Document:

Exhibit 10.24

 

SALE
AGREEMENT

 

THIS AGREEMENT
made as of the 13 day of October, 2004

 

BETWEEN:

 

GEO-X
SYSTEMS LTD., a body corporate having its head

office at 500, 440 - 2nd Avenue S.W., Calgary, Alberta,

T2P 5E9, Canada

(hereinafter called the “Vendor”)

 

OF THE FIRST PART

 

- and -

 

TIDELANDS
GEOPHYSICAL CO., INC., a body corporate

having its head office at 1304 Summit Avenue, Suite 2, Piano, Texas,

United States 75074

(hereinafter called the “Purchaser”)

 

OF THE SECOND PART

 

WHEREAS:

 

1.             The Purchaser wishes
to purchase certain equipment from the Vendor, on the terms and conditions
hereinafter set forth.

 

2              The
equipment to be purchased by the Purchaser from the Vendor is set out and
described in Schedule “A” attached hereto and forming part hereof (the “Equipment”).

 

3.             Delivery of the
Equipment is to occur on or before November 1, 2004.

 

NOW
THEREFORE IN CONSIDERATION OF the mutual premises and
covenants herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

4.             The Total Purchase
Price in UNITED STATES DOLLARS (“USD”) for the Equipment shall be USD
2,807,424.76.

 

5.             The Purchaser hereby
promises and agrees to pay the said Total Purchase Price of USD 2,807,424.76 to
the Vendor at Calgary, Alberta as follows:

 

(a)           The
amount of USD 421,113.71 shall be payable upon execution of Sale Agreement.

 

(b)           The
amount of USD 2,386,311.05 shall be payable prior to delivery of Equipment.

 

(c)           Any
overdue instalments or so much thereof as may from time to time remain unpaid, and
on any other amounts owing as described hereafter and remaining unpaid from time
to time, at the rate of twelve (12) per centum per annum to be computed

 

 

monthly not in advance
from the date of default in payment thereof, both before and after judgement
(hereinafter called the “Interest”).

 

6.             The Vendor shall test
the Equipment prior to delivery to ensure that the Equipment is performing to
the Vendor’s published specifications. The Purchaser’s representatives may be
present for and participate in this testing.

 

7.             By
accepting the Equipment, the Purchaser acknowledges and agrees that the
Equipment has been prepared and is operating for its intended purpose and the
Purchaser acknowledges that the Equipment is sold on an “as is” and “where is”
basis, and that otherwise as expressly set out in this Agreement, Vendor makes
no representations or warranties, express or implied (by statute or otherwise),
as to the Equipment and assumes no responsibility for the condition or intended
use of the same.

 

8.             Training will be
provided at the Vendor’s manufacturing facility in Calgary. Alberta and in the field
during system commissioning. Up to two (2) weeks of operator training and up to
four (4) weeks of system maintenance training will be provided at the Vendor’s
manufacturing site prior to shipment of the Equipment.  Up to four (4) weeks of training will be
provided during commissioning of the system in the field. The Vendor will
provide personnel at the Purchaser’s designated location for the commissioning
of the Equipment, and for further training of the Purchaser’s specialists
during actual operation of the recording system in the field. A minimum of one
(1) specialist from the Vendor’s manufacturing division will be provided during
the field commissioning and training period. All travel and living expenses are
for the account of the Purchaser.

 

9.             The Vendor shall
provide the following warranty with regard to the Equipment from the date of
delivery thereof:

 

(a)           Twelve
months parts and labour warranty on all Central Recording Unit Components, Battery
Chargers and Battery Discharge Station.

 

(b)           Twenty-four
months parts and labour warranty on all used Remote Acquisition Modules and
Line Tap Units.

 

(c)           Three
months parts and labour warranty on Battery Packs and Hand Held Test Units.

 

(d)           The
standard cable manufacturer’s warranty on cables.

 

This warranty does not apply to connectors or to units or other items
of the Equipment which have been subject to physical damage, misuse,
unauthorized repair or modification or loss due to any reason.

 

10.           When warranty service
is required at a remote location, the Purchaser shall reimburse the Vendor for
travel and living expenses for the Vendor’s technicians to travel from Calgary,
Alberta to the location of the Equipment and return to Calgary, Alberta.  In addition, the Purchaser shall be responsible
for the transportation costs of parts and components delivered to, and returned
from, the location of the Equipment.

 

11.           After the applicable
warranty period noted above, and provided the Purchaser is not in default, the
Vendor will offer maintenance for the Equipment at the Vendor’s prevailing shop
rates.

 

2

 

12.           It shall be the
Purchaser’s responsibility to conduct such tests as are appropriate with sufficient
frequency to ensure that the Equipment is functioning properly. The Vendor
specifically does not accept and shall not be responsible for any direct or indirect
liability or loss (including loss of profit, business, revenue, goodwill or
anticipated savings) resulting out of or in any way connected with the
Purchaser’s use of the Equipment, including without limitation any malfunction
or non-operation of the Equipment or any of its component parts.

 

13.           It is agreed that until
the said Total Purchase Price and applicable Interest are fully paid, title to
and ownership in the Equipment shall remain with the Vendor and the Equipment
shall remain the property of the Vendor, but the same shall be entirely at the
Purchaser’s risk.

 

14.           The Purchaser
acknowledges and agrees that any and all trade marks, trade names, copyrights,
patents and other intellectual property rights used or embodied in or in
connection with the ARAM-ARIES Seismic Recording System shall be and remain the
sole property of the Vendor. In the event that new inventions, designs or
processes evolve in the performance of or as a result of the use of the ARAM-ARIES
Seismic Recording System by the Purchaser, the Purchaser acknowledges and
agrees that the same shall be the property of the Vendor unless otherwise
agreed in writing by the Vendor.

 

15.           The Purchaser further
recognizes and accepts that the Equipment and information and know how relative
thereto incorporates certain proprietary information (the “Proprietary
Information”). The Purchaser undertakes to keep all such Proprietary
Information confidential and not directly or indirectly, at any time or in any
place, disclose to any others (excepting the Purchaser’s officers or employees
having a need to know or otherwise as permitted by this Agreement) or use in
any way other than in connection with the proper use of the Equipment, any
Proprietary Information. As part of its obligation under this Clause 15, the
Purchaser shall counsel its employees and representatives regarding its and
their obligations regarding the Proprietary Information.

 

16.           The Purchaser shall
not, without the prior written consent of the Vendor, copy or manufacture or
permit to be copied any of the Equipment including, without limitation, those
elements of the Equipment incorporating Proprietary Information.

