Document:

exv10w1

Exhibit 10.1

WESTERN NATIONAL BANK

508 WEST WALL STREET, SUITE 1100

MIDLAND, TEXAS

79701

June 2, 2008

Dawson Geophysical Company

508 West Wall Street, Suite 800

Midland, Texas 79701

			
	RE:	 	Revolving Line of Credit Loan in the amount of $40,000,000.00 from Western
National Bank to Dawson Geophysical Company

Gentlemen:

Pursuant to the terms of a letter loan agreement, dated as of January 18, 2008 (the “Existing Loan
Agreement”), Western National Bank, a national banking association (alternatively, “Western” or the
“Bank”), has previously committed to provide to Dawson Geophysical Company, a Texas corporation
(alternatively, “Dawson Geophysical” or the “Borrower”), a revolving line of credit loan in the
original principal amount of Twenty Million and No/Dollars ($20,000,000.00) (the Existing Loan”).
The Existing Loan is evidenced by a Revolving Line of Credit Note, also dated as of January 18,
2008, executed by the Borrower on behalf of Western, in the original principal amount of Twenty
Million and No/100 Dollars ($20,000,000.00) (the “Existing Note”). The Existing Note is secured by
that certain Security Agreement, also dated as of January 18, 2008, covering those accounts
receivable described therein (the “Existing Security Agreement”). From time to time, the Existing
Security Agreement, and any financing statements filed to perfect the security interest created
thereunder, may be collectively referred to herein as the “Existing Security Instruments”.

Borrower has now requested that Western renew and extend the Existing Loan into, as well as provide
additional financing under a new revolving line of credit loan in the original principal amount of
Forty Million and No/100 Dollars ($40,000,000.00) (the “Loan”). The Loan will be evidenced by a
Revolving Line of Credit Note, of even date herewith, executed by the Borrower in favor of Western,
in the original principal amount of Forty Million and No/100 Dollars ($40,000,000.00), which as
stated, will renew and extend, as well as increase, the Existing Note (the “Note”). The Borrower’s
performance under the Note will be secured by its execution of a new Security Agreement, of even
date herewith, the security interest of which will be perfected by the filing of amendments to the
financing statement, covering all accounts receivable and equipment described therein
(collectively, the “Security Instruments”). This Agreement, as

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defined below, the Note, the Security Instruments, and any other documents executed simultaneously
herewith are collectively referred to as the “Loan
Documents”.

Western has agreed to renew the Existing Loan into, as well as, provide additional funding under
the Loan. In consideration of Western’s agreement to renew the Existing Loan into the Loan,
Borrower has agreed to execute this Loan Agreement, the Note, and the Security Instruments required
by the Bank, subject to the fulfillment of the following terms and conditions of this letter loan
agreement (the “Agreement”):

I. TERMS

Agreement

This Agreement, dated as of June 2, 2008, and any extensions, renewals, or modifications hereof.

Borrower

Dawson Geophysical Company

Bank

Western National Bank

Commitment

The lesser of the following amounts: (a) the face amount of the Note; or (b) the Borrowing Base
then in effect.

Rate

From June 1, 2008 through June 30, 2008, interest under the Note shall accrue at an annual rate
equal to the Prime Rate, minus three-quarters of one percent (.75%)
(the “Prime Rate Index”).
Beginning as of July 1, 2008, interest under the Note shall accrue at an annual rate equal to
either: (a) the 30-day London Interbank Offered Rate (“LIBOR”), plus two and one-quarter percent
(2.25%), or (b) the Prime Rate Index, as the Borrower shall choose monthly by notifying the Bank in
writing, via facsimile or e-mail, by the last day of each month, with each change to be effective
as of the first day of the following month, provided that such interest rate shall not exceed the
Highest Lawful Rate, as defined in the Note, or be less than four percent (4.0%). Should Borrower
fail to notify Bank of its election of interest rate for any given month, the interest rate shall
remain at the interest rate index chosen by Borrower for the immediately preceding month.

For purposes of this Agreement, LIBOR shall mean, with respect to each Interest Period, as defined
below, the rate as established as the 30-day LIBOR in the money rate table of The Wall Street
Journal, a Dow Jones publication, as of each Business Day, as defined below (and for
holidays or weekends, LIBOR shall be the 30-day LIBOR published in that money rate table of

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The
Wall Street Journal, as of the close of business on the most recent Business Day immediately
preceding such weekend or holiday). Without notice to the Borrowers or any other person, LIBOR may
change from time to time pursuant to the preceding sentence, with the effective date of each change
to be the effective date reflected in the money rate table of The Wall Street Journal. Without
notice to the Borrowers or any other person, LIBOR may change from time to time pursuant to the
preceding sentence, with the effective date of each change to be the effective date reflected in
the money rate table of The Wall Street Journal. Each change in LIBOR to be charged on the
Revolver Note will become effective without notice on the commencement of each Interest Period
based upon the Index then in effect. “Interest Period” means each consecutive one month period (the
first of which shall commence on June 1, 2008), effective as of the first day of each Interest
Period and ending on the last day of each Interest Period, provided that if any Interest Period is
scheduled to end on a date for which there is no numerical equivalent to the date on which the
Interest Period commenced, then it shall end instead on the last day of such calender month. For
purposes of this Agreement, the “Prime Rate” shall be defined as that rate established as the prime
rate in the money rate table of The Wall Street Journal, a Dow Jones publication, as of each
Business Day, as hereinafter defined, (and for holidays or weekends, the Prime Rate shall be the
prime rate published in that money rate table of The Wall Street Journal, as of the close of
business on the most recent Business Day immediately preceding such weekend or holiday). Without
notice to the Borrower or any other person, the Prime Rate may change from time to time pursuant to
the preceding sentence, with the effective date of each change to be the effective date reflected
in the money rate table of The Wall Street Journal. The Prime Rate is a reference rate and does
not necessarily represent the lowest or best rate actually charged to any customer. The Bank may
make commercial loans or other loans at rates of interest at, above, or below the Prime Rate.
“Business Day” shall mean any day other than a Saturday, Sunday or legal holiday for commercial
banks under the laws of the State of Texas.

Security

The Loan shall be secured by the Security Instruments.

Structure

Under the Note, funds will be available on a revolving basis through June 2, 2009, the maturity
date of the Loan (the “Revolving Period”). During the Revolving Period, the Borrower may borrow,
repay, and re-borrow funds as long as the aggregate amount (including outstanding letters of
credit) does not exceed the Commitment.

