EX-10.1 2 a05-13177_1ex10d1.htm EX-10.1

Exhibit 10.1

		GE Capital
		Commercial Equipment Financing
		General Electric Capital Corporation
		16479 Dallas Parkway, Suite 300, Addison, TX 75001
		972 713-2500

October 28, 2004

Mr. Wayne Whitener

TGC Industries, Inc.

1304 Summit Ave. Ste. 2

Plano, TX 75074

GE Capital Financing Transaction - Account # 4158983-001

Dear Mr. Whitener:

Thank you for allowing GE Capital to finance your recent equipment acquisition. Enclosed in this package are copies of the executed documents for this transaction.

GE Capital is here to serve you. If you need assistance regarding your account, please feel free to contact our Customer Service Department at (800) 362-0135.

Providing quality service is our commitment to you. To help us learn how to improve the service we provide to you, you may be contacted to participate in a customer satisfaction survey. We encourage your participation in this survey and thank you in advance for your input. If you have additional financing needs, please contact David Swan (972) 713-2531.

Once again, we wish to express our sincere appreciation for allowing GE Capital this opportunity to assist you with your financing needs. We look forward to servicing you again soon.

Very truly yours,

General Electric Capital Corporation
Commercial Equipment Financing

/s/ Sharon Ersch

Sharon Ersch

Credit Assistant

A GE Capital Services Company

PROMISSORY NOTE

10/26/04

(Date)

FOR VALUE RECEIVED, TGC Industries, Inc. a corporation located at the address stated below (“Maker”) promises, jointly and severally if more than one, to pay to the order of General Electric Capital Corporation or any subsequent holder hereof (each, a “Payee”) at its office located at 16479 Dallas Parkway #300, Addison, TX 75001-2512 or at such other place as Payee or the holder hereof may designate, the principal sum of Two million three hundred eighty-six thousand six hundred forty-nine and no/100 Dollars ($2,386,649.00), with interest on the unpaid principal balance, from the date hereof through and including the dates of payment, at a fixed per annum simple interest rate of Six and 85/100 percent (6.85%).

Subject to the other provisions hereof, the principal on this Note is payable in lawful money of the United States in Thirty-six (36) consecutive monthly installments as follows:

Periodic
Installment		Amount
35	@	$	66,295.81

each (“Periodic Installment”) and a final installment which shall be in the amount of the total outstanding unpaid principal. The first Periodic Installment shall be due and payable on December l, 2004 and the following Periodic Installments and the final installment shall be due and payable on the same day of each succeeding period (each, a “Payment Date”). In addition to the payments of principal provided above, accrued interest shall be payable on the Payment Date.

All payments shall be applied first to interest and then to principal. Each payment may, at the option of the Payee, be calculated and applied on an assumption that such payment would be made on its due date. The acceptance by Payee of any payment which is less than payment in full of all amounts due and owing at such time shall not constitute a waiver of Payee’s right to receive payment in full at such time or at any prior or subsequent time. Interest shall be calculated on the basis of a 365 day year (366 day leap year).

The Maker hereby expressly authorizes the Payee to insert the date value is actually given in the blank space on the face hereof and on all related documents pertaining hereto.

This Note may be secured by a security agreement, chattel mortgage, pledge agreement or like instrument (each of which is hereinafter called a “Security Agreement”).

Time is of the essence hereof. If any installment or any other sum due under this Note or any Security Agreement is not received within ten (I0) days after its due date, the Maker agrees to pay, in addition to the amount of each such installment or other sum, a late payment charge of five percent (5%) of the amount of said installment or other sum, but not exceeding any lawful maximum. If (i) Maker fails to make payment of any amount due hereunder within ten (10) days after the same becomes due and payable; or (ii) Maker is in default under, or fails to perform under any term or condition contained in any Security Agreement, then the entire principal sum remaining unpaid, together with all accrued interest thereon and any other sum payable under this Note or any Security Agreement, at the election of Payee, shall immediately become due and payable, with interest thereon at the lesser of eighteen percent (18%) per annum or the highest rate not prohibited by applicable law from the date of such accelerated maturity until paid (both before and after any judgment).

