Document:

Exhibit 4.20

S.I. HOLDINGS LIMITED

P.O. Box HM 1179

Cedar House

41 Cedar Avenue

Hamilton HM 12

Bermuda

February 9, 2007

PERSONAL AND CONFIDENTIAL

Dr.
Michael W.J. Smurfit

Le Florestan

35 Blvd. du Larovotto

Monaco

Dear Dr. Smurfit:

Reference is made to (i)
that certain letter agreement, dated as of October 31, 2003, by and between
S.I. Holdings Limited (the “Corporation”) and you (as the same has been
or may be expressly, impliedly or by operation of law, amended, restated,
modified, supplemented or waived from time to time, together the “Employment
Letter”), (ii) that certain Shareholders and Corporate Governance
Agreement, dated as of December 1, 2005, by and among Smurfit Kappa Group
Limited (the “Company”), you and certain other shareholders of the
Company (as the same has been or may be amended, restated, modified,
supplemented or waived from time to time, the “Shareholders Agreement”),
and (iii) that certain Amended and Restated Management Equity Agreement, dated
as of December 1, 2005, by and among the Company and certain management
stockholders of the Company (as the same has been or may be amended, restated,
modified, supplemented or waived from time to time, the “Management Equity
Agreement” and, together with the Employment Letter and the Shareholders
Agreement, the “Relevant Agreements”). 
Capitalized terms used, but not otherwise defined, herein shall have the
meanings given to such terms in the Shareholders Agreement.

This letter agreement
sets forth certain agreements between the Corporation (acting on its own behalf
and each Group Company that it is authorized to act on behalf of) and you in
the event that a Listing becomes effective (the time of such effectiveness, the
“Effective Time”).

1.                                       You
hereby resign, with effect immediately prior to the Effective Time, as an
employee of, and service provider to, the Corporation and hereby agree that,
from and after the Effective Time, (i) you shall not seek appointment to any
board of directors of or as an officer of any Group Company and (ii) neither
you nor Bacchantes Two Limited shall

directly or indirectly cause the appointment of any
member of the board of directors of any Group Company.

2.                                       Not
later than the 30th day after the Effective Time, the Company shall pay to you
in a single lump sum an amount equal to the sum of (a) €2,450,000 plus (b) an
amount equal to the result determined as (i) €2,750,000 multiplied by (ii) a
fraction, (x) the numerator of which is the number of days beginning on the
date that is the one year anniversary of the Effective Time and ending on June
30, 2010 and (y) the denominator of which is 365; provided that such
amount shall be reduced for tax and other statutory deductions as are required
to be deducted at source and remitted to the appropriate revenue authorities.
The payments under this paragraph shall be in replacement of, rather than in
addition to, any rights, whether arising out of or in connection with your
employment by the Corporation and/or any Group Company or otherwise howsoever
arising, that you may have under law (including, without limitation, any bonus
entitlement or payment in lieu of notice), other than any payments due to you
under any contract with the Company entered into on the date hereof.  Effective as of the date of this letter
agreement, your right to participate in any employee benefit arrangement of any
Group Company will cease; provided, however, that the Convertible Shares
(as defined in the Management Equity Agreement) and Ordinary Shares held by you
and Bacchantes Two Limited will be held, for the period up to the Effective
Time, in accordance with the terms of the Management Equity Agreement and,
effective as of the Effective Time, in accordance with the provisions of
paragraph 5 of this letter agreement.

3.                                       As
material consideration for the covenants and agreements of the Company and the
Group Companies hereunder, effective as of the Effective Time, you hereby
release, waive, discharge and covenant not to sue each of the Group Companies
from any and all claims, suits, demands, causes of action, contracts,
covenants, obligations, debts, costs, expenses, attorneys’ fees, liabilities of
whatever kind or nature in law or equity, by statute, common law, contract or
otherwise whether now known or unknown, vested or contingent, suspected or
unsuspected, and whether or not concealed or hidden, which have existed or may
have existed, or which do exist, through the Effective Time with respect to
your employment and service as a member of the board of directors and/or the
termination of your employment and service as a member of the board of
directors (including, without limitation, any rights to post-termination
payment or bonus or payment in lieu of notice, whether arising out of or in
connection with your employment by the Company and/or any Group Company or
otherwise); provided that the foregoing release, waiver and discharge
shall not apply to any of your rights under this letter agreement.

4.                                       When
used herein, “Group Companies” means the Company and its subsidiaries and
Associated Companies and “Group Company” means any such company and “Associated
Company” means any company having an Equity Share Capital (as defined in
Section 155 of the Companies Act 1963) of which not less than 20% in nominal
value is beneficially owned by any Group Company.

