Document:

EX-10.5

Exhibit 10.5

EXECUTION VERSION

AMENDMENT NO. 4

TO MASTER REPURCHASE AGREEMENT

     Amendment No. 4, dated as of November 13, 2008 (this “Amendment”), among COLUMN
FINANCIAL, INC. (the “Buyer”), CARE QRS 2007 RE HOLDINGS CORP. (the “Seller”),
CARE MEZZ QRS 2007 RE HOLDINGS CORP. (the “Mezzanine Loan Subsidiary”) and CARE INVESTMENT
TRUST INC. (the “Guarantor”).

RECITALS

     The
Buyer, the Seller, the Mezzanine Loan Subsidiary and the Guarantor
are parties to that
certain Master Repurchase Agreement, dated as of October 1, 2007, as amended by Amendment No. 1,
dated as of December 17, 2007, Amendment No. 2, dated as of March 6, 2008 and Amendment No. 3,
dated as of June 26, 2008 (the “Existing Repurchase Agreement”; as amended by this
Amendment, the “Repurchase Agreement”). The Guarantor is party to that certain Guaranty
(the “Guaranty”) dated as of October 1, 2007. Capitalized terms used but not otherwise
defined herein shall have the meanings given to them in the Existing Repurchase Agreement and the
Guaranty.

     The Buyer, the Seller, the Mezzanine Loan Subsidiary and the Guarantor have agreed, subject
to the terms and conditions of this Amendment, that the Existing Repurchase Agreement be amended
to reflect certain agreed upon revisions to the terms of the Existing Repurchase Agreement. As a
condition precedent to amending the Existing Repurchase Agreement, the Buyer has required the
Guarantor to ratify and affirm the Guaranty on the date hereof.

     Accordingly, the Buyer, the Seller, the Mezzanine Loan Subsidiary and the Guarantor hereby
agree, in consideration of the mutual promises and mutual obligations set forth herein, that the
Existing Repurchase Agreement is hereby amended, and the Guaranty is hereby ratified and affirmed,
as follows:

     Section 1. Definitions. Section 2 of the Existing Repurchase Agreement is hereby
amended by adding the following definition in its proper alphabetical order:

     “EBITDA” means, for any period and any Person, the earnings of such Person for such period as
determined in accordance with GAAP, before (a) the deduction of consolidated interest expenses,
taxes, depreciation and amortization, (b) the deduction of pro rata interest expenses, taxes,
depreciation and amortization from unconsolidated joint venture and/or partnership interests and
(c) losses associated with asset sales to the Manager.

     Section 2.
Covenants. Section  14(x)(3) of the Existing Repurchase Agreement is hereby
amended by deleting it in its entirety and replacing it with the following language:

     “(3) Guarantor shall not permit, EBITDA to be less than $1.00 for any Test Period.”

 

 

     Section 3. Exhibits. Exhibit C of the Existing Repurchase Agreement is hereby
amended by deleting it in its entirety and replacing it with Exhibit A attached hereto.

     Section 4. Conditions Precedent. This Amendment shall be effective as of September 30,
2008 (the “Amendment Effective Date”’), subject to the satisfaction of the following
condition precedents:

     (a) the Buyer shall have received this Amendment, executed and delivered by duly authorized
officers of the Buyer, the Seller, the Guarantor and the Mezzanine Loan Subsidiary.

     Section 5. Representations and Warranties. The Seller and the Mezzanine Loan
Subsidiary each hereby represents and warrants to the Buyer that it is in compliance with all the
terms and provisions set forth in the Repurchase Agreement on its part to be observed or
performed, and that no Event of Default has occurred or is continuing, and hereby confirms and
reaffirms the representations and warranties contained in Section 13 of the Repurchase Agreement.

