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Exhibit 10.5

**SEITEL, INC.**

**Revised Summary of 2005 Non-Employee Director and ExecutiveOfficerCompensation and Incentive Arrangements**

General

    The following reflects updated information for revisions made to certainnon-employee director and executive officer compensation and incentivearrangements during 2005.

Non-EmployeeDirector Compensation

    For fiscal year 2005, non-employee directors of Seitel, Inc. (the"Company") receive an annual fee of $30,000, annual restricted stock awardsvalued at $20,000 (granted at the close of the first trading date of thecalendar year), $1,500 for each board meeting attended in person and $500 foreach board meeting attended by telephone conference, including committeemeetings attended.  In addition, the Chairman of the Board receives $250,000per year on an annualized basis, which was reduced to $100,000 effective July1, 2005, the Lead Director (which position was left vacant effective June 1,2005) receives $1,500 per day when performing services on behalf of the Company,and annual fees are paid to each committee chairman as follows: auditcommittee, $15,000; compensation committee, $10,000; corporate governance andnominating committee $7,500. All directors are entitled to reimbursement fortheir reasonable out-of-pocket expenditures.

ExecutiveOfficer Compensation

    The Company has the following compensatory arrangements with each of itsexecutive officers for fiscal year 2005:
| **Name**            | **Title**                                                         | **Base   Salary**  | **Restricted   Stock Grants(1)(2)** | **Unrestricted   Stock Grants(1)(2)** | **Discretionary   Cash Bonuses(1)** |
|---------------------|-------------------------------------------------------------------|--------------------|-------------------------------------|---------------------------------------|-------------------------------------|
| Robert D. Monson    | President and Chief Executive  Officer                            | $400,000           | 316,000(3)                          | -                                     | -                                   |
| Kevin P. Callaghan  | Executive Vice President and  Chief Operating Officer             | $330,000           | 440,000                             | -                                     |                                     |
| Robert J. Simon     | President -  Seitel Data, Ltd.                                    | $260,000           | 321,000                             | -                                     |                                     |
| Garis Smith         | President - Olympic Seismic,  Ltd.                                | C $240,000(4) | 146,000                             | 32,000                                | C $101,724(4)                  |
| William J. Restrepo | Executive Vice President, Chief  Financial Officer  and Secretary | $240,000(5)        | 210,000(6)                          | -                                     | -                                   |
| Marcia  H. Kendrick | Senior  Vice President, Chief Accounting Officer and Treasurer    | $200,000           | 156,000(2)                          | -                                     | -                                   |
|                     |                                                                   |                    |                                     |                                       |                                     |

                        
| (1)
Each executive officer is also    eligible, under the Incentive Plan, for a cash bonus and a further equity    award in a dollar amount equal to the participant's target percentage    multiplied by the participant's cash bonus amount, if any.  See    "Incentive Plan for 2005" below.

 
(2)
Includes restricted stock granted    pursuant to the Incentive Plan and other discretionary awards.  See    "Incentive Plan for 2005" below.

 
(3)
Included in the 1,000,000 shares    of restricted stock awarded to Mr. Monson on December 15, 2005.

 
(4)
Represents Canadian dollars.

 
(5)
Represents    annualized based salary.  Mr. Restrepo joined the Company on July 25,    2005.

 

(6)
Mr. Restrepo is entitled to a    further equity award valued at approximately $52,600 payable in January    2006.
Incentive Planfor 2005

    On January 24, 2005 the Compensation Committee of the Companyestablished the criteria to be used in determining cash bonuses and certainincentive equity awards (the "Incentive Plan") for fiscal year 2005.  TheCompany's named executive officers and certain other executives participate inthe Incentive Plan, which is operated under the Company's 2004 Stock OptionPlan (the "Plan").  The targets and financial performance measures establishedunder the Incentive Plan are described below.  The CompensationCommittee reserves the right to modify the targets and financial performancemeasures at any time, or to grant cash bonuses or equity awards to executiveofficers even if the performance goals are not met.  The cash bonuses andPerformance Equity Awards (defined below) are subject to increase or decreaseof up to 50% in the discretion of the Compensation Committee.  Inorder to receive a cash bonus and incentive equity award, if any, theparticipants must be employed by the Company on the date such cash bonuses andincentive equity awards are paid; however, Messrs. Manson, Callaghan andRestrepo may be eligible for a cash bonus payable after termination inaccordance with the terms of each of their written employment agreements.  TheCompany expects to pay 2005 cash bonuses and Performance Equity Awards, if any,in early 2006.  The Compensation Committee reserves the right to modify theIncentive Plan for subsequent fiscal years.

*Cash Bonuses*

    The Incentive Plan provides for a target cash bonus for each participantbased upon a percentage of the participant's base salary, with the opportunityto earn anywhere from 0% to 200% of the target cash bonus.  The targets, as apercentage of base salary, for the Company's named executive officers are asfollows:

Robert D. Monson, 

  President and Chief Executive Officer

 
90%
Kevin P.Callaghan, 

   ChiefOperating Officer and Executive Vice President   

 
60%
Robert J.Simon, 

  President-Seitel Data, Ltd. 

