Document:

exv10w2

 

EXHIBIT 10.2

SECURITY AGREEMENT

     This Security Agreement is made between MITCHAM INDUSTRIES, INC., located at P. O. Box 1175,
Huntsville, Texas 77342-1175, referred to in this Security Agreement as the ‘‘Debtor,’’ and FIRST
VICTORIA NATIONAL BANK, located at 101 S. Main Street, Victoria, Texas 77901, referred to in this
Agreement as the ‘‘Secured Party.’’ Secured Party and Debtor enter into this Security Agreement on
June 27, 2005 on the following terms and conditions:

I. CREATION OF SECURITY INTEREST

Grant of Interest to Secure Obligations of Debtor

     1. For value received, the Debtor grants to the Secured Party a security interest in the
Collateral described in Paragraph 2 of this Security Agreement, to secure each and all of the
following:

     (a) The Debtor’s note of $12,500,000.00 to the Secured Party of this same date, payable as to
principal and interest as provided in the note, and all indebtedness and liabilities of the Debtor
to the Secured Party at any time arising under the terms of the note.

     (b) Future advances to be evidenced by similar notes to be made by the Secured Party to the
Debtor at the Secured Party’s option.

     (c) All expenditures by the Secured Party for taxes, insurance, repairs to and maintenance of
the Collateral, and all costs and expenses incurred by the Secured Party in the collection and
enforcement of the note and other indebtedness of the Debtor.

     (d) All liabilities, debts, and other duties of the Debtor to the Secured Party now existing
or later incurred, matured or unmatured, direct or contingent, and any renewals, extensions, and
substitutions of these liabilities, debts, or other duties.

     Collateral

     2. The following described property is referred to in this Security Agreement as the
‘‘Collateral’’: all assets of Debtor, including but not limited to its equipment, accounts
receivable, contracts, leases, inventory, instruments, chattel paper and general intangibles, now
owned or hereafter acquired by Debtor, and any and all proceeds, increases, substitutions,
replacements, additions and accessions to such assets.

     Security Interest in Proceeds

     3. The Debtor grants to the Secured Party a security interest in and to all proceeds,
increases, substitutions, replacements, additions, and accessions to the Collateral. The inclusion
of proceeds in this Security Agreement does not authorize the Debtor to sell, lease, dispose of, or
otherwise use the Collateral without the express, written consent of the Secured Party, except as
otherwise provided in paragraph 13 of this Security Agreement, or in the Loan Agreement.

Exhibit 10.2

 

II. WARRANTIES AND REPRESENTATIONS OF DEBTOR

     Debtor warrants, covenants, and agrees as follows:

     Credit Information

     4. All information supplied and statements made by the Debtor in any financial, credit, or
accounting statement or application for credit prior to, contemporaneously with, or subsequent to
the execution of this Security Agreement are true, correct, and complete.

     Title

     5. Except for the security interest granted by this Security Agreement, the Debtor has, or on
acquisition will have, full title to the Collateral free from any lien, security interest,
encumbrance, or claim except for a Permitted Lien as defined in the Loan Agreement.

     No Other Secured Transactions

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

     7. Except for any financing statements or other registered instruments reflecting the security

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

     Conflicting Claims

     8. Within the Debtor’s knowledge, no dispute, right of setoff, counterclaim, or defense exists
with respect to any part of the Collateral.

III. TREATMENT, USE, AND PROTECTION OF COLLATERAL

     Location and Identification

     9. The Collateral will remain in the Debtor’s possession or control at all times at the
Debtor’s risk of loss and will remain at the address shown at the beginning of this Security
Agreement, where the Secured Party may inspect it at any time. Except for its temporary removal in
connection with its ordinary use, the Debtor will not remove the Collateral from the above address
without obtaining the prior written consent of the Secured Party. This paragraph shall not apply
to that portion of the Collateral that consists of equipment and/or inventory leased, sold and/or
disposed in the ordinary course of business as specified in Paragraph 13.

Exhibit 10.2 - 2

 

     10. The Debtor will at all times keep accurate and complete records of the Collateral and its
proceeds including the location of the Collateral and the names and addresses of other entities
having possession of the Collateral.

     Sale, Assignment, or Transfer of Collateral

     11. Without the prior written consent of the Secured Party, the Debtor will not do any of the
following acts:

     (a) Sell, lease, assign, encumber, transfer, or dispose of the Collateral or its proceeds
except that the Debtor may lease, sell or dispose of equipment and/or inventory in the ordinary
course of business as specified in Paragraph 13.