Borrowing Base

At any time, and from time to time, the amounts outstanding under the Revolver Note shall not
exceed the lesser of: (a) the face amount of the Revolver Note; or (b) the Borrowing Base, as
determined from time to time by the Bank, acting in its sole and unlimited discretion (said lesser
amount being referred to herein as the “Revolver Commitment”). As used in this Agreement,
the term “Borrowing Base” shall mean an amount equal to eighty percent (80%) of Borrower’s Eligible
Accounts.

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For the purposes of this Agreement, the term “Eligible Account” shall mean an account receivable of
the Borrower (net of any credit balance, trade discount, or unbilled amount or retention) that is
contractually due, for which each of the following statements is accurate and complete (and the
Borrower, by including such account receivable in any computation of the Borrowing Base, shall be
deemed to represent and warrant to the Bank the accuracy and completeness of such statements):

	 	a.	 	Said account receivable is a binding and valid obligation of the obligor
thereon, in full force and effect, and enforceable in accordance with its terms;
	 
	 	b.	 	Said account receivable is genuine, in all respects, as appearing on its face
as represented in the books and records of Borrower, and all information set forth
therein is true and correct;
	 
	 	c.	 	Said account receivable is free of all default of any party thereto,
counterclaims, offsets, and defenses, and from any rescission, cancellation, or
avoidance, and all right thereof, whether by operation of law or otherwise;
	 
	 	d.	 	The payment of said account receivable is not more than ninety (90) days past
due the invoice date thereof;
	 
	 	e.	 	Said account receivable is free of concessions or understandings with the
obligor thereon of any kind not disclosed to and approved by the Bank in writing;
	 
	 	f.	 	Said account receivable is, and at all times will be, free and clear of all
liens except those in favor of the Bank;
	 
	 	g.	 	Said account receivable is not a receivable arising from intercompany
indebtedness existing between or among any of the Borrower;
	 
	 	h.	 	Said account receivable is derived from sales made or services rendered to the
obligor in the ordinary course of the business of the Borrower;
	 
	 	i.	 	The obligor on said account receivable (i) is located within the United States
or the District of Columbia; (ii) is not the subject of any bankruptcy or insolvency
proceeding, nor has a trustee or receiver been appointed for all or a substantial part
of its property, nor has said obligor made an assignment for the benefit of creditors,
admitted its inability to pay its debts as they mature or suspended its business, (iii)
is not affiliated, directly or indirectly, with Borrower, as a subsidiary or affiliate,
employee or otherwise; and (iv) is not a state or federal government department,
commission, board, bureau, or agency;
	 
	 	j.	 	Said account receivable is not owed by a customer whose principal place of
business is located in a foreign country; and

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	 	k.	 	Said account receivable did not arise from sales to an obligor as to whom
fifteen percent (15%) or more of the total accounts receivable owing by such obligor to
the Borrower are delinquent accounts receivable (that is, an account that is more than
ninety (90) days delinquent).

In addition to the criteria stated above for determining whether an account receivable is an
“Eligible Account”, the Bank and the Borrower agree that no such account receivable shall
constitute an Eligible Account if that account receivable arises from any single customer, other
than Client A and its affiliates and subsidiaries (collectively,
“Client A”), whose accounts receivable constitute more than twenty-five percent (25%) of
Borrower’s total accounts receivable. The Bank agrees that an account receivable owed by
Client A to the Borrower (collectively, the “Client A
Accounts”) may still qualify as an
Eligible Account even if the Client A Accounts constitute more than twenty-five percent (25%) of
Borrower’s total accounts receivable.

Based upon the terms of this Agreement, and the information provided and the representations made
by the Borrower to the Bank, the Bank hereby redetermines the Borrowing Base, and increases it to
the amount of Forty Million and No/100 Dollars ($40,000,000.00). The Borrower may request in
writing an additional increase in the Borrowing Base, such request to be accompanied by a
description and evaluation of any additional collateral to be provided by the Bank. The Bank may
evaluate such for an increase in its sole and absolute discretion, and in conjunction with such
evaluation, may conduct a full credit analysis of the Borrower and the existing or additional
collateral.

If the aggregate amounts outstanding under the Note exceeds the Revolver Commitment at any time,
the Bank will provide written notice of that event to Borrower. On or before the tenth
(10th) day following receipt of such notification by Borrower, Borrower will either, at
the direction of the Bank, acting in its sole and absolute discretion: (a) make a mandatory payment
to the Bank of the principal of the Note in an amount at least equal to the amount necessary to
cause the outstanding principal balance of the Note to be less than or equal to the Revolver
Commitment; or (b) create liens on other assets of Borrower, satisfactory in nature, quantity, and
value to the Bank, acting in its sole discretion, said assets to have a fair market value
sufficient to at least equal to the amount necessary to cause the outstanding principal balance of
the Note to be less than or equal to the Revolver Commitment.

Non-Recourse

Although the Borrower is responsible on a corporate basis for the full repayment of principal and
interest due on the Obligations and for any other Event of Default for which the Borrower is
responsible, the Bank specifically acknowledges and agrees that neither any of the directors,
officers, or employees of the Borrower nor any of the Borrower’s shareholders shall have any
personal liability whatsoever for the repayment of the Loan. The sole party responsible for
repayment of the Loan shall be the Borrower, and the sole security for the Loan shall be the
Collateral covered by the Security Instruments.

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Purpose

Funds from the Loan shall be to renew and extend the Existing Loan and to provide additional funds
for working capital to offset the increase in accounts receivable due to the significant growth in
Borrower’s business. No proceeds from the Loan shall be used for the purpose of purchasing or
carrying margin stock in violation of Regulations G, U, or X of the Board of Governors of the
Federal Reserve System.

Maturity Date

As stated, the maturity date of the Note is June 2, 2009.

II. REPRESENTATIONS AND WARRANTIES

     A. Good Standing and Identity. The Borrower is a corporation, duly organized and in
good standing under the laws of Texas. The Borrower’s legal name is that reflected in the address
of this Agreement. Borrower has the power to own its property and to carry on its business in each
jurisdiction in which the Borrower operates.

