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Exhibit 10.3

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**SEITEL,INC.**

**Summary ofAmendment to 2005 Non-Employee Director**

**and Updates toExecutive Officer Compensation and Incentive Arrangements**

 

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Non-Employee DirectorCompensation Amendment

            On May 23, 2005, the independent directors ofthe board of directors (the "Board") of Seitel, Inc. (the "Company") voted toreduce the compensation of Fred S. Zeidman, as Chairman of the Board, from$250,000 per year to $100,000 per year, effective July 1, 2005.  The Board madethis decision based on the recommendation of its compensation committee.

Executive Officer Compensation Updates

            On July 14, 2005, the Company made grants ofrestricted common stock, par value $.01 per share (the "Common Stock"), to itsnamed executive officers as follows:

| Kevin Callaghan,

Chief Operating Officer and Executive Vice President                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 100,000 shares |
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| Robert Simon,

President-Seitel Data, Ltd.

75,000 shares 

Marcia Kendrick,

Senior Vice President, Chief Accounting Officer,  Treasurer,  Acting Chief Financial Officer and Acting Secretary

36,000 shares 

Garis Smith,

President Olympic Seismic, Ltd.

50,000 shares 

            With the exception of Marcia Kendrick, theseawards were made to the executives in addition to and outside of the Company'sannual incentive plan established in January of 2005 (the "Incentive Plan"). These additional awards were made in recognition of the executive's performanceand contributions to the Company in the first six months of 2005.

            Marcia Kendrick was added to the category ofexecutive officers eligible for guaranteed stock options or other equity-basedawards ("Key Executive Awards") under the Incentive Plan.  Ms. Kendrick's awardof 36,000 shares of restricted Common Stock represents her 2005 Key ExecutiveAward, which was based on the July 14, 2005 closing price of the Common Stock($1.39 per share).  This Key Executive Award represents approximately 25% (Ms.Kendrick's target for Key Executive Awards) of her base salary.

            Garis Smith was determined by the Board to be anexecutive officer, as defined by the rules promulgated under the SecuritiesExchange Act of 1934, as amended, on May 23, 2005.  Mr. Smith is the presidentof Seitel, Inc.'s wholly owned subsidiary, Olympic Seismic, Ltd.  His annualbase salary is $240,000 (Canadian dollars) and he is eligible for cash bonusesand Performance Equity Awards under the Incentive Plan.  Under the IncentivePlan, Mr. Smith's target for a cash bonus is 45% of his base salary and histarget for a Performance Equity Award is 50% of his cash bonus amount.  Inaddition, on February 15, 2005, Mr. Smith was granted 48,000 shares ofrestricted Common Stock.

            All of the above described restricted stockgrants will vest as to one-third of the shares on each of first, second andthird anniversary of the grant date.  Each of the restricted stock grants willbe 100% vested on the date immediately preceding a change in control, and upontermination resulting from the executive's death or disability.  These grantswere made under Seitel's 2004 Stock Option Plan and subject to the form ofRestricted Stock Award Agreement filed as Exhibit 10.2 to Seitel's 2004 Form10-K.

            William Restrepo joined the Company as its chieffinancial officer, executive vice president and secretary on July 25, 2005. Mr. Restrepo's annual base salary is $240,000 and he was granted 90,000 shares ofrestricted Common Stock as an inducement award on that date.  His employmentagreement and restricted stock agreement are filed as Exhibits 10.1 and 10.2,respectively, to the Company's Form 10-Q for the quarterly period ended June30, 2005.  Under the Incentive Plan, Mr. Restrepo's targets are as follows: 50%of base salary for cash bonuses and Key Executive Awards; and 50% of his cashbonus amount for Performance Equity Awards.  His 2005 cash bonus will beprorated in the discretion of the compensation committee because of his July25, 2005 commencement date.  Likewise, his 2005 Key Executive Award and any2005 Performance Equity Award will reflect proration.  The Key Executive Awardwill be valued at approximately $52,600 on the date of grant (expected in earlyJanuary 2006).

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