5.                                       Effective
as of the Effective Time, all of your rights and obligations, and those of
Bacchantes Two Limited, against and to the Company and all Group Companies
under 

 2
 

the Employment Letter and the Shareholders Agreement
shall terminate without further liability or obligation of or to any Group
Company; provided that, notwithstanding the foregoing, the provisions of
paragraphs 7 and 9 of the Employment Letter shall continue in full force and
effect.  Without limiting the foregoing,
any restrictions on transfer to which any Ordinary Shares you and/or Bacchantes
Two Limited purchased from a Group Company in connection with the take-over in
September 2002 shall be deemed to have terminated immediately prior to the
Effective Time; provided that you and Bacchantes Two Limited shall, in
connection with a Listing, execute and observe any underwriters’ lock-up being
requested of significant shareholders and/or management in connection with a
Listing.  All Convertible Shares held by
you and Bacchantes Two Limited and any Ordinary Shares into which they may
convert shall remain subject to the restrictions on transfer contained in the
Management Equity Agreement; provided that, notwithstanding the
foregoing, each of the Company, you and Bacchantes Two Limited agree to consent
to any amendment to the Management Equity Agreement providing for accelerated
vesting of Convertible Shares upon the executive holder thereof being of
retirement age at the time of a Listing or reaching retirement age after a
Listing and/or for the amendment of vesting conditions applicable to certain
Convertible Shares.  For the avoidance of
doubt, until the Effective Time, all rights and obligations of the parties
under each of the Relevant Agreements shall continue in full force and effect.

6.                                       Upon
execution of this letter agreement by each party hereto, this letter agreement
shall be binding and enforceable upon each party hereto; provided that
in the event that the Effective Time does not occur on or prior to December 31,
2007, this letter agreement, and the rights and obligations of the parties
hereto, shall terminate as of December 31, 2007 without obligation or liability
to any party hereto.  Notwithstanding the
foregoing, the obligations of the Group Companies under this letter agreement
are subject to affirmative consent of the requisite shareholders of each Group
Company for which such consent is required in accordance with applicable law
(including, without limitation, the Companies Act 1963) and, if such consent is
not obtained prior to the Effective Time, this letter agreement, and the rights
and obligations of the respective parties hereto, shall terminate as of
immediately prior to the Effective Time without further obligation or liability
to any party hereto.

7.                                       You
understand and agree that a new holding company, Smurfit Kappa Public Limited
Company (“Holdco”) has made an exchange offer pursuant to which the entire
issued share capital and other equity interests and rights of the Company may
be exchanged for identical or substantially identical share capital and other
equity interests and rights of Holdco. 
In the event that such exchange offer is completed by the Company and
Holdco, you agree that, from and after such completion, Holdco shall be the “Company”
for all purposes hereof.

 3
 

 

8.                                       This
letter agreement (a) shall be construed in accordance with the internal laws
(but not the laws of conflicts) of the Bahamas, (b) may be executed in multiple
counterparts (including by facsimile or electronic transmission), all of which
taken together shall constitute one and the same original, (c) may not be
assigned by any party except with the prior written consent of the other
parties hereto, (d) is for the benefit of the parties hereto and such parties’
Affiliates (including, in the case of the Corporation, each of the Group Companies)
and representatives and may not be enforced by any person or entity (other than
the parties hereto and their Affiliates and representatives), (e) represents
the complete understanding and agreement between the parties hereto with
respect to the subject matter hereof, and (f) may be amended, modified or
supplemented only by a written instrument executed by each of the parties
hereto.  No waiver of any rights under
this letter agreement shall be effective against any party to this letter
agreement unless set forth in a written instrument executed by such party.  The parties agree that this letter agreement
was drafted by the parties hereto and the result of negotiation between
sophisticated parties (each having received separate legal advice) and no rule
of construction shall be applied against any party or such party’s Affiliates.

	
  

  	
  S.I. HOLDINGS
  LIMITED

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Michael
  O’Riordan

  
	
   

  	
   

  
	
   

  	
  Its:

  	
   

  

 

Acknowledged and
Accepted as of the date first written above:

	
  Dr. Michael W.J. Smurfit

  
	
   

  
	
   

  
	
  /s/ Dr. Michael
  W.J. Smurfit

  	
   

  

 

In consideration
for the waivers and other benefits conferred upon it by the above letter
agreement, Bacchantes Two Limited hereby adheres thereto and accepts, as of the
date first written above, all provisions thereof applicable to it.

BACCHANTES TWO LIMITED

	
  By: 

  	
  /s/ J. Killip

  	
   

  
	
  Its:

  	
  Authorised Signatory

  

 

 4Exhibit 4.2

CERTIFICATE OF DESIGNATION OF

SERIES B CONVERTIBLE PREFERRED STOCK

OF

GEOKINETICS INC.

