral agreements between the parties respecting its subject matter. It


<P align="center" style="font-size: 10pt">Exhibit 10.2 - 7
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">is understood and agreed that if any irreconcilable conflict exists between this Security
Agreement and the Loan Agreement of even date, the Loan Agreement shall prevail. Likewise, it is
understood and agreed that if any irreconcilable conflict exists between this Security Agreement
and the Lease and Rental Assignment of even date, the Lease and Rental Assignment shall prevail.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Amendments</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44.&nbsp;Any amendments to this Security Agreement must be in writing, signed by both Secured Party
and Debtor.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>No Usury</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45.&nbsp;The parties to this Security Agreement desire to conform strictly to Texas usury laws. No
provision in this Security Agreement or in any promissory note, instrument, or any other loan
document executed by the Debtor evidencing the obligation will require the payment or permit the
collection of interest in excess of the maximum permitted by law. If excessive interest is provided
for in any document or instrument, Debtor is freed from any obligations to the excess amount, and
the parties will amend the offending provision to fully comply with Texas law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Successors in Interest</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46.&nbsp;This Security Agreement is binding on the Debtor and on the Debtor&#146;s successors, and
assigns, and inures to the benefit of the Secured Party, and its successors, and assigns.


<P align="center" style="font-size: 10pt">Exhibit 10.2 - 8
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="18%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">EXECUTED to be effective on June&nbsp;27, 2005.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>DEBTOR:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>MITCHAM INDUSTRIES, INC.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>By:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>

    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top"><div style="border-top: 1px solid #000000">&nbsp;</div></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>BILLY F. MITCHAM, JR.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Its: President</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>SECURED PARTY:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>FIRST VICTORIA NATIONAL BANK</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>By:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD align="left" valign="top"><div style="border-top: 1px solid #000000">&nbsp;</div></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD align="left" valign="top"><div style="border-top: 1px solid #000000">&nbsp;</div></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Its:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD align="left" valign="top"><div style="border-top: 1px solid #000000">&nbsp;</div></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">Exhibit 10.2 - 9
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>h26683exv10w3.htm
<DESCRIPTION>LEASE AND RENTAL ASSIGNMENT DATED JUNE 27, 2005
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w3</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="right" style="font-size: 10pt"><B>EXHIBIT 10.3</B>



<P align="center" style="font-size: 10pt"><U>LEASE AND RENTAL ASSIGNMENT</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THAT THIS ASSIGNMENT made as of the 27th day of June, 2005, by MITCHAM INDUSTRIES, INC., a
Texas corporation, whose address is P. O. Box 1175, Huntsville, Texas 77342-1175, (hereinafter
referred to as &#147;Assignor,&#148;), to First Victoria National Bank, a national banking corporation with
offices located at 101 South Main, Victoria, Texas 77901 (hereinafter referred to as &#147;Assignee&#148;),
as follows:


<P align="center" style="font-size: 10pt">W I T N E S S E T H:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THAT Assignor, for good and valuable consideration, the receipt of which is hereby
acknowledged, hereby grants, transfers and assigns to Assignee all rents, issues and profits from
the equipment leases now existing, together with all equipment leases now or hereafter to be made,
executed and delivered, whether written or oral, covering all or any equipment now or hereafter
acquired by Assignor, and any and all guarantees of said leases (collectively referred to as
&#147;leases&#148; or &#147;said leases&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS ASSIGNMENT is made for the purpose of securing the following:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The payment of the principal sum, interest and indebtedness
evidenced by that certain promissory note (&#147;Note&#148;) of even date
herewith, and any amendments, extensions, or renewals thereof, in the
original principal sum of $12,500,000.00, executed by Mitcham
Industries, Inc., and payable to the order of First Victoria National
Bank, at Victoria, in Victoria County, Texas, secured by a Security
Agreement and Loan Agreement, of even date herewith, executed by the
said Mitcham Industries, Inc., for the benefit of said First Victoria
National Bank; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Payment of all other sums with interest thereon becoming due
and payable to Assignee under the provisions of this Assignment or of
said Note, Security Agreement and Loan Agreement.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">Exhibit 10.3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The performance and discharge of each and every obligation,
covenant and agreement of Assignor contained herein or in said Note,
Security Agreement and Loan Agreement; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any and all other indebtedness of Assignor to Assignee now or
hereafter owing, whether direct or indirect, primary or secondary,
fixed or contingent, joint or several, regardless of how evidenced or
arising.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assignor covenants with Assignee to observe and perform all the obligations imposed upon it as
the Lessor under any of said leases and not to do or permit to be done anything to impair the
security thereof; not to collect any of the rents, income and profits arising or accruing under
said leases or from the equipment of Assignor in advance of the time when the same shall become
due; not to execute any other assignment of lessors&#146; interest in said leases or assignment of rents
arising or accruing from said leases or from the equipment of Assignor; not to alter, modify or
change said leases without the prior written consent of Assignee, except as in the ordinary course
of business; at Assignee&#146;s request to assign and transfer to Assignee any and all subsequent leases
upon all or any equipment; and to execute and deliver at the request of Assignee all such further
assurances and assignments as Assignee shall from time to time reasonably require.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS ASSIGNMENT is made on the following terms, covenants and conditions:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;So long as there shall exist no occurrence of any one of the events of default set forth in
the Loan Agreement of even date herewith between Assignor and Assignee by Assignor, Assignor shall
have the right to collect at the time of the date provided for the payment thereof, all rents,
income and profits arising under said leases or from the equipment described above and to retain,
use and enjoy the same.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Upon or at any time after the occurrence of any one of the events of default set forth in
the Loan Agreement of even date herewith between Assignor and Assignee, Assignee,


<P align="center" style="font-size: 10pt">Exhibit 10.3 - 2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">without in any way waiving such event of default, may at its option, without regard to the
adequacy of the security for the said principal sum, interest and indebtedness secured hereby and
by said Note, Security Agreement and Loan Agreement, either by a representative or by agent, with
or without bringing any action or proceeding or by a receiver appointed by a court, take possession
of the equipment of Assignor and have, hold, manage, lease and operate the same on such terms and
for such period of time as Assignee may deem proper and exercise any rights or remedies under any
of said leases which Assignor would be entitled to exercise in the absence of this Assignment and
either with or without taking possession of said equipment in its own name, demand, sue for or
otherwise collect and receive all rents, income and profits from said equipment, including those
past due and unpaid with full power to make from time to time all alterations, renovations, repairs
or replacements thereto or thereof as may seem proper to Assignee and to apply such rents, income
and profits to the payment of: (a)&nbsp;all expenses of managing the equipment, including without being
limited thereto, the salaries, fees and wages of a managing agent and such other employees as
Assignee may deem necessary or desirable and all expenses of operating and maintaining the
equipment, including, without being limited thereto, all taxes, charges, claims, assessments, and
any other liens and premiums for all insurance which Assignee may deem necessary or desirable and
the cost of all alterations, renovations, repairs or replacements, and all expenses incident to
taking and retaining possession of the equipment; and (b)&nbsp;the principal sum, interest and
indebtedness secured hereby and by said Note, Security Agreement and Loan Agreement, together with
all costs and attorney&#146;s fees, in such order or priority as to any of the items mentioned in this
Paragraph&nbsp;2 as Assignee in its sole discretion may determine, any statute, law, custom or use to
the contrary notwithstanding. The exercise by Assignee of the option granted it in this Paragraph
2 and the collection of the rents,