 

17.           The Purchaser shall
not, without the prior written consent of the Vendor, show or permit to be
shown any internal feature of the Equipment and supplies or any drawings,
schematics, diagrams, manuals or instructions or other documentation relative
thereto to any other person; provided, however, that the foregoing prohibition
shall not prevent the Purchaser from showing any of the foregoing to any of the
Purchaser’s employees or others having a need to know for the purpose of the
proper conduct of the Purchaser’s business, subject to the Purchaser giving
written instruction to such employees or others that the features and documentation
are to be treated in a confidential manner in accordance with this Agreement.

 

18.           The Purchaser shall
enter into a Software License with the Vendor in the form attached as Schedule “B”
hereto and forming a part hereof.

 

19.           The Purchaser’s obligations
under clauses 14, 15, 16 and 17 of this Agreement shall remain in effect even
after completion or termination of this Agreement.

 

20.           Time shall in every
respect be of the essence of this Agreement.

 

3

 

21.           This Agreement shall
enure to the benefit of and be binding upon the parties hereto, their respective
heirs, executors, administrators, successors and assigns, and wherever the
singular or masculine is used herein, the same shall include the plural or
feminine whenever the context or circumstances so require.

 

22.           No previous waiver or
course of dealing shall affect the Vendor’s right to strict performance of
other or future obligations of the Purchaser.

 

23.           Any provision of this
Agreement prohibited by law shall be effective to the extent of such prohibition
without invalidating the remaining provisions of this Agreement and the Vendor
shall be entitled to any other remedies available by law or statute.

 

24.           This Agreement shall be
governed by and construed in accordance with the laws of the Province of
Alberta, Canada, applicable therein.

 

25.           Any notice or other
document required or permitted by any of the provisions of the Agreement shall
be given to the parties by written notice at the following addresses or to such
other addresses as the parties may specify in writing:

 

if to the Purchaser, at:

Tidelands
Geophysical Co., Inc.

1304
Summit Avenue, Suite 2

Plano,
Texas

United
States 75074

Attention:              Wayne Whitener, President

 

if to the Vendor, at:

Geo-X
Systems Ltd.

500, 440
- 2nd Avenue S.W.

Calgary,
Alberta

Canada
T2P 5E9

Attention:              Collin Newman, Vice President

 

Notice shall be effective if given personally to a director or officer
of a party, if delivered to the addresses specified above during normal
business hours, or if mailed by prepaid registered mail to the addresses and
persons specified above. If notice is mailed by prepaid registered mail, it
shall be deemed to have been received five days after deposit in a post office
in Canada. If at the time of mailing or between the time of mailing and deemed
receipt thereof, there occurs a mail strike, a slow-down or other labour
dispute which may affect the delivery of notice by mail, then notice given by
mail shall be effective only if actually delivered.

 

26.           All fees, levies,
custom duties, taxes and charges of any nature whatsoever, including goods and
services or other governmental charges and any additions or charges thereon,
now and hereafter imposed by any federal, provincial, state or municipal
government or taking authority, regulatory authority or political subdivision
thereof or therein, relating to the sale, delivery, use, financing or
disposition of the Equipment or the use of the Software or to any documents
relating thereto, or relating to this Agreement or anything contained herein,
shall be for the account of and be forthwith

 

4

 

paid by the Purchaser as prescribed and if the Purchaser neglects to
pay, as aforesaid, the Vendor may pay and any amount so paid
by the Vendor shall be added to the Total Purchase Price and the Total Purchase
Price, or so much thereof as may remain unpaid, shall become immediately due
and payable by the Purchaser to the Vendor with interest as aforesaid.

 

27.           This Agreement is the
entire agreement between Purchaser and Vendor with respect to the subject
matter hereof and may be varied only by written documentation signed by both
Purchaser and Vendor.

 

28.           All Vendor’s rights are
cumulative and not alternative and may be exercised by Vendor separately or
together in any order or combination.

 

29.           Purchaser shall do all
acts and execute all documents as Vendor may require to give effect to this
Agreement and to preserve and protect Vendor’s rights.

 

30.           The Purchaser acknowledges
receipt of a duplicate copy of this Agreement immediately on the execution
thereof, and it waives any rights it may have with respect to receiving
notification or copies of any registrations made at any public registries with
respect thereto.

 

31.           All dollar amounts and
references to currency herein are in United States dollars.

 

32.           This Agreement may be
executed in counterparts.

 

DATED at the City of Calgary, in the Province of Alberta as of the date
first above written.

 

	
   

  	
  Purchaser:

  
	
   

  	
  Tidelands Geophysical Co., Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ Wayne Whitener

  	
  c/s

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Vendor;

  
	
   

  	
  Geo-X Systems Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ Chris Chamberlain

  	
  c/s

  

 

5

 

SCHEDULE “A” to the SALE AGREEMENT

BETWEEN GEO-X SYSTEMS LTD and TIDELANDS GEOPHYSICAL CO., INC.

 

The Equipment to be purchased by Tidelands Geophysical
Co., Inc. from Geo-X Systems Ltd. and subject to the terms of this Agreement is
as follows:

 

ARAM-ARIES Seismic Recording System components as
listed below:

 

	
  Module

  	
   

  	
  Qty

  	
   

  	
  Unit Option

  Price

  	
   

  	
  Extended

  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Central Recording Unit:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SPM with fast download capability. Approx. 20 Kg

  	
   

  	
  1

  	
   

  	
  44,256.00

  	
   

  	
  44,256.00

  	
   

  
	
  Quad Line Interface cards

  	
   

  	
  4

  	
   

  	
  18,250.00

  	
   

  	
  73,000.00

  	
   

  
	
  Impulse source software

  	
   

  	
  1

  	
   

  	
  73,000,00

  	
   

  	
  73,000.00

  	
   

  
	
  Annual software license & upgrades

  	
   

  	
  1

  	
   

  	
  9,000.00

  	
   

  	
  no chg 1st year

  	
   

  
	
  Vibroseis Option

  	
   

  	
  1

  	
   

  	
  18,250.00

  	
   

  	
  18,250.00

  	
   

  
	
  Additional Flat screen monitor with mounting
  hardware

  	
   

  	
  2

  	
   

  	
  2,555.00

  	
   

  	
  5,110.00

  	
   

  
	
  Exchange
  portable cases for ARAM-ARIES zero clearance module rack (for recording truck
  installations only) 

  	
   

  	
  1

  	
   

  	
  (3,869.00

  	
  )

  	
  (3,869.00

  	
  )

  
	
  Standard
  installation kit

  	
   

  	
  1

  	
   

  	
  2,498.00

  	
   

  	
  2,498.00

  	
   

  
	
  Dual 3490 tape drive with mounting hardware

  	
   

  	
  1

  	
   

  	
  34,748.00

  	
   

  	
  34,748.00

  	
   

  
	
  ISYS-V12 thermal plotter with mounting hardware

  	
   

  	
  1

  	
   

  	
  8,355.00

  	
   