     Section 6. Limited Effect. Except as expressly amended and modified by this
Amendment, the Existing Repurchase Agreement shall continue to be, and shall remain, in full force
and effect in accordance with its terms. Other than as expressly set forth herein, the execution
of this Amendment by the Buyer shall not operate as a waiver of any of its rights, powers or
privileges under the Repurchase Agreement or any other Program Agreement, including without
limitation, any rights, powers or privileges relating to other existing or future breaches of, or
Defaults or Events of Default under, the Repurchase Agreement or any other Program Agreement
except as expressly set forth herein.

     Section 7. Counterparts. This Amendment may be executed by each of the parties hereto
on any number of separate counterparts, each of which shall be an original and all of which taken
together shall constitute one and the same instrument.

     SECTION
8. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW
PROVISIONS THEREOF.

     SECTION 9. Reaffirmation of Guaranty. Guarantor hereby ratifies and affirms all of
the terms, covenants, conditions and obligations of the Guaranty and acknowledges and agrees that
such Guaranty shall apply to all of the Obligations under the Repurchase Agreement, as it may be
amended, modified and in effect, from time to time.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their
respective officers thereunto duly authorized as of the day and year first above written.

	 	 	 	 	 
	 	COLUMN FINANCIAL, INC., as Buyer

 	 
	 	By:  	/s/ Tracy Dennis
 	 
	 	 	Name:  	Tracy Dennis 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	CARE QRS 2007 RE HOLDINGS CORP., as Seller

 	 
	 	By:  	/s/ Frank Plenskofski
 	 
	 	 	Name:  	Frank Plenskofski 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	CARE MEZZ QRS 2007 RE HOLDINGS CORP., 
      as Mezzanine Loan
Subsidiary

 	 
	 	By:  	/s/ Frank Plenskofski
 	 
	 	 	Name:  	Frank Plenskofski 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	CARE INVESTMENT TRUST, INC., as Guarantor

 	 
	 	By:  	/s/ Frank Plenskofski
 	 
	 	 	Name:  	Frank Plenskofski   	 
	 	 	Title:  	Chief Financial Officer 	 
	 

 

 

EXHIBIT A TO AMENDMENT NO. 4

EXHIBIT C

OFFICER’S COMPLIANCE CERTIFICATE

     I,                                        , do hereby certify that I am the [duly elected, qualified and authorized]
[CFO/TREASURER/FINANCIAL OFFICER] of CARE QRS 2007 RE
HOLDINGS CORP. (“Seller”). This
Certificate is delivered to you in connection with Section 17(b) of the Master Repurchase
Agreement dated as of October 1, 2007, among Seller, Care Investment Trust Inc.
(“Guarantor”), CARE Mezz QRS 2007 RE Holdings Corp. (the “Mezzanine Loan
Subsidiary”) and Column Financial Inc. (as amended from time to time, the
“Agreement”), as the same may have been amended from time to time. I hereby certify that,
as of the date of the financial statements attached hereto and as of the date hereof, Seller is
and has been in compliance with all the terms of the Agreement and, without limiting the
generality of the foregoing, I certify that:

Adjusted Tangible Net Worth. Guarantor has maintained an Adjusted Tangible
Net Worth of at least equal to the Adjusted Tangible Net Worth Trigger Amount. A
detailed summary of the calculation of Guarantor’s actual Adjusted Tangible Net
Worth is provided in Schedule 1 hereto.

Indebtedness to Adjusted Tangible Net Worth Ratio. Guarantor’s ratio of
Indebtedness to Adjusted Tangible Net Worth has not exceeded 4:1. A calculation of
Guarantor’s actual Indebtedness to Adjust Tangible Net Worth is provided in Schedule
1 hereto.

EBITDA. Guarantor has not permitted, EBITDA to be less than $1.00 for any
Test Period.

Maintenance of Liquidity. Guarantor has maintained cash and Cash
Equivalents
in an amount not less than the Liquidity Trigger Amount. Guarantor’s total cash
and Cash Equivalents as of the date hereof is                    .

Insurance. Guarantor or its Affiliates, have maintained, directors and
officers
insurance in an aggregate amount of at least $5,000,000. The actual amount of
such coverage is $                    .