Pursuant to Section 151(g) of the

General Corporation Law of the State of
Delaware

The undersigned, Jay D. Haber, Chairman
and Chief Executive Officer of Geokinetics Inc., a Delaware corporation (the
“Corporation”), does hereby state and certify that the Board of Directors of
the Corporation, by unanimous written consent dated as of August 1, 1997, duly
adopted the following resolution providing for the issuance of a series of its
Preferred Stock, par value $10.00 per share(the “Preferred Stock”), and further
providing for the designation, powers, preferences, and relative,
participating, optional and other special rights, and the qualifications,
limitations and restrictions thereof, all in accordance with the provisions of
Section 151(g) of the General Corporation Law of the State of Delaware:

RESOLVED, that pursuant to the authority
expressly granted to and vested in the Board of Directors of the Corporation by
Article FOURTH of the Corporation’s Certificate of Incorporation (the
“Certificate of Incorporation”), a series of Preferred Stock of the Corporation
be, and hereby is, created out of the authorized but unissued shares of capital
stock of the Corporation and authorized to be issued, such series to be
designated Series B Convertible Preferred Stock (the “Series B Convertible
Preferred Stock”), to consist of 100,000 shares, par value $10.00 per share, of
which the powers, preferences and relative, participating, optional and other
special rights, and the qualifications, limitations and restrictions thereof,
shall be, in addition to those set forth in the Corporation’s Certificate of
Incorporation, as follows:

1.             Dividends.   Holders of shares of Series B Convertible
Preferred Stock will be entitled to receive, when and as declared by the Board
of Directors of the Corporation (the “Board”) out of assets of the Corporation
legally available for payment, dividends payable in cash, evidences of
indebtedness, assets or property other than cash, or securities of the
Corporation, at the same rate as such dividends are declared with respect to
shares of Common Stock (as defined in paragraph 3(a) below).  In connection therewith, the shares of Series
B Convertible Preferred Stock held by each holder shall be deemed to represent
that number of shares of Common Stock into which they are then convertible,
rounded to the nearest 1/100th of a share. 
Dividends will be payable to holders of record of the Series B
Convertible Preferred Stock as they appear on the stock books of the
Corporation on such record dates, not more than 60 days nor less than 10 days
preceding the payment dates thereof, as shall be fixed by the Board.

No dividends may be paid upon or declared
or set apart for the Series B Convertible Preferred Stock for any dividend
period unless:

(a)           as
to each series of Preferred Stock entitled to cumulative dividends, dividends
for all past dividend periods shall have been paid or shall have been declared
and a sum sufficient for the payment thereof set apart; and

(b)           as
to all series of Preferred Stock (including the Series A Convertible Preferred
Stock and the Series B Convertible Preferred Stock), dividends for the current
dividend period shall have been paid or be or have been declared and a sum
sufficient for the payment thereof set apart ratably in accordance with the
amounts which would be payable as dividends on the shares of the respective
series for the current dividend period if all dividends for the current
dividend period were declared and paid in full.

No dividend in respect of past dividend
periods shall be paid upon or declared and set apart for payment on any of the
Preferred Stock entitled to cumulative dividends unless there shall be or have
been declared and set apart for payment on all outstanding shares of Preferred
Stock entitled to cumulative dividends, dividends for past dividend periods
ratably in accordance with the amounts which would be payable on the shares of
the series entitled to cumulative dividends if all dividends due for all past
dividend periods were declared and paid in full.

So long as any shares of the Series B
Convertible Preferred Stock are outstanding, the Corporation shall not pay or
declare any dividend payable in cash, evidences of indebtedness, assets or
property other than cash, or stock of the Corporation ranking equally with or
senior to the Series B Convertible Preferred Stock in respect of dividends, or
make any other distribution on the Common Stock or any other class or series of
stock ranking equally with or junior to the Series B Convertible Preferred
Stock in respect of dividends, unless the Corporation has paid, or at the same
time pays or provides for the payment of, all accrued and unpaid dividends on
the Series B Convertible Preferred Stock; provided, however, that the
Corporation may pay less than the amount of all accrued and unpaid dividends on
any class or series of stock ranking equally with the Series B Convertible
Preferred Stock in respect of dividends (inclusive of the Series A Convertible
Preferred Stock of the Corporation (the “Series A Convertible Preferred Stock”)
if such payment is made ratably in accordance with the respective accrued and
unpaid dividends on the Series B Convertible Preferred Stock and such class or
series of stock ranking equally with the Series B Convertible Preferred Stock
in respect of dividends (inclusive of the Series A Convertible Preferred
Stock).  The Series B Convertible
Preferred Stock shall rank junior as to dividends to any class or series of
stock of the Corporation which is by its terms made senior as to dividends to
the Series B Convertible Preferred Stock. 
The Series B Convertible Preferred Stock shall rank equally as to dividends
with the Corporation’s Common Stock and with the Corporation’s Series A
Convertible Preferred Stock and with all shares of the Corporation’s Preferred
Stock and any other class or series of stock of the Corporation which is
expressly stated to rank on a parity as to dividends with the Series B
Convertible Preferred Stock.  For
purposes of the Series B Convertible Preferred Stock, the amount of dividends
“accrued” on any share of Series B Convertible Preferred Stock at any date
shall be deemed to be the amount of any declared but unpaid dividends thereon.