The Maker may prepay in full, but not in part, its entire indebtedness hereunder upon payment of the entire indebtedness plus an additional sum as a premium equal to the following percentages of the original principal balance for the indicated period:

Prior to the first annual anniversary date of this Note: Three percent (3%)

Thereafter and prior to the second annual anniversary date of this Note: Two percent (2%)

Thereafter and prior to the third annual anniversary date of this Note: One percent (1%)
and zero percent (0%) thereafter, plus all other sums due hereunder or under any Security Agreement.

It is the intention of the parties hereto to comply with the applicable usury laws; accordingly, it is agreed that, notwithstanding any provision to the contrary in this Note or any Security Agreement, in no event shall this Note or any Security Agreement require the payment or permit the collection of interest in excess of the maximum amount permitted by applicable law. If any such excess interest is contracted for, charged or received under this Note or any Security Agreement, or if all of the principal balance shall be prepaid, so that under any of such circumstances the amount of interest contracted for, charged or received under this Note or any Security Agreement on the principal balance shall exceed the maximum amount of interest permitted by applicable law, then in such event (a) the provisions of this paragraph shall govern and control, (b) neither Maker nor any other person or entity now or hereafter liable for the payment hereof shall be obligated to pay the amount of such interest to the extent that it is in excess of the maximum amount of interest permitted by applicable law, (c) any such excess which may have been collected shall be either applied as a credit against the then unpaid principal balance or refunded to Maker, at the option of the Payee, and (d) the effective rate of interest shall be automatically reduced to the maximum lawful contract rate allowed under applicable law as now or hereafter construed by the courts having jurisdiction thereof. It is further agreed that without limitation of the foregoing, all calculations of the rate of interest contracted for, charged or received under this Note or any Security Agreement which are made for the purpose of determining whether such rate exceeds the maximum lawful contract rate, shall be made, to the extent permitted by applicable law, by amortizing, prorating, allocating and spreading in equal parts during the period of the full stated term of the indebtedness evidenced hereby, all interest at any time contracted for, charged or received from Maker or otherwise by Payee in connection with such indebtedness; provided, however, that if any applicable state law is amended or the law of the United States of America preempts any applicable state law, so that it becomes lawful for the Payee to receive a greater interest per annum rate than is presently allowed, the Maker agrees that, on the effective date of such amendment or preemption, as the case may be, the lawful maximum hereunder shall be increased to the maximum interest per annum rate allowed by the amended state law or the law of the United States of America.

The Maker and all sureties, endorsers, guarantors or any others (each such person, other than the Maker, an “Obligor”) who may at any time become liable for the payment hereof jointly and severally consent hereby to any and all extensions of time, renewals, waivers or modifications of, and all substitutions or releases of, security or of any party primarily or secondarily liable on this Note or any Security Agreement or any term and provision of either, which may be made, granted or consented to by Payee, and agree that suit may be brought and maintained against any one or more of them, at the election of Payee without joinder of any others as a party thereto, and that Payee shall not be required first to foreclose, proceed against, or exhaust any security hereof in order to enforce payment of this Note. The Maker and each Obligor hereby waives presentment, demand for payment, notice of nonpayment, protest, notice of protest, notice of dishonor, and all other notices in connection herewith, as well as filing of suit (if permitted by law) and diligence in collecting this Note or enforcing any of the security hereof, and agrees to pay (if permitted by law) all expenses incurred in collection, including Payee’s actual attorneys’ fees. Maker and each Obligor agrees that fees not in excess of twenty percent (20%) of the amount then due shall be deemed reasonable.