Financial Statements. The financial statements attached hereto are accurate
and complete, accurately reflect the financial condition of Guarantor, and do not
omit any material fact as of the date(s) thereof.

Documentation. Seller has performed the documentation procedures required
by its operational guidelines with respect to endorsements and assignments,
including the recordation of assignments, or has verified that such documentation
procedures have been performed by a prior holder of such Mortgage Loan.

Compliance. Seller has observed or performed in all material respects all
of its covenants and other agreements, and satisfied every condition, contained in
the Agreement and the other Program Agreements to be observed, performed and

 

 

satisfied by it. [If a covenant or other agreement or condition has not been complied with, Seller
shall describe such lack of compliance and provide the date of any related waiver thereof.]

Regulatory Action. Seller is not currently under investigation or, to best of Seller’s
knowledge, no investigation by any federal, state or local government agency is threatened. Seller
has not been the subject of any government investigation which has resulted in the voluntary or
involuntary suspension of a license, a cease and desist order, or such other action as could
adversely impact Seller’s business. [If so, Seller shall describe the situation in reasonable
detail and describe the action that Seller has taken or proposes to take in connection therewith.]

No Default. No Default or Event of Default has occurred or is continuing. [If any Default
or Event of Default has occurred and is continuing, Seller shall describe the same in reasonable
detail and describe the action Seller has taken or proposes to take with respect thereto, and if
such Default or Event of Default has been expressly waived by Buyer in writing, Seller shall
describe the Default or Event of Default and provide the date of the related waiver.]

 

 

IN WITNESS
WHEREOF, I have set my hand this ____ day of ___, ____.

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

Acknowledged and Agreed,

Care Investment Trust Inc., as Guarantor

	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:exv4w4

Exhibit 4.4

ION Geophysical Corporation

Employment Inducement Stock Option Agreement

     THIS EMPLOYMENT INDUCEMENT STOCK OPTION AGREEMENT (the “Agreement”) is made effective as of
the GrantDay day of GrantMonth, 2008 (the “Date of Grant”) by and between ION Geophysical
Corporation, a Delaware corporation (the “Company”), and FName LName (the “Optionee”).

     WHEREAS, pursuant to that certain Share Purchase Agreement dated as of July 8, 2008 and
amended and restated as of ___, 2008 (as amended and restated, the “Purchase Agreement”),
among the Company, the Sellers named therein, ARAM Systems Ltd. (“ARAM”) and the other Acquired
Entity named therein, a subsidiary of the Company has purchased from the Sellers all of the issued
and outstanding shares of ARAM and the other Acquired Entity (the “Acquisition”); and

     WHEREAS, Optionee was an employee of ARAM or its Affiliates prior to the Acquisition, and, as
a material inducement to the Optionee’s agreement to be retained as an employee of ARAM or such
Affiliate within the Company’s corporate group after the Acquisition, the Company desires to grant
the Optionee an option to purchase shares of common stock, $0.01 par value, of the Company, subject
to the terms of this Agreement;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
herein contained and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Company and Optionee hereby agree as follows:

     1. Except as defined elsewhere herein, the words and phrases defined in this Section 1 shall
have the meaning set out in these definitions throughout this Agreement, unless the context in
which any such word or phrase appears reasonably requires a broader, narrower, or different
meaning.

     (a) “Affiliate” means any parent corporation and any subsidiary corporation. The term
“parent corporation” means any corporation or other entity (other than the Company) in an
unbroken chain of corporations or entities ending with the Company if, at the time of the
action or transaction, each of the corporations or entities other than the Company owns
stock or voting equity possessing 50 percent (50%) or more of the total combined voting
power of all classes of stock or voting equity in one of the other corporations or entities
in the chain. The term “subsidiary corporation” means any corporation or other entity
(other than the Company) in an unbroken chain of corporations or entities beginning with the
Company if, at the time of the action or transaction, each of the corporations or entities
other than the last corporation or entity in the unbroken chain owns stock or voting equity
possessing 50 percent (50%) or more of the total combined voting power of all classes of
stock or voting equity in one of the other corporations or entities in the chain.