2.             Liquidation
Preference.  The shares of Series B
Convertible Preferred Stock shall rank prior to the shares of Common Stock and
of any other class of stock of the Corporation ranking junior to the Series B
Convertible Preferred Stock upon liquidation, so that in the event of any
liquidation, dissolution or winding up of the Corporation, whether voluntary or
involuntary, the holders of the Series B Convertible Preferred Stock shall be
entitled to receive out of the assets of the Corporation available for
distribution to its stockholders, whether from capital, surplus or earnings,
before any distribution is made to holders of shares of Common Stock or any
other such junior stock, an amount equal to $10.00 per share (the “Liquidation
Preference” of a share of Series B Convertible Preferred Stock) plus an amount
equal to all cash dividends accrued and unpaid on the shares of Series B
Convertible Preferred Stock to the date of final distribution.  (For purposes hereof, the Common Stock shall
rank on liquidation junior to the Series B Convertible Preferred Stock and the
Series A Convertible Preferred Stock shall rank on liquidation equal to the
Series B Convertible Preferred Stock.) 
If, upon any liquidation, dissolution or winding up of the Corporation,
the assets of the Corporation, or proceeds thereof, distributable among the
holders of shares of the Series B Convertible Preferred Stock and any other
preferred stock ranking on a parity as to liquidation preference with the
Series B Convertible Preferred Stock, including, without limitation, the Series
A Convertible Preferred Stock (the Series A Convertible Preferred Stock and any
such other preferred stock and the Series B Convertible Preferred Stock
hereinafter being collectively referred to in this paragraph 2 as the “Parity
Preferred Stock”) shall be insufficient to pay in full the preferential amount
aforesaid, then such assets, or the proceeds thereof, shall be distributable
among such holders ratably in accordance with the respective amounts which
would be payable on such shares if all amounts thereon were payable in
full.  In liquidation, the Series B
Convertible Preferred Stock shall be senior to the Corporation’s Common Stock
and senior to or pari  passu with any other series of convertible
Preferred Stock hereinafter authorized and issued by the Corporation, but
junior to any series of Preferred Stock which does not have any conversion
feature and which is hereinafter authorized and issued by the Corporation.

After payment to holders of the Series B
Convertible Preferred Stock of the full preferential amounts as aforesaid,
holders of the Series B Convertible Preferred Stock as such shall have no right
or claim to any of the remaining assets of the Corporation.

The merger or consolidation of the
Corporation into or with any other corporation, or the merger of any other
corporation into the Corporation, or the sale, lease or conveyance of all or
substantially all of the property or business as of the Corporation shall not
be deemed to be a dissolution, liquidation or winding up, voluntary or
involuntary, for the purposes of this paragraph 2.

3.             Conversion.  The holders of the Series B Convertible
Preferred Stock shall have the following conversion rights:

(a)           Automatic
Conversion.  Shares of Series B
Convertible Preferred Stock automatically shall be converted into fully paid
and non-assessable shares of Common Stock, at the conversion ratio (the
“Conversion Ratio”) of 13ÿ shares of Common Stock 

for each share of Series B Convertible Preferred
Stock (13ÿ:1), upon the later of (i) January 1, 1998 or (ii) the filing by the
Corporation of the Charter Amendment (as defined in subparagraph (e) below of
this paragraph 3) with the Secretary of State of the State of Delaware.   Upon the occurrence of any automatic
conversion of the Series B Convertible Preferred Stock, the holders thereof
shall be entitled to the payment of all accrued and unpaid cash dividends
through the date of such conversion.