     B. Authority and Compliance. The Borrower has full power and authority to enter into
this Agreement, to make the borrowing hereunder, to execute and deliver the Note, to mortgage those
interests covered by the Security Instruments, and to incur the obligations provided for herein,
all of which will be duly authorized by all proper and necessary corporate action. No consent or
approval of any public authority is required as a condition to the validity of this Agreement, the
Note, and the Security Instrument, and Borrower is in compliance with all laws and regulatory
requirements to which he is subject.

     C. Litigation. There are no proceedings pending or, to the knowledge of Borrower,
threatened before any court or administrative agency that will or may have a material adverse
effect on the financial condition or operations of Borrower, except as disclosed to the Bank in
writing prior to the date of this Agreement.

     D. Ownership of Assets. As of the date of this Agreement, Borrower has good title to
the interests covered by the Security Instruments and any other collateral pledged and the other
collateral is owned free and clear of liens. Borrower will at all times maintain its tangible
property, real and personal, in good order and repair, taking into consideration reasonable wear
and tear.

     E. Taxes. All income taxes and other taxes due and payable through the date of this
Agreement have been paid prior to becoming delinquent.

     F. Financial Statements. The books and records of the Borrower properly reflect the
financial condition of the Borrower in all material respects, and there has been no material change
in Borrower’s financial condition as represented in its most recent financial statements.

     G. Hazardous Wastes and Substances. To the best knowledge of the Borrower, the
Borrower and its properties are in compliance with applicable state and federal environmental laws
and regulations and the Borrower is not aware of and has not received any

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notice of any violation
of any applicable state or federal environmental law or regulation and there has not heretofore
been filed any complaint, nor commenced any administrative procedure, against the Borrower or any
of its predecessors, alleging a violation of any environmental law or regulation. Currently and
from time to time, the Borrower, in the course of its regular business, may use or generate on a
portion of its properties materials which are Hazardous Materials, as hereinafter defined. The
Borrower has and will make a good faith attempt to comply with all applicable statutes and
regulations in the use, generation and disposal of such materials. To the best of its knowledge,
the Borrower has not otherwise installed, used, generated, stored or disposed of any hazardous
waste, toxic substance, asbestos or related material (“Hazardous Materials”) on its properties.
For the purposes of this Agreement, Hazardous Materials shall include, but shall not be limited to,
substances defined as “hazardous substances” or “toxic substances” in the Comprehensive
Environmental Response Compensation and Liability Act of 1980, as amended, 42 U.S.C. §9061, et
seq., Hazardous Materials Transportation Act, 49 U.S.C. §1802, et seq., and the
Resource Conservation and Recovery Act, 42 U.S.C. §6901, et seq., or as “hazardous
substances,” “hazardous waste” or “pollutant or contaminant” in any other applicable federal, state
or local environmental law or regulation. There do not exist upon any property owned by Borrower
any underground storage tanks or facilities, and to the knowledge of Borrower, none of such
property has ever been used for the treatment, storage, recycling, or disposal of any Hazardous
Materials.

III. CONDITIONS PRECEDENT

The provisions of this Agreement will serve as the proposed terms of the borrowing arrangements.
Prior to any funds being made available, Borrower will execute and deliver to the Bank, in form and
substance satisfactory to the Bank, this Agreement, the Note, and the Security Instruments.

IV. COVENANTS

Unless the Bank will otherwise consent in writing, and so long as any debt remains outstanding or
the commitment still available, the Borrower agrees to comply with the following covenants:

     A. Affirmative Covenants.

     1. As soon as available, but in any event not later than ninety (90) days after the end
of each fiscal year, Borrower will provide financial statements, in form and substance
satisfactory to the Bank, reflecting Borrower’s financial performance as of the end of such
year and the related statements of income and changes in cash flows for such
year, with the first fiscal year ending on September 30, 2008, such statements to be audited
by an independent certified accountant and to be prepared according to generally accepted
accounting principals, consistently applied (“GAAP”).

     2. Within ninety (90) days of the end of each fiscal quarter, with the next quarter
ending on March 31, 2008, the Borrower will submit to the Bank a financial statement
reflecting Borrower’s financial performance during the previous calendar

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quarter, such statements to be reviewed by an independent certified accountant and to be prepared
according to GAAP.

     3. Within thirty (30) days of the end of each calendar month, Borrower shall provide
monthly accounts receivable aging reports.

     4. Within thirty (30) days of transmitting any tax return to any governmental
authority, the Borrower will submit to the Bank a copy of that tax return.

     5. Within thirty (30) days following the end of each calendar month, Borrower shall
provide a monthly borrowing base report and compliance certificate in the form attached
hereto as Exhibit “A”.

     6. Borrower shall maintain an average Cash Flow Coverage Ratio of not less than1.50 to
1.0, calculated quarterly, beginning on March 31, 2008, from the date of the Loan to
maturity. For purposes of this Agreement, “Cash Flow Coverage Ratio” means, with respect to
any period of calculation thereof, the ratio of the sum of: (a) the net income (or loss)
from continuing operations of Borrower during such period calculated after any and all
distributions to shareholders, plus (b) interest, depreciation, depletion, and amortization
expenses of Borrower during such period, less (c) gains from the sale of any assets; plus
(d) losses from the sale of any assets; less (e) extraordinary adjustments to net income
divided by (f) scheduled capital lease obligations and principal and interest payments, all
determined in accordance with GAAP.

     7. For any time period for which reporting is required, Borrower will maintain a Debt
to Tangible Net Worth ratio of less than 1.50 to 1.00 to be measured quarterly, beginning as
of March 31, 2008. For purposes of this paragraph, “Debt” shall mean, all liabilities,
obligations, and indebtedness of the Borrower, of any kind or nature, now or hereafter
owing, arising, due or payable, howsoever evidenced, created, incurred, acquired or owing,
whether primary, secondary, direct, contingent, fixed, or otherwise, and “Tangible Net
Worth” means the excess, if any, of the total assets of Borrower over all items of
indebtedness, obligations, or liability which would be classified as liabilities of
Borrower, for the time period to be measured, each to be determined in accordance with GAAP;
provided, however, that for the purposes of any such computation of Tangible Net Worth,
“assets” will not include (a) goodwill (whether representing the excess of cost over book
value of assets acquired or otherwise), and (b) patents, trademarks, trade names,
copyrights, franchises, and deferred charges.