     (b) “Board” means the board of directors of the Company.

     (c) “Change in Control” shall mean the occurrence of any of the following after the
Date of Grant:

     (i) The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act (a “Person”)) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
forty percent (40%) or more of either (A) the then outstanding shares of common stock
of the Company (the “Outstanding Company Stock”) or (B) the combined voting power of
the then outstanding voting securities of the Company entitled to vote generally in
the election of

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directors (the “Outstanding Company Voting Securities”); provided, however, that
the following acquisitions shall not constitute a Change in Control: (x) any
acquisition directly from the Company or any Subsidiary, (y) any acquisition by the
Company or any Subsidiary or by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any Subsidiary, or (z) any acquisition by
any corporation pursuant to a reorganization, merger, consolidation or similar
business combination involving the Company (a “Merger”), if, following such Merger,
the conditions described in clauses (A) and (B) of subparagraph (c)(iii) below are
satisfied;

     (ii) Individuals who, as of the Date of Grant, constitute the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual becoming a director subsequent to the
Date of Grant whose election, or nomination for election by the Company’s
stockholders, was approved by a vote of at least a majority of the directors then
comprising the Incumbent Board shall be considered as though such individual were a
member of the Incumbent Board, but excluding, for this purpose, any such individual
whose initial assumption of office occurs as a result of either an actual or
threatened election contest (a solicitation by any person or group of persons for the
purpose of opposing a solicitation of proxies or consents by the Board with respect
to the election or removal of Directors at any annual or special meeting of
stockholders) or other actual or threatened solicitation of proxies or consents by or
on behalf of a Person other than the Board;

     (iii) Approval by the stockholders of the Company of a Merger, unless
immediately following such Merger, (A) substantially all of the holders of the
Outstanding Company Voting Securities immediately prior to such Merger beneficially
own, directly or indirectly, more than 50% of the common stock of the corporation
resulting from such Merger (or its parent corporation) in substantially the same
proportions as their ownership of Outstanding Company Voting Securities immediately
prior to such Merger and (B) at least a majority of the members of the board of
directors of the corporation resulting from such Merger (or its parent corporation)
were members of the Incumbent Board at the time of the execution of the initial
agreement providing for such Merger; or

     (iv) The sale or other disposition of all or substantially all of the assets of
the Company.

     (d) “Code” means the U.S. Internal Revenue Code of 1986, as amended.

     (e) “Committee” means the Compensation Committee of the Board or such other committee
designated by the Board.

     (f) “Company” has the meaning set forth in the preamble of this Agreement.

     (g) “Disability” means a mental or physical disability as determined under the
then-established policies of the Company.

     (h) “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended from time
to time.

     (i) “Expiration Date” has the meaning set forth in Section 3 hereof.

     (j) “Fair Market Value” of a share of Stock is the closing sales price per share on the
New York Stock Exchange, or such reporting service as the Committee may select, on the Date
of

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Grant, or in the absence of reported sales on such day, the most recent previous day
for which sales were reported.

     (k) “Option” has the meaning set forth in Section 3(a) of this Agreement.

     (l) “Optionee” has the meaning set forth in the preamble of this Agreement.

     (m) “Retire” or “Retirement” means retirement in good standing from the employ of the
Company and all of its Affiliates for reason of age under then-established policies of the
Company and its Affiliates.

     (n) “Stock” means the common stock of the Company, $0.01 par value or, in the event
that the outstanding shares of common stock are later changed into or exchanged for a
different class of stock or securities of the Company or another corporation, that other
stock or security.