THE MAKER HEREBY UNCONDITIONALLY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF, DIRECTLY OR INDIRECTLY, THIS NOTE, ANY OF THE RELATED DOCUMENTS, ANY DEALINGS BETWEEN MAKER AND PAYEE RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN MAKER AND PAYEE. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT (INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.) THIS WAIVER IS IRREVOCABLE MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS NOTE, ANY RELATED DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED TRANSACTION. IN THE EVENT OF LITIGATION, THIS NOTE MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

This Note and any Security Agreement constitute the entire agreement of the Maker and Payee with respect to the subject matter hereof and supercedes all prior understandings, agreements and representations, express or implied.

No variation or modification of this Note, or any waiver of any of its provisions or conditions, shall be valid unless in writing and signed by an authorized representative of Maker and Payee. Any such waiver, consent, modification or change shall be effective only in the specific instance and for the specific purpose given.

Any provision in this Note or any Security Agreement which is in conflict with any statute, law or applicable rule shall be deemed omitted, modified or altered to conform thereto.

			TGC Industries, Inc.
/s/ David Swan			By:	/s/ Wayne Whitener
(Witness)
David Swan			Name:			Wayne Whitener
(Print name)
16479 Dallas Pkwy, Addison, TX			Title:		President/CEO
(Address)
			Federal Tax ID #:				742095844
			Address: 1304 Summit Ave Suite 2, Plano, Collin County, TX 75074

COLLATERAL SCHEDULE NO. 001

THIS COLLATERAL SCHEDULE NO. 001 is annexed to and made a part of that certain Master Security Agreement dated as of 10/22/04 between General Electric Capital Corporation, together with its successors and assigns, if any, as Secured Party and TGC Industries, Inc. as Debtor and describes collateral in which Debtor has granted Secured Party a security interest in connection with the Indebtedness (as defined in the Security Agreement) including without limitation that certain Promissory Note dated 10/26/04 in the original principal amount of $2,386,649.00.

Quantity		Manufacturer		Serial Number		Year/Model and Type of Equipment
1		ARAM Aries		SP376		Seismic Processor Module w/ fast download capability. More fully described on Schedule B attached
4		ARAM Ariies				PC - Quad Line Interface Cards. More fully described on Schedule B attached
1		ARAM Ariies				Impulse Source Software. More fully described on Schedule B attached
1		ARAM Aires				Vibroseis Option. More fully described on Schedule B attached
2		Misc Test Equipment				Additional Flat Panel Display Units w/ Mounting Hardware. More fully described on Schedule B attached
1		ARAM Aries				Standard installation kit. More fully described on Schedule B attached
1		Mist Test Equipment		TD276		Dual 3490 tape drive w/ mounting hardware. More fully described on Schedule B attached
1		Misc Test Equipment		20235		iSYS-VI 2 thermal plotter w/ mounting hardware
350		AMAR Aries				Remote Acquisition Module (Rams). More fully described on Schedule B attached
18		ARAM Aries				Line Tap Unit (A-LTUs). More fully described on Schedule B attached
480		ARAM Aries				Lead Acid Battery Pack. More fully described on Schedule B attached
16		ARAM Aries				Lead Acid Battery Charger. More fully described on Schedule B attached
700		ARAM Aries				Seismic Land-Lt Cable 300M
1400		ARAM Aries				Land Cable Back to Backs integrated. More fully described on Schedule B attached
36		ARAM Aries				Seismic Multiport Baseline Cable 280M. More fully described on Schedule B attached
72		ARAM Aries				Land Baseline Cable Back to Backs Integrated. More fully described on Schedule B attached
4		ARAM Aries				Multiport Baseline Splitter Cable. More fully described on Schedule B attached
4		Misc Test Equipment				Hand held test unit w/ meter and matching Geophone Adapter. More fully described on Schedule B attached
4		Misc Test Equipment				Power Head w/ 9-volt Battery
1		ARAM Aries				Battery Discharge Station. More fully described on Schedule B attached
1		International		1HTLDTVN8EHA55043		1984	Truck

Equipment immediately listed above is located at: 1304 Summit Ave, Suite 2, Plano, Collin County, TX 75074