Upon the occurrence of such automatic
conversion of the Series B Convertible Preferred Stock, (i) the Corporation
shall cause to be filed with the conversion agent and shall cause to be mailed
to the holders of the Series B Convertible Preferred Stock, in accordance with
the notice provisions of subparagraph (d) of this paragraph 3, a notice of
automatic conversion (a “Notice of Automatic Conversion”) which sets forth the
instructions for the surrender of all certificates representing shares of
Series B Convertible Preferred Stock and (ii) as promptly as possible thereafter,
the holders of such Series B Convertible Preferred Stock shall surrender for
cancellation the certificates representing such shares at the office of the
Corporation or of any conversion agent designated by the Corporation or the
transfer agent for the Common Stock, all in accordance with the instructions
contained in the Notice of Automatic Conversion.  Thereupon, there shall be issued and
delivered to each such holder a certificate or certificates for the number of
shares of Common Stock into which the shares of the Series B Convertible
Preferred Stock surrendered were convertible on the date on which such
automatic conversion occurred, together with a check in the amount of all
accrued but unpaid cash dividends on the Series B Convertible Preferred Stock
through the date of such automatic conversion, and any fractional interest in
respect of a share of Common Stock arising from such conversion shall be
settled as provided in subparagraph (b) of this paragraph 3.  Upon such automatic conversion date, the
holders of shares of Series B Convertible Preferred Stock shall cease to be
holders of Series B Convertible Preferred Stock and shall automatically become
holders of shares of Common Stock, irrespective of whether or not the
certificates for shares of Series B Convertible Preferred Stock shall have been
properly surrendered for cancellation in accordance with the Notice of
Automatic Conversion, and thereafter such shares of Series B Convertible
Preferred Stock shall no longer be transferrable upon the books of the
Corporation and such holders of shares of Series B Convertible Preferred Stock
shall have no interest or claim against the Corporation with respect to such
shares except the right to receive a certificate representing the shares of
Common Stock into which such shares were converted, together with a check in
the amount of all accrued but unpaid cash dividends on the Series B Convertible
Preferred Stock through the date of conversion and payment of any cash in lieu
of fractional interests as provided in subparagraph (b) of this paragraph 3.

The term “Common Stock” shall mean the
Common Stock, par value $0.20 per share, of the Corporation as the same exists
at the date of this Certificate or as such stock may be constituted from time
to time, except that for the purposes of subparagraph (c) of this paragraph 3
the term “Common Stock” shall also mean and include stock of the Corporation of
any class (other than Series B Convertible Preferred Stock), whether now or
hereafter authorized, which shall have the right to participate in the
distribution of either earnings or assets of the Corporation without limit as
to amount or percentage.

(b)           Cash
Payment for Fractional Shares.  No
fractional shares or script representing fractions of shares of Common Stock
shall be issued upon conversion of the Series B Convertible Preferred
Stock.  Instead of any fractional
interest in a share of Common Stock which would otherwise be deliverable upon
the conversion of a share of Series B Convertible Preferred Stock, the
Corporation shall pay to the holder of such share an amount in cash (computed
to the nearest cent) equal to the current market price (as determined in a
reasonable manner prescribed by the Board in its sole discretion) thereof at
the close of business on the business day next preceding the day of
conversion.  If more than one share shall
be surrendered for conversion at one time by the same holder, the number of
shares of Common Stock issuable upon conversion thereof shall be computed on
the basis of the aggregate Liquidation Preference of the shares of Series B
Convertible Preferred Stock so surrendered.

(c)           Adjustments
to Conversion Ratio.  The Conversion
Ratio shall be adjusted from time to time as follows:

(i) 
In case the Corporation shall hereafter (A) pay a dividend or make a
distribution on the Common Stock in shares of Common Stock, (B) subdivide its
outstanding shares of Common Stock into a greater number of shares, (C) combine
its outstanding shares of Common Stock into a smaller number of shares, or (D)
issue by reclassification of the Common Stock any shares of capital stock of
the Corporation, the Conversion Ratio in effect immediately prior to such
action shall be adjusted so that the holder of any share of Series B
Convertible Preferred Stock thereafter surrendered for conversion shall be
entitled to receive the number of shares of Common Stock or other capital stock
of the Corporation which he would have owned or been entitled to receive
immediately following such action had such share been converted immediately
prior thereto.  An adjustment made
pursuant to this subdivision (i) shall become effective immediately after the
record date, in the case of a dividend or distribution, or immediately after
the effective date, in the case of a subdivision, combination or
reclassification.  If, as a result of an
adjustment made pursuant to this subdivision (i), the holder of any share of
Series B Convertible Preferred Stock thereafter surrendered for conversion shall
become entitled to receive shares of two or more classes of capital stock or
shares of Common Stock and other capital stock of the Corporation, the Board
(whose determination shall be conclusive and shall be described in a statement
filed with the conversion agent by the Corporation as soon as practicable)
shall determine the allocation of the adjusted Conversion Ratio between or
among shares of such classes of capital stock or shares of Common Stock and
other capital stock.