<P align="center" style="font-size: 10pt">Exhibit 10.3 - 3
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">income and profits and the application thereof as herein provided shall not be construed as a
waiver of any event of default by Assignor under said Note, Security Agreement and Loan Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Assignee shall not be liable for any loss sustained by Assignor resulting from Assignee&#146;s
failure to lease the equipment after an event of default or from any other act or omission of
Assignee in managing the equipment after an event of default. Nor shall Assignee be obligated to
perform or discharge nor does Assignee hereby undertake to perform or discharge any liability, duty
or obligation under any of said leases or under or by reason of this Assignment and Assignor shall,
and does hereby agree, to indemnify Assignee for, and to hold Assignee harmless from, any and all
liability, loss or damage which may or might be incurred under said leases or under or by reason of
this Assignment and from any and all claims and demands whatsoever which may be asserted against
Assignee by reason of any alleged obligations or undertakings on its part to perform or discharge
any of the terms, covenants or agreements contained in said leases. Should Assignor incur any such
liability under said leases or under or by reason of this Assignment or in defense of any such
claims or demands, the amount thereof, including costs, expenses and reasonable attorney&#146;s fees,
shall be secured hereby and Assignor shall reimburse Assignee therefor immediately upon demand, and
upon the failure of Assignor so to do, Assignee may, at its option, declare all sums secured hereby
and by said Note, Security Agreement and Loan Agreement, immediately due and payable. And it is
further understood that this Assignment shall not operate to place responsibility upon Assignee,
nor for the carrying out of any of the terms and conditions of said leases; nor shall it operate to
make Assignee responsible or liable for any waste committed on the equipment by the tenants or any
other parties, or for any dangerous or defective condition of the equipment, or for any negligence
in


<P align="center" style="font-size: 10pt">Exhibit 10.3 - 4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">the management, upkeep, repair or control of said equipment resulting in loss or injury or
death to any tenant, licensee, employee or stranger.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;Upon payment in full of the principal sum, interest and indebtedness secured hereby and by
said Note, Security Agreement and Loan Agreement, this Assignment shall become and be void and of
no effect, but the affidavit, certificate, letter or statement of any officer, agent or attorney of
Assignee showing any part of said principal, interest or indebtedness to remain unpaid shall be and
constitute conclusive evidence of the validity, effectiveness and continuing force of this
Assignment upon which any person may, and is hereby authorized to, rely. Assignor hereby
authorizes and directs the lessees named in said leases or any future leases or use of the
equipment described herein upon receipt from Assignee of written notice to the effect that Assignee
is then the holder of said Note, Security Agreement and Loan Agreement, and that an event of
default exists thereunder or under this assignment, to pay over to Assignee all rents, income and
profits arising or accruing under said leases or from the premises described therein or in said
Note, Security Agreement and Loan Agreement, and to continue so to do until otherwise notified by
Assignee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Assignee may take or release other security for the payment of said principal sum, interest
and indebtedness, may release any party primarily or secondarily liable therefor and may apply any
other security held by it to the satisfaction of such principal sum, interest, or indebtedness
without prejudice to any of its rights under this Assignment.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;The term &#147;leases&#148; or &#147;said leases&#148; as used herein means said leases hereby assigned, any
extension or renewal thereof, and any leases subsequently executed during the term of this
Assignment covering the equipment of Assignor, or any portion thereof, or any accessions,
additions, or repairs thereto or replacements or substitutions therefor.


<P align="center" style="font-size: 10pt">Exhibit 10.3 - 5
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;Nothing contained in this Assignment and no act done or omitted by Assignee pursuant to the
powers and rights granted it hereunder shall be deemed to be a waiver by Assignee of its rights and
remedies under said Note, Security Agreement and Loan Agreement, and this Assignment is made and
accepted without prejudice to any of the rights and remedies possessed by Assignee under the terms
of said Note, Security Agreement and Loan Agreement. The right of Assignee to collect said
principal sum, interest and indebtedness and to enforce any other security therefor held by it may
be exercised by Assignee either prior to, simultaneously with, or subsequent to any action taken by
it hereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;The Assignor hereby appoints Assignee to be its agent and attorney-in-fact to act for it in
the collection of rent and other sums due to Assignor from the said leases described herein and to
take any other actions which Assignor would be entitled to take under said leases in the event of
default, including the compromise and settlement of any claims or disputes with the lessees
thereunder, and the exercise of any remedies thereunder in the event of default, including without
limitation, the termination or cancellation of any such lease and the recovery of and possession of
any leased equipment in the manner and to the extent deemed necessary by Assignee to protect and
preserve its interest in the security of this Assignment. As such agent and attorney-in-fact,
Assignee may in the event of default demand, sue for, collect, and receive all rents now due or
that shall be at any time after this date become due to Assignor from past, present, or future
obligors on said leases. On payment of these rents and other sums due under said leases, as agent
and attorney-in-fact, Assignee may give receipts and discharges in full satisfaction of rents in
the name of or on behalf of the Assignor. Assignee is not obligated to act by virtue of this power
of attorney on behalf of Assignor.