SECURED PARTY:						DEBTOR:
General Electric Capital Corporation						TGC Industries, Inc.
By:	/s/ Chris Jones					By:	/s/ Wayne Whitener
Name:			CHRIS JONES			Name:			Wayne Whitener
Title:		SENIOR RISK ANALYST				Title:		President/CEO
Date:		10-26-2004				Date:		10/22/04

SCHEDULE B

TO COLLATERAL SCHEDULE NO. 001

Naming General Electric Capital Corporation as Secured Party
and TGC Industries, Inc. as Debtor

Device		Serial Number			Qty
ARIES Central System		ACS091			1
Seismic Processing Module		SP376-			1
Tape Drive Module		TD276-			1
Power Supply Module		PS087			1
Aries Remote Acquisition Module		see attached List			350
ARIES Line Tap Units		see attached List			18
ARIES Lead Acid Battery Packs		Not Available at this time			480
ARIES Lead Acid Battery Chargers		154			1
ARIES Lead Acid Battery Chargers		96			1
ARIES Lead Acid Battery Chargers		139			1
ARIES Lead Acid Battery Chargers		114			1
ARIES Lead Acid Battery Chargers		73			1
ARIES Lead Acid Battery Chargers		88			1
ARIES Lead Acid Battery Chargers		63			1
ARIES Lead Acid Battery Chargers		85			1
ARIES Lead Acid Battery Chargers		149			1
ARIES Lead Acid Battery Chargers		140			1
ARIES Lead Acid Battery Chargers		142			1
ARIES Lead Acid Battery Chargers		146			1
ARIES Lead Acid Battery Chargers		14B			1
ARIES Lead Acid Battery Chargers		152			1
ARIES Lead Acid Battery Chargers		146			1
ARIES Lead Acid Battery Chargers		91			1
ARIES Seismic Lead-Lt Cable 300m		see attached List			700
ARIES Multiport Baseline Cables 280m		see attached List			36
Aries Multiport Baseline Splitter Cables		7609-025			1
Aries Multiport Baseline Splitter Cables		7609-019			1
Aries Multiport Baseline Splitter Cables		7609-020			1
Aries Multiport Baseline Splitter Cables		5408-004			1
HandHeld Test Unit		91			1
HandHeld Test Unit		97			1
HandHeld Test Unit		92			1
HandHeld Test Unit		79			1
Power Head		N/A			4
Battery Discharge Station		69			1
V12 Plotter		20235			1

Initial	/s/ CWJ	/	WAW
	GECC		TGC Industries, Inc.

1

Remote Acquisition Module

RAMS
16552		18182		18858		19844		20059		20214		20346		20499		20799
17097		18184		18704		19847		20083		20217		20347		20501		20800
17113		18186		18723		19855		20064		20219		20348		20503		20808
17154		18195		18747		19857		20085		20227		20354		20504		20809
17348		18205		18778		19863		20071		20231		20362		20506		20818
17398		18220		18786		19864		20081		20234		20363		20508		20825
17442		18228		18830		19865		20082		20235		20365		20512		20828
17446		18230		18850		19868		20087		20241		20367		20519		20833
17571		18231		18854		19881		20088		20245		20373		20521		20834
17630		18234		18855		19885		20089		20252		20378		20522		20858
17632		18242		18864		19890		20090		20261		20386		20523		20857
17634		18269		18865		19893		20092		20266		20391		20524		20866
17649		18287		18866		19897		20093		20277		20393		20527		20871
17691		18289		18888		19899		20094		20283		20396		20529		20886
17703		18292		18880		19928		20097		20284		20398		20532		20888
17704		18314		19012		19934		20099		20288		20401		20535		20890
17728		18321		19028		19946		20122		20290		20409		20544		20892
17752		18324		19073		19947		20130		20291		20410		20547		20894
17769		18326		19084		19950		20143		20292		20421		20551		20917
17773		18336		19086		19959		20144		20294		20422		20556		20926
17831		18348		19262		19963		20145		20297		20423		20577		20939
17846		18350		19287		19968		20146		20298		20425		20601		20946
17849		18367		19354		19974		20151		20303		20434		20612		20999
17863		18384		19373		19979		20152		20305		20440		20618		21110
17888		18396		19377		19986		20153		20306		20442		20648		21210
17892		18401		19446		19988		20154		20307		20444		20688		21216
17944		18404		19460		19989		20155		20308		20445		20695		21219
17956		18405		19501		19993		20157		20309		20449		20707		21220
17968		18408		19522		19998		20159		20313		20453		20720		21237
17987		18412		19576		20008		20160		20314		20459		20725		21249
18003		18426		19602		20012		20163		20315		20461		20745
18009		18427		19610		20026		20166		20316		20462		20751
18021		18441		19612		20027		20167		20317		20463		20760
18087		18443		19619		20029		20171		20318		20465		20764
18108		18453		19622		20031		20184		20321		20475		20765
18140		18457		19666		20033		20185		20335		20479		20775
18145		18478		19722		20034		20191		20341		20487		20785
18180		18488		19752		20039		20192		20342		20488		20786
18164		18507		19780		20048		20207		20343		20491		20787
18174		18855		19841		20057		20213		20345		20494		20797