     (b) Create in favor of anyone, except the Secured Party, any other security interest in the
Collateral, or in any part of the Collateral, or otherwise encumber or permit it to become subject
to any lien, attachment, execution, or other legal or equitable process except for a Permitted Lien
as defined in the Loan Agreement.

     12. The Debtor will keep the Collateral and proceeds free from unpaid charges, including
taxes, until this Security Agreement and all debts it secures have been fully satisfied.

     Lease or Sale of Equipment and/or Inventory

     13. Debtor may lease, sell and/or dispose of equipment and/or inventory only in the ordinary
course of business, on terms and at prices that are customary and reasonable for the industry, but
not otherwise. Debtor may, in good faith, determine the suitable and appropriate terms and prices
for the leases, sales and/or other disposition of equipment and/or inventory. Debtor will not
engage in any bulk sales or other bulk disposition or transfer of equipment and/or inventory (other
than equipment that is obsolete or worn out) or offer products at discounts not in the ordinary
course of business without obtaining the prior written consent of Secured Party.

     Insurance

     14. The Debtor will insure the Collateral with nationally reputable insurance companies
against the casualties and in the amounts the Secured Party reasonably requires. The policy or
policies will include a loss payable clause in favor of the Debtor and Secured Party, as their
relative interests require. Additionally, the Secured Party is authorized to collect sums that may
become due under any policy, and to apply the funds to the obligations secured by this Security
Agreement.

     Protection of Collateral

     15. The Debtor will keep the Collateral in good order and repair and will not waste, misuse,
or destroy the Collateral, in whole or in part. However, this provision does not prohibit ordinary
wear and tear resulting from the Collateral’s intended use. The Debtor will not use the Collateral
in violation of any statute or ordinance.

     16. The Secured Party has the right to examine and inspect the Collateral at any reasonable
time without notice.

Exhibit 10.2 - 3

 

     Taxes

     17. The Debtor will pay promptly when due all taxes and assessments on the Collateral, or in
connection with its use and operation.

     Reimbursement of Expenses

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

IV. OBLIGATIONS OF DEBTOR

     Performance

     19. The Debtor agrees to perform fully all of the Debtor’s duties under and in connection with
each transaction to which the Collateral, in whole or in part, relates.

     20. The Debtor will punctually and properly perform all of the Debtor’s covenants, duties, and
liabilities under any other security agreement, loan agreement, lease and rental assignment,
mortgage, deed of trust, collateral pledge agreement, or contract of any kind now or hereafter
existing as security for or in connection with payment of the debt or obligation owing.

     21. The Debtor will pay the note secured by this Security Agreement and any renewal or
extension of that note. The Debtor will also pay any other indebtedness secured by this Security
Agreement in accordance with the terms and provisions of that indebtedness. The Debtor will repay
immediately all sums extended by the Secured Party in accordance with the terms and provisions of
this Security Agreement, the loan agreement, the note, the lease and rental assignment, and any
other instrument relating to the indebtedness to the Secured Party.

     Decrease in Value of Collateral

     22. If , at any time, the Collateral is determined by independent appraisal to have a fair
market value of less than 125% of the balance then owing on the obligations of Debtor described in
Paragraph 2, the Debtor will either provide enough additional Collateral to satisfy the Secured
Party or reduce the total indebtedness by an amount sufficient to satisfy the Secured Party.

     Change of Circumstances

     23. The Debtor will promptly notify the Secured Party of any change in fact or circumstance
represented by the Debtor in this Security Agreement or in any other document furnished by the
Debtor to the Secured Party in connection with the Collateral or obligation owing.

Exhibit 10.2 - 4

 

     Change of Place of Business

     24. The Debtor will promptly notify the Secured Party of any change of the Debtor’s chief
place of business, or place where records concerning accounts and other contract rights are kept.

     Notice of Pending Action

     25. The Debtor will promptly notify the Secured Party of any claim, action, or proceeding
affecting title to the Collateral, or any part of the Collateral, or the security interest in the
Collateral. On the written request of the Secured Party, Debtor will appear in and defend any such
action or proceeding, at Debtor’s cost.

     Default In Connection With Other Obligations

     26. The Debtor will promptly notify the Secured Party if Debtor defaults on any other
financial or legal obligation in excess of $250,000.00 owing to any person, entity, or government
agency.

