Document:

Exhibit 10.12

 

WARRANT
PURCHASE

AGREEMENT

(        
Warrants)

 

This Warrant Purchase
Agreement (the “Agreement”) is
entered into by and between TGC Industries, Inc., a Texas corporation (“Company”), and                                                       
(“Seller”).

 

WHEREAS, in                            
Company issued a series of warrants convertible into Company’s Common Stock
known as the         Warrants (the “Warrants”), and Seller is at this time the
owner of                            
Warrants;

 

AND WHEREAS, Company
has filed with the Securities and Exchange Commission an SB-2 Registration
Statement covering 6,325,000 shares (which includes 825,000 possible
over-allotment shares) of Company’s Common Stock (the “Offering”); 

 

AND WHEREAS, Company
and the holders of the Warrants have agreed that, in order to facilitate the
Offering by simplifying Company’s capital structure, such holders will sell all
of their Warrants to Company (conditioned upon the successful completion of the
Offering).

 

NOW, THEREFORE, in
consideration of the foregoing and the covenants of the parties set forth
herein, it is hereby agreed as follows:

 

Subject to the
terms and conditions set forth herein, Seller agrees to sell all of Seller’s
Warrants to Company, and Company agrees to purchase and cancel all of such
Warrants.  Such Warrants constitute all
of the issued and outstanding        
Warrants owned by Seller.

 

Company agrees
to pay to Seller in cash that amount (the “Purchase
Price”) which is equal to the number of         
Warrants held by Seller times the spread between the gross offering price at (before
commissions and expenses) and the exercise price of each Warrant.

 

In addition,
each Warrant holder hereby agrees to reimburse Company an amount (the
“Reimbursement Amount”) equal to 6.5% of the Purchase Price.

 

If (and only
if) there is a successful closing of the Offering, Company shall be obligated
to pay to Seller the amount of the Purchase Price, and Seller shall be
obligated to pay to Company the Reimbursement Amount.  In order to avoid the unnecessary additional
step of having the parties “swap checks,” Company shall simply pay to Seller
that amount (the “Net Payment”)
in cash equal to the amount of the Purchase Price less the Reimbursement
Amount.

 

Simultaneously
with the signing of this Agreement by Seller, Seller shall forward the
certificate or certificates representing the Warrants being repurchased by
Company to Ms. Julia Gardner, 201 Main Street, Suite 2200, Fort
Worth, Texas 76102, so that such certificate or certificates can be held on a
temporary basis pending the closing of the Offering.  There shall be included with such certificate
or certificates Warrant Powers covering all such Warrants with signature
guarantee adequate to enable full transfer of title to Company upon successful
closing of the Offering.

 

1

 

Upon a
successful closing of the Offering, Ms. Gardner will deliver to Company
such certificate or certificates with instructions to Company to pay to Seller
the amount of the Net Payment.  Company
covenants and agrees that upon receipt of such certificate or certificates,
Company shall cancel the Warrants so that they will no longer be issued and
outstanding.

 

In the event
it becomes clear that the Offering will not be completed (and in any event no
later than November 30, 2005), Ms. Gardner will return to Seller all
such certificate or certificates then being held by her.

 

Seller
represents that (a) Seller has good and valid title to the Warrants free and
clear of any security interest, pledge, lien, encumbrance, or other adverse
claim, and (b) Seller has full legal right and power to sell, transfer, and
deliver the warrants to Company.

 

This Agreement
contains the entire understanding between the parties and supersedes any prior
understandings and agreements between them respecting the subject matter of
this Agreement.

 

This Agreement
shall for all purposes be deemed to be made under, and shall be construed in
accordance with, the laws of the State of Texas.

 

This Agreement
contains the entire agreement of the parties hereto with respect to the subject
matter hereof and, except as expressly provided herein, may not be changed or
modified except by an instrument in writing signed by the party to be charged.

 

This Agreement
may be executed in multiple counterparts, each of which will be deemed an
original, and all of which together will constitute one and the same
instrument.

 

This Agreement
shall be binding upon and inure to the benefit of the respective parties hereto
and their legal representatives, successors, and assigns.

 

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement to be effective as of the         
day of September, 2005.

 

	
  COMPANY:

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  TGC Industries, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Wayne
  Whitener,

  	
   

  
	
   

  	
  President
  and Chief

  	
   

  
	
   

  	
  Executive
  Officer

  	
   

  
						

 

2Exhibit
10.23

 

EQUIPMENT
SALES CONTRACT

 

1. 
CONTRACT SUBJECT

 

The SELLER shall supply the BUYER with Geophysical Equipment, parts,
and services, and the BUYER shall pay the SELLER for these items, as defined in
this agreement.

 

2. 
CONTRACTING PARTIES

 

	
  BUYER:

  	
   

  	
  TGC INDUSTRIES, INC. (TIDELANDS)

  
	
   

  	
   

  	
  1304 Summit Ave, Suite 2

  
	
   

  	
   

  	
  Plano, TX 75074

  
	
   

  	
   

  	
   

  
	
  SELLER:

  	
   

  	
  INDUSTRIAL VEHICLES INTERNATIONAL, INC.
  (IVI)

  
	
   

  	
   

  	
  6737 East 12th Street

  
	
   

  	
   

  	
  Tulsa, OK 74112-5684

  

 

3. 
EQUIPMENT

 

The equipment to be supplied are three birdwagen/HEMI 60 vibrators as
specified in the attached Quotation #7556.

