Document:

EX-10.1

 Exhibit 10.1 
 WESTERN NATIONAL BANK 
 508 WEST WALL STREET, SUITE 1100 

MIDLAND, TEXAS 
 79701 
 June 2, 2013, 

but effective as of June 1, 2013 
 Dawson Geophysical Company 
 508 West Wall Street, Suite 800 

Midland, Texas 79701 
 Attention:
        Stephen C. Jumper, President 
  

	RE:	Renewal and Extension of an Existing Revolving Line of Credit Loan and Confirmation of Existing Multiple Advance Term Loan and Existing Term Loan.

 Gentlemen: 
 Pursuant
to the terms of prior loan agreements, the most recent of which is dated as of May 11, 2012 (the “Existing Loan Agreement”), WESTERN NATIONAL BANK, a national banking association (alternatively, “Western”,
the “Bank”, or the “Lender”) has agreed to advance to DAWSON GEOPHYSICAL COMPANY, a Texas corporation (alternatively, “Dawson Geophysical” or the “Borrower”), the
following loans: (a) a revolving line of credit loan in the original principal amount of Twenty Million and No/Dollars ($20,000,000.00) (the “Existing Revolver Loan”); (b) a term loan in the original principal
amount of Sixteen Million Four Hundred Twenty-Six Thousand Six Hundred Eighty and Six/100 Dollars ($16,426,680.06) (the “First Term Loan”); and (c) a multiple advance term loan in the original principal amount of Fifteen
Million and No/100 Dollars ($15,000,000.00) (the “Second Term Loan”). The Revolver Loan, the Existing First Term Loan, and the Existing Second Term Loan are collectively referred to herein as the “Existing Loans”.

 The Existing Revolver Loan is evidenced by that certain Revolving Line of Credit Note, also dated as of June 2, 2011, in the original
principal amount of Twenty Million and No/100 Dollars ($20,000,000.00), executed by the Borrower, as Maker, in favor of the Bank, as Payee (the “Existing Revolver Note”). The First Term Loan is evidenced by that certain Term Note,
dated as of June 30, 2011, in the original principal amount of Sixteen Million Four Hundred Twenty-Six Thousand Six Hundred Eighty and Six/100 Dollars ($16,426,680.06), executed by the Borrower, as Maker, in favor of Western, as Payee (the
“First Term Note”). The Second Term 

  
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Loan is evidenced by that certain Multiple Advance Term Note, dated as of May 11, 2012, in the original principal amount of Fifteen Million and No/100 Dollars ($15,000,000.00), executed by
the Borrower, as Maker, in favor of Western, as Payee (the “Second Term Note”). The Existing Revolver Note, the First Term Note, and the Second Term Note are collectively referred to herein as the “Existing Notes”.

 The Borrower secured its performance under the Existing Loan Agreement and the Existing Notes by executing that certain Security Agreement,
also dated as of May 11, 2012, under which it granted to the Bank a security interest in all of its Accounts, Equipment, and other items of collateral defined and described therein (the “Existing Security Agreement”). The
Borrower authorized the Bank to perfect the security interest created under the Existing Security Agreement by filing a financing statement (the “Existing Financing Statement”). The Existing Financing Statement, the Existing
Security Agreement, and any other instruments executed or filed to secure collateral in support of Borrower’s performance are collectively referred to as the “Existing Security Instruments.” 

In addition to its continuing obligations under the First Term Loan and the Second Term Loan, which Borrower acknowledges continue to be outstanding and
owing to the Bank, the Borrower has now requested that the Bank renew and extend the Existing Revolver Loan into a new revolving line of credit loan, in the original principal amount of Twenty Million and No/100 Dollars ($20,000,000.00) (the
“Revolver Loan”). The Revolver Loan, First Term Loan, and the Second Term Loan are collectively referred to herein as the “Loans”. 
 The Revolver Loan will be evidenced by a Revolving Line of Credit Note, dated of even date herewith, in the original principal amount of Twenty Million and No/100 Dollars ($20,000,000.00), to be executed
by the Borrower, as Maker, in favor of the Bank, as Payee (the “Revolver Note”). The Revolver Note, First Term Note, and the Second Term Note are collectively referred to herein as the “Notes”. 