<P align="center" style="font-size: 10pt">Exhibit 10.3 - 6
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS ASSIGNMENT, together with the covenants and warranties herein contained shall inure to
the benefit of Assignee and any and all subsequent holders of said Note, Security Agreement and
Loan Agreement, and shall be binding upon Assignor, their successors and assigns, and any
subsequent owner of the above described equipment.


<P align="center" style="font-size: 10pt">Exhibit 10.3 - 7
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WITNESS THE EXECUTION HEREOF as of the date first above written.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">MITCHAM INDUSTRIES, INC.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">BILLY F. MITCHAM, JR.<BR>
Its: President</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">THE STATE OF TEXAS&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#167;



<P align="left" style="font-size: 10pt">COUNTY OF WALKER&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#167;



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This instrument was acknowledged before me on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005, by BILLY F.
MITCHAM, JR. as President of MITCHAM INDUSTRIES, INC., on behalf of said corporation.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notary Public, State of Texas</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">Exhibit 10.3 - 8
</DIV>

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<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>h26683exv10w4.htm
<DESCRIPTION>PROMISSORY NOTE DATED JUNE 27, 2005
<TEXT>
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<P align="right" style="font-size: 10pt"><B>EXHIBIT 10.4</B>



<P align="center" style="font-size: 10pt">PROMISSORY NOTE


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="32%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">$12,500,000.00
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Victoria, Texas
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">June&nbsp;27, 2005</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOR VALUE RECEIVED, the undersigned, hereinafter called &#147;Borrower,&#148; whether one or more,
jointly and severally, hereby promise to pay to the order of First Victoria National Bank,
hereinafter called &#147;Lender,&#148; at its banking house in the City of Victoria, in Victoria County,
Texas, the sum of Twelve Million Five Hundred Thousand Dollars ($12,500,000.00) with interest
thereon from date of advance until paid as hereinafter provided. All past due interest shall bear
interest from maturity until paid at the same rate as the principal.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This note shall bear interest at a rate of the prime rate published in the Wall Street Journal
as being the base rate on corporate loans established by a selected number of the largest banks in
the United States, as such published prime rate is determined daily by the payee. In the event
more than one such prime rate is published by the Wall Street Journal, the highest of such rates
shall be used to determine the interest rate on this note. No representation is made that such
prime rate is the lowest or best rate charged by any bank to its customers. In the event the prime
rate published by the Wall Street Journal should cease to be available for any reason, the payee
shall select an index comparable to such prime rate to determine the rate of interest on this note.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is contemplated by the parties hereto that this is a revolving line of credit and that
advances will be made by Lender to Borrower, from time to time from the date hereof to the maturity
date of this note. Said advances will be made up to the principal amount of this note, but the
aggregate outstanding balance of said advances at any one time will never exceed the principal
amount of this note. Additional terms of advances are contained in a Loan Agreement of even date
herewith. The Borrower agrees to pay the interest accruing on such advances from the date or dates
thereof at the rate stipulated herein to the Lender according to the terms hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision in this note or any other loan document to the contrary,
Lender shall not charge or collect and Lender does not intend to contract for interest in excess of
that permitted by law for loans of this kind, and to prevent such occurrence, Lender will, at
maturity or an earlier final payment of this note, determine the total amount of interest that can
be lawfully charged or collected by applying the highest lawful rate of interest to the full
periodic balances of principal for the period each is outstanding and unpaid and compare such
amount with the total interest that has accrued under the terms of this note, and, if necessary, to
prevent usury, reduce the total amount of interest payable by Borrower to the lesser amount. If
the amount of interest that has been collected exceeds the lawful amount, Lender shall either make
direct refund of such excess to Borrower or credit it against other sums owed by Borrower to
Lender, whichever Lender deems appropriate. If at any time the rate of interest provided for in
this note shall exceed the highest lawful rate, then any subsequent adjustment in the rate of
interest on this note under the terms hereof will not reduce the rate of interest below the highest
lawful rate until the total amount of interest accrued on this note equals the amount of interest,
which would have accrued if there had been no limitation to the highest lawful rate. As used
herein, the term &#147;highest lawful rate&#148; means the greatest of the rates of interest from time to
time permitted under applicable law. Interest on this note is computed on a 365/365 simple
interest