     2. Grant; Vesting.

     (a) Subject to the terms and conditions of this Agreement, on this day, the Date of
Grant, the Company hereby grants to the Optionee an option (the “Option”) to purchase
OptionsGranted shares of the Stock of the Company, at an exercise price of $OptionPrice per
share, subject to any adjustments provided for in this Agreement. The Option shall vest and
be exercisable according to the following schedule, but subject to Sections 3, 4 and 5
below:

     (i) On the first anniversary of the Date of Grant, the Option shall vest and
then be exercisable with respect to 25% of the total number of shares subject to the
Option;

     (ii) On the second anniversary of the Date of Grant, the Option shall vest and
then be exercisable with respect to an additional 25% of the total number of shares
subject to the Option;

     (iii) On the third anniversary of the Date of Grant, the Option shall vest and
then be exercisable with respect to an additional 25% of the total number of shares
subject to the Option; and

     (iv) On the fourth anniversary of the Date of Grant, the Option shall vest and
then be exercisable with respect to the remaining 25% of the total number of shares
subject to the Option.

     To the extent not previously exercised, installments of vested Options shall be
cumulative and may be exercised in whole or in part.

     Notwithstanding the foregoing, in the event of the termination of the Optionee’s
employment with ARAM, the Company and any of the other Affiliates of the Company for any
reason prior to the Expiration Date, the Option shall not continue to vest after such
termination of employment and any unvested Options shall be forfeited effective as of such
date of termination.

     (b) In addition, notwithstanding any provision contained in this Agreement to the
contrary, in the event of a Change in Control this Option shall thereupon be fully vested
and shall be immediately exercisable in full.

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     3. Expiration. The Option evidenced by this Agreement, to the extent such rights with respect
thereto shall not previously have been exercised or sooner terminated, shall expire and be rendered
null and void at 5:00 p.m., Houston, Texas time, on Expiration (the “Expiration Date”).

     4. Termination.

     (a) Death, Disability and Retirement. Upon the death or Disability of the Optionee
while in the employ of ARAM, the Company or any Affiliate of the Company, or upon his
Retirement, the Optionee, or, if applicable, his executors, administrators or any person or
persons to whom his Option may be transferred by will or by the laws of descent and
distribution, shall have the right for one year following the date of such death,
Disability, or Retirement of the Optionee, but in any event, not later than the Expiration
Date, to exercise the Option to the extent it was vested at the date of such death,
Disability, or Retirement.

     (b) Severance of Employment. Unless expressly provided otherwise in this Agreement,
Options shall (a) terminate six months after severance of employment with ARAM, the Company
and all Affiliates of the Company for any reason other than for reasons of death,
Retirement, or Disability and (b) be exercisable only to the extent such Options are
exercisable at the time of the Optionee’s severance of employment; provided, however, that
in no event will the Option be exercisable after the Expiration Date. Whether authorized
leave of absence or absence on military or government service shall constitute severance of
the employment of the Optionee shall be determined by the Committee at that time.

     5. Forfeiture. Notwithstanding any other provisions of this Agreement, if Optionee’s
employment with the Company, ARAM or any Affiliate shall be terminated for any of the following
reasons, the Optionee shall forfeit all outstanding vested and unvested Options, including all
exercised Options pursuant to which the Company has not yet delivered a stock certificate: (i) the
conviction of the Optionee by a court of competent jurisdiction as to which no further appeal can
be taken of a crime involving moral turpitude or a felony; (ii) the commission by the Optionee of a
material act of fraud upon the Company or any Subsidiary, or any customer or supplier thereof;
(iii) the willful misappropriation of any funds or property of the Company or any Subsidiary, or
any customer or supplier thereof; (iv) the willful, continued and unreasonable failure by the
Optionee to perform the material duties assigned to him which is not cured to the reasonable
satisfaction of the Company within 30 days after written notice of such failure is provided to
Optionee by the Board or by a designated officer of the Company or a Subsidiary; (v) the knowing
engagement by the Optionee in any direct and material conflict of interest with the Company or any
Subsidiary without compliance with the Company’s or Subsidiary’s conflict of interest policy, if
any, then in effect; or (vi) the knowing engagement by the Optionee, without the written approval
of the Board, in any material activity which competes with the business of the Company or any
Subsidiary or which would result in a material injury to the business, reputation or goodwill of
the Company or any Subsidiary; or (vii) the material breach by a Consultant of such Optionee’s
contract with the Company. The decision of the Company as to the reason for Optionee’s termination
of employment and the damage done to ARAM, the Company or such Affiliate shall be final. No
decision of the Company, however, shall affect the finality of the discharge of the Optionee by
ARAM, the Company or such Affiliate in any manner.