(ii) 
If at any time after the date of issuance of the shares of Series B
Convertible Preferred Stock, the Corporation shall issue to all holders of its
Common Stock or sell or fix a record date for the issuance to all holders of
its Common Stock of (A) Common Stock or (B) rights, options or warrants
entitling the holders thereof to subscribe for or purchase Common Stock (or
securities 

convertible or exchangeable into or
exercisable for Common Stock), in any such case, at a price per share (or
having a conversion, exchange or exercise price per share) that is less than $0.75
(the “Placement Price”) then, immediately after the date of such issuance or
sale or on such record date, the number of shares of Common Stock to be
delivered upon the conversion of the Series B Convertible Preferred Stock shall
be increased so that the holders of the Series B Convertible Preferred Stock
thereafter will be entitled to receive the number of shares of Common Stock
determined by multiplying the number of shares of Common Stock such holder
would have been entitled to receive immediately before the date of such
issuance or sale on such record date by a fraction, the denominator of which
will be the number of shares of Common Stock outstanding on such date plus the
number of shares of Common Stock that the aggregate offering price of the total
number of shares so offered for subscription or purchase (or the aggregate
initial conversion price, exchange price or exercise price of the convertible
securities or exchangeable securities or rights, options or warrants, as the
case may be, so offered) would purchase at such Placement Price, and the
numerator of which will be the number of shares of Common Stock outstanding on
such date plus the number of additional shares of Common Stock offered for
subscription or purchase (or into which the convertible or exchangeable
securities or rights, options or warrants so offered are initially convertible
or exchangeable or exercisable, as the case may be).  Notwithstanding anything contained herein to
the contrary, the provisions of this paragraph 3(c)(ii) shall not apply to any
issuance of shares of Common Stock to employees, officers or directors of the
Corporation pursuant to the exercise of options or pursuant to a stock option
plan or other arrangements approved by the Board of Directors of the Corporation.

(iii) 
In case the Corporation shall distribute pro rata to holders of shares
of its Common Stock evidences of its indebtedness or assets (excluding any cash
dividends payable in Common Stock or equity securities of the Corporation) or
rights or warrants to subscribe for securities of the Corporation or any of its
subsidiaries (other than shares of Common Stock referred to in subdivision (ii)
above), then in each case the number of shares of Common Stock into which each
share of the Series B Convertible Preferred Stock shall be convertible
thereafter shall be determined by multiplying the number of shares of Common
Stock into which each such share was convertible theretofore by a fraction, of
which the numerator shall be the Average Market Price (as defined below) for a
share of Common Stock on the record date mentioned below, and of which the
denominator shall be such Average Market Price, less the fair market value (as
determined by the Board of Directors of the Corporation, whose determination
shall be conclusive) as of such record date of the portion of such evidences of
indebtedness or assets or rights or warrants to subscribe which are applicable
to one of the outstanding shares of Common Stock.  Such adjustment shall be made whenever such a
distribution is made and shall become effective retroactively immediately after
the record date for the determination of stockholders entitled to receive such
distribution.

(iv) 
In any case in which this paragraph 3 shall require that an adjustment
be made immediately following a record date or an effective date, the
Corporation may elect to defer (but only until five business days following the
filing by the Corporation with the conversion agent of the certificate of the
chief financial officer of the Corporation required by subdivision (vi) of this
subparagraph (c)) issuing to the holder of any share of Series B Convertible
Preferred Stock converted after such record date or effective date the
additional shares of Common Stock or other capital stock issuable upon such
conversion over and above the shares of Common Stock or other capital stock
issuable upon such conversion on the basis of the Conversion Ratio prior to
adjustment, and paying to such holder any amount of cash in lieu of a
fractional share.

(v) 
No adjustment in the Conversion Ratio shall be required to be made
unless such adjustment would require an increase or decrease of at least 1% of
such Conversion Ratio; provided, however, that any adjustments
which by reason of this subdivision (v) are not required to be made shall be
carried forward and taken into account in any subsequent adjustment.  All calculations under this paragraph 3 shall
be to the nearest 1/100th of a share.  Anything
in this paragraph 3 to the contrary notwithstanding, the Corporation shall be
entitled to make such adjustment in the Conversion Ratio, in addition to those
required by this paragraph 3, as it in its discretion shall determine to be
advisable in order that any stock dividend, subdivision of shares, distribution
of rights to purchase stock or securities, or distribution of securities
convertible into or exchangeable for stock hereafter made by the Corporation to
its stockholders shall not be taxable to the recipients.

(vi) 
Whenever the Conversion Ratio is adjusted as herein provided, (A) the
Corporation shall promptly file with the conversion agent a certificate of the
chief financial officer of the Corporation setting forth the Conversion Ratio
after such adjustment and setting forth a brief statement of the facts requiring
such adjustment and the manner of computing the same, which certificate shall
be conclusive evidence of the correctness of such adjustment, and (B) a notice
stating that the Conversion Ratio has been adjusted and setting forth the
adjusted Conversion Ratio shall forthwith be mailed by the Corporation to the
holders of the Series B Convertible Preferred Stock at their addresses as shown
on the stock books of the Corporation.