The Borrower will collateralize its performance under the Notes by executing a Security Agreement, of even date herewith, covering all of its Accounts,
Equipment, and other items of collateral described therein (the “Security Agreement”). The Borrower specifically authorizes the Bank to perfect the security interest granted under the Security Agreement by filing one or more
financing statements, or amendments to the Existing Financing Statement (in either case, collectively, the “Financing Statement”). The Security Agreement and the Financing Statement are collectively referred to herein as the
“Security Instruments.” This letter loan agreement (the “Agreement”), the Notes, the Security Instruments, and any other documents executed simultaneously herewith are collectively referred to as the “Loan
Documents”. 
 In addition to the First Term Loan and the Second Term Loan, which the Bank and the Borrower acknowledge continue to be
valid and subsisting, and for which the Borrower expressly acknowledges that it will continue to be obligated, Western hereby agrees to renew and extend the Existing Revolver Note into the Revolver Note. In consideration of the Bank’s agreement
to renew and extend the Existing Revolver Note into the Revolver Note, and to maintain in place the First Term Loan and the Second Term Loan, Borrower has agreed to execute this Agreement, the Revolver Note, the Security Agreement, and any other
documents, as applicable and required 

  
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by the Bank. In addition to Borrower’s execution of the Loan Documents, the Bank’s obligation to advance the Revolver Loan to the Borrower shall be further 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, 2013, but effective as of June 1, 2013, and any extensions, renewals, or modifications hereof. 

Borrower 
 Dawson Geophysical Company 
 Bank 

Western National Bank 
 Commitment 
 The lesser of the following amounts: (a) the
combined face amounts of the Notes; or (b) the sum of the outstanding principal balance due at any time under the First Term Loan and the Second Term Loan, and the “Borrowing Base” (as that term is defined below) then in effect
for the Revolver Loan. 
 Rate 
 From June 1, 2013 through June 30 2013, interest under the Notes shall accrue at an annual rate equal to four percent (4.0%). Beginning as of July 1, 2013, interest under the Notes shall
accrue at an annual rate equal to either: (a) the 30-day London Interbank Offered Rate (“LIBOR”), plus two and one-quarter percentage points (2.25%), or (b) at an annual rate equal to the “Prime
Rate”, as defined below, less three-quarters of one percent (.75%) (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 Notes, 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 month immediately preceeding. 

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 defined below (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 

  
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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 only 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. 
 In
addition to the definition of “Prime Rate”, as defined above, the term “LIBOR” shall mean, with respect to each Interest Period, as defined below, the rate 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 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, 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 Notes 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 next of which shall commence on June 1, 2012), 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 calendar month.

 The term “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 Loans shall be secured by the Security Instruments, under which the Borrower grants against its Accounts and Equipment, as those terms
are defined under the Uniform Commercial Code of the State of Texas. 
 Structure 

Under the First Term Note, funds will be available until June 30, 2014, the maturity date of the First Term Loan. Under the
Second Term Note, funds will be available until May 2, 2015, the maturity date of the Second Term Loan. Under the Revolver Note, funds will be available on a revolving basis through June 2, 2015, the maturity date of the
Revolver 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.

  
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 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. As used in this Agreement, the term “Borrowing Base” shall mean an amount equal
to eighty percent (80%) of Borrower’s Eligible Accounts. 
 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 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;

  
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	 	j.	Said account receivable is not owed by a customer whose principal place of business is located in a foreign country; and 

 