     6. Changes in the Company’s Capital Structure. The existence of outstanding Options shall not
affect in any way the right or power of the Company or its stockholders to make or authorize any
and all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital
structure or its business, or any merger or consolidation of the Company, or any issue of bonds,
debentures, preferred or prior preference stock ahead of or affecting the Stock or its rights, or
the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its
assets or business, or any other corporate act or proceeding, whether of a similar character or
otherwise.

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     If the Company shall effect a subdivision or consolidation of shares or other capital
readjustment, the payment of a stock dividend, or other increase or reduction of the number of
shares of the Stock outstanding, without receiving compensation for it in money, services or
property, then the number, class, and per share price of shares of Stock subject to the Option
shall be appropriately adjusted in such a manner so as to entitle Optionee to receive upon exercise
of the Option, for the same aggregate cash consideration, the equivalent total number and class of
shares Optionee would have received had Optionee exercised his Option in full immediately prior to
the event requiring the adjustment.

     If, while the Option remains outstanding and unexercised, (i) the Company shall not be the
surviving entity in any merger, consolidation or other reorganization (or survives only as a
subsidiary of an entity other than an entity that was directly or indirectly wholly-owned by the
Company immediately prior to such merger, consolidation or other reorganization), (ii) the Company
sells, leases or exchanges or agrees to sell, lease or exchange all or substantially all of its
assets to any other person or entity (other than an entity that is wholly-owned by the Company),
(iii) the Company is to be dissolved, or (iv) the Company is a party to any other corporate
transaction (as defined under section 424(a) of the Code and applicable U.S. Treasury Regulations)
that is not described in clauses (i), (ii) or (iii) of this sentence (each such event is referred
to herein as a “Corporate Change”), then (x) except as otherwise expressly provided in this
Agreement or as a result of the effectuation of one or more of the alternatives described below,
there shall be no acceleration of the time at which the Option then outstanding may be exercised,
and (y) no later than ten (10) days after the approval by the stockholders of the Company of such
Corporate Change, the Board or the Committee, acting in their sole and absolute discretion without
the consent or approval of Optionee, shall act to effect one or more of the following alternatives:

     (1) accelerate the time at which the Option then outstanding may be exercised so
that the Option may be exercised in full for a limited period of time on or before a
specified date (before or after such Corporate Change) fixed by the Committee or the
Board of Directors, after which specified date the Option then remaining unexercised
and all rights of Optionee thereunder shall terminate;

     (2) require the mandatory surrender to the Company by Optionee of the Option
(regardless of whether the Option is then exercisable under the provisions of this
Agreement) as of a date, before or after such Corporate Change, specified by the
Committee or the Board of Directors, in which event the Committee or the Board shall
thereupon cancel such Option and the Company shall pay to Optionee an amount of cash
per share equal to the excess, if any, of the per share price offered to stockholders
of the Company in connection with such Corporate Change over the exercise price under
this Option for such shares;

     (3) with respect to Optionee, have some or all of this Option (whether vested or
unvested) assumed or have a new option substituted for some or all of this Option
(whether vested or unvested) by an entity that is a party to the transaction
resulting in such Corporate Change and that is then employing him, or a parent or
subsidiary of such entity, provided that (A) such assumption or substitution is on a
basis in which the excess of the aggregate fair market value of the shares subject to
such new option immediately after the assumption or substitution over the aggregate
exercise price of such shares hereunder is equal to the excess of the aggregate fair
market value of all shares subject to the Option immediately before such assumption
or substitution over the aggregate exercise price of such shares, and (B) the assumed
rights under the existing Option or the substituted rights under such new option, as
the case may be, will have the same terms and conditions as the rights under the
existing Option assumed or substituted for, as the case may be;