Initial	/s/ CWJ	/	WAW
	GECC		TGC Industries, Inc.

2

Line Tap Units

TAPS

12631

12660

12664

12672

12674

12677

12681

12688

12718

12720

12722

12793

12726

12727

12729

12732

12734

12735

ARIES Seismic Lead-Lt Cable 300m

BOX:   1865

4 T/O CABLES FOR TIDELANDS

3D ARIES CABLES

3146-273		51637-181		51637-199		51637-218		51637-253		51637-291
5520-073		5520-101		8520-137		5520-150		5520-203		5520-287
5520-292		5520-334		5520-400		5520-411		5520-464		6424-014
6424-040		6424-104		6424-188		6424-203		6424-513		6424-564
8090-043		8098-063		8098-156		8098-180		8098-193		8122-050
8122-083		8122-087		8224-017		8224-042		8280-002

Quantity:   35

Initial	/s/ CWJ	/	WAW
	GECC		TGC Industries, Inc.

3

BOX:     1872

4 T/O CABLES FOR TIDELANDS

3D ARIES CABLES

3146-174		5159-062		5159-078		51637-076		51637-248		5520-029
5520-036		5520-081		5520-123		5520-129		5520-216		5520-222
5520-344		5520-364		5520-379		5520-396		5520-450		5520-482
6424-106		6424-134		6424-301		6424-394		6424-554		6424-585
8090-015		8090-070		8098-099		8098-118		8098-175		8122-089
8224-014		8224-047		8224-067		8224-096		8224-116

Quantity: 35

BOX:     1873

4 T/O CABLES FOR TIDELANDS

3D ARIES CABLES

3146-054		3146-204		3146-212		5159-051		5159-075		51637-090
51637-202		5520-056		5520-059		5520-213		5520-225		5520-277
5520-281		5520-313		5520-347		5520-423		6424-036		6424-062
6424-070		6424-152		6424-280		6424-379		6424-389		6424-397
6424-427		6424-457		6424-559		6424-597		8098-022		8098-045
8098-056		8098-154		8224-036		8224-123		8224-128

Quantity:  35

Initial	/s/ CWJ	/	WAW
	GECC		TGC Industries, Inc.

4

BOX:     1874

4 T/O CABLES FOR TIDELANDS

3D ARIES CABLES

3146-034		3146-192		3146-267		3146-272		3146-280		5159-060
51637-216		51637-246		5520-021		5520-033		5520-105		5520-164
5520-170		5520-335		5520-338		5520-368		5520-391		5520-395
5520-485		5520-491		6424-035		6424-150		6424-170		6424-369
6424-377		6424-399		6424-511		8098-027		8098-092		8098-128
8098-146		8098-166		8122-048		8224-093		8280-004