	 	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 arises from any single customer, other than Chesapeake Exploration Limited Partnership and its affiliates and subsidiaries (collectively, “Chesapeake”) or Devon Energy Group and its
affiliates and subsidiaries (collectively, “Devon”), whose Accounts constitute more than twenty-five percent (25%) of Borrower’s total Accounts. The Bank agrees that an Account owed by Chesapeake to the Borrower
(collectively, the “Chesapeake Accounts”) and, likewise, an Account owed by Devon to the Borrower (collectively, the “Devon Accounts”) may still qualify as an Eligible Account even if the either set of such Eligible
Accounts constitutes more than twenty-five percent (25%) of Borrower’s total Accounts. 
 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 establishes it in the amount of Twenty Million and No/100 Dollars ($20,000,000.00). Because the
redetermined Borrowing Base is equivalent to the principal amount available under the Revolver Loan, the Bank will only be able to increase the Borrowing Base if the Borrower agrees to pledge additional Collateral, or other circumstances exist that
would justify such an increase. 
 If the aggregate amounts outstanding under the Revolver Note exceed the
Borrowing Base at any time, the Bank will provide written notice of that event to Borrower. On or before the tenth
(10th) day following Borrower’s receipt of such
notification, 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 Revolver Note in an amount at least equal to the amount necessary to
cause the outstanding principal balance of the Revolver Note to be less than or equal to the Borrowing Base; 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 Revolver Note to be less than or equal to the Borrowing Base. 

  
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 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 Loans. The sole party responsible for repayment of the Loans shall be the Borrower, and the sole security for the Loans shall be the Collateral covered by the Security Instruments. 

Cross-Collateralization  

Notwithstanding any of the provisions contained herein or in any of the other Loan Documents to the contrary, all of the Collateral to be
pledged pursuant to the terms of this Agreement will be deemed to cross-collateralize the performance of the Borrower under any and all loans now or hereafter advanced directly by the Bank to the Borrower. 

Purpose 
 Funds from the Revolver Loan will be used to renew and extend indebtedness owed to the Bank by the Borrower and to provide additional funds for working capital. Funds from the First Term Loan and the
Second Term Loan were used to purchase equipment. No proceeds from the Loans 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 Dates 
 As stated, the maturity date of the Revolver Note is June 2, 2015, the maturity date of the First Term Note is June 30, 2014, and the maturity date of the Second Term Note
is May 2, 2015. 
 Environmental Laws 

The term “Environmental Laws” shall mean all applicable local, state, and federal laws, including common law, that relate
to: (a) the prevention, abatement, or elimination of pollution, or the protection of the environment or natural resources; (b) the generation, handling, treatment, storage, disposal, release, or transportation of “Hazardous
Materials” (as defined below), waste materials or hazardous or toxic substances; or (c) the regulation of, or exposure to, hazardous, toxic, or other substances alleged to be harmful, including, without limitation, the Comprehensive
Environmental Response, Compensation, and Liability Act, 42 U. S. C. § 9601, et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. §6901, et seq.; the Federal Water Pollution Control Act (Clean Water Act), 33 U.S.C.
§ 1251, et seq.; the Clean Air Act, 42 U.S.C. § 7401, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. § 1501, et seq.; the Toxic Substances Control Act, 15 U.S.C. § 2601, et seq.; the
Oil Pollution Act, 33 U.S.C. § 

  
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2701, et seq.; the Emergency Planning and Community Right-to-Know Act, 42 U.S.C. §11001, et seq.; the Safe Drinking Water Act, 42 U.S.C. §§ 300f through 300j; the
Endangered Species Act, 16 U.S.C. §1531, et seq.; and all similar laws of any Governmental Authority having jurisdiction over the property in question. This term expressly includes the regulations of the Texas Railroad Commission
relating to plugging and abandonment, equipment purging and removal, and bonding requirements respecting inactive wells, 16. T.A.C. § 3.15, as well as regulations and interpretations of the U.S. Environmental Protection Agency and the Texas
Commission on Environmental Quality relating to air emissions, pollution control, and permitting that have been, or may be, adopted. 
 Hazardous Materials 
 The term “Hazardous Materials”
shall mean, without limitation, those substances or materials defined as “hazardous substances”, “hazardous waste”, “toxic substances”, or “pollutant or contaminant” in any of the Environmental Laws, as
well as such other substances as are subsequently determined legislatively, judicially, or administratively, to be harmful or deleterious to the physical environment or the public health. 