     8. Borrow shall maintain a Current Ratio of not less than 1.50 to 1.0, measured
quarterly, beginning on March 31, 2008, from the date of the Loan to maturity. For purposes
of this Agreement, “Current Ratio” means, with respect to any period of calculation thereof,
the ratio of the sum of: (a) current assets, plus (b) availability under the Revolver Loan,
divided by (c) current liabilities. Current assets shall include a minimum balance of cash,
plus marketable securities, of not less than $3,500,000.00, provided that this requirement
is only applicable if funds are outstanding under the Note.

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     9. Borrower shall submit copies of all financial statements, reports, notices, and
proxy statements sent or made available generally by the Borrower to its shareholders, of
all regular and periodic reports and all private placement memorandums and all registration
statements and prospectuses, if any, filed by the Borrower with any securities exchange or
with the Security Exchange Commission; and all press releases and other statements made
available generally by the Borrower to the public concerning material changes in the
business of the Borrower upon their becoming available, but in no event later than 10 days
after the same was sent.

     10. Borrower will maintain all primary operating accounts with the
Bank.

     11. The Borrower will maintain its existence in good standing and comply with all laws,
regulations and governmental requirements applicable to it or to any of its property,
business operations and transactions.

     12. The Borrower will promptly pay any reasonable costs incurred by the Bank in
connection with the preparation or enforcement of this Agreement, the Notes, the Security
Instruments, and any other documentation executed concurrently herewith.

     13. The Borrower will remain in substantial compliance with same and will not place or
permit to be placed any Hazardous Materials on any of its properties in violation of
applicable state and federal environmental laws. In the event that the Borrower should
discover any Hazardous Materials on any of its properties that could result in a breach of
the foregoing covenant, the Borrower shall notify the Bank within three (3) days after such
discovery. The Borrower shall dispose of all material amounts of Hazardous Materials that
it generates only at facilities or with carriers that maintain valid governmental permits
under the Resource Conservation and Recovery Act, 42 U.S.C. §6901. In the event of any
notice or filing of any procedure against the Borrower alleging a violation of any
environmental law or regulation, the Borrower shall give notice to the Bank within five (5)
days after receiving notice of such notice or filing.

     14. The Borrower will provide such other information as the Bank may reasonably request
from time to time in its sole discretion.

     B. Negative Covenants.

     1. The Borrower will not make any change in its present accounting method or change its
present fiscal year.

     2. The Borrower will not make any substantial change in the nature of its business as
now conducted.

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     3. The Borrower will not reorganize or merge with any other entity, without the prior
written consent of the Bank.

     4. With respect to the Borrower’s interest in any of the properties covered by the
Security Instrument, the Borrower will not sell, contract to sell, convey, assign, transfer,
mortgage, pledge, hypothecate, encumber, or in any way alienate that interest in such
properties, without the consent of the Bank.

V. EVENTS OF DEFAULT

The occurrence and continuing existence of any one of the following will constitute an Event of
Default under this Agreement and the Note:

     A. Borrower fails to pay when due any principal, interest, or other amount payable under this
Agreement, the Note, or any other promissory notes executed or guaranteed by the Borrower in favor
of the Bank;

     B. Any representation or warranty made by the Borrower hereunder or in any related collateral
security or other documents entered into with the Bank proves to be at any time incorrect in any
significant respect;

     C. The Borrower fails to observe or perform any covenant, obligation, agreement, or other
provision contained herein or in any other contract or instrument executed in connection herewith;

     D. Any default or defined Event of Default under any security agreement, deed of trust,
promissory note, loan agreement or other contract or instrument executed by the Borrower pursuant
to, or as required by, this Agreement;

     E. Any final judgment or judgments for the payment of money is rendered against Borrower and
is not be satisfied or discharged at least thirty (30) days prior to the date on which any of their
assets could be lawfully sold to satisfy such judgment or judgments, unless Borrower brings
litigation to stay same; or

     F. Borrower: (i) becomes insolvent, or suffers or consents to, or applies for the appointment
of a receiver, trustee, custodian or liquidator for himself or any of his property, or generally
fails to pay his debts as they become due, or makes a general assignment for the benefit of creditors; or (ii) files a voluntary petition in bankruptcy, or seeking reorganization, in order
to effect a plan or other arrangement with creditors or any other relief under the Bankruptcy
Reform Act, Title 11 of the United States Code, as recodified from time to time (“Bankruptcy
Code”), or as now or hereafter in effect, or any involuntary petition or proceeding pursuant to
said Bankruptcy Code or any other applicable state or federal law relating to bankruptcy or
reorganization or other relief for debtors is filed or commenced against Borrower; or (iii) files
any answer admitting the jurisdiction of the court and the material allegations of any such
involuntary petition; or (iv) is adjudicated a bankrupt, under said Bankruptcy Code or any other
state or federal law relating to bankruptcy, reorganization, or other relief for debtors.

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VI. REMEDIES

If any Event of Default occurs, any term hereof or of the Note to the contrary notwithstanding, the
Note shall at the Bank’s option become immediately due and payable. In addition, the obligation,
if any, of the Bank to permit further borrowings hereunder will immediately cease and terminate and
the Bank will have all rights, powers, and remedies available under this Agreement, the Note, or
other contracts or instruments executed in connection herewith, or accorded by law, including,
without limitation, the right to resort to any or all of the collateral and to exercise any or all
of its rights, powers, or remedies at any time and from time to time after the occurrence of an
Event of Default.

ONCE AN EVENT OF DEFAULT HAS OCCURRED, WESTERN MAY PURSUE THE REMEDIES PROVIDED FOR IN THIS
AGREEMENT, THE NOTE, AND THE SECURITY INSTRUMENTS WITHOUT PRESENTMENT, DEMAND, PROTEST, NOTICE OF
ACCELERATION, NOTICE OF INTENT TO ACCELERATE, NOTICE OF PROTEST OR NOTICE OF DISHONOR, OR ANY OTHER
NOTICE OF ANY KIND, ALL OF WHICH ARE EXPRESSLY WAIVED BY BORROWER.

All rights, powers, and remedies of the Bank in connection with this Agreement, the promissory
notes or any other contract or instrument on which the Borrower may at any time be obligated to the
Bank (or any holder thereof) are cumulative and not exclusive and will be in addition to any other
rights, powers, or remedies provided by law or equity, including without limitation the right to
set off any liability owing by the Bank to the Borrower (including sums deposited in any deposit
account of Borrower with the Bank) against any liability of the Borrower to the Bank.