  	
  8,355.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sub-Total Central Recording Unit

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  255,348.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Used Line Equipment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Remote Acquisition Modules

  	
   

  	
  350

  	
   

  	
  10,240.00

  	
   

  	
  3,584,000.00

  	
   

  
	
  Line Tap Units

  	
   

  	
  18

  	
   

  	
  11,950.00

  	
   

  	
  215,100.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sub-Total Line Equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,799,100.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Optional Line Equipment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lead Acid Battery Packs

  	
   

  	
  480

  	
   

  	
  183.00

  	
   

  	
  87,840.00

  	
   

  
	
  Lead Acid Battery Chargers – charge 10 packs
  simultaneously

  	
   

  	
  16

  	
   

  	
  5,110.00

  	
   

  	
  81,760.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sub-Total Line Equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  169,600.00

  	
   

  

 

6

 

	
  Used Seismic Land Cables:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Land-Lt Cable
  2x26G(.036)/4x28GM-3 300 metres total length. Approx, 15.01 kg total weight.
  2 X 20-16S Reinforced connectors and Back to Back caps. 4 X KCM 4M drop
  takeouts at 75 metre intervals. Special cable head water blocking. Special
  takeout connector water blocking.

  	
   

  	
  700

  	
   

  	
  717.00

  	
   

  	
  501,900.00

  	
   

  
	
  Land Cable Back to back integrated on cable

  	
   

  	
  1,400

  	
   

  	
  67.00

  	
   

  	
  93,800.00

  	
   

  
	
  Multi-Port
  Baseline Cable (8x26(.036)GM-3), 280 metres total length. Approx. 23.96kgs
  total weight. 2 X 20-16S Reinforced connectors. Special cable head water blocking
  and Back to Back Caps.

  	
   

  	
  36

  	
   

  	
  738.50

  	
   

  	
  26,586.00

  	
   

  
	
  Land Baseline Back to Back integrated on cable

  	
   

  	
  72

  	
   

  	
  80.00

  	
   

  	
  5,760.00

  	
   

  
	
  Mulit-Port Base Line Splitter cable

  	
   

  	
  4

  	
   

  	
  702.00

  	
   

  	
  2,808.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sub-Total Seismic Land Cables

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  630,854.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Line Test Equipment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hand held test unit with meter and matching geophone
  adapter

  	
   

  	
  4

  	
   

  	
  475.00

  	
   

  	
  1,900.00

  	
   

  
	
  Power Head with 9 volt battery

  	
   

  	
  4

  	
   

  	
  110.00

  	
   

  	
  440.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sub-Total Line Test Equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,340.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maintenance Equipment & Spare Parts:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Battery Discharge Station

  	
   

  	
  1

  	
   

  	
  5,110.00

  	
   

  	
  5,110.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sub-Total Maintenance Equipment & Spare
  Parts

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5,110.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sub-Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,862,352.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shipping Crates

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7,235.76

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Discount

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (2,062,163.00

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,807,424.76

  	
   

  

 

All
dollar amounts and references to currency herein are in United States dollars.

 

7

 

SCHEDULE “B” to the SALE AGREEMENT

BETWEEN GEO-X SYSTEMS LTD. and TIDELANDS GEOPHYSICAL CO, INC.

 

SOFTWARE LICENSE AGREEMENT

 

ATTENTION:
Please read this Agreement carefully before using the Products provided by
Geo-X Systems Ltd. This Agreement is a legally binding agreement between
Tidelands Geophysical Co, Inc. (“Tidelands”), and Geo-X Systems Ltd, (“Geo-X”).
By installing, copying or using the Software Tidelands is agreeing to be bound
by the terms of this Agreement and agree that good and sufficient consideration
has passed between Tidelands and Geo-X.

 

Geo-X
Software Product

 

This software product is the object code of all
software used in or with the ARAM-ARIES Seismic Recording System (the “System”),
including all amendments, supplements, modifications, enhancements and new
versions thereof, as well as any trial or testing software (collectively, the “Software”),
whether the Software was delivered at the time of delivery of equipment as
specified in the Sale Agreement or other agreement entered into between the
parties (the “Original Agreement”) or at any other time, before or after
execution of this Agreement, and whether the Software is embedded as part of
firmware or supplied separately. At no time will Geo-X supply source code for
Software and such source code does not, in any event, form part of the
Software.

 

The documentation includes all instructional information,
user manuals and other materials, together with all amendments, supplements,
modifications and new versions thereof, which relate to or are used in
association with the Software and/or the System (the “Documentation”). The
Software and Documentation are herein collectively referred to as the “Products”.

 

To the extent any terms contained herein are
inconsistent with or supplemental to the terms of the Original Agreement, the
terms of this Agreement shall govern and prevail. To the extent the Original
Agreement is not inconsistent herewith, the Original Agreement is hereby
ratified, confirmed and adopted.

 

Geo-X
Software License

 

GRANT OF
LICENSE. Geo-X, as licensor, grants Tidelands, as licensee, a
non-exclusive, nontransferable, and limited right license for the use of the
Products.

 

REVISIONS
AND UPGRADES. If the Software is provided in accordance with
the Original Agreement, following delivery of the equipment and for the
duration of the Original Agreement, Geo-X will provide Tidelands with any new
released versions of the Software and Documentation pertaining thereto which
Geo-X develops. If the Original Agreement terminates due to purchase of the
equipment or the Software is not licensed subject to an equipment lease then
Geo-X will offer Tidelands subsequent upgrades of the Software and
Documentation pertaining thereto at Geo-X’s then prevailing upgrade fee. The
terms of this license shall apply to all upgraded or revised versions of the
Software and Documentation pertaining thereto.

 

OWNERSHIP
OF SOFTWARE. As licensee, Tidelands owns the physical media
on which the Products are originally or subsequently recorded (subject to any
retention of title contained in the Original Agreement between the parties),
but Geo-X retains title and ownership of the Software recorded on the original
media and all subsequent copies of the Software, regardless of the form or
media in or on which the original and other copies exist.

 

8

 

COPY
RESTRICTIONS. The Products are copyrighted by Geo-X.
Unauthorized copying of the Products is expressly forbidden. The Software may
be copied by Tidelands for backup purposes so long as it is used solely for the
System.

 

USE
RESTRICTIONS. Tidelands may use the Software on up to three
computers provided that its use is solely for the preparation and analysis of
data to be acquired or having been acquired with the System. Tidelands shall
not reverse engineer, decompile, disassemble or translate the Products or any
part thereof.

 

TRANSFER
RESTRICTIONS. The Products are licensed only to Tidelands and
may not be transferred to any other individual or company without the prior
written consent of Geo-X. In no event may Tidelands transfer, assign, rent,
lease, sell, or otherwise dispose of the Products on a temporary or permanent
basis without such written consent.