 

	II.	REPRESENTATIONS AND WARRANTIES 

  

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

 

	 	B.	Authority and Compliance. The Borrower has full power and authority to enter into this Agreement, to borrow the funds evidenced by the Notes, to
execute and deliver the Revolver Note, and to incur the obligations provided for herein. No consent or approval of any public authority is required as a condition to the validity of this Agreement, the Notes, and the Security Instruments, 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 those 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 his tangible property, real and personal, in good order and repair, taking into consideration reasonable wear and tear.

  
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	 	E.	Taxes. Borrower has paid all income taxes and other taxes due and payable prior to them 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 his most recent financial statements. 

  

	 	G.	Hazardous Materials. To its best knowledge, the Borrower and the properties that it owns or intends to acquire comply in all respects with all
Environmental Laws, and the Borrower is not aware of and has not received any notice of any violation of any Environmental Laws. To the best knowledge of the Borrower, no governmental or administrative agency or other third party has heretofore
filed any complaint, or commenced any administrative procedure, against it, or any of its predecessors in title, alleging a violation of any Environmental Laws. 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 that may be classified as Hazardous Materials. The Borrower has and will make a good faith attempt to comply with all Environmental Laws. To the best of its knowledge, the
Borrower has not otherwise installed, used, generated, stored or disposed of any Hazardous Materials on their properties. No underground storage tanks or facilities have been installed upon any property owned by the Borrower, and to the
knowledge of the Borrower, none of such properties 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 terms of the relationship among the Borrower and the Bank. 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 Revolver Note, and the Security Instruments. In addition, the Borrower expressly authorizes the Bank to file the Financing Statement in order to perfect the security interests granted
under the Security Agreement. 
  

	IV.	COVENANTS 

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

 

	 	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, with the next year to be measured
ending as of September 30, 2013, Borrower will provide financial statements, in form and substance satisfactory to the Bank, reflecting Borrower’s financial 

  
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performance as of the end of such year and the related statements of income and changes in cash flows for such year, such statements to be audited by an independent certified accountant and to be
prepared according to generally accepted accounting principles, consistently applied (“GAAP”). 

  

	 	2.	Within ninety (90) days of the end of each fiscal quarter, with the next fiscal quarter to be measured ending as of June 30, 2013, the Borrower will
submit to the Bank a financial statement reflecting Borrower’s financial performance during the previous fiscal quarter, with such statements to be company-prepared. 

 

	 	3.	Within thirty (30) days of the end of each calendar month, with the next month to be measured being the one ending on April 30, 2013, Borrower shall
provide monthly Accounts 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, with the next calendar month to be measured being the one ending on April 30, 2013,
Borrower shall provide a monthly borrowing base report and compliance certificate in the form attached hereto as Exhibit “A” and Exhibit “B”, respectively. 

 

	 	6.	Borrower shall maintain an average “Debt Service Coverage Ratio” (as that term is defined below) of not less than 1.50 to 1.0, calculated
quarterly, with the next quarter to be measured ending as of June 30, 2013, from the date of the Loans to maturity. For purposes of this Agreement, the term “Debt Service Coverage Ratio” means, with respect to any period of
calculation thereof, the ratio of the sum of “Cash Flow”, as that term is defined below, to all currently due payments of principal and interest on any long-term “Debt”, as that term is defined below. “Cash
Flow” is defined as the sum of: (a) the net income (or loss) from continuing operations of Borrower during such period calculated on an after-taxes basis; 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. “Debt” is defined as all scheduled capital lease
obligations and all principal and interest payments due for the period subject to measurement, all determined in accordance with GAAP. 