VII. WAIVER

No delay, failure, or discontinuation by the Bank, or any holder of the Note, in exercising any
right, power, or remedy under this Agreement, the Note or any other contract or instrument on which
the Borrower may at any time be obligated to the Bank (or any holder thereof) will affect or
operate as waiver of such right, power or remedy. Any waiver, permit, consent, or approval of any
kind by the Bank (or any holder of the Note), or of any provisions or conditions of, or any breach
or default under this Agreement, the Note or any other contract or instrument on which the Borrower
may at any time be obligated, must be in writing and will be effective only to the extent set forth
in such writing.

VIII. NOTICES

All notices, requests, and demands given to or made upon the respective parties must be in writing
and shall be deemed to have been given or made: (1) at the time of personal delivery thereof, (2)
or two days after any of the same are deposited in the U.S. Mail, first class and postage prepaid,
addressed as follows:

	 	 	 	 	 
	 

	 	Borrower:
	 	Dawson Geophysical Company
	 

	 	 	 	508 West Wall Street, Suite 800

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	 	 	 	Midland, Texas 79701
	 
	 	 	 	 
	 

	 	Western:
	 	Western National Bank
	 

	 	 	 	Attention: James R. Kreuz
	 

	 	 	 	508 West Wall Street, Suite 1100
	 

	 	 	 	Midland, Texas 79701

or other such address as any party may designate by written notice to all other parties.

IX. SUCCESSORS, ASSIGNMENTS

This Agreement will be binding on and inure to the benefit of the heirs, executors, administrators,
legal representatives, successors, and assigns of the parties, provided, however, that this
Agreement may not be assigned by the Borrower without the prior written consent of the Bank. The
Bank reserves the right to sell, assign, transfer, negotiate, or grant participations in all or any
part of, or any interest in, the Bank’s rights and benefits under this Agreement, the Note or any
contracts or instruments relating thereto. In connection therewith, the Bank may disclose all
documents and information which the Bank now has or may hereafter acquire relating to the loan or
the Note, the Borrower or his business, or any collateral required hereunder.

X. SEVERABILITY OF PROVISIONS

If any of the provisions of this Agreement shall be prohibited by or invalid under applicable law,
such provision shall be ineffective only to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or any remaining provisions of this Agreement.

XI. VENUE AND JURISDICTION

Any suit, action or proceeding against the Borrower arising out of or relating to this Agreement or
any judgment entered by any court in respect thereof, may be brought or enforced in the courts of
the State of Texas, County of Midland, or in the United States District Court for the Western
District of Texas, as Western in its sole discretion may elect, and Borrower hereby submits to the
nonexclusive jurisdiction of such courts for the purpose of any such suit, action or proceeding.
The Borrower hereby irrevocably consents to service of process in any suit, action or proceeding
in any of said courts by the mailing thereof by the Bank by registered or certified mail, postage
prepaid, to the Borrower, at the address set forth herein.

THE BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTIONS THAT THEY MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
BROUGHT IN ANY OF SAID COURTS AND HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH SUIT,
ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM AND ANY
RIGHT GRANTED BY STATUTE, RULE OR

12

 

COURT OR OTHERWISE TO HAVE SUCH SUIT, ACTION, OR PROCEEDING TRIED
BY A JURY.

XII. MISCELLANEOUS

     A. Texas Law Applicable. This Agreement, the Note, the Security Instruments, and any
contracts or instruments relating thereto, shall be governed by and construed in accordance with
the laws of the State of Texas, except to the extent that the Bank has greater rights or remedies
under federal law or the law of any jurisdiction in which the collateral properties are located, in
which case such choice of Texas law shall not be deemed to deprive the Bank of such rights and
remedies under federal law or the law of any jurisdiction in which the collateral properties are
located, in which case such choice of Texas law shall not be deemed to deprive the Bank of such
rights and remedies as may be available under such law.

     B. Notice of Final Agreement. THIS AGREEMENT, THE NOTE, ANY CONTRACTS OR INSTRUMENTS
RELATING THERETO, REPRESENT THE ENTIRE AGREEMENT BETWEEN THE PARTIES, AND IT IS EXPRESSLY
UNDERSTOOD THAT ALL PRIOR CONVERSATIONS OR MEMORANDA BETWEEN THE PARTIES REGARDING THE TERMS OF
THIS AGREEMENT SHALL BE SUPERSEDED BY THIS AGREEMENT. ANY AMENDMENT, APPROVAL, OR WAIVER BY
WESTERN OF THE TERMS OF THIS AGREEMENT, THE NOTE AND ANY CONTRACTS OR INSTRUMENTS RELATING THERETO,
MUST BE IN WRITING OR CONFIRMED WRITING, AND SHALL BE EFFECTIVE ONLY TO THE EXTENT SPECIFICALLY SET
FORTH IN SUCH WRITING. THIS AGREEMENT, IN CONJUNCTION WITH THE NOTE AND ANY CONTRACTS OR
INSTRUMENTS RELATING THERETO, SHALL SERVE TO EVIDENCE THE TERMS OF THE ENTIRE AGREEMENT BETWEEN THE
PARTIES.

{The remainder of this page is intentionally left blank. Signature page follows.}

13

 

     Please acknowledge your acceptance of and agreement to the terms of this Agreement by dating and executing where indicated.

	 	 	 	 	 
	 	Very truly yours,

WESTERN NATIONAL BANK

 	 
	 	By:  	/s/ James R. Kreuz 	 
	 	 	James R. Kreuz 	 
	 	 	President 	 
	 

AGREED TO AND ACCEPTED AS OF THE

2nd DAY OF JUNE 2008.

BORROWER:

DAWSON GEOPHYSICAL COMPANY

	 	 	 	 	 
	By:
	 	/s/ Stephen C. Jumper	 	 
	 

	 	 

Stephen C. Jumper
	 	 
	 

	 	President	 	 
	 
	 	 	 	 
	By:
	 	/s/ Christina W. Hagan	 	 
	 

	 	 

Christina W. Hagan
	 	 
	 

	 	Secretary	 	 

14exv10w2

EXHIBIT 10.2

SECURITY AGREEMENT

     THIS SECURITY AGREEMENT (the “Security Agreement”) is made and entered into this
2nd day of June 2008, by and between DAWSON GEOPHYSICAL COMPANY, a Texas Corporation,
whose address is 508 West Wall Street, Suite 800, Midland, Texas 79701 (the “Debtor”), and WESTERN
NATIONAL BANK, a national banking association, whose address is 508 West Wall Street, Suite 1100,
Midland, Texas 79701 (the “Secured Party”).

