Warrant Issuance Agreement
   ION Geophysical Corporation,
  BGP Inc., China National Petroleum Corporation




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TABLE OF CONTENTS
 PageRecitals
    
    
    1Article I
Issuance; Closing1.1 Issuance
    
    
    11.2 Terms of Warrant
    
    
    11.3 Closing
    
    
    11.4 Interpretation
    
    
    3Article II
Representations and Warranties2.1 Disclosure
    
    
    32.2 Representations and Warranties of Company
    
    
    32.3 Representations and Warranties of Investor
    
    
    7Article III
Covenants3.1 Certain Actions by Company
    
    
    83.2 SEC Reports; NYSE Listing; Registration Statement
    
    
    83.3 Use of Proceeds
    
    
    83.4 Sufficiency of Common Shares
    
    
    83.5 Change of Control
    
    
    9Article IV
Additional Agreements4.1 Expenses
    
    
    94.2 Best Efforts
    
    
    94.3 Transfers
    
    
    94.4 Investor Filings
    
    
    10Article V
Indemnity5.1 Indemnification of Investor
    
    
    105.2 Conduct of Claims
    
    
    10
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PageArticle VI
Miscellaneous6.1 Termination
    
    
    116.2 Amendment
    
    
    116.3 Waiver of Conditions
    
    
    116.4 Counterparts and Facsimile
    
    
    116.5 Governing Law; Submission to Jurisdiction, Etc.
    
    
    126.6 Notices
    
    
    126.7 Entire
Agreement, Etc.
    
    
    136.8 Definitions of Subsidiary, affiliate and person
    
    
    136.9 Assignment
    
    
    136.10 Severability
    
    
    136.11 No Third Party Beneficiaries
    
    
    146.12 Further Assurances
    
    
    14
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LIST OF ANNEXES AND SCHEDULES
 ANNEX A:
    
    FORM OF WARRANTANNEX B:
    
    FORM OF REGISTRATION RIGHTS AGREEMENTANNEX C:
    
    CHIEF FINANCIAL OFFICERS CERTIFICATEANNEX D:
    
    FORM OF LEGAL OPINIONSCHEDULE 2.2(b):
    
    COMPANYS CAPITAL STRUCTURESCHEDULE 4.3(a):
    
    PERSONS TO WHOM WARRANT SHALL NOT BE TRANSFERRED
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INDEX OF DEFINED TERMS
 Location ofTerm
    
    Definitionaffiliate
    
    6.8(b)Agreement
    
    PreambleBankruptcy Exceptions
    
    2.2(d)(i)Beneficial Ownership
    
    3.5Board
    
    2.2(l)Bridge Funding
    
    Recital ABusiness Day
    
    1.4Change of Control
    
    3.5Closing
    
    1.3(a)Closing Date
    
    1.3(a)Commission
    
    2.1(a)Common Shares
    
    Recital BCompany
    
    PreambleCompanys Knowledge
    
    2.2(l)control
    
    6.8(b)Convertible Notes
    
    1.3(c)Credit Agreement
    
    Recital AExchange Act
    
    2.1(a)GAAP
    
    2.2(e)(i)Governmental Entities
    
    2.2(d)(iii)HKIAC
    
    6.5(b)Indemnified Party
    
    5.1Indemnifying Party
    
    5.2(a)Investor
    
    PreambleInvestor Material Adverse Effect
    
    1.3(c)ION International
    
    Recital AIssuance
    
    1.1Material Adverse Effect
    
    1.3(d)(i)New Lender
    
    Recital ANYSE
    
    2.2(k)person
    
    6.8(c)Previously Disclosed
    
    2.1(a)Proceeding
    
    5.1Registration Rights Agreement
    
    Recital DSEC Reports
    
    2.1(a)Securities Act
    
    Recital CSubsidiary
    
    6.8(a)Transaction Documents
    
    2.1(b)Transaction Term Sheet
    
    2.2(l)Transfer
    
    4.3(a)Warrant
    
    Recital BWarrant Shares
    
    Recital B
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This Warrant Issuance Agreement Agreement Company Investor
 Recitals
 WHEREAS:
 New Lender Bridge Funding Credit Agreement société à responsabilité limitée ION
International
 Warrant Annex
A Common Shares Warrant Shares
 Securities Act
 Registration Rights Agreement Annex B.
 NOW, THEREFORE,
 Article I
 Issuance; Closing
 Issuance Issuance
 Terms of Warrant
 Closing
 Closing th




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Closing Date
  Convertible Notes Investor Material Adverse Effect
  Material Adverse Effect
 Annex A
 Annex B
 Annex
C
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Annex D
 Interpretation Business Day
 Article II
 Representations and Warranties
 Disclosure
 Previously Disclosed Commission SEC Reports  Exchange
Act 
  Transaction Documents
 Representations and Warranties of Company
 Organization, Authority and Subsidiaries
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Capitalization
 Warrant and Warrant Shares
 Authorization, Enforceability
  Bankruptcy Exceptions 
  4




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Governmental Entities
 Company Financial Statements
 GAAP
  Reports
    No Material Adverse Effect
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Exemption from Registration
 Solvency. bona fide
 Form S-3
 NYSE NYSE
 Certain Certifications Transaction Term Sheet Companys Knowledge Board
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Representations and Warranties of Investor
 Authorization, Enforceability
   Investment Purposes
 Legend
  7




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provided
 Article III
 Covenants
 Certain Actions by Company
 SEC Reports; NYSE Listing; Registration Statement
 Use of Proceeds
 Sufficiency of Common Shares
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Change of Control Change of Control Beneficial Ownership
 Article IV
 Additional Agreements
 Expenses
 Best Efforts
 Transfers
 Transfer
  9




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Investor Filings
 Article V
 Indemnity
 Indemnification of Investor. Indemnified Party Proceeding
    Conduct of Claims.
   10




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Article VI
 Miscellaneous
 Termination
 th provided th provided further th
 bona fide
    Amendment
 Waiver of Conditions
 Counterparts and Facsimile
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Governing Law; Submission to Jurisdiction, Etc.
  HKIAC
   Notices
 (A)
    
    If to the Investor:
 
  th
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(B)
    
    If to the Company:
 
 Entire Agreement, Etc.
 Definitions of Subsidiary, affiliate and person Subsidiary
 affiliate control
 person
 Assignment
 Severability
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No Third Party Beneficiaries
 Further Assurances
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In
Witness Whereof
 ION GEOPHYSICAL CORPORATIONBy:
    /s/ David L. RolandName:
    David L. RolandTitle:
    Senior Vice President, General Counsel andCorporate SecretaryBGP INC., CHINA NATIONAL PETROLEUM CORPORATIONBy:
    /s/ Wang TiejunName:
    Wang TiejunTitle:
    President 15