 

CONFIDENTIAL
INFORMATION. All information, data, drawings, specifications,
documentation, software listings, source and object codes which Geo-X may have
imparted and may from time to time Impart to Tidelands relating to the Products
(collectively, the “Confidential Information”), is proprietary and
confidential. Tidelands agrees by using the Software that it shall use the
Confidential Information solely in accordance with the provisions of this
software license and that it shall not at any time during or after expiry or
termination of this license, disclose the same, whether directly or indirectly,
to any third party without Geo-X’s prior written consent. Tidelands further
agrees that it shall not itself or through any subsidiary, agent or third
party, modify, vary, enhance, copy, sell, lease, license, sublicense or
otherwise deal with the Products or any part or parts or variations,
modifications, copies, releases, versions or enhancements thereof or have any
software or other program written or developed for itself based on any
Confidential Information.

 

TERMINATION.
This license shall be effective until terminated. This
license shall terminate automatically without notice from Geo-X If a defaulting
event occurs under this license. A defaulting event (“License Default”) shall
have occurred under this license If any of the following happen:

 

a)             Tidelands
suspends business, abandons or attempts to transfer or gives up possession of substantially
all of Tidelands’ property;

b)            Tidelands
becomes subject to a bankruptcy, insolvency, receivership, reorganization, proposal,
arrangement or similar proceeding, or an encumbrancer takes possession of a substantial
part of Tidelands’ property;

c)             if
any action is taken to wind-up, liquidate or dissolve Tidelands; or

d)            Tidelands
does not perform any of its obligations (including not paying an amount when
due) or falls to comply with or is in breach of any term, condition or
provision under this license or under the Original Agreement between Geo-X and
Tidelands.

 

Upon termination of this license for any reason
whatsoever, Tidelands shall destroy all copies of the Software, including
modified copies, if any.

 

LIMITED
WARRANTY. THE PRODUCTS ARE PROVIDED ON AN “AS IS” BASIS
WITHOUT WARRANTY OF ANY KIND. FURTHER, GEO-X DOES NOT WARRANT, GUARANTEE, OR
MAKE ANY REPRESENTATIONS REGARDING THE USE, OR THE RESULT OF USE, OF THE
PRODUCTS IN TERMS OF CORRECTNESS, ACCURACY, RELIABILITY, CURRENTNESS, OR
OTHERWISE. THE ENTIRE RISK AS TO THE RESULTS AND PERFORMANCE OF THE PRODUCTS OR
ANY CONSEQUENCES RESULTING FROM ANY USE OF THE PRODUCTS IS ASSUMED ENTIRELY BY
TIDELANDS. GEO-X WARRANTS ONLY THAT THE MEDIA ON WHICH THE SOFTWARE IS RECORDED
IS FREE FROM

 

9

 

DEFECTS IN MATERIALS AND WORKMANSHIP UNDER NORMAL USE
AND SERVICE FOR A PERIOD OF THREE MONTHS FROM THE DATE OF TIDELANDS’S RECEIPT
OF THE MEDIA. THE FOREGOING IS THE ONLY WARRANTY OF ANY KIND, EITHER EXPRESS OR
IMPLIED (BY STATUTE OR OTHERWISE). NO ORAL OR WRITTEN INFORMATION OR ADVICE
GIVEN BY GEO-X OR ITS REPRESENTATIVES SHALL CREATE A WARRANTY OR IN ANY WAY
INCREASE THE SCOPE OF THIS WARRANTY.

 

LIMITATION OF LIABILITY.
GEO-X’S ENTIRE LIABILITY AND TIDELANDS’S EXCLUSIVE REMEDY AS TO THE MEDIA SHALL
BE REPLACEMENT OF THE MEDIA THAT DOES NOT MEET GEO-X’S LIMITED WARRANTY AS SET
OUT ABOVE, AND WHICH IS RETURNED TO GEO-X WITH A COPY OF THE RECEIPT. IF
FAILURE OF THE MEDIA HAS RESULTED FROM ACCIDENT, ABUSE, OR MISAPPLICATION.
GEO-X SHALL HAVE NO RESPONSIBILITY OR OBLIGATION TO REPLACE THE MEDIA. Any
replacement media shall be warranted for the remainder of the original warranty
period only. Neither Geo-X nor any of its representatives or anyone else who
has been involved in the creation, production, sale, or delivery of this
product shall be liable for any damages, including but not limited to, direct,
indirect, consequential, special, exemplary, or incidental damages (including,
without limitation, damages for the loss of business profits, business
interruption, loss of data or information, and the like) arising out of the use
of, inability to use, or performance of such product, even if Geo-X has been
advised of the possibility of such damages.

 

INTELLECTUAL PROPERTY RIGHTS.
Tidelands acknowledges that any and all of the trade-marks, trade names,
copyrights, patents, Confidential Information and other intellectual property
rights used or embodied in or in connection with the Products shall be and
remain the sole property of Geo-X. Tidelands shall not during or at any time
after the expiry or termination of this license in any way question or dispute
the ownership by Geo-X of any such rights. In the event that new inventions,
designs or processes evolve in performance of or as a result of this license,
Tidelands acknowledges that the same shall be the property of Geo-X unless
otherwise agreed in writing by Geo-X, and Tidelands shall hold same in trust
for Geo-X and forthwith upon the request of Geo-X assign the same to Geo-X.

 

WAIVER. Failure
or neglect by Geo-X to enforce at any time any of the provisions hereof shall
not be construed nor shall be deemed to be a waiver of Geo-X’s rights hereunder
nor in any way affect the validity of the whole or any part of this license nor
prejudice Geo-X’s rights to take subsequent action. Any waiver by Geo-X of any
of its rights hereunder, to be enforceable against Geo-X, must be in writing
and signed by Geo-X.

 

HEADINGS. The
headings of the terms and conditions herein contained are inserted for
convenience of reference only and are not intended to be part of or to affect
the meaning or Interpretation of any of the terms and conditions of this
license.

 

SEVERABILITY.
In the event that any of these terms, conditions or provisions shall be determined
invalid, unlawful or unenforceable to any extent, such term, condition or
provision shall be severed from the remaining terms, conditions and provisions
which shall continue to be valid to the fullest extent permitted by law.

 

GOVERNING LAW.
This license and its terms and conditions shall be governed by and interpreted
in accordance with the laws of the Province of Alberta and the laws of Canada
applicable in the Province of Alberta.

 

10

 

DATED at the City of Calgary, in the Province of
Alberta as of the date of the Original Agreement.