     (4) provide that the number and class of shares of Stock covered by the Option
(whether vested or unvested) theretofore granted shall be adjusted so that the Option
when

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exercised shall thereafter cover the number and class of shares of stock or
other securities or property (including, without limitation, cash) to which the
Optionee would have been entitled pursuant to the terms of the agreement or plan (or
both) relating to such Corporate Change if, immediately prior to such Corporate
Change, the Optionee had been the holder of record of the number of shares of Stock
then covered by the Option; or

     (5) make such adjustments to this Option, if any, as the Committee or the Board
deems appropriate to reflect such Corporate Change.

     In effecting one or more of alternatives (3), (4) or (5) above, and except as otherwise may be
provided in this Agreement, the Committee or the Board of Directors, in their sole and absolute
discretion and without the consent or approval of the Optionee, may accelerate the time at which
some or all Options then outstanding may be exercised.

     If changes occur in the outstanding Stock by reason of recapitalizations, reorganizations,
mergers, consolidations, combinations, exchanges or other changes in capitalization occurring after
the Date of Grant and not otherwise provided for by this Section 6, then the Option and this
Agreement shall be subject to adjustment by the Committee or the Board in their sole and absolute
discretion as to the number and price of shares of stock or other consideration subject to this
Option.

     7. Forms of Consideration Authorized. The exercise of the Option shall be made only by
delivery of a properly executed notice of exercise together with irrevocable instructions to a
broker or dealer providing for the assignment to the Company of the proceeds of a sale or loan
arranged by the Optionee with respect to the shares being acquired upon the exercise of the Option
(a “Cashless Exercise”), or by such other terms and conditions as may be approved by the Committee
to the extent permitted by applicable law.

     8. Non-Events. The issue by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, for cash or property, or for labor or services
either upon direct sale or upon the exercise of rights or warrants to subscribe for them, or upon
conversion of shares or obligations of the Company convertible into shares or other securities,
shall not affect, and no adjustment by reason of such issuance shall be made with respect to, the
number, class, or price of shares of Stock then subject to this Option.

     9. Tax Withholding.

     (a) ARAM, the Company or any Affiliate shall be entitled to deduct from other
compensation payable to Optionee any sums required by any applicable law to be withheld with
respect to the grant or exercise of the Option. In the alternative, ARAM, the Company or
such Affiliate may require the Optionee (or other person exercising the Option) to pay the
sum directly to the employer. If the Optionee is required to pay the sum directly, payment
in cash or by check of such sums for taxes shall be delivered within ten days after the date
of grant or exercise, as the case may be. In satisfaction of the payment of such sum to the
Company or Affiliate, the Optionee may make a written election, which may be accepted or
rejected in the discretion of the Chief Financial Officer of the Company, to have withheld a
portion of the shares of Stock issuable to him or her upon exercise of the Option having an
aggregate Fair Market Value, on the date of exercise, equal to or less than the amount
required to be withheld, provided that the Fair Market Value of the shares held back shall
not exceed the Company’s or Affiliate’s minimum statutory withholding tax obligations.

     (b) The Company and its Affiliates shall have no obligation upon exercise of the Option
to issue any shares of Stock until the Company has received payment sufficient to cover all
sums due with respect to that exercise. The Company and its Affiliates shall not be
obligated to advise Optionee of the existence of the tax or the amount which the employer
will be required to withhold.