(vii) 
In the event that at any time as a result of an adjustment made pursuant
to subdivision (i) of this subparagraph (c), the holder of any share of Series
B Convertible Preferred Stock thereafter surrendered for conversion shall
become entitled to receive any shares of the Corporation other than shares of
Common Stock, thereafter the Conversion Ratio of such other shares so
receivable upon conversion of any share shall be subject to adjustment from
time to time in a manner and on terms as nearly equivalent as practicable to
the provisions with respect to Common Stock contained in this paragraph 3.

(viii) 
The Average Market Price of Common Stock at any date shall be deemed to
be the average of the Current Market Prices (as defined below) for the 30
consecutive business days commencing 45 business days before the date in
question.  The “Current Market Price” on
any given day shall mean the closing price per share of the Corporation’s
Common Stock on the principal national securities exchange on which the Common
Stock is listed or admitted to trading or, if not listed or traded on any such
exchange, on the National Market System (the “National Market System”) of the
National Association of Securities Dealers Automated Quotations System
(“NASDAQ”), or if not listed or traded on any such exchange or system,  on the Nasdaq Bulletin Board, or if not
listed or traded on any such exchange, system or board, the average of the bid
and asked price per share on NASDAQ or, if such quotations are not available,
the fair market value per share of the Corporation’s Common Stock as reasonably
determined by the Board of Directors of the Company.

(d)           Notices
of Record Date.  In case:

(i) 
there shall be any capital stock reorganization or reclassification of
the Common Stock (other than a subdivision or combination of the outstanding
Common Stock and other than a change in the par value of the Common Stock), or
any consolidation or merger to which the Corporation is a party or any
statutory exchange of securities with another corporation and for which
approval of any stockholders of the Corporation is required, or any sale or
transfer of all or substantially all the assets of the Corporation; or

(ii) 
there shall be a voluntary dissolution, liquidation or winding up of the
Corporation;

then the Corporation shall cause to be
filed with the conversion agent, and shall cause to be mailed to the holders of
shares of the Series B Convertible Preferred Stock at their addresses as shown
on the stock books of the Corporation, at least 10 days prior to the applicable
date hereinafter specified, a notice stating (A) the date on which a record is
to be taken for the purpose of such distribution or rights, or, if a record is
not to be taken, the date as of which the holders of Common Stock of record to
be entitled to such distribution or rights are to be determined, or (B) the
date on which such reorganization, reclassification, consolidation, merger,
statutory exchange, sale, transfer, dissolution, liquidation or winding up is
expected to become effective, and the date as of which it is expected that
holders of Common Stock of record shall be entitled to exchange their shares of
Common Stock for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, statutory exchange,
sale, transfer, dissolution, liquidation or winding up.  Failure to give such notice or any defect
therein shall not affect the legality or validity of the proceedings described
in subdivision (i) or (ii) of this subparagraph (d).

(e)           Reservation
of Common Stock for Conversion.  The
Corporation covenants that it will (i) use its best efforts to cause an
amendment to its Certificate of 

Incorporation to increase the aggregate number
of shares of authorized Common Stock from 15,000,000 shares to 100,000,000
shares (the “Charter Amendment”) to be approved and adopted by its stockholders
as soon as possible after the date hereof and thereafter promptly to file the
Charter Amendment with the Secretary of State of the State of Delaware and (ii)
thereafter, at all times reserve and keep available, free from preemptive
rights, out of the aggregate of its authorized but unissued shares of Common
Stock or shares of Common Stock held in its treasury, or both, for the purpose
of effecting conversions of the Series B Convertible Preferred Stock, the full
number of shares of Common Stock deliverable upon the conversion of all
outstanding shares of Series B Convertible Preferred Stock not theretofore
converted.  For purposes of this
subparagraph (e), the number of shares of Common Stock which shall be
deliverable upon the conversion of all outstanding shares of Series B
Convertible Preferred Stock shall be computed as if at the time of computation
all such outstanding shares were held by a single holder.

(f)            Taxes
Upon Conversion.  The Corporation
will pay any and all documentary stamp or similar issue or transfer taxes
payable in respect of the issue or delivery of shares of Common Stock on
conversions of the Series B Convertible Preferred Stock pursuant hereto; provided,
however, that the Corporation shall not be required to pay any tax which
may be payable in respect of any transfer involved in the issue or delivery of
shares of Common Stock in a name other than that of the holder of the Series B
Convertible Preferred Stock to be converted and no such issue or delivery shall
be made unless and until the person requesting such issue or delivery has paid
to the Corporation the amount of any such tax or has established, to the
satisfaction of the Corporation, that such tax has been paid.