 

	
   

  	
  TIDELANDS GEOPHYSICAL CO., INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ Wayne Whitener

  	
  c/s

  
	
   

  	
   

  	
  Authorized
  Signatory

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GEO-X SYSTEMS LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ Chris Chamberlain

  	
  c/s

  

 

11Exhibit 10.25

 

SALE
AGREEMENT

 

THIS AGREEMENT made as of the 23rd day of May, 2005

 

BETWEEN:

 

Texas
Seismic Rentals, Ltd., having its head office at

12701 Executive Drive, Suite 608, Stafford, TX
77477

(hereinafter called the “Vendor”)

 

OF THE FIRST PART 

 

-and-

 

Tidelands
Geophysical Co., Inc a body corporate having its head office
at

1304 Summit Avenue, Plano, TX 75074

(hereinafter called the “Purchaser”)

 

OF THE SECOND PART

 

WHEREAS:

 

1.             The
Purchaser wishes to purchase certain equipment from the Vendor, on the terms
and conditions hereinafter set forth.

 

2.             The
equipment to be purchased by the Purchaser from the Vendor is set out and
described in Schedule “A” attached hereto and forming part hereof (the “Equipment”).

 

3.             Delivery
of the Equipment is to occur upon full payment by Tidelands Geophysical Co., Inc.
on, or about, 31 May, 2005 actual date to be dictated by delivery of seismic
cables from purchaser’s desired Vendor.

 

4.             The
Equipment shall be placed into the care, custody and control of Tidelands
Geophysical Co., Inc. at Vendor’s location at 12701 Executive Drive, Suite 608,
Stafford, TX 77477, Any freight cost incurred to a location other than Vendors’
shall be for Purchaser’s account. Sales tax @ 8.25% of total sale is applicable
for delivery from Vendor’s location.

 

NOW
THEREFORE IN CONSIDERATION OF the mutual premises and
covenants herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

4.             The
Total Purchase Price in UNITED STATES DOLLARS (“USD”) for the Equipment shall
be the total of (A) as set forth in the following statement:

 

STATEMENT

 

	
  (A)

  	
   

  	
  Regular cash selling price

  	
   

  	
  USD

  	
  3,658,473.62

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (B)

  	
   

  	
  Sales Tax @ 8.25%

  	
   

  	
  USD 

  	
  301,824.07

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (C)

  	
   

  	
  Less Cash Down Payment of 15% of total sale

  	
   

  	
  USD 

  	
  594,044.65

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (D

  	
   

  	
  Balance prior to delivery

  	
   

  	
  USD 

  	
  3,366,253.04

  	
   

  

 

 

5.             The
Purchaser hereby promises and agrees to pay the said Total Purchase Price plus applicable
sales tax equalling USD to the Vendor at Stafford, Tx., as follows:

 

(a)                                  The
amount of USD 594,044.65 shall be payable at time of order

 

(b)                                 The
amount of USD 3,366,253.04 be payable on, or about May 31, 2005
(contingent on delivery of Seismic Cables manufactured by Tideland’s desired
manufacturer) at which time equipment will be delivered.

 

6.             The
Vendor shall test the Equipment prior to delivery to ensure that the Equipment
is performing to the Manufacturers published specifications.

 

7.             By
accepting the Equipment, the Purchaser acknowledges and agrees that the
Equipment has been prepared and is operating for its intended purpose and the
Purchaser acknowledges that the Equipment is sold on an “as is” and “where is”
basis, and that otherwise as expressly set out in this Agreement, Vendor makes
no representations or warranties, express or implied (by statute or otherwise),
as to the Equipment and assumes no responsibility for the condition or intended
use of the same. Further, the purchaser acknowledges that the Seismic Line Cables
and Back to Backs to be supplied from Steward Cables do not meet Geo-X’s build
criteria. As such, any and all warranty shall be from the manufacturer of this
equipment.

 

8.             Training
will be provided at the Manufacturer’s in Calgary, Alberta and in the field
during system commissioning. Up to two (2) weeks of operator training will
be provided at the Manufacturer’s site prior to shipment of the Equipment.  Up to four (4) weeks of training will be
provided during commissioning of the system in the field. The Vendor will
provide personnel at the Purchaser’s designated location for the commissioning
of the Equipment, and for further training of the Purchaser’s specialists
during actual operation of the recording system in the field. A minimum of one (1) specialist
from the Manufacturer will be provided during the field commissioning and
training period. All travel and living expenses are for the account of the
Purchaser.

 

9.             The
Vendor shall provide the following warranty to the Purchaser with regard to the
Equipment from the date of delivery thereof:

 

(a)                                  Twelve
months parts and labour warranty on all Central Recording Unit Components,
Battery Chargers and Battery Discharge Station.

 

(b)                                 Twenty-four
months parts and labour warranty on all Remote Acquisition Modules and Line Tap
Units.

 

(c)                                  Three
months warranty on parts and labor for Hand Held Test Units.

 

This warranty shall be for the benefit of the
Purchaser only, and does not apply to connectors or to units or other items of
the Equipment which have been subject to physical damage, misuse, unauthorized
repair or modification or loss due to any reason.

 

10.           When
warranty service, provided by Manufacturer and administrated by Vendor, is
required at a remote location, the Purchaser shall reimburse the Vendor for
travel and living expenses for the Manufacturer’s technicians to travel from
Calgary, Alberta to the location of the Equipment and return to Calgary,
Alberta.  In addition, the Purchaser
shall be responsible for the transportation costs of parts and components
delivered to, and returned from, the location of the Equipment.

 

2

 

11.           After
the applicable warranty period noted above, and provided the Purchaser is not
in default, the Vendor will offer maintenance for the Equipment at the
Manufacturer’s prevailing shop rates.

 

12.           It
shall be the Purchaser’s responsibility to conduct such tests as are
appropriate with sufficient frequency to ensure that the Equipment is
functioning properly. The Vendor specifically does not accept and shall not be
responsible for any direct or indirect liability or loss (including loss of profit,
business, revenue, goodwill or anticipated savings) resulting out of or in any
way connected with the Purchaser’s use of the Equipment, including without
limitation any malfunction or non-operation of the Equipment or any of its
component parts.

 

13.           It
is agreed that until the said Total Purchase Price, including sales tax as
applicable, is fully paid, title to and ownership in the Equipment shall remain
with the Vendor and the Equipment shall remain the property of the Vendor, but
the same shall be entirely at the Purchaser’s risk.

 

14.           Time
shall in every respect be of the essence of this Agreement.

 

15.           This
Agreement shall enure to the benefit of and be binding upon the parties hereto,
their respective heirs, executors, administrators, successors and permitted
assigns, and wherever the singular or masculine is used herein, the same shall
include the plural or feminine whenever the context or circumstances so
require.

 

16.           No
previous waiver or course of dealing shall affect the Vendor’s right to strict
performance of other or future obligations of the Purchaser.