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     10. Requirements of Law. The Company shall not be required to sell or issue any Stock under
the Option if issuing that Stock would constitute or result in a violation by the Optionee or the
Company of any provision of any law, statute, or regulation of any governmental authority.
Specifically, in connection with any applicable statute or regulation relating to the registration
of securities, upon exercise of the Option, the Company shall not be required to issue any Stock
unless the Committee has received evidence satisfactory to it to the effect that the holder of the
Option will not transfer the Stock except in accordance with applicable law, including receipt of
an opinion of counsel satisfactory to the Company to the effect that any proposed transfer complies
with applicable law. The determination by the Committee on this matter shall be final, binding and
conclusive. The Company may, but shall in no event be obligated to, register any Stock issuable
upon exercise of the Option pursuant to applicable securities laws of any country or any political
subdivision. In the event the Stock issuable on exercise of the Option is not registered under
applicable U.S. and foreign securities law, the Company may (i) require as a condition to the
issuance of the shares of Stock hereunder that Optionee make such representations as may be
required by law in order for the shares to be issued and sold to Optionee in compliance with an
applicable exemption from registration under the Securities Act of 1933, as amended, and applicable
state, foreign and local law, and (ii) imprint on the certificate evidencing the Stock the
following legend or any other legend that counsel for the Company considers necessary or advisable
to comply with applicable law:

     The shares of stock represented by this certificate have not been
registered under the Securities Act of 1933 or under the securities laws of any
State and may not be sold or transferred except upon such registration or upon
receipt by the Corporation of an opinion of counsel satisfactory to the Corporation,
in form and substance satisfactory to the Corporation, that registration is not
required for such sale or transfer.

     11. Transferability. The Option granted to the Optionee under this Agreement shall not be
transferable or assignable by the Optionee other than by will or the laws of descent and
distribution, and shall be exercisable during the Optionee’s lifetime only by him.

     12. Amendment. This Agreement may not be changed or terminated orally but only by an
agreement in writing signed by the party against whom enforcement of any such change or termination
is sought.

     13. No Obligation to Retain Services. Neither ARAM, the Company nor any Affiliate thereof
shall be deemed by the grant of this Option to be required to retain the services of the Optionee
for any period.

     14. Stockholder Rights. The Optionee shall not have any rights as a stockholder with respect
to any shares of Stock covered by the Option until the date of the issuance of the stock
certificate or certificates to him for such shares following his exercise of this Option pursuant
to the terms and conditions hereof and his payment for the shares. No adjustment shall be made for
dividends or other rights for which the record date is prior to the date such certificate or
certificates are issued.

     15. Interpretation. In the event of any difference of opinion concerning the meaning or
effect of this Agreement, such difference shall be resolved by the Committee.

     16. Governing Law. The validity, construction and performance of this agreement shall be
governed by the laws of the State of Texas. Any invalidity of any provision of this Agreement
shall not affect the validity of any other provision.

     17. Notices. All offers, notices, demands, requests, acceptances or other communications
hereunder shall be in writing and shall be deemed to have been duly made or given if mailed by
registered or certified mail, return receipt requested. Any such notice mailed to the Company
shall be addressed to its

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principal executive offices, and any notice mailed to the Optionee shall be addressed to the
Optionee’s residence address as it appears on the books and records of the Company, or to such
other address as either party may hereafter designate in writing to the other.

     18. Successors. This Agreement shall, except as herein stated to the contrary, inure to the
benefit of and bind the legal representatives, heirs, successors and assigns of the parties hereto.

     19. Nonqualified Option. The Option evidenced by this Agreement is a nonqualified stock
option which is not intended to be governed by Section 422 of the Code.

     20. Gender. If the context requires, words of one gender when used in this Agreement shall
include the others, and words used in the singular or plural shall include the other.

     21. Headings. Headings of Sections are included for convenience of reference only and do not
constitute part of this Agreement and shall not be used in construing the terms of this Agreement.

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered to be effective as of
the Date of Grant.

	 	 	 	 	 
	 	ION GEOPHYSICAL CORPORATION

 	 
	 	
 	 
	 	David L. Roland 	 
	 	Senior Vice President, General Counsel
and Corporate Secretary 	 
	 
	 	OPTIONEE

 	 
	 	
 	 
	 	Name 	 
	 	 	 
	 

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