On November18, 2019, SAExploration, Inc. (“SAExploration”), a subsidiary of SAExploration Holdings, Inc. (the “Company”), financed the purchase of a 30,000 single channel GCL system (the “Equipment”) from GTC, Inc. (“GTC”) pursuant to a secured promissory note (the “Promissory Note”) in favor of GTC in the principal amount of $9,973,730.
The Promissory Note bears interest at a fixed rate equal to 7% per annum and matures on January1, 2023 (the “Maturity Date”). Principal and interest will be due and payable in equal monthly payments of $307,959.83, beginning on February1, 2020, and each month thereafter until the Maturity Date.
Concurrently with the delivery of the Promissory Note, SAExploration and GTC entered into a Purchase Money Security Agreement (the “Security Agreement”), which granted GTC a security interest in the Equipment to secure SAExploration’s obligations under the Promissory Note.
The foregoing descriptions of the Promissory Note and the Security Agreement are summaries only and are qualified in their entirety by reference to the complete text of (i)the Promissory Note, attached as Exhibit 10.1 hereto, and (ii)the Security Agreement, attached as Exhibit 10.2 hereto, each incorporated herein by reference.