Quantity:  35

BOX:     1875

4 T/O CABLES FOR TIDELANDS

3D ARIES CABLES

3146-073		3146-224		5159-016		51637-234		51637-276		5520-022
5520-083		5520-144		5520-211		5520-311		5520-328		5520-366
5520-490		6424-047		6424-060		6424-146		6424-167		6424-242
6424-274		6424-382		6424-424		6424-530		6424-586		8090-007
8090-091		8090-096		8098-081		8098-094		8122-011		8122-078
8224-005		8224-069		8224-136		8224-138		8280-025

Quantity:  35

BOX:     1876

4 T/O CABLES FOR TIDELANDS

3D ARIES CABLES

3146-010		3146-032		3146-129		3146-180		3146-181		3146-221
3146-276		51637-110		51637-236		5520-050		5520-194		5520-267
5520-304		5520-337		5520-361		5520-378		5520-451		6424-156
6424-196		6424-210		6424-225		6424-241		6424-248		6424-269
6424-484		6424-510		6424-528		6424-551		8090-008		8090-011
8090-018		8090-108		8098-122		8098-137		8224-028

Quantity:  35

Initial	/s/ CWJ	/	WAW
	GECC		TGC Industries, Inc.

5

BOX:     1877

4 T/O CABLESFOR TIDELANDS

3D ARIES CABLES

3146-001		3146-013		3146-121		3146-184		3146-244		3146-259
3146-289		5159-017		51637-008		51637-180		51637-240		51637-252
5520-001		5520-035		5520-280		5520-405		6424-064		6424-137
6424-166		6424-307		6424-331		6424-493		8090-012		8090-029
8090-109		8090-125		8098-031		8098-147		8098-149		8122-091
8224-026		8224-076		8224-105		8224-135		8280-009

Quantity:  35

BOX:     1878

4 T/O CABLES FOR TIDELANDS

3D ARIES CABLES

3146-079		3146-091		3146-165		3146-296		51637-244		51637-255
51637-280		5520-006		5520-037		5520-125		5520-160		5520-178
5520-353		5520-354		5520-376		5520-406		5520-416		5520-456
6424-092		6424-354		6424-406		6424-441		6424-442		6424-481
6424-487		6424-577		8098-034		8098-069		8098-142		8098-160
8098-164		8098-170		8098-194		8098-197		8122-027

Quantity:  35

BOX:     1879

4 T/O CABLES FOR TIDELANDS

3D ARIES CABLES

3146-033		3146-169		3146-297		5159-034		5159-068		51637-070
51637-209		51637-231		5520-066		5520-099		5520-122		5520-233
5520-288		5520-326		5520-341		5520-433		5520-476		5520-480
6424-003		6424-013		6424-078		6424-162		6424-263		6424-324
6424-367		6424-415		8090-072		8098-003		8098-017		8098-060
8122-017		8122-067		8122-090		8224-003		8224-078

Quantity:  35

Initial	/s/ CWJ	/	WAW
	GECC		TGC Industries, Inc.

6

BOX: 1880

4 T/O CABLES FOR TIDELANDS

3D ARIES CABLES

3146-058		3146-247		3146-292		5159-057		5159-070		5159-077
51637-074		51637-079		51637-201		51637-242		51637-271		51637-279
5520-007		5520-082		5520-121		5520-184		5520-370		5520-389
6424-289		6424-346		6424-380		6424-407		6424-449		6424-486
6424-538		8090-004		8090-044		8098-010		8098-163		8098-188
8224-039		8224-084		8224-092		8224-141		8280-001

Quantity:  35

BOX:     1881

4 T/O CABLES FOR TIDELANDS

3D ARIES CABLES

3146-004		3146-100		3146-125		3146-138		3146-173		5159-012
5159-029		51637-282		5520-002		5520-005		5520-159		5520-243
5520-382		5520-385		5520-465		5520-468		6424-010		6424-100
6424-118		6424-202		6424-213		6424-276		6424-279		6424-314
6424.431		6424-460		6424-462		6424-506		8098-051		8098-093
8122-045		8224-031		8224-074		8224-094		8224-104