  
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	 	7.	For any quarter subject to measurement hereunder, Borrower will maintain a “Debt to Tangible Net Worth Ratio” of no greater than 1.50 to 1.00 to
be measured quarterly, with the next measurement to occur as of the end of the quarter ending as of June 30, 2013. 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”, as defined below, of not less than 1.50 to 1.0, measured quarterly, with the next measurement to occur
as of the quarter ending on June 30, 2013 from the date of the Loans to maturity. For purposes of this Agreement, “Current Ratio” means, with respect to any period of calculation thereof, the ratio of “Current
Assets” to “Current Liabilities”, as those terms are defined below. “Current Assets” means the sum of: (a) current assets, as defined under GAAP, to include, specifically, a minimum of Three Million
Five Hundred Thousand and No/100 Dollars ($3,500,000.00) in cash and readily marketable securities. “Current Liabilities” shall have the same meaning as the definition found for that term under GAAP. The requirement that Current
Assets include cash and readily marketable securities of a value of Three Million Five Hundred Thousand and No/100 Dollars shall apply only if any Loan currently carries an outstanding principal balance. 

 

	 	9.	Within ten (10) days of their publication, Borrower shall provide Bank with copies of: (a) all financial statements, reports, notices, and proxy
statements sent or made available generally by the Borrower to its shareholders; (b) all regular and periodic reports and all private placement memorandums; (c) all registration statements and prospectuses, if any, filed by the Borrower
with any securities exchange or with the Security Exchange Commission; and (d) all press releases and other statements made available generally by the Borrower to the public concerning material changes in the business of the Borrower.

  

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

 

	 	11.	Borrower shall 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. 

  
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	 	12.	Borrower shall 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.	Borrower shall remain in substantial compliance with all Environmental Laws and will not place or permit to be placed any Hazardous Materials on any of its
properties in violation of any such 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, the Borrower shall give notice to the Bank within five (5) days after receiving
notice of such notice or filing. 

  

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

 

	 	B.	Negative Covenants. 

  

	 	1.	Borrower shall not make any change in its present accounting method or change his present fiscal year. 

 

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

 

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

 

	 	4.	Borrower shall not sell, contract to sell, convey, assign, transfer, mortgage, pledge, hypothecate, encumber, or in any way alienate its interest in any of the
collateral covered by the Security Instruments, without the consent of the Bank. 

  

	V.	EVENTS OF DEFAULT 

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

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

  
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	 	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 false or 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 shall occur 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 court of competent jurisdiction enters or renders judgment or judgments against Borrower for the payment of money, which Borrower fails to satisfy,
discharge, or stay no less than thirty (30) days prior to the date on which any of its assets could be lawfully sold to satisfy such judgment or judgments; or 

 

	 	F.	Borrower: (i) becomes insolvent, or suffers or consents to, or applies for the appointment of a receiver, trustee, custodian or liquidator for itself or any of its
property, or generally fails to pay its 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 as bankrupt, under said Bankruptcy Code or any other state or federal law relating to bankruptcy, reorganization, or
other relief for debtors. 

  

	VI.	REMEDIES 

 If any
Event of Default shall occur, any term hereof or of the Notes to the contrary notwithstanding, the entire outstanding principal balance then due under the Notes, 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 shall immediately cease and terminate and the Bank shall have all rights, powers, and remedies available under this Agreement, the Notes, 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. 

  
 13 

 ONCE AN EVENT OF DEFAULT HAS OCCURRED, WESTERN MAY PURSUE THE REMEDIES PROVIDED FOR IN
THIS AGREEMENT, THE NOTES, 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 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, excluding those deposit accounts held by Borrower as agent for any third
party) against any liability of the Borrower to the Bank. 
  

	VII.	WAIVER 

 No delay,
failure, or discontinuation by the Bank, or any holder of the Notes, in exercising any right, power, or remedy under this Agreement, the Notes, or any other contract or instrument on which the Borrower may at any time be obligated to the Bank (or
any holder thereof) shall 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 Notes), 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 shall 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 
 Midland, Texas 79701 
  

	 Western: 
	Western National Bank 

 Attention: Mr. James R.
Kreuz 
 508 West Wall Street, Suite 1100 
 Midland, Texas 79701 
 Any party to this Agreement may change its address by
providing written notice to the other parties. Such a change of address shall be effective as of the date that each party receives it. 

