Option Exercise and Equipment Purchase Agreement between Quantum Geophysical, Inc. and Mitcham Industries, Inc.
Quantum Geophysical, Inc. is exercising its option to purchase a 5040 channel RSR System II from Mitcham Industries, Inc. under Lease Agreement No. C001887. Quantum agrees to pay Mitcham monthly installments of $167,225 from July 2005 through April 2006, followed by a final payment of $81,100 in May 2006. Once all payments are made on time, Quantum will own the equipment. Both parties have agreed to these terms by signing the agreement.
Exhibit 10.1
July 27, 2005
Mr. Bill Mitcham
Mitcham Industries, Inc.
P. O. Box 1175
Huntsville, Texas 77342
Re: Lease Agreement No. C001887
Dear Mr. Mitcham:
Effective July, 2005, Quantum Geophysical, Inc. (“Quantum”) is electing to exercise its option to purchase a 5040 channel RSR System II, more fully described in Mitcham Industries, Inc. (“Mitcham”) Lease Agreement No. C001887.
Quantum will be obligated to make the following payments to Mitcham to satisfy the option; (i) monthly payments of $167,225 for the period July, 2005 through April, 2006 and (ii) a final payment of $81,100 in May, 2006. Upon timely receipt of the above payments, Quantum will have satisfied the obligations contained in the above referenced lease agreement and title to the optioned equipment shall pass to Quantum.
Please acknowledge your agreement and acceptance of the above terms by signing and dating in the space provided below.
| Agreed and Accepted | Lynn A. Turner |
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| Mitcham Industries, Inc. |
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| /s/ Lynn A. Turner |
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| By: | /s/ Bill Mitcham |
| President | ||
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| Bill Mitcham |
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| Date: | 8/8/05 |
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