Quantity:  35

BOX:     1882

4 T/O CABLES FOR TIDELANDS

3D ARIES CABLES

3146-080		3146-116		3146-161		3146-227		3146-239		3146-240
3146-293		51637-064		5520-107		5520-109		5520-146		5520-182
5520-192		5520-330		5520-333		5520-424		5520-462		6424-002
6424-063		6424-069		6424-311		6424-366		6424-507		8090-024
8090-048		8090-117		8098-053		8098-082		8098-133		8098-150
8098-172		8098-181		8122-022		8122-075		8122-086

Quantity:  35

Initial	/s/ CWJ	/	WAW
	GECC		TGC Industries, Inc.

7

BOX:     1883

4 T/O CABLES FOR TIDELANDS

3D ARIES CABLES

3146-011		3146-069		3146-105		3146-168		3146-197		3146-252
5159-005		51637-023		51637-187		51637-256		51637-257		51637-296
5520-067		5520-157		5520-218		5520-269		5520-351		5520-472
6424-075		6424-097		6424-145		6424-158		6424-207		6424-229
6424-579		8098-023		8098-042		8098-121		8122-039		8122-043
8122-061		8122-099		8224-055		8224-064		8224-117

Quantity:  35

BOX:     1884

4 T/O CABLES FOR TIDELANDS

3D ARIES CABLES

3146-057		5159-053		5159-059		51637-003		51637-012		51637-081
51637-104		51637-148		51637-195		51637-274		51637-301		5520-128
5520-283		5520-284		5520-315		5520-320		5520-331		5520-343
5520-345		5520-428		6424-007		6424-009		6424-083		6424-392
6424-410		6424-417		6424-455		6424-495		6424-497		6424-505
8090-006		8098-030		8098-106		8224-032		8224-095

Quantity: 35

Initial	/s/ CWJ	/	WAW
	GECC		TGC Industries, Inc.

8

BOX:     1886

4 T/O CABLES FOR TIDELANDS

3D ARIES CABLES

3146-063		3146-072		3146-076		3146-082		3146-115		5159-052
5159-058		51637-230		5520-040		5520-106		5520-156		5520-161
5520-166		5520-205		5520-259		5520-272		5520-317		5520-355
5520-430		6424-042		6424-096		6424-157		6424-164		6424-194
6424-319		6424-350		6424-362		6424-372		6424-403		6424-550
8090-002		8098-036		8098-183		8122-016		8224-059		8224-083
8224-133

Quantity: 37

BOX:     1887

4 T/O CABLES FOR TIDELANDS

3D ARIES CABLES

3146-099		3146-101		3146-152		3146-242		51637-071		51637-075
51637-196		51637-277		5520-020		5520-054		5520-061		5520-097
5520-261		5520-309		5520-412		5520-499		6424-030		6424-056
6424-184		6424-201		6424-304		6424-445		6424-466		6424-468
6424-471		6424-475		8090-050		8090-051		8090-071		8090-095
8090-115		8098-186		8122-053		8224-052		8224-113		8224-121
8224-130

Quantity: 37

Initial	/s/ CWJ	/	WAW
	GECC		TGC Industries, Inc.

9

BOX:     1888

4 T/O CABLES FOR TIDELANDS

3D ARIES CABLES

3146-018		3146-067		3146-154		51637-117		51637-193		51637-207
51637-232		5520-062		5520-171		5520-199		5520-209		5520-322
5520-327		5520-346		5520-358		5520-386		6424-054		6424-208
6424-215		6424-288		6424-368		6424-416		6424-456		6424-562
8090-111		8098-002		8098-071		8098-089		8098-126		8098-139
8098-157		8098-185		8122-049		8122-063		8224-070		8224-115
8224-145

Quantity: 37

BOX:     1896

ARIES BASELINE CABLES FOR TIDELANDS

ARIES OCTAL CABLES

5407-043		5407-057		5407-070		5407-090		5407-094		5407-100
5407-108		5407-111		5407-147		6415-11		6415-20		6415-21
6415-28		6415-40		6704-009b		6704-014b		6704-024b		6704-026b
6704-027b		6704-040b		8123-44b		8123-53b

Quantity:  22

BOX:     1897

ARIES BASELINE CABLES FOR TIDELANDS

ARIES OCTAL CABLES

5407-059		5407-079		5407-080		5407-083		5407-087		5407-088
5407-109		5407-140		6415-18		6415-39		6704-004b		6704-012b
6704-020b		6704-034b

Quantity:  14

Initial	/s/ CWJ	/	WAW
	GECC		TGC Industries, Inc.