 

17.           Any
provision of this Agreement prohibited by law shall be effective to the extent
of such prohibition without invalidating the remaining provisions of this
Agreement and the Vendor shall be entitled to any other remedies available by
law or statute.

 

18.           This
Agreement shall be governed by and construed in accordance with the laws of the
state of Texas, applicable therein.

 

19.           Any
notice or other document required or permitted by any of the provisions of the
Agreement shall be given to the parties by written notice at the following
addresses or to such other addresses as the parties may specify in writing:

 

if to the
Purchaser, at:

Tidelands
Geophysical Co., Inc

1304 Summit Avenue, Suite 2 

Plano,
TX 75074

Attn:
Wayne Whitener, President 

Fax: 972
424-3943 

if to the Vendor,
at:

Texas
Seismic Rentals, Ltd. 

12701
Executive Drive, Suite 608 

Stafford,
TX 77477

Attn:
Gary Bartlett, General Manager 

Fax: 281
980-2155

 

Notice shall be effective if given personally to a
director or officer of a party, if delivered to the

 

3

 

addresses specified above during normal business
hours, or if mailed by prepaid registered mail to the addresses and persons
specified above. If notice is mailed by prepaid registered mail, it shall be
deemed to have been received five days after deposit in a post office in the
United States. If at the time of mailing or between the time of mailing and
deemed receipt thereof, there occurs a mail strike, a slow-down or other labour
dispute which may affect the delivery of notice by mail, then notice given by
mail shall be effective only if actually delivered.

 

20.           All
fees, levies, custom duties, taxes and charges of any nature whatsoever,
including goods and services or other governmental charges and any additions or
charges thereon, now and hereafter imposed by any federal, state or municipal
government or taking authority, regulatory authority or political subdivision
thereof or therein, relating to the sale, delivery, use, financing or
disposition of the Equipment or the use of the Software or to any documents relating
thereto, or relating to this Agreement or anything contained herein, shall be
for the account of and be forthwith paid by the Purchaser as prescribed and if
the Purchaser neglects to pay, as aforesaid, the Vendor may pay and any amount
so paid by the Vendor shall be added to the Total Purchase Price and the Total
Purchase Price, or so much thereof as may remain unpaid, shall become
immediately due and payable by the Purchaser to the Vendor with interest as
aforesaid.

 

21.           This
Agreement is the entire agreement between Purchaser and Vendor with respect to
the subject matter hereof and may be varied only by written documentation
signed by both Purchaser and Vendor.

 

22.           All
Vendor’s rights are cumulative and not alternative and may be exercised by Vendor
separately or together in any order or combination.

 

23.           Purchaser
shall do all acts and execute all documents as Vendor may require to give
effect to this Agreement and to preserve and protect Vendor’s rights.

 

24.           The
Purchaser acknowledges receipt of a duplicate copy of this Agreement
immediately on the execution thereof, and it waives any rights it may have with
respect to receiving notification or copies of any registrations made at any
public registries with respect thereto.

 

25.           All
dollar amounts and references to currency herein are in United States dollars.

 

26.           This
Agreement may be executed in counterparts.

 

DATED at the City
of Stafford, State of Texas as of the date first above written.

 

	
   

  	
  Purchaser:

  
	
   

  	
  Tidelands Geophysical Co., Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ Wayne Whitener c/s

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Vendor

  
	
   

  	
  Texas Seismic Rentals, Ltd

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Per

  	
  /s/ Gary A. Bartlett c/s

  

 

4

 

SCHEDULE “A”
to the SALE AGREEMENT

BETWEEN
TEXAS SEISMIC RENTALS, LTD. and TIDELANDS GEOPHYSICAL CO., INC

 

The Equipment to be purchased by TIDELANDS GEOPHYSICAL CO., INC. from
TEXAS SEISMIC RENTALS, LTD.

 

ARAM-ARIES Seismic Recording System components as listed below:

 

	
   

  	
   

  	
   

  	
   

  	
  Unit Option

  	
   

  	
   

  	
   

  	
  Warranty

  	
   

  
	
  Module

  	
   

  	
  Qty

  	
   

  	
  Price

  	
   

  	
  Extended Price

  	
   

  	
  (Months)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Central Recording Unit: (used)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Seismic Processor Module with fast download
  capability

  	
   

  	
  1

  	
   

  	
  44,256.00

  	
   

  	
  44,256.00

  	
   

  	
  12

  	
   

  
	
  Quad Line Interface Cards

  	
   

  	
  4

  	
   

  	
  18,250.00

  	
   

  	
  73,000.00

  	
   

  	
  12

  	
   

  
	
  Impulse Source Software

  	
   

  	
  1

  	
   

  	
  73,000.00

  	
   

  	
  73,000.00

  	
   

  	
   

  	
   

  
	
  Additional Flat Screen Monitor W/ Mounting Hardware

  	
   

  	
  1

  	
   

  	
  2,555.00

  	
   

  	
  2,555.00

  	
   

  	
  12

  	
   

  
	
  Annual Software License and Upgrades

  	
   

  	
  1

  	
   

  	
  9,000.00

  	
   

  	
  No charge first year

  	
   

  	
   

  	
   

  
	
  Vibroseis Option

  	
   

  	
  1

  	
   

  	
  18,250.00

  	
   

  	
  18,250.00

  	
   

  	
   

  	
   

  
	
  Standard Installation Kit

  	
   

  	
  1

  	
   

  	
  2,498.00

  	
   

  	
  2,498.00

  	
   

  	
   

  	
   

  
	
  Dual 3490 Tape Drive

  	
   

  	
  1

  	
   

  	
  34,748.00

  	
   

  	
  34,748.00

  	
   

  	
  12

  	
   

  
	
  Exchange Portable for Zero Clearance Racks

  	
   

  	
   

  	
   

  	
  (3,869.00

  	
  )

  	
  (3,869.00 

  	
  )

  	
   

  	
   

  
	
  ISYS V12 Thermal Plotter

  	
   

  	
  1

  	
   

  	
  8,355.00

  	
   

  	
  8,355.00

  	
   

  	
  12

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  252,793.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sub-Total Central Recording Unit

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Line Equipment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Remote Acquisition Modules (used)

  	
   

  	
  500

  	
   

  	
  10,240.00

  	
   

  	
  5,120,000.00

  	
   

  	
  24

  	
   

  
	
  Line Tap Units (used)

  	
   

  	
  36

  	
   

  	
  11,950.00

  	
   

  	
  430,200.00

  	
   

  	
  24

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sub-Total Line Equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5,550,200.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Line Test Equipment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hand held test
  unit with meter and matching geophone adapter

  	
   

  	
  5

  	
   

  	
  475.00

  	
   

  	
  2,375.00

  	
   

  	
  3

  	
   

  
	
  Power Head with 9 volt battery

  	
   

  	
  5

  	
   