 
60%
GarisSmith

  President-Olympic Seismic, Ltd.    

 
45%
WilliamJ. Restrepo,

   ExecutiveVice President, Chief Financial Officer

   andSecretary 

 
50%(1)
Marcia H.Kendrick, 

   SeniorVice President, Chief Accounting Officer,

   andTreasurer

25%
                        

 

(1)Mr. Restrepo's cash bonus will be prorated because of his July 25, 2005 start date.
    The Compensation Committee established cash margin, net of interestexpense (80% weight) and client pre-funding percentage (20% weight) as thefinancial performance measures under the Incentive Plan.  Cash margin includescash resales plus all other cash revenues other than from data acquisitions,less cash selling, general and administrative expenses, and cost of goodssold.  Cash resales result when the Company invoices customers for purchases oflicenses to data from the Company's library.  Other cash revenues are primarilyfrom the reproduction and delivery of seismic data.  Client prefundingpercentage is the average of all revenue pre-commitments for each new survey asa percentage of the total cost of such survey.  Where the level achieved underthe financial performance measures falls between zero and target level ortarget and maximum levels, the cash bonus is determined by interpolation.

*IncentiveEquity Awards*

    The Incentive Plan includes two categories of equity awards.  Robert D.Monson, Kevin P. Callaghan, Robert J. Simon, William J. Restrepo, and Marcia H.Kendrick are the executives currently eligible for the first category of equityaward ("Key Executive Award(s)").  With the exception of Mr. Restrepo, the 2005Key Executive Awards have been made in shares of the Company's restrictedcommon stock, par value $.01 per share (the "Common Stock"), under the Plan asfollows:

**Shares**

**Award Date**

Robert D.  Monson,    President and Chief Executive Officer

316,000

December 15,  2004

Kevin P.  Callaghan,    Chief Operating Officer and Executive Vice President

160,000

March 23,  2005

Robert J.  Simon,    President-Seitel Data, Ltd.

126,000

February 15,  2005

Marcia H.  Kendrick    Senior Vice President, Chief Accounting Officer    and Treasurer

 

36,000

July 14,  2005

    Mr. Restrepo's 2005 Key Executive Award will be valued at approximately$52,600 and payable in shares of restricted Common Stock based on the closingprice of the Common Stock on the first trading day in 2006.

    Mr. Monson's Key Executive Award of 316,000 shares of restricted CommonStock was included in the 1,000,000 shares of restricted Common Stock awardedto him on December 15, 2004, and is subject to increase.  He is entitled to a 2005Key Executive Award of restricted Common Stock in an amount equal to 90% of hisbase salary ($360,000) and has been deemed to have received $316,000 of thisamount with the 316,000 shares already awarded.  The closing price of theCommon Stock on the first trading day in 2006 will be divided into $44,000 toarrive at the number of additional restricted Common Stock to be awarded to Mr.Monson.  Unless modified by the Compensation Committee and except as notedbelow, Key Executive Awards in subsequent years will be made in shares ofrestricted Common Stock in dollar amounts equal to the participant's targetpercentage (Mr. Monson (90%), Mr. Callaghan (60%)(1), Mr. Simon(60%), Mr. Restrepo (50%), and Ms. Kendrick (25%)) multiplied by theparticipant's base salary.  These subsequent year Key Executive Awards, will bemade based on the closing price of the Common Stock on the first trading day ofthe year.

    All participants in the IncentivePlan are eligible for the second category of equity awards ("Performance EquityAwards"), which will be made in shares of restricted Common Stock (except asnoted below) in a dollar amount equal to the participant's target percentagemultiplied by the participant's cash bonus amount.  Performance Equity Awardswill be made only if the participant meets the performance criteria to receivea cash bonus as described above.  The named executive officers' targetpercentages for a Performance Equity Award are as follows:

Robert D.Monson, 

  President and Chief Executive Officer   

 

90%
Kevin P.Callaghan, 

   ChiefOperating Officer and Executive Vice President   

 

60%
Robert J. Simon, 

  President-Seitel Data, Ltd.        

 

60%
GarisSmith,   President-Olympic Seismic, Ltd.  

 
50%(1)
WilliamJ. Restrepo,   Executive Vice President, Chief Financial Officer

   andSecretary 

 

50%(2)
Marcia H.Kendrick, 

   SeniorVice President, Chief Accounting Officer,

   andTreasurer     

 50%
                        

(1)
Approximately 40% of Mr. Smith's    future Key Executive Awards and Performance Equity Awards are expected to be    made in shares of unrestricted Common Stock.

 
(2)
Mr. Restrepo's Performance Equity Award will reflect proration for his July 25,2005 start date.
 

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