10

ANNEX A

TO

COLLATERAL SCHEDULE NO. 001

TO MASTER SECURITY AGREEMENT

DATED AS OF 10/22/04

CERTIFICATE OF DELIVERY/INSTALLATION

To: General Electric Capital Corporation (together with its successors and assigns, if any, “Secured Party”)

Pursuant to the provisions of the above Collateral Schedule to the above Master Security Agreement and the related Promissory Note (collectively, the “Loan”), the undersigned (“Debtor”) hereby certifies and warrants that (a) all Equipment listed below has been delivered and installed (if applicable); (b) the Debtor has inspected the Equipment, and all such testing as it deems necessary has been performed by Debtor, Supplier or the manufacturer and; (c) Debtor has found all such Equipment to be satisfactory and meets all applicable specifications and is fully operational for its intended use.

Number of Units		Manufacturer		Serial Numbers		Model and Type of Equipment
1		ARAM Aries		SP376		Seismic Processor Module w/fast download capability
4		ARAM Ariies				PC - Quad Line Interface Cards
1		ARAM Ariies				Impulse Source Software
1		ARAM Aires				Vibroseis Option.
2		Misc Test Equipment				Additional Flat Panel Display Units w/Mounting Hardware
1		ARAM Aries				Standard Installation Kit
1		Misc Test Equipment		TD276		Dual 3490 tape drive w/ mounting hardware
1		Misc Test Equipment		20235		iSYS-V12 thermal plotter w/mounting hardware
350		AMAR Aries				Remote Acquisition Module (Rams)
18		ARAM Aries				Line Tap Unit (A-LTUs)
480		ARAM Aries				Lead Acid Battery Pack
16		ARAM Aries				Lead Acid Battery Charger
700		ARAM Aries				Seismic Land-Lt Cable 300M
1400		ARAM Aries				Land Cable Back to Backs intergrated
36		ARAM Aries				Seismic Multiport Baseline Cable 280M
72		ARAM Aries				Land Baseline Cable Back to Backs Intergrated
4		ARAM Aries				Multiport Baseline Splitter Cable.
4		Misc Test Equipment				Hand held test unit w/meter and matching Geophone Adapter
4		Misc Test Equipment				Power Head w/9-volt Battery
1		ARAM Aries				Battery Discharge Station
1		International		1 HTLDTVN8EHA55043		Truck

Equipment more fully described on Schedule B to Collateral Schedule No. 001

Equipment immediately listed above is located at: 1304 Summit Ave, Suite 2, Plano, Collin County, TX 75074

	TGC Industries, Inc.
	By:	/s/ Wayne Whitener
	Name:			Wayne Whitener
	Title:		President/CEO
	Date:		10/22/04

Date

General Electric Capital Corporation

16479 Dallas Parkway #300

Addison, TX 75001-2512

Gentlemen:

You are hereby irrevocably authorized and directed to deliver and apply the proceeds of your loan to the undersigned evidenced by that Note dated 10/26/04 and secured by that Security Agreement or Chanel Mortgage dated 10/22/04, as follows:

GEO-X Systems, Ltd.		$	2,386,149.00
GE capital Corporation Documentation Fee		$	500.00

This authorization and direction is given pursuant to the same authority authorizing the above-mentioned borrowing,

	Very truly yours,
		TGC Industries, Inc.
		By:	/s/ Wayne Whitener
		Name:			Wayne Whitener
		Title:		President/CEO