NOTICE IS TAKEN OF THE FOLLOWING:

	A.	 	Reference is made to that certain Loan Agreement, dated as of June 2, 2008, by and between
DAWSON GEOPHYSICAL COMPANY, as Borrower ( the “Borrower”), and the Secured Party, as Lender
(the “Loan Agreement”). Pursuant to the terms of the Loan Agreement, the Secured Party has
agreed to extend a loan to Borrower, from time to time, said indebtedness being evidenced by a
Revolving Line of Credit Note, dated as of June 2, 2008, in the original principal amount of
Forty Million and No/100 Dollars ($40,000,000.00), executed by the Borrower, as Maker, to the
Secured Party, as Payee (the “Note”). The Loan Agreement and the Note, and all documents
executed by the parties simultaneously therewith, as any of the same may be amended, extended
or replaced from time to time are collectively referred to herein as the “Credit Documents.”
Capitalized terms not otherwise defined herein are used with the same meanings as in the
Credit Documents.

	B.	 	To induce Secured Party to extend such credit, and in support of its performance under the
Loan Agreement and the Notes, Debtor has agreed to pledge and to grant to Secured Party a
security interest in and lien upon certain property of Debtor described more particularly
herein.

     NOW, THEREFORE, for and in consideration of the above Recitals and for other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, Debtor hereby
agrees as follows:

AGREEMENT

1. Grant of Security Interest

Debtor hereby pledges and grants to Secured Party a security interest in the property
described in paragraph 2 (collectively and severally, the “Collateral”) to secure payment
and performance of the obligations described in paragraph 3 (collectively and severally, the
“Obligations”).

	2.	 	Collateral

1

 

	 	 	The Collateral shall consist of all of the Debtor’s interest in the following:
	 
	 		(i) All of Debtor’s accounts and equipment, as those terms are defined under the Uniform
Commercial Code, as adopted by the State of Texas, in effect as of the date of this
Agreement ; (ii) any related or additional property from time to time delivered to or
deposited with Secured Party by or for the account of Debtor expressly securing the
Obligations; (iii) all proceeds, products, replacements, additions to, substitutions for,
accessions of, and property necessary for the operation of any of the foregoing, including,
without limitation, insurance payable as a result of loss or damage to the foregoing
property and any proceeds thereunder, refunds or unearned premiums of any such insurance
policy, and claims against third parties; (iv) all books and records related to any of the
foregoing, including without limitation any and all books of account, customer lists and
other records relating in any way to the accounts receivable; and (v) any of the
aforementioned collateral hereafter acquired by Debtor as well as Collateral which Debtor
now owns or in which Debtor otherwise has rights related to any property referred to in this
Section 2.

	3.	 	Obligations
	 
	 	 	The Obligations secured by this Security Agreement shall consist of any and all debts,
obligations, and liabilities of Debtor to Secured Party arising out of or related to the
Credit Documents (whether principal, interest, fees, or otherwise, whether now existing or
thereafter arising, whether voluntary or involuntary, whether or not jointly owed with
others, whether direct or indirect, absolute or contingent, contractual or tortious,
liquidated or unliquidated, arising by operation of law, or otherwise, whether or not from
time to time decreased or extinguished and later increased, created or incurred, and whether
or not extended, modified, rearranged, restructured, refinanced, or replaced, including
without limitation, modifications to interest rates or other payment terms of such debts,
obligations, or liabilities).
	 
	4.	 	Representations and Warranties
	 
	 	 	In addition to any representations and warranties of Debtor set forth in the Credit
Documents, which are incorporated herein by this reference, Debtor hereby represents and
warrants that:

	 	a.	 	Authority. It has authority, and has completed all proceedings and obtained
all approvals and consents necessary, to execute, deliver, and perform this Security
Agreement and the transactions contemplated hereby.
	 
	 	b.	 	No Default or Lien. Such execution, delivery, and performance will not
contravene, or constitute a default under or result in a lien upon any property of
Debtor pursuant to any applicable law or regulation or any contract, agreement,
judgment, order, decree, or other instrument binding upon or affecting Debtor.

2

 

	 	c.	 	Enforceability. This Security Agreement constitutes a legal, valid, and binding
obligation of Debtor, enforceable in accordance with its terms (except as
enforceability may be affected by bankruptcy, insolvency, or other similar laws
affecting the enforcement of creditor’s rights), and this Security Agreement grants to
Secured Party a valid, first-priority perfected and enforceable lien on the Collateral.
	 
	 	d.	 	No Litigation. There is no action, suit or proceeding pending or, to the best
knowledge of Debtor after reasonable investigation, threatened against Debtor that
might adversely affect its property or financial condition in any material respect.
	 
	 	e.	 	Ownership of Collateral. Debtor is the sole owner of and has good and
marketable title to the Collateral (or, in the case of after-acquired Collateral, at
the time the Debtor acquires rights in the Collateral, will be the sole owner thereof)
and is the record and beneficial owner of any such Collateral.
	 
	 	f.	 	Priority. Except for security interests in favor of Secured Party, no person
has (or, in the case of after-acquired Collateral, at the time Debtor acquires rights
therein, will have) any right, title, claim, or interest (by way of security interest
or other lien or charge) in, against or to the Collateral.
	 
	 	g.	 	Accuracy of Information. All information heretofore, herein or hereafter
supplied to Secured Party by or on behalf of Debtor with respect to the Collateral is
true and correct.
	 
	 	h.	 	Delivery of Documents. Debtor has delivered to Secured Party all instruments,
documents, chattel paper, and other items of Collateral in which a security interest is
or may be perfected by possession, the certificate of title with respect to each motor
vehicle, if any, included in the Collateral, and any certificated Pledged Shares
together with such additional writings, including, without limitation, assignments and
stock powers, with respect thereto as Secured Party shall request.
	 
	 	i.	 	Exclusion of Certain Collateral. Unless otherwise agreed by Secured Party, the
Collateral does not include any aircraft, watercraft or vessels, railroad cars,
railroad equipment, locomotives or other rolling stock intended for a use related to
interstate commerce, trade names, trademarks, service marks, mask works, copyrights,
patents, fixtures or uncertificated securities.
	 
	 	j.	 	Enforceability Against Account Debtors. Each account, contract right, item of
chattel paper, instrument or any other right to the payment of money constituting
Collateral is genuine and enforceable in accordance with its terms against the

3

 

	 	 	 	party obligated to pay the same (an Account Debtor), which terms have not been
modified or waived in any respect or to any extent.
	 
	 	k.	 	Amount Due From Account Debtors. Any amount represented by Debtor to Secured
Party as owing by any Account Debtor is the correct amount actually and unconditionally
owing by such Account Debtor.
	 
	 	l.	 	No Account Debtor Defense. No Account Debtor has any defense, set off, claim,
or counterclaim against Debtor that can be asserted against Secured Party, whether in
any proceeding to enforce Secured Party’s rights in the Collateral, or otherwise.