  
 14 

	IX.	SUCCESSORS AND ASSIGNS 

 This Agreement shall 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 participation 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
promissory notes, the Borrower, 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, must 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 submit to the exclusive jurisdiction of such courts for the purpose of any
such suit, action or proceeding. The Borrower hereby irrevocably consent 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 addresses 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. 
 FURTHER, THE BORROWER HEREBY IRREVOCABLY WAIVES ANY RIGHT
GRANTED BY STATUTE, RULE OR COURT OR OTHERWISE TO HAVE SUCH SUIT, ACTION, PROCEEDING, OR ISSUE TRIED BY A JURY. THE BORROWER HAS WAIVED THE RIGHT TO TRIAL BY JURY 

  
 15 

 
KNOWINGLY AND VOLUNTARILY, AND SUCH WAIVER SHALL BE INTERPRETED TO ENCOMPASS INDIVIDUALLY AND COLLECTIVELY EACH INSTANCE AND EACH INSTANCE AS TO WHICH THE RIGHT TO TRIAL BY JURY MIGHT OTHERWISE
ACCRUE. THE BORROWER HEREBY AGREES THAT THE BANK MAY INCLUDE A COPY OF THIS PARAGRAPH IN ANY PLEADING OR OTHER DOCUMENTATION IN ORDER TO EVIDENCE THE WAIVER PROVIDED HEREUNDER. 

 

	XII.	MISCELLANEOUS 

  

	 	A.	Texas Law Applicable. This Agreement, the Notes, 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.	Discretionary Reviews. Western National Bank reserves the right to periodically conduct a review of the Borrower’s ability to perform under the terms
of the Notes and to limit or restrict future advances under the Notes. 

  

	 	C.	Federal Small Business Certification. Borrower represents, warrants and certifies, that none of the principals of Borrower or Borrower’s affiliates
have been convicted of, or pleaded nolo contender to, any offense covered by 42 U.S.C. Â§16911(7). For purposes of this subsection, the term principal means: (a) with respect to a sole proprietorship, the proprietor; (b) with
respect to a partnership, each managing partner and each partner who is a natural Person, as defined below, and holds a twenty percent (20.00%) or more ownership interest in the partnership; and (c) with respect to a corporation, limited
liability company, association or development company, each director, each of the five most highly compensated executives or officers of the entity, and each natural Person, as defined below, who is a direct or indirect holder of twenty percent
(20.00%) or more of the ownership stock or stock equivalent of the entity. For purposes of this Agreement, “Person” shall mean an individual, partnership, corporation, limited liability company, business trust, joint stock
company, trust, unincorporated association, joint venture, governmental authority or other entity of whatever nature. 

  

	 	D.	 Notice of Final Agreement. THIS AGREEMENT, THE NOTES, AND ANY CONTRACTS OR INSTRUMENTS RELATING THERETO, REPRESENT THE
ENTIRE AGREEMENT BETWEEN THE PARTIES, AND IT IS EXPRESSLY UNDERSTOOD THAT ALL PRIOR CONVERSATIONS OR 

  
 16 

	 	
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 NOTES
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 NOTES 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.} 

  
 17 

 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 2013, BUT EFFECTIVE 
 AS OF JUNE 1, 2013. 

BORROWER: 
 DAWSON GEOPHYSICAL
COMPANY 
  

			
	By:	 	/s/ Stephen C. Jumper
		 	Stephen C. Jumper
		 	President
		
	By:	 	/s/ Christina W. Hagan
		 	Christina W. Hagan
		 	Secretary

  
 18 

 EXHIBIT “A” 

Form of Borrowing Base Certificate 
 DAWSON GEOPHYSICAL COMPANY 
 BORROWING BASE REPORT 

ACCOUNTS RECEIVABLES: 
  

			
	 Eligible Accounts Receivables as of
                                        

	  	$             
		
	 Multiplier
	  	x 75%
		
	 Receivables Portion of Borrowing Base
	  	$             
		
	 TOTAL BORROWING BASE
$                    
	  	

  

	
	Submitted By: Dawson Geophysical Company
	
	  
	
