Document:

Exhibit 10.5

 

 

PROMISSORY NOTE

 

9–12–05

(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 hundred eighty six thousand two hundred thirty five and 00/100
Dollars ($286,235.00), 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 Seven and 25/100 percent (7.25%).

 

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

  	
  @

  	
  $

  	
  8,906.59

  	
   

  
					

 

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 November 2, 2005 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 hereto. 
If any installment or any other sum due under this Note or any Security
Agreement is not received within ten (10) 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: One percent (1%)

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 herein 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 of 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 other as a party
thereto, and that Payee shall not be required first in 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 other Debt Documents 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 of the other Debt Documents 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 

  	
   

  
	
   

  	
  (Address)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Federal Tax ID #:

  	
  742095844

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  1304 SUMMIT AVE SUITE 2, PLANO, COLLIN County, TX 75074Exhibit
10.6

 

*MULT1000*

 

AMENDMENT

 

THIS AMENDMENT
is made as of the 09th day of
September, 2005, between General Electric Capital
Corporation, together with its successors and assigns, if any, and TGC Industries, Inc. in connection with Schedule Number
004 of that certain Master Security Agreement,
dated or dated as of October 22, 2004 (“Agreement”).
The terms of this Amendment are hereby incorporated into the Agreement as
though fully set forth therein. The Agreement is hereby amended as follows:

 

The 35 Periodic Installment Amount on the Promissory Note is changed
from $8,906.59 to $7,950.97.

 

TERMS
USED, BUT NOT OTHERWISE DEFINED HEREIN SHALL HAVE THE MEANINGS GIVEN TO THEM IN
THE AGREEMENT. EXCEPT AS EXPRESSLY AMENDED HEREBY, THE AGREEMENT SHALL REMAIN
IN FULL FORCE AND EFFECT.

 

IN WITNESS WHEREOF, the parties hereto have
executed this Amendment by signature of their respective authorized
representative set forth below.

 

	
  SECURED PARTY:

  	
   

  	
  DEBTOR:

  
	
  General Electric Capital Corporation

  	
   

  	
  TGC Industries, Inc.

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ W. Scott Cummins

  	
   

  	
  By:

  	
   

  	
  /s/ Wayne Whitener

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  W. Scott Cummins

  	
   

  	
  Name:

  	
   

  	
  Wayne Whitener

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Risk Analyst

  	
   

  	
  Title:

  	
   

  	
  President

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