  	
  110.00

  	
   

  	
  550.00

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sub-Total Line Test Equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,925.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Line Power Options

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lead Acid Battery Chargers

  	
   

  	
  26

  	
   

  	
  5,110.00

  	
   

  	
  132,860.00

  	
   

  	
  12

  	
   

  
	
  Lead Acid Battery Discharge Station

  	
   

  	
  1

  	
   

  	
  5,110.00

  	
   

  	
  5,110.00

  	
   

  	
  12

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sub-Total Line power Options

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  137,970.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Seismic Line Cables (Land)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4 TO X 75M BC,
  300M to Tideland’s Spec, Manufactured by Steward Cable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Not to Geo-X/ARAM Specs)

  	
   

  	
  1000

  	
   

  	
  550.00

  	
   

  	
  550,000.00

  	
   

  	
   

  	
   

  
	
  Line Cable Back to Backs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Steward Cable)

  	
   

  	
  2000

  	
   

  	
  35.00

  	
   

  	
  70,000.00

  	
   

  	
   

  	
   

  
	
  ARAM Aries
  Multi-Port Baseline Cables 8X26(0.36)GM3,280M total Length, special Cable
  Head Water blocking and back to back caps. (Used)

  	
   

  	
  72

  	
   

  	
  789.00

  	
   

  	
  56,808.00

  	
   

  	
   

  	
   

  
	
  ARAM Aries Baseline Back to Backs (Used)

  	
   

  	
  144

  	
   

  	
  80.00

  	
   

  	
  11,520.00

  	
   

  	
   

  	
   

  
	
  ARAM Aries Multi-Port Baseline Splitter Cables
  (Used)

  	
   

  	
  6

  	
   

  	
  702.00

  	
   

  	
  4,212.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sub-Total Seismic Land Cables

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  692,540.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Training

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operator training per student. Up to 4 weeks

  	
   

  	
  2

  	
   

  	
  2,960.00

  	
   

  	
  N/C

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sub-total Training

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  N/C

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shipping Crates

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5,482.62

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sub-Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6,641,910.62

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Discount

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (2,983,437.00

  	
  )

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,658,473.62

  	
   

  	
   

  	
   

  
	
  Sales Tax @ 8.25%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  301,824.07

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grand
  Total USD

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,960,297.69

  	
   

  	
   

  	
   

  

 

5

 

 

All
dollar amounts and references to currency herein are in United States dollars.

 

Note: All equipment provided by
Texas Seismic Rentals, Ltd, with the exception of that newly manufactured by
Steward Cable, will be either new or used, dependant upon availability at time
of delivery.

 

6

 

SCHEDULE “B”
to the SALE AGREEMENT

BETWEEN Texas Seismic Rentals, Ltd. and Tidelands Geophysical Co., Inc.

 

SOFTWARE
LICENSE AGREEMENT

 

ATTENTION:
Please read this Agreement carefully before using the Geo-X Products provided
by Texas Seismic Rentals, Ltd. This Agreement is a legally binding agreement
between you (Tidelands Geophysical Co., Inc.) and Geo-X Systems Ltd. (“Geo-X”).
By installing, copying or using the Software you are agreeing to be bound by
the terms of this Agreement and agree that good and sufficient consideration
has passed between Tidelands Geophysical and Texas Seismic Rentals, Ltd. in
provision of Geo-X equipment.

 

Geo-X
Software Product

 

This software product is
the object code of all software used in or with the ARAM•ARIES
Seismic Recording System (the “System”), including all amendments, supplements,
modifications, enhancements and new versions thereof, as well as any trial or
testing software (collectively, the “Software”), whether the Software was
delivered at the time of delivery of equipment as specified in the Sale
Agreement or other agreement entered into between the parties (the “Original
Agreement”) or at any other time, before or after execution of this Agreement,
and whether the Software is embedded as part of firmware or supplied
separately. At no time will Geo-X supply source code for Software and such
source code does not, in any event, form part of the Software.

 

The documentation
includes all instructional information, user manuals and other materials, together
with all amendments, supplements, modifications and new versions thereof, which
relate to or are used in association with the Software and/or the System (the “Documentation”).
The Software and Documentation are herein collectively referred to as the “Products”.

 

To the extent any terms
contained herein are inconsistent with or supplemental to the terms of the
Original Agreement, the terms of this Agreement shall govern and prevail. To
the extent the Original Agreement is not inconsistent herewith, the Original
Agreement is hereby ratified, confirmed and adopted.

 

Geo-X Software License

 

GRANT OF
LICENSE. Geo-X, as licensor, grants Tidelands, as licensee, a
non-exclusive, nontransferable, and limited right license for the use of the
Products.

 

REVISIONS
AND UPGRADES. If the Software is provided in accordance with
the Original Agreement, following delivery of the equipment and for the
duration of the Original Agreement, Geo-X will provide Tidelands with any new
released versions of the Software and Documentation pertaining thereto which
Geo-X develops. If the Original Agreement terminates due to purchase of the
equipment or the Software is not licensed subject to an equipment lease then
Geo-X will offer Tidelands subsequent upgrades of the Software and Documentation
pertaining thereto at Geo-X’s then prevailing upgrade fee. The terms of this
license shall apply to all upgraded or revised versions of the Software and
Documentation pertaining thereto.

 

OWNERSHIP
OF SOFTWARE. As licensee, Tidelands owns the physical media
on which the Products are originally or subsequently recorded (subject to any
retention of title contained in the Original Agreement between the parties),
but Geo-X retains title and ownership of the Software recorded on the original
media and all subsequent copies of the Software, regardless of the form or
media in or on which the original and other copies exist.

 

7

 

COPY
RESTRICTIONS. The Products are copyrighted by Geo-X.
Unauthorized copying of the Products is expressly forbidden. The Software may
be copied by Tidelands for backup purposes so long as it is used solely for the
System.

 

USE
RESTRICTIONS. Tidelands may use the Software on up to three
computers provided that its use is solely for the preparation and analysis of
data to be acquired or having been acquired with the System Tidelands shall not
reverse engineer, decompile, disassemble or translate the Products or any part
thereof.

 

TRANSFER
RESTRICTIONS. The Products are licensed only to Tidelands and
may not be transferred to any other individual or company without the prior
written consent of Geo-X. In no event may Tidelands transfer, assign, rent,
lease, sell, or otherwise dispose of the Products on a temporary or permanent
basis without such written consent.

