SEISMIC PERMIT AGREEMENT THIS SEISMIC PERMIT AGREEMENT (the "Agreement") is made and entered into this 18th day of November, 2009, by and between Suemaur Exploration & Production, LLC (“Operator”), and Nueces County, Texas (“Landowner”). WHEREAS, the Landowner owns Property, said property being described below and depicted on the plat attached hereto as Exhibit “A”, (the “Property”); and WHEREAS, the Operator and its geophysical contractor, Dawson Geophysical Company, are planning to conduct a 2-D Geophysical Survey in Nueces County, Texas, and a part of Operator’s Seismic Line No. 2 is currently designed to cross the surface of the Property. INTENDING TO BE LEGALLY BOUND, IN CONSIDERATION OF THE MUTUAL COVENANTS AND PROMISES CONTAINED HEREIN, THE PARTIES HERETO AGREE AS FOLLOWS: Specific Terms of Agreement. For and in consideration of the sum of $ Landowner grants Operator the right to enter onto the Property for the purpose of conducting a 2- D seismic survey across the Property, being described as follows: TWENTY-THREE and 90/100 (23.90) acres of land, more or less being out of and a part of the Oso Sand Flats portions of Lots 7A, 8, and 9 of Section 26 of the Flour Bluff and Encinal Farm and Garden Tracts Subdivision of the Enrique Villareal Grant, as shown on the map or plate thereof recorded at Volume A, Pages 41, 42, and 43 of the Map Records of Nueces County, Texas, and being more fully described, more or less, by metes and bounds in that certain Quitclaim Deed dated December 22, 1986, from C.B. Slabaugh and wife, Jane Slaubaugh to the County of Nueces and recorded at Document Number 529385 of the Official Records of Nueces County, Texas. This agreement shall be valid for 12 Months from the effective date of November 18, 2009. This survey will consist of surveying and laying of seismic recording devices (cables and geophones), drilling holes and data acquisition. All operations will be conducted in accordance with the attached Seismic Contract Addendum, which is hereby incorporated by reference. _____________________________________________________________________________________________________ Seismic Contract Addendum Page 1 of 5 SEISMIC CONTRACT ADDENDUM 1. PARTIES. This Addendum constitutes a contract entered into between the undersigned LANDOWNER (herein so called) and the undersigned OPERATOR (herein so called). Landowner holds the right to possession of the Land, whether by fee ownership, leasehold ownership, or other means. Operator is, either directly or indirectly, establishing the means by which seismic preparation, operations, and conduct relating thereto (collectively called the “Seismic Operations”), will be undertaken on the Land. 2. REPRESENTATIONS. Operator represents that: (a) Operator will bear responsibility for all Seismic Operations; and (b) the Seismic Operations are for the purpose of evaluating mineral development prospects on the subject Land owned by the Landowner. 3. DANGEROUS CONDITIONS. Operator has inspected or will inspect the Land carefully to determine the existence of any conditions posing unreasonable risks of harm. Before any further Seismic Operations on the Land, Operator will take all reasonable precautions to avoid any unreasonable risk of harm. 4. PERMITS. Operator is solely responsible for: (a) determining what, if any, permits and like matters are necessary for the Seismic Operations in, on, over, and under the Land; and (b) taking all necessary steps to obtain any such permits. 5. OPERATIONS LEGAL PROTECTION. OPERATOR WILL INDEMNIFY, DEFEND, AND HOLD LANDOWNER AND LANDOWNER'S SUCCESSORS AND ASSIGNS HARMLESS FROM ALL LOSS, LIABILITY, AND EXPENSES PERTAINING TO ANY SEISMIC OPERATIONS. OPERATOR SHALL SAVE HARMLESS LANDOWNER FROM ANY AND ALL EXPENSE INCLUDING BUT NOT LIMITED TO ATTORNEY FEES WHICH MAY BE INCURRED BY LANDOWNER IN LITIGATION OR OTHERWISE RESISTING SAID CLAIM OR LIABILITIES WHICH MAY BE IMPOSED ON THE LANDOWNER AS A RESULT OF SUCH SEISMIC OPERATIONS. OPERATOR WAIVES AND RELEASES LANDOWNER FROM ANY CLAIMS FOR PROPERTY DAMAGES AND PERSONAL INJURIES OR DEATH TO OPERATOR OR ANY OF OPERATOR'S REPRESENTATIVES, AGENTS, INVITEES, LICENSEES, AND TRESPASSERS IN ANY MANNER ARISING OUT OF ANY SEISMIC OPERATIONS. THIS INDEMNIFICATION, WAIVER, AND RELEASE BY OPERATOR WILL SURVIVE ANY TERMINATION OF THIS CONTRACT. 6. SEISMIC OPERATIONS RESTRICTIONS. A. Time. Seismic Operations on the Land may only be conducted during the period starting with the Effective Date and ending on November 17, 2010 (“Termination Date”). B. Seismic Plans. The number and spacing of geophones along each receiver line, line density, energy source, source point spacing and geometry of the source/receiver array will be in accordance with industry standards and will be furnished to Landowner upon written request. C. Brush & Trees. Operator will use only hand-held manually operated equipment, hydro-axes, or wood-gators for clearing brush, and the use of bulldozers is prohibited without prior written consent. Trees (meaning any vegetation with a base 24" above the ground having a circumference of over 4") will not be damaged or removed. D. Ground Protection. Roads will not be constructed and any vehicles larger than a 3/4 ton truck must be equipped with large "tundra" tires. _____________________________________________________________________________________________________ Seismic Contract Addendum Page 2 of 5 7. INFORMATION. Operator will provide by email the information ("I.D. Information") described below to the Landowner at least seven (7) calendar days prior to the person entering the Land: (a) Full and proper names, phone numbers and addresses; (b) Copy of photo identification suitable for airline travel requirements (e.g., driver's license); and (c) Identification of vehicle type, color and license plate identification. 