     Records and Accounts

     27. The Debtor will keep proper books of record and account in accordance with sound and
generally accepted accounting principles (GAAP), consistently applied. The books will be open to
inspection by the Secured Party during normal business hours.

     The Debtor will provide financial statements in form and content acceptable to the Secured Party
from time to time as may be requested by the Secured Party.

     28. The Debtor will permit the Secured Party, and the accountants or other agents it
designates, to visit and inspect the Debtor’s properties, assets, and books, and to discuss the
Collateral and the Debtor’s affairs and finances with the Debtor or the Debtor’s officers at such
reasonable times as the Secured Party may designate, and to make and take away copies of the
Debtor’s records. The Secured Party is entitled to make unannounced spot checks to verify that
Collateral is being used, maintained, or transferred only in accordance with the terms of this
Security Agreement.

     Further Reports and Assurances

     29. The Debtor will deliver to the Secured Party, as requested, documents, lists,
descriptions, certificates, and other information necessary or proper to keep the Secured Party
fully informed with respect to the descriptions of the Collateral.

     30. The Debtor will promptly execute and deliver to the Secured Party all assignments,
certificates, supplemental documents, writings, and assurances, and do all other acts or things
reasonably requested by the Secured Party to fully evidence, perfect, and protect, assure, or
enforce the security interests created by this Security Agreement including but not limited to any
necessary instruments required in any other state or foreign nation or province of a foreign
nation.

     31. The Debtor will sign and execute, if necessary, with the Secured Party any financing
statement or other document necessary to protect the security interests under this Security
Agreement against the rights or interests of third persons. Debtor will reimburse Secured Party

Exhibit 10.2 - 5

 

for the cost of filing any and all financing statements or amendments or other instruments
necessary to protect Secured Party’s interests in the Collateral. The Debtor specifically
authorizes the Secured Party to file financing statements, financing statement addendum, along
with any necessary attachments, and amendments in the records of the Secretary of State of Texas or
any other public records to perfect the security interests in the Collateral including but limited
to any necessary instruments required in any other state or foreign nation or province of a foreign
nation.

V. TIME OF PERFORMANCE AND WAIVER

     Time of the Essence

     32. In performing any act under this Security Agreement and the note it secures, time is of
the essence.

     Waiver

     33. The Secured Party’s acceptance of partial or delinquent payments or the failure or delay
of the Secured Party to exercise any right or remedy is not a waiver of any obligation of the
Debtor or right of the Secured Party, nor will it constitute a waiver of any other similar default
occurring subsequently.

VI. EVENTS OF DEFAULT

     34. An event of default under this Security Agreement is the occurrence of any one of the
events of default set forth in the Loan Agreement of even date between Debtor and Secured Party.

VII. REMEDIES

     UCC Remedies Available

     35. On or after the occurrence of any event of default, as specified in Article VI of this
Security Agreement, the Secured Party may declare all obligations secured immediately due and
payable and may proceed to enforce their payment. The Secured Party may exercise any and all of the
rights and remedies provided by the Texas Business and Commerce Code, as well as other rights and
remedies either at law or in equity possessed by the Secured Party, whether in the State of Texas,
or in any other state, foreign nation or foreign province of a foreign nation.

     Self-Help

     36. On or after the occurrence of any event of default, the Secured Party will have the right
to remove the Collateral from the premises of the Debtor. For purposes of removal and possession,
the Secured Party or its representatives may enter any premises of the Debtor without legal
process. The Debtor hereby waives and releases the Secured Party of and from any and all claims in
connection with any such entry and removal of collateral.

     Disposition of Collateral

     37. On or after the occurrence of any event of default, the Secured Party may require the
Debtor to assemble the Collateral and make it available to the Secured Party at any place to be

Exhibit 10.2 - 6

 

designated by the Secured Party that is reasonably convenient to the Secured Party. Unless the
Collateral is perishable, threatens to decline speedily in value, or is of a type customarily sold
on a recognized market, the Secured Party will give the Debtor reasonable notice, as required by
the Texas Business and Commerce Code, of the time and place of any public sale of the collateral,
or of the time after which any private sale or any other intended disposition of the collateral is
to be made. Expenses of retaking, holding, preparing for sale, selling, or the like include the
Secured Party’s reasonable attorney’s fees and legal expenses.