<P align="center" style="font-size: 10pt">Exhibit&nbsp;10.4



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">basis; that is, by applying the ratio of the annual interest rate over the number of days in a
year, multiplied by the outstanding principal balance, multiplied by the actual number of days the
principal balance is outstanding.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All interest accruing on the amounts of principal advanced hereunder shall be due in
twenty-three (23)&nbsp;consecutive monthly installments in the amount of the then accrued and unpaid
interest on this note, with the first of such installments being due on the 27th day of July, 2005,
and a like installment becoming due on the same day of each succeeding calendar month thereafter
until the 27th day of June, 2007, when the then remaining unpaid balance and all accrued interest
shall be due. This note, together with all accrued interest, shall be due in any event on or
before the 27th day of June, 2007.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This note is secured by the Security Agreement of even date herewith from Borrower to Lender
by which Borrower grants security interests in all assets of Borrower, including but not limited to
its equipment, accounts receivable, contracts, leases, inventory, instruments, chattel paper and
general intangibles, now owned or hereafter acquired by Borrower, and any and all proceeds,
increases, substitutions, replacements, additions, and accessions to such assets and reference is
here made to said Security Agreement for all purposes and is additionally secured by the Lease and
Rental Assignment of even date herewith from Borrower to Lender by which Borrower grants security
interests in all of its equipment leases, now owned or hereafter acquired by Borrower and reference
is here made to said Lease and Rental Assignment for all purposes. This note evidences
indebtedness governed by a Loan Agreement of even date herewith between the Borrower and Lender and
is further secured and governed as provided therein and reference is further made to said Loan
Agreement for all purposes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As the term &#147;Lender&#148; is used in this note, it shall be construed to refer to Lender or to any
current owner of this note, if other than Lender.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is agreed that time is of the essence of this agreement, and that in the event of default
in the payment of any installment of principal or interest which may be provided for hereunder, as
the same becomes due and payable, Lender may declare the entire unpaid principal balance plus all
accrued but unpaid interest due hereon immediately due and payable, and failure to exercise said
option shall not constitute a waiver on the part of Lender of the right to exercise the same at any
other time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Should default be made in the payment of this note as the same becomes due or is declared due
under the terms hereof, and should this note then be placed in the hands of an attorney for
collection, or should this note be collected by suit or through the probate court, bankruptcy
court, or other judicial proceedings, then the undersigned agree and promise to pay reasonable
attorney&#146;s fees incurred by Lender herein in the collection of this note in addition to the
principal and interest then owing.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This note, or any part hereof, may be paid before maturity at any time, and on the payment or
collection of this note, no unearned interest shall be paid or collected.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower and any and all co-makers, endorsers, guarantors and sureties hereby acknowledge
their understanding that, unless waived, they have the right to notice of Lender&#146;s