	5.	 	Covenants and Agreements of Debtor
	 
	 	 	In addition to all covenants and agreements of Debtor set forth in the Credit Documents,
which are incorporated herein by this reference, Debtor hereby agrees:

	 	a.	 	Preservation of Collateral. To do all acts that may be necessary to maintain,
preserve, and protect the Collateral.
	 
	 	b.	 	Use of Collateral. Not to use or permit any Collateral to be used unlawfully or
in violation of any provision of this Security Agreement, any other agreement with
Secured Party related hereto or any applicable statute, regulation, or ordinance or
any policy of insurance covering the Collateral.
	 
	 	c.	 	Payment of Taxes. To pay promptly when due all taxes, assessments, charges,
encumbrances and liens now or hereafter imposed upon or affecting any Collateral.
	 
	 	d.	 	 Defense of Litigation. To appear in and defend any action or proceeding that
may affect its title to or Secured Party’s interest in the Collateral.
	 
	 	e.	 	Possession of Collateral. Not to surrender or lose possession of (other than
to Secured Party), sell, encumber, lease, rent, or otherwise dispose of or transfer
any Collateral or right or interest therein except as hereinafter provided, and to keep
the Collateral free of all levies and security interests or other liens or charges
except those approved in writing by Secured Party.
	 
	 	f.	 	Compliance with Law. To comply with all laws, regulations, and ordinances
relating to the possession, operation, maintenance, and control of the Collateral.
	 
	 	g.	 	Standard of Care by Secured Party. That such care as Secured Party gives to the
safekeeping of its own property of like kind shall constitute reasonable care of the
Collateral when in Secured Party’s possession.

4

 

	 	h.	 	Maintenance of Records. To keep separate, accurate, and complete records of the
Collateral and to provide Secured Party with such records and such other reports and
information relating to the Collateral as Secured Party may request from time to time.
	 
	 	i.	 	Further Assurances. To procure, execute, and deliver from time to time any
endorsements, notifications, registrations, assignments, financing statements,
certificates of title, ship mortgages, aircraft mortgages, copyright mortgages
assignments or mortgages of patents, mortgages of mask works, mortgages for filing
pursuant to the Interstate Commerce Act, and other writings deemed necessary or
appropriate by Secured Party to perfect, maintain, and protect its security interest in
the Collateral hereunder and the priority thereof; and to take such other actions as
Secured Party may request to protect the value of the collateral and of Secured
Party’s security interest in the Collateral, including, without limitation, provision
of assurances from third parties regarding Secured Party’s access to, right to
foreclose on or sell, Collateral and right to realize the practical benefits of such
foreclosure or sale.
	 
	 	j.	 	Payment of Secured Party’s Costs and Expenses. To reimburse Secured Party upon
demand for any costs and expenses, including, without limitation, attorney fees and
disbursements, Secured Party may incur in preparing the Credit Documents and while
exercising any right, power, or remedy provided by this Security Agreement or by law,
all of which costs and expenses are included in the Obligations.
	 
	 	k.	 	Notification Regarding Certain Types of Collateral. To promptly notify Secured
Party of inclusion in the Collateral after the date hereof of any aircraft,
watercraft or vessels, railroad cars, railroad equipment, locomotives or other rolling
stock intended for a use related to interstate commerce, trade names, trademarks,
service marks, mask works, copyrights, patents, fixtures, or uncertificated
securities.
	 
	 	l.	 	Notice of Changes. To give Secured Party thirty (30) days prior written notice
of any change in Debtor’s residence or chief place of business or legal name or
tradename(s) or style(s) set forth in the penultimate paragraph of this Security
Agreement.
	 
	 	m.	 	Location of Records. To keep the records concerning the collateral at the
location(s) set forth in the penultimate paragraph of this Security Agreement and not
to remove such records from such location(s) without the prior written consent of the
Secured Party.
	 
	 	n.	 	Purchase Money Agreement. If Secured Party gives value to enable Debtor to
acquire rights in or the use of any Collateral, to use such value for such purpose.

	6.	 	Authorized Action by Secured Party

5

 

	 	 	Debtor hereby agrees that from time to time, without presentment, notice or demand, and
without affecting or impairing in any way the rights of Secured Party with respect to the
Collateral, the obligations of the Debtor hereunder or the Obligations, Secured Party may,
but shall not be obligated to and shall incur no liability to Debtor or any third party for
failure to take any action which Debtor is obligated by this Security Agreement to do and to
exercise such rights and powers as Debtor might exercise with respect to the Collateral,
and Debtor hereby irrevocably appoints Secured Party as its attorney-in-fact to exercise
such rights and powers, including without limitation, to (a) file a financing statement
describing the Collateral, without the signature of either the Debtor or the Secured Party;
(b) collect by legal proceedings or otherwise and indorse, receive and receipt for all
dividends, interest, payments, proceeds, and other sums and property now or hereafter
payable on or on account of the Collateral; (c) enter into any extension, reorganization,
deposit, merger, consolidation, or other agreement pertaining to, or deposit, surrender,
accept, hold, or apply other property in exchange for the Collateral; (d) insure, process,
and preserve the Collateral; (e) transfer the Collateral to its own or its nominee’s name;
(f) make any compromise or settlement, and take any action it deems advisable, with respect
to the Collateral; and (g) notify any Account Debtor on any Collateral to make payment
directly to Secured Party.