     Secured Party’s Rights Cumulative

     38. All rights and remedies of the Secured Party under this Security Agreement are cumulative
of each other and of every other right or remedy the Secured Party may otherwise have at law or in
equity or under any other contract or document for the enforcement of its security interests or the
collection of the debt. The exercise of one or more rights or remedies, whether under the laws of
the State of Texas or of another jurisdiction including that of a foreign nation or province of a
foreign nation, will not prejudice or impair the concurrent or subsequent exercise of other rights
or remedies.

VIII. SATISFACTION OF OBLIGATION

     39. On full and final payment of the obligation, Debtor will deliver a written notice of
termination to Secured Party. On receipt of that notice by the Secured Party, this Security
Agreement will terminate and Secured Party will promptly release the Collateral upon verification
of full and final payment of the obligations of Debtor. However, no account debtor on any of the
Collateral is obligated to make inquiry as to the termination of this agreement, but is fully
protected in making payment directly to the Secured Party.

IX. MISCELLANEOUS PROVISIONS

     Definitions

     40. All terms used in this agreement that are defined in the Texas Business and Commerce Code
have the same meaning in this agreement as in that Code.

     Governing Law

     41. This agreement is to be construed in accordance with the Texas Business and Commerce Code
and other applicable laws of the State of Texas. All obligations of the parties created under this
Security Agreement are performable in Victoria County, Texas.

     Partial Invalidity

     42. If any of the provisions in this Security Agreement is for any reason held to be invalid,
illegal, or unenforceable in any respect, this holding will not affect the validity of any other
provision of this Security Agreement. This agreement will be construed as if the invalid, illegal,
or unenforceable provision had never been included.

     Entire Agreement

     43. This Security Agreement is the sole agreement of the parties and supersedes any prior
understandings or written or oral agreements between the parties respecting its subject matter. It

Exhibit 10.2 - 7

 

is understood and agreed that if any irreconcilable conflict exists between this Security
Agreement and the Loan Agreement of even date, the Loan Agreement shall prevail. Likewise, it is
understood and agreed that if any irreconcilable conflict exists between this Security Agreement
and the Lease and Rental Assignment of even date, the Lease and Rental Assignment shall prevail.

     Amendments

     44. Any amendments to this Security Agreement must be in writing, signed by both Secured Party
and Debtor.

     No Usury

     45. The parties to this Security Agreement desire to conform strictly to Texas usury laws. No
provision in this Security Agreement or in any promissory note, instrument, or any other loan
document executed by the Debtor evidencing the obligation will require the payment or permit the
collection of interest in excess of the maximum permitted by law. If excessive interest is provided
for in any document or instrument, Debtor is freed from any obligations to the excess amount, and
the parties will amend the offending provision to fully comply with Texas law.

     Successors in Interest

     46. This Security Agreement is binding on the Debtor and on the Debtor’s successors, and
assigns, and inures to the benefit of the Secured Party, and its successors, and assigns.

Exhibit 10.2 - 8

 

	 	 	 	 	 	 	 
	 	 	EXECUTED to be effective on June 27, 2005.	 	 
	 
	 	 	 	 	 	 
	 	 	DEBTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	MITCHAM INDUSTRIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 
	 	 
	 

	 	 	 	BILLY F. MITCHAM, JR.	 	 
	 

	 	 	 	Its: President	 	 
	 
	 	 	 	 	 	 
	 	 	SECURED PARTY:	 	 
	 
	 	 	 	 	 	 
	 	 	FIRST VICTORIA NATIONAL BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 
	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 
	 	 

Exhibit 10.2 - 9exv10w3

 

EXHIBIT 10.3

LEASE AND RENTAL ASSIGNMENT

     THAT THIS ASSIGNMENT made as of the 27th day of June, 2005, by MITCHAM INDUSTRIES, INC., a
Texas corporation, whose address is P. O. Box 1175, Huntsville, Texas 77342-1175, (hereinafter
referred to as “Assignor,”), to First Victoria National Bank, a national banking corporation with
offices located at 101 South Main, Victoria, Texas 77901 (hereinafter referred to as “Assignee”),
as follows:

W I T N E S S E T H:

     THAT Assignor, for good and valuable consideration, the receipt of which is hereby
acknowledged, hereby grants, transfers and assigns to Assignee all rents, issues and profits from
the equipment leases now existing, together with all equipment leases now or hereafter to be made,
executed and delivered, whether written or oral, covering all or any equipment now or hereafter
acquired by Assignor, and any and all guarantees of said leases (collectively referred to as
“leases” or “said leases”).