(g)           Modification
of Common Stock.  Notwithstanding any
provision herein to the contrary, in case of any consolidation or merger to
which the Corporation is a party (other than a merger or consolidation in which
the Corporation is the continuing corporation), or in case of any sale or
conveyance to another corporation of the property of the Corporation as an
entirety or substantially as an entirety, or in the case of any statutory
exchange of securities with another corporation (including any exchange
effected in connection with a merger of a third corporation into the
Corporation), the holder of each share of Series B Convertible Preferred Stock
then outstanding shall have the right thereafter to convert such share into the
kind and amount of securities, cash or other property receivable upon such consolidation,
merger, statutory exchange, sale or conveyance by a holder of the number of
shares of Common Stock into which such share of Series B Convertible Preferred
Stock might have been converted immediately prior to such consolidation,
merger, statutory exchange, sale or conveyance, assuming such holder of Common
Stock failed to exercise his rights of election, if any, as to the kind of
amount of securities, cash or other property receivable upon such
consolidation, merger, statutory exchange, sale or conveyance (provided that if
the kind or amount of securities, cash or other property receivable upon such
consolidation, merger, statutory exchange, sale or conveyance is not the same
for each share of Common Stock in respect of which such rights of election
shall not have been exercised (each, a “non-electing share”), then for the
purpose of this subparagraph (g) the kind and amount of securities, cash or
other 

property receivable upon such consolidation,
merger, statutory exchange, sale or conveyance for each non-electing share
shall be deemed to be the kind and amount so receivable per share by a
plurality of the non-electing shares). 
Thereafter, the holders of the Series B Convertible Preferred Stock
shall be entitled to appropriate adjustments with respect to their conversion
rights to the end that the provisions set forth in this paragraph 3 shall
correspondingly be made applicable, as nearly as may reasonably be, in relation
to any shares of stock or other securities or property thereafter deliverable
on the conversion of the Series B Convertible Preferred Stock.  Any such adjustment shall be approved by the
Board of Directors of the Corporation, evidenced by a certificate of the chief
financial officer of the Corporation to that effect delivered to the conversion
agent; and any adjustment so approved shall for all purposes hereof
conclusively be deemed to be an appropriate adjustment.

The above provisions of this subparagraph
(g) shall similarly apply to successive consolidations, mergers, statutory
exchanges, sales or conveyances.

4.             No
Reissuance of Series B Convertible Preferred Stock.  No share or shares of Series B Convertible
Preferred Stock acquired by the Corporation by reason of purchase, conversion
or otherwise shall be reissued, and all such shares shall be cancelled, retired
and eliminated from the shares which the Corporation shall be authorized to
issue.  The Corporation may from time to
time take such appropriate corporate action as may be necessary to reduce
accordingly the authorized number of shares of the Series B Convertible
Preferred Stock.

5.             Voting
Rights.  Except as otherwise
expressly provided herein or as required by law, the holders of the Series B
Convertible Preferred Stock shall be entitled to vote on all matters upon which
holders of Common Stock have the right to vote and, with respect to such right
to vote, shall be entitled to notice of any stockholders’ meeting in accordance
with the Corporation’s Bylaws, and shall be entitled to a number of votes equal
to the number of shares of Common Stock into which such shares of Series B
Convertible Preferred Stock could then be converted, at the record date for the
determination of stockholders entitled to vote on such matters or, if no such
record date is established, at the date such vote is taken or any written
consent of stockholders is solicited. 
Except as otherwise expressly provided herein, or to the extent class or
series voting is otherwise required by law or agreement, the holders of the
Series B Convertible Preferred Stock and the holders of the Common Stock shall
vote together as a single class and not as separate classes.

6.             No
Consent Required.  No consent of the
holders of the Series B Convertible Preferred Stock shall be required for (a)
the creation of any indebtedness of any kind of the Corporation, (b) the
creation of any class of stock of the Corporation ranking senior (provided such
class of stock is not convertible into Common Stock or any equity security
convertible into or exchangeable for Common Stock), junior or pari  passu
as to dividends or upon liquidation to the Series B Convertible Preferred Stock
or (c) any increase of decrease in the amount of authorized Common Stock or any
increase, decrease or change in the par value thereof or in any other terms thereof.

7.             Reservation
of Rights.  The Board reserves the
right by subsequent amendment of this resolution from time to time to increase
or decrease the number of shares which constitute the Series B Convertible
Preferred Stock (but not below the number of shares thereof then outstanding)
and in other respects to amend this resolution within the limitations provided
by law, this resolution and the Certificate of Incorporation.

IN WITNESS WHEREOF, Geokinetics Inc. has
caused this Certificate of Designation of Series B Convertible Preferred Stock
to be made under the seal of the Corporation and signed by Jay D. Haber, its
Chairman and Chief Executive Officer, and attested by Michael Hale, its
Secretary, as of this 30 day of September, 1997.

	
  

  	
  GEOKINETICS INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jay D. Haber

  
	
   

  	
  Name:

  	
  Jay D. Haber

  
	
   

  	
  Title:

  	
  Chairman and Chief Executive Officer

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