	7.	 	Default
	 
	 	 	A default under this Security Agreement shall be deemed to exist upon the occurrence of any
of the following (an Event of Default):

	 	a.	 	Default in Payment. Any of the Obligations shall not be paid in accordance with
the terms of the Credit Documents.
	 
	 	b.	 	Default under Credit Documents. Debtor shall fail to observe any other term or
condition of the Credit Documents or there shall otherwise occur any event which would
permit Secured Party to accelerate amounts outstanding thereunder or the Borrower shall
fail to make any payment or there shall otherwise occur any event which would permit
Secured Party to accelerate amounts outstanding to Borrower which are guarantied by
Debtor pursuant to the Credit Documents.

	8.	 	Remedies
	 
	 	 	Upon the occurrence of any such Event of Default, Secured Party may, at its option, and
without notice to or demand on Debtor and in addition to all rights and remedies available
to Secured Party under the Credit Documents, at law, in equity, or otherwise, do any one or
more of the following:

	 	a.	 	General Enforcement. Foreclose or otherwise enforce Secured Party’s security
interest in any manner permitted by law, or provided for in this Security Agreement.

6

 

	 	b.	 	Sale, etc. Sell, lease, or otherwise dispose of any Collateral at one or more
public or private sales at Secured Party’s place of business or any other place or
places, including, without limitation, any broker’s board or securities exchange,
whether or not such Collateral is present at the place of sale, for cash or credit or
future delivery, on such terms and in such manner as Secured Party may determine.
	 
	 	c.	 	Costs of Remedies. Recover from Debtor all costs and expenses, including,
without limitation, reasonable attorney fees, incurred or paid by Secured Party in
exercising any right, power, or remedy provided by this Security Agreement.
	 
	 	d.	 	Manner of Sale of Collateral. Debtor shall be given ten (10) business days
prior notice of the time and place of any public sale or of the time after which any
private sale or other intended disposition of Collateral is to be made, which notice
Debtor hereby agrees shall be deemed reasonable notice thereof.
	 
	 	e.	 	Delivery to and Rights of Purchaser. Upon any sale or other disposition
pursuant to this Security Agreement, Secured Party shall have the right to deliver,
assign, and transfer to the purchaser thereof the Collateral or portion thereof so sold
or disposed of. Each purchaser at any such sale or other disposition (including Secured
Party) shall hold the Collateral free from any claim or right of whatever kind,
including any equity or right of redemption of Debtor and Debtor specifically waives
(to the extent permitted by law) all rights of redemption, stay or appraisal which it
has or may have under any rule of law or statute now existing or hereafter adopted.

	9.	 	Cumulative Rights
	 
	 	 	The rights, powers, and remedies of Secured Party under this Security Agreement shall be in
addition to all rights, powers, and remedies given to Secured Party by virtue of any statute
or rule of law, the Credit Documents or any other agreement, all of which rights, powers,
and remedies shall be cumulative and may be exercised successively or concurrently without
impairing Secured Party’s security interest in the Collateral.
	 
	10.	 	Waiver
	 
	 	 	Any waiver, forbearance or failure or delay by Secured Party in exercising any right, power,
or remedy shall not preclude the further exercise thereof, and every right, power, or remedy
of Secured Party shall continue in full force and effect until such right, power or remedy
is specifically waived in a writing executed by Secured Party. Debtor waives any right to
require Secured Party to proceed against any person or to exhaust any Collateral or to
pursue any remedy in Secured Party’s power.
	 
	11.	 	Setoff

7

 

	 	 	Debtor agrees that Secured Party may exercise its rights of setoff with respect to the
Obligations in the same manner as if the Obligations were unsecured.

	12.	 	Binding Upon Successors
	 
	 	 	All rights of Secured Party under this Security Agreement shall inure to the benefit of its
successors and assigns, and all obligations of Debtor shall bind its heirs, executors,
administrators, successors, and assigns.
	 
	13.	 	Entire Agreement; Severability
	 
	 	 	This Security Agreement contains the entire security agreement between Secured Party and
Debtor. If any of the provisions of this Security Agreement shall be held invalid or
unenforceable, this Security Agreement shall be construed as if not containing those
provisions and the rights and obligations of the parties hereto shall be construed and
enforced accordingly.
	 
	14.	 	Choice of Law
	 
	 	 	This Security Agreement shall be construed in accordance with and governed by the laws of
Texas, without giving effect to choice of law rules, and, where applicable and except as
otherwise defined herein, terms used herein shall have the meanings given them in the
Uniform Commercial Code of such state.
	 
	15.	 	Amendment
	 
	 	 	This Security Agreement may not be amended or modified except by a writing signed by each of
the parties hereto.
	 
	16.	 	Residence; Collateral Location Records
	 
	 	 	Debtor represents that its residence or chief place of business is set forth below its
signature hereto; and that, except as otherwise disclosed to Secured Party in writing prior
to the date hereof, the Collateral and Debtor’s records concerning the Collateral are
located at that address.
	 
	17.	 	Addresses for Notices
	 
	 	 	All demands, notices, and other communications to Debtor or Secured Party provided for
hereunder shall be in writing or by telephone, promptly confirmed in writing, mailed,
delivered, or sent by telefacsimile, addressed or sent to it to the address or telefacsimile
number, as the case may be, of Debtor or Secured Party set forth beneath such party’s
signature below, or to such other address as shall be designated by a party in a written
notice to the other party. All such demands, notices, and other communications shall,

8

 

	 	 	when
mailed or sent by telefacsimile, be effective when deposited in the mails, delivered or so
sent, as the case may be, addressed as aforesaid.
	 
	 	 	EXECUTED this 2nd day of June 2008.

	 	 	 	 	 	 	 
	 	 	DEBTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	DAWSON GEOPHYSICAL COMPANY	 	
	Address:
	 	 	 	 	 	 
	508 West Wall Street, Suite 800
	 	 	 	 	 	 
	Midland, Texas 79701
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Stephen C. Jumper	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Stephen C. Jumper	 	 
	 

	 	 	 	President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christina W. Hagan	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Christina W. Hagan	 	 
	 

	 	 	 	Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	SECURED PARTY:	 	 
	 
	 	 	 	 	 	 
	 	 	WESTERN NATIONAL BANK	 	 
	 
	 	 	 	 	 	 
	508 West Wall Street, Suite 1100
	 	 	 	 	 	 
	Midland, Texas 79701
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ James R. Kreuz	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	James R. Kreuz	 	 
	 

	 	 	 	President	 	 

9

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