<P align="center" style="font-size: 10pt">Exhibit&nbsp;10.4 &#45; 2




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">intent to accelerate the principal balance due on this note, the right to notice of actual
acceleration of the principal balance of this note, and the right to presentment of this note by
Lender&#146;s demand for payment. Borrower and any and all co-makers, endorsers, guarantors, and
sureties further acknowledge their understanding that they may waive these rights by their
signatures on this note or on their respective contracts and they do hereby severally waive their
rights to notice of intent to accelerate, their rights to notice of acceleration, and their rights
to presentment or other demand for payment. Borrower and any and all co-makers, endorsers,
guarantors, and sureties further severally waive notice of protest, protest, demand and the filing
of suit hereon for the purpose of fixing liability and consent that the time of payment hereof may
be extended and re-extended from time to time without notice to them, or any of them, and each
agrees that his, her, or its liability on or with respect to this note shall not be affected by any
release or discharge of any other maker, endorser, guarantor, or surety or by any release of or
change in any security at any time existing or by any failure to perfect or to maintain perfection
of any lien on or security interest in any such security, or any change in the Loan Agreement.



<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">MITCHAM INDUSTRIES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">BILLY F. MITCHAM, JR.&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Its:  President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">Exhibit&nbsp;10.4 &#45; 3



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>6
<FILENAME>h26683exv99w1.htm
<DESCRIPTION>PRESS RELEASE DATED JUNE 29, 2005
<TEXT>
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="right" style="font-size: 10pt"><B>EXHIBIT 99.1</B>



<P align="center" style="font-size: 18pt"><B>PRESS RELEASE</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="32%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>FOR IMMEDIATE RELEASE</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>CONTACT:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Christine Reel</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>713.629.1316</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><B>Mitcham Industries Obtains $12.5 Million Revolving Credit Facility<BR>
From First Victoria National Bank</B>



<P align="left" style="font-size: 10pt">HUNTSVILLE, Texas &#150; June&nbsp;29, 2005 &#150; Mitcham Industries, Inc. (NASDAQ: MIND) today announced it has
obtained a new senior secured $12.5&nbsp;million revolving credit facility from First Victoria National
Bank, replacing its existing $4.0&nbsp;million revolving credit facility. The new facility has a
two-year term and bears interest at the prime rate. Interest on any outstanding principle balance
is payable monthly, while the principal is due at the end of the two-year term.



<P align="left" style="font-size: 10pt">&#147;This new facility gives Mitcham Industries additional flexibility to respond to domestic and
international market opportunities as they arise and to pursue our geographical expansion and
growth strategy,&#148; said Billy F. Mitcham, Jr., President and CEO of Mitcham Industries. &#147;We look
forward to continuing our relationship with First Victoria National Bank.&#148;



<P align="left" style="font-size: 10pt">Mitcham Industries, Inc., a geophysical equipment supplier, offers for lease or sale, new and
&#147;experienced&#148; seismic equipment to the oil and gas industry, seismic contractors, environmental
agencies, government agencies and universities. Headquartered in Texas, with sales and services
offices in Calgary, Canada, Brisbane, Australia and associates throughout Europe, South America and
Asia, Mitcham Industries conducts operations on a global scale and is the largest independent
seismic equipment lessor in the industry.



<P align="left" style="font-size: 10pt">This press release includes forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. All statements other than statements of historical facts included
herein, including statements regarding potential future demand for the Company&#146;s products and
services, the Company&#146;s future financial position and results of operations, business strategy and
other plans and objectives for future operations, are forward-looking statements. Actual results
may differ materially from such forward-looking statements. Important factors that could cause or
contribute to such differences include a prolonged and gradual recovery, or no full recovery, of
the energy services sector of a depressed oil and gas industry, and thereafter, the inherent
volatility of oil and gas prices and the related volatility of demand for the Company&#146;s services;
loss of significant customers; significant defaults by customers on amounts due to the Company;
international economic and political instability; dependence upon additional lease contracts; the
risk of technological obsolescence of the Company&#146;s lease fleet; vulnerability of seismic activity
and demand to weather conditions and seasonality of operating results; dependence upon few
suppliers; and other factors which are disclosed in the Company&#146;s Securities and Exchange
Commission filings, available from the Company without charge.



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