	  
	Date

  
 19 

 EXHIBIT “B” 

COMPLIANCE CERTIFICATE 
 Reference is made to that certain Loan Agreement dated as of June 2, 2013, but effective as of June 1, 2013, by and between DAWSON GEOPHYSICAL COMPANY (“Borrower”); and
WESTERN NATIONAL BANK (“Bank”) (the “Loan Agreement”). 
 1. Pursuant to the provisions of the
Loan Agreement, the undersigned hereby certifies, represents and warrants to Bank that, to the best of their knowledge, except as set forth below, (i) during the period covered by this certificate, no Event of Default has occurred;
(ii) there exists no condition or event that, with the giving of notice or lapse of time or both, would constitute an Event of Default; and (iii) during the period covered by this certificate, Borrower has observed, performed and complied
in all material respects with all covenants, agreements, duties and obligations contained in the Loan Documents. 
 Exceptions
to the above certification: [State “none” or specify the nature and period of existence thereof and the action that Borrower is taking or proposed to take with respect thereto.] 

2. Borrower’s Cash Flow Coverage Ratio is              to 1.0.

 3. Borrower’s Current Ratio is              to 1.0.

 4. Borrower’s Debt to Tangible Net Worth Ratio is
             to 1.0. 
 5. To the best knowledge of the undersigned,
the attached financial statements are true and correct and correctly set forth the financial position and results of operations at the date(s) and for the period(s) stated. The attached financial statements include all contingent liabilities and
cash flow information of Borrower. 
 6. Period covered: [Year or Month] ended
            , 20    . 
 7. Capitalized terms
used but not defined herein shall have the respective meanings ascribed thereto in the Loan Agreement. 
 Dated:
            , 20    . 
  

			
	DAWSON GEOPHYSICAL COMPANY
		
	By:	 	 
		 	
		
	By:	 	 
		 	

  
 20EX-10.2

 Exhibit 10.2 
 SECURITY AGREEMENT 
 THIS SECURITY AGREEMENT
(the “Security Agreement”) is made and entered into this 2nd day of June 2013, but effective as of June 1, 2013, 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, of even date herewith (the “Loan Agreement”) by and between Debtor, as Borrower, and the
Secured Party, as Lender. Pursuant to the terms of the Loan Agreement, the Secured Party has agreed to advance certain loans to Debtor, from time to time (collectively, the “Loans”). 

 

	B.	The Loans are, or will be, evidenced by: (i) that certain Revolving Line of Credit Note, dated of even date herewith, in the original principal amount of
Twenty Million and No/100 Dollars ($20,000,000.00), executed by the Debtor, as Maker, and payable to the order of the Secured Party, as Payee, together with any and all renewals, extension for any period, increases and rearrangements thereof;
(ii) that certain Term Note, dated as of June 30, 2011, in the original principal amount of Sixteen Million Four Hundred Twenty-Six Thousand Six Hundred Eighty and Six/100 Dollars ($16,426,680.06), executed by the Debtor, as Maker, and
payable to the order of the Secured Party, as Payee (the “First Term Note”, together with any and all renewals, extension for any period, increases and rearrangements thereof; and (iii) that certain Multiple Advance Term Note,
dated as of May 11, 2012, in the original principal amount of Fifteen Million and No/100 Dollars ($15,000,000.00), executed by the Debtor, as Maker, and payable to the order of the Secured Party, as Payee, (the “Second Term
Note”) together with any and all renewals, extension for any period, increases and rearrangements thereof. Collectively, the promissory notes described in (i) and (ii) are referred to herein as the “Notes”. The
Loan Agreement, the Notes, 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. 

  

	C.	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: 

  
 1 

 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 

 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). 

  
 2 

	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. 

  

	 	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 

  
 3 

 
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 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.

  
 4 

	 	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. 

  

	 	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. 

  
 5 

	 	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 

 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 

  
 6 

	 	
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 guaranteed 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. 

  

	 	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. 

  
 7 

	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 

 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. 

  
 8 

	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, 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, 2013, but effective as of June 1, 2013.

  

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