 

CONFIDENTIAL
INFORMATION. All information, data, drawings, specifications,
documentation, software listings, source and object codes which Geo-X may have
imparted and may from time to time impart to Tidelands relating to the Products
(collectively, the “Confidential Information”), is proprietary and
confidential. Tidelands agrees by using the Software that it shall use the
Confidential Information solely in accordance with the provisions of this
software license and that it shall not at any time during or after expiry or
termination of this license, disclose the same, whether directly or indirectly,
to any third party without Geo-X’s prior written consent. Tidelands further
agrees that it shall not itself or through any subsidiary, agent or third
party, modify, vary, enhance, copy, sell, lease, license, sublicense or
otherwise deal with the Products or any part or parts or variations,
modifications, copies, releases, versions or enhancements thereof or have any
software or other program written or developed for itself based on any
Confidential Information.

 

TERMINATION.
This license shall be effective until terminated. This
license shall terminate automatically without notice from Geo-X if a defaulting
event occurs under this license. A defaulting event (“License Default”) shall
have occurred under this license if any of the following happen:

 

a)                                      Tidelands
suspends business, abandons or attempts to transfer or gives up possession of substantially
all of Tideland’s property;

 

b)                                     Tidelands
becomes subject to a bankruptcy, insolvency, receivership, reorganization, proposal,
arrangement or similar proceeding, or an encumbrancer takes possession of a substantial
part of Tideland’s property;

 

c)                                      if
any action is taken to wind-up, liquidate or dissolve Tideland’s; or

 

d)                                     Tidelands
does not perform any of its obligations (including not paying an amount when
due) or fails to comply with or is in breach of any term, condition or
provision under this license or under the Original Agreement between Geo-X and
Tidelands.

 

Upon termination of this
license for any reason whatsoever, Tidelands shall destroy all copies of the
Software, including modified copies, if any.

 

LIMITED WARRANTY.
THE PRODUCTS ARE PROVIDED ON AN “AS IS” BASIS WITHOUT WARRANTY OF ANY KIND.
FURTHER, GEO-X DOES NOT WARRANT, GUARANTEE, OR MAKE ANY REPRESENTATIONS
REGARDING THE USE, OR THE RESULT OF USE, OF THE PRODUCTS IN TERMS OF
CORRECTNESS, ACCURACY, RELIABILITY, CURRENTNESS, OR OTHERWISE. THE ENTIRE RISK
AS TO THE RESULTS AND PERFORMANCE OF THE PRODUCTS OR ANY CONSEQUENCES RESULTING
FROM ANY USE OF THE PRODUCTS IS ASSUMED ENTIRELY BY TIDELANDS. GEO-X WARRANTS
ONLY THAT THE MEDIA ON WHICH THE SOFTWARE IS RECORDED IS FREE FROM DEFECTS IN
MATERIALS AND WORKMANSHIP UNDER NORMAL USE AND SERVICE FOR A PERIOD OF THREE
MONTHS FROM THE DATE OF TIDELAND’S RECEIPT OF THE MEDIA. THE FOREGOING IS THE
ONLY WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED (BY STATUTE OR OTHERWISE).
NO ORAL OR WRITTEN INFORMATION OR ADVICE GIVEN BY GEO-X OR ITS REPRESENTATIVES
SHALL CREATE A WARRANTY OR IN ANY WAY INCREASE THE SCOPE OF THIS WARRANTY.

 

8

 

LIMITATION OF LIABILITY.
GEO-X’S ENTIRE LIABILITY AND TIDELAND’S EXCLUSIVE REMEDY AS TO THE MEDIA SHALL
BE REPLACEMENT OF THE MEDIA THAT DOES NOT MEET GEO-X’S LIMITED WARRANTY AS SET
OUT ABOVE, AND WHICH IS RETURNED TO GEO-X WITH A COPY OF THE RECEIPT. IF
FAILURE OF THE MEDIA HAS RESULTED FROM ACCIDENT, ABUSE, OR MISAPPLICATION,
GEO-X SHALL HAVE NO RESPONSIBILITY OR OBLIGATION TO REPLACE THE MEDIA. Any
replacement media shall be warranted for the remainder of the original warranty
period only. Neither Geo-X nor any of its representatives or anyone else who
has been involved in the creation, production, sale, or delivery of this
product shall be liable for any damages, including but not limited to, direct,
indirect, consequential, special, exemplary, or incidental damages (including,
without limitation, damages for the loss of business profits, business
interruption, loss of data or information, and the like) arising out of the use
of, inability to use, or performance of such product, even if Geo-X has been
advised of the possibility of such damages.

 

INTELLECTUAL PROPERTY RIGHTS.
Tidelands acknowledges that any and all of the trade-marks, trade names,
copyrights, patents, Confidential Information and other intellectual property
rights used or embodied in or in connection with the Products shall be and
remain the sole property of Geo-X. Tidelands shall not during or at any time
after the expiry or termination of this license in any way question or dispute
the ownership by Geo-X of any such rights. In the event that new inventions,
designs or processes evolve in performance of or as a result of this license,
Tidelands acknowledges that the same shall be the property of Geo-X unless
otherwise agreed in writing by Geo-X, and Tidelands shall hold same in trust
for Geo-X and forthwith upon the request of Geo-X assign the same to Geo-X.

 

WAIVER. Failure
or neglect by Geo-X to enforce at any time any of the provisions hereof shall
not be construed nor shall be deemed to be a waiver of Geo-X’s rights hereunder
nor in any way affect the validity of the whole or any part of this license nor
prejudice Geo-X’s rights to take subsequent action. Any waiver by Geo-X of any
of its rights hereunder, to be enforceable against Geo-X, must be in writing
and signed by Geo-X.

 

HEADINGS.
The headings of the terms and conditions herein contained are
inserted for convenience of reference only and are not intended to be part of
or to affect the meaning or interpretation of any of the terms and conditions
of this license.

 

SEVERABILITY.
In the event that any of these terms, conditions or
provisions shall be determined invalid, unlawful or unenforceable to any
extent, such term, condition or provision shall be severed from the remaining
terms, conditions and provisions which shall continue to be valid to the
fullest extent permitted by law.

 

GOVERNING
LAW. This license and its terms and conditions shall be governed
by and interpreted in accordance with the laws of the State of Texas and the
laws of the United States of America.

 

9

 

DATED at the City of
Stafford, in the State of Texas as of the date of the Original Agreement.

 

 

	
   

  	
  Tidelands
  Geophysical Co., Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ Wayne Whitener c/s

  	
   

  
	
   

  	
   

  	
  Wayne Whitener,
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Texas
  Seismic Rentals, Ltd.

  
	
   

  	
  (on
  behalf of Geo-X Systems Ltd.)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ Gary Bartlett c/s

  	
   

  
	
   

  	
   

  	
  Gary Bartlett,
  General Manager

  	
   

  

 

10

 

SCHEDULE C

 

EQUIPMENT LIST

 

 

	
  ITEM

  	
   

  	
  SERIAL
  NUMBER(S)

  

 

 

NOTE:

Currently
being compiled as equipment goes through final testing and will be available
some time next week.

 

11

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