8. DUTIES OF CONDUCT. Operator agrees to– A. Obey Laws. Obey all laws, ordinances, orders, rules and regulations, and keep all records applicable to the use, condition, and occupancy of the Land. B. Maintain. Repair or replace any damage caused by Seismic Operations to the Land, crops, wildlife, water wells or water lines, owned by Landowner. This includes repairing roads and replanting grass where necessary to remedy damages caused from vehicles of any kind traversing the surface and leaving ruts of a depth of more than six inches (6”). C. Existing Roads and Gates. Operator agrees to repair any damage to the existing roads and shall use only those gates designated by Landowner for accessing adjacent public roads (which may be limited to one gate), keep all gates on the perimeter of the Land closed, and lock those adjacent to public roads; further, if requested by Landowner, place a lock on each entrance gate and, on or before the Termination Date, remove each lock. D. Publish Notice. Operator agrees to provide public notice of its operations in a newspaper of general circulation in the County at lease one week prior to initiation of activity. E. Vacate. Vacate the Land by midnight on the Termination Date. 9. PROHIBITIONS OF CONDUCT. Operator agrees not to– A. Uses. Use the Land for any purpose other than that stated herein. B. Nuisance. Create or allow a nuisance or permit any waste or injury to the Land or the vegetation or livestock or wildlife thereon. C. Locks. Change Landowner's lock system. D. Alter. Alter the Land except as specifically permitted. E. Assign. Assign this Contract or sublease any portion of the Land. F. Litter. Litter or leave trash, debris, or shell casings on the Land. G. Visitors. Allow visitors who are not reasonably required for the Seismic Operations. H. Artifacts. Allow rock or artifact hunting, or remove rocks or artifacts from the Land. I. ATVs. Allow anyone under the age of twenty-one (21) on an ATV (all-terrain vehicle), or use such ATVs for any purpose other than Seismic Operations. J. Hunting & Fishing Equipment. Allow any hunting or fishing equipment on the Land. K. Dogs. Allow any dogs on the Land. _____________________________________________________________________________________________________ Seismic Contract Addendum Page 3 of 5 10. SEISMIC PAYMENT. Operator will pay to Landowner the sum of $ for the right to use the Land, regardless of whether Operator actually uses the Land, and notwithstanding any other provision to the contrary. Operator’s failure to pay such amount by November 18, 2009, will result in the automatic termination of this Contract. 11. MISCELLANEOUS. A. Controlling Terms. If the provisions of other parts of the foregoing Contract document to which this Addendum is attached conflict with the terms of this Addendum, then the terms of this Addendum will control. B. Defined Terms. Defined terms provided at the beginning of this Agreement, where terms with the first letter of key words are capitalized and referenced by quotes within a parenthesis, and where terms are otherwise stated in such a way as to reasonably indicate an intention to serve as a defined term, all constitute the definitions of those same terms when used herein. C. Effective Date. The Effective Date of this Contract is November 18, 2009. D. Execution of Document. This Agreement may be executed in multiple counterparts, each of which will, for all purposes, be deemed an original, but which together constitute one and same instrument. Copies of signatures, when delivered by fax or other electronic means, are valid as originals. Each signatory signing in a representative capacity hereby represents and warrants such signatory’s authority to bind the principal identified in the signature block. E. Grammatical Context. When the context requires, singular nouns and pronouns include the plural. F. Integration. This Agreement contains the complete agreement between the parties and cannot be varied except by the written agreement signed by the parties. G. Notices. Any notice will be deemed to be delivered, whether actually received or not, when deposited in the United States mail, postage fully prepaid, certified mail, and addressed to the intended recipient at the last known address according to the records of the party delivering the notice. Notice given in any other manner will be effective only if and when received by the addressee. Any address for notice may be changed by written notice delivered as provided here. The address provided below the signatures is a valid address unless changed by proper notice. H. Successors. This Agreement binds, benefits, and may be enforced by the successors in interest of the parties, except as otherwise provided. Landowner Operator ______________________________ ______________________________ Samuel L. Neal, Jr. County Judge Charles A. James Senior Landman Date Signed: ___________________ Date Signed: ___________________ _____________________________________________________________________________________________________ Seismic Contract Addendum Page 4 of 5 Notice Address: Notice Address: Nueces County Courthouse 901 Leopard Rm 303 Corpus Christi, TX 78401 ______________________________ Fx# 361-888-0445 Ph# 361-888-0444 1000 Frost Bank Plaza 802 North Carancahua Street Corpus Christi, TX. 78470-0400 ______________________________ Fx# 361-884-9623 Ph# 361-884-8824 Attest: _________________________________________ County Clerk _________________________________________ Date ATTACHMENT(S) N/A _____________________________________________________________________________________________________ Seismic Contract Addendum Page 5 of 5