 

4. 
PRICES

 

The prices are specified in the attached Quotation #7556.  These prices are firm and are expressed in US
Dollar.  The total value of this contract
is Nine hundred forty seven thousand, nine hundred fifty-five US Dollars
($947,955.00 USD).

 

5. 
DELIVERY

 

The EQUIPMENT specified is to be delivered fob, Tulse, Oklahoma on the
following dates:

 

	
  August 31 or
  earlier

  	
   

  	
  birdwagen/HEMI
  60 Serial # 595

  
	
  September 26
  or earlier

  	
   

  	
  birdwagen/HEMI
  60 Serial # 596

  
	
  September 26
  or earlier

  	
   

  	
  birdwagen/HEMI
  60 Serial # 597

  

 

6. 
PAYMENT

 

Payment for the EQUIPMENT as
specified above shall be effected as follows:

 

1.  BUYER will make a Ninety thousand US Dollar
($90,000.00 USD) down payment within 15 days of the execution of this contract.

2.  BUYER will pay Two hundred eighty-five
thousand, nine hundred eighty-five US Dollars ($285,985.00 USD) prior to
shipment of HEMI 60 Serial # 595 from Tulsa, Oklahoma.

2.  BUYER will pay Five hundred seventy-one
thousand, nine hundred seventy US Dollars ($571,970.00 USD) prior to shipment
of HEMI 60 Serial # 596 and 597 from Tulsa. Oklahoma.

 

 

7.     TITLE

 

The SELLER shall retain ownership in the equipment until payment in
full has been made by the BUYER for each vibrator. Upon final payment for each vibrator
ownership and Title to each vibrator shall immediately pass to the BUYER.

 

8.     START-UP PROTOCOL

 

The SELLER will send a technician to assist the BUYER in the initial
start-up of the equipment.

 

9.     TECHNICAL DOCUMENTATION

 

The SELLER will supply with each vibrator unit one complete electronic
Technical Manual and one complete electronic Parts Manual.

 

10.  WARRANTY

 

All the specified equipment in this contract will be new.  SELLER warrants that all equipment and spare
parts on the date of delivery will conform to their published
specifications.  The warranty period will
be 12 months on all equipment commencing on the shipment date from the SELLER’S
factory.

 

A.    SELLER
warrants Products manufactured by it to be free from defects in material and
workmanship for a period of 12 months after the Products are shipped by
SELLER.  In the event that any materials
or parts are found to be defective during such 12 month period, SELLER shall
replace or otherwise correct the same within 30 days of written notice of
failure, and return of the failed parts to the SELLER.  Such parts shall be at SELLER’s sole cost,
except that if the equipment undergoing repair or correction is more than 100
miles from SELLER’s plant, the BUYER will pay the express or freight charges
for repair parts.

 

B.    The
warranty does not oblige the SELLER to bear the cost of downtime or loss of
profits in connection with the replacement or repair of defective parts, nor
shall it apply to Products upon which repairs or alterations have been made,
unless such was authorized by or on behalf of the SELLER.

 

C.    The
Warranty is subject to the operator of the equipment following the prescribed
maintenance procedures recommended by the SELLER in the technical literature
and manuals.  This includes using proper
repair procedures, repair parts, lubricants, oils, fuels, and filters.  The Warranty does not apply to parts which
need to be replaced due to normal wear and tear; normal maintenance; the effects
of humidity, weather, or the elements; or operator error.

 

D.    SELLER
makes no Warranty in respect to diesel engines, such being subject to the
Warranties of their respective Manufacturer.

 

11.  FORCE MAJEURE

 

The SELLER shall bear no responsibility for failure to fulfill their
obligations under the Contract upon the occurrence of the Force Majeure.  As Force Majeure is understood: Fires,
Floods, Earthquakes, Explosions, as well as Wars, Riots, Mutinies, Revolts and
General Strikes which could seriously hamper and influence the expediting of
EQUIPMENT.

 

The SELLER undertakes to inform without any delay the BUYER on the
occurrence of the Force Majeure and within 10 days from the setting in such an
event to send to the BUYER an official document confirming the occurrence of the
Force Majeure and its relation with the impossibility to fulfill the Contract
requirements.  In case the above
mentioned notifications and confirmations are

 

 

not sent with the above mentioned terms, the SELLER referring to Force
Majeure shall not be entitled to enjoy its rights under this Article.

 

In the event of Force Majeure and in case as far as it concerns the
delivery time and other terms mentioned in the Contract, the relevant terms
shall be prolonged by the same time as the Force Majeure has lasted.

 

In case the Force Majeure lasts for more than 2 months, BUYER shall
have the right to cancel the Contract in full or partially.

 

14. COMING INTO FORCE OF THE CONTRACT

 

This Contract shall come into force after the date of signing it by
both parties and upon the receipt of the first payment described in Section 5
above.

 

15. GENERAL PROVISIONS

 

In the event SELLER cannot deliver EQUIPMENT due to Force Majeure,
SELLER will return all payments made by BUYER to SELLER.  This will be done within 10 days of such
notification of SELLER to the BUYER.

 

 

	
  TGC Industries, Inc.

  
	
   

  
	
  By:

  	
   

  	
  Date:

  	
  May 31, 2005

  	
   

  
	
   

  
	
  Name

  	
   

  	
   

  
	
   

  
	
  Position

  	
   

  	
   

  
	
   

  
	
  Witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
   

  
	
  Industrial Vehicles International, Inc.

  
	
   

  
	
  By:

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  
	
  Name

  	
   

  	
   

  
	
   

  
	
  Position

  	
   

  	
   

  
	
   

  
	
  Witness

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