     THIS ASSIGNMENT is made for the purpose of securing the following:

	 	a.	 	The payment of the principal sum, interest and indebtedness
evidenced by that certain promissory note (“Note”) of even date
herewith, and any amendments, extensions, or renewals thereof, in the
original principal sum of $12,500,000.00, executed by Mitcham
Industries, Inc., and payable to the order of First Victoria National
Bank, at Victoria, in Victoria County, Texas, secured by a Security
Agreement and Loan Agreement, of even date herewith, executed by the
said Mitcham Industries, Inc., for the benefit of said First Victoria
National Bank; and
	 
	 	b.	 	Payment of all other sums with interest thereon becoming due
and payable to Assignee under the provisions of this Assignment or of
said Note, Security Agreement and Loan Agreement.

Exhibit 10.3

 

	 	c.	 	The performance and discharge of each and every obligation,
covenant and agreement of Assignor contained herein or in said Note,
Security Agreement and Loan Agreement; and
	 
	 	d.	 	Any and all other indebtedness of Assignor to Assignee now or
hereafter owing, whether direct or indirect, primary or secondary,
fixed or contingent, joint or several, regardless of how evidenced or
arising.

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

     THIS ASSIGNMENT is made on the following terms, covenants and conditions:

     1. So long as there shall exist no occurrence of any one of the events of default set forth in
the Loan Agreement of even date herewith between Assignor and Assignee by Assignor, Assignor shall
have the right to collect at the time of the date provided for the payment thereof, all rents,
income and profits arising under said leases or from the equipment described above and to retain,
use and enjoy the same.

     2. Upon or at any time after the occurrence of any one of the events of default set forth in
the Loan Agreement of even date herewith between Assignor and Assignee, Assignee,

Exhibit 10.3 - 2

 

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

Exhibit 10.3 - 3

 

income and profits and the application thereof as herein provided shall not be construed as a
waiver of any event of default by Assignor under said Note, Security Agreement and Loan Agreement.

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

Exhibit 10.3 - 4

 

the management, upkeep, repair or control of said equipment resulting in loss or injury or
death to any tenant, licensee, employee or stranger.

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

     5. Assignee may take or release other security for the payment of said principal sum, interest
and indebtedness, may release any party primarily or secondarily liable therefor and may apply any
other security held by it to the satisfaction of such principal sum, interest, or indebtedness
without prejudice to any of its rights under this Assignment.

     6. The term “leases” or “said leases” as used herein means said leases hereby assigned, any
extension or renewal thereof, and any leases subsequently executed during the term of this
Assignment covering the equipment of Assignor, or any portion thereof, or any accessions,
additions, or repairs thereto or replacements or substitutions therefor.

Exhibit 10.3 - 5

 

     7. Nothing contained in this Assignment and no act done or omitted by Assignee pursuant to the
powers and rights granted it hereunder shall be deemed to be a waiver by Assignee of its rights and
remedies under said Note, Security Agreement and Loan Agreement, and this Assignment is made and
accepted without prejudice to any of the rights and remedies possessed by Assignee under the terms
of said Note, Security Agreement and Loan Agreement. The right of Assignee to collect said
principal sum, interest and indebtedness and to enforce any other security therefor held by it may
be exercised by Assignee either prior to, simultaneously with, or subsequent to any action taken by
it hereunder.

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

Exhibit 10.3 - 6

 

     THIS ASSIGNMENT, together with the covenants and warranties herein contained shall inure to
the benefit of Assignee and any and all subsequent holders of said Note, Security Agreement and
Loan Agreement, and shall be binding upon Assignor, their successors and assigns, and any
subsequent owner of the above described equipment.

Exhibit 10.3 - 7

 

     WITNESS THE EXECUTION HEREOF as of the date first above written.

	 	 	 	 	 
	 	 	MITCHAM INDUSTRIES, INC.
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	BILLY F. MITCHAM, JR.

Its: President

THE STATE OF TEXAS                     §

COUNTY OF WALKER                     §

     This instrument was acknowledged before me on                     , 2005, by BILLY F.
MITCHAM, JR. as President of MITCHAM INDUSTRIES, INC., on behalf of said corporation.

	 	 	 
	 

	 	 
	 

	 	Notary Public, State of Texas

Exhibit 10.3 - 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]