Document:

<PAGE>

                                                                    Exhibit 10.2

(CHASE LOGO)

                                 PROMISSORY NOTE

$7,000,000                                                         July 31, 2006

     For value received, the undersigned unconditionally promises to pay to the
order of JPMORGAN CHASE BANK, N.A. (hereinafter the "Bank") at its offices at
695 Route 46 West, Fairfield, New Jersey 07004, or to such other address as the
Bank may notify the undersigned in writing, the principal sum of Seven Million
Dollars ($7,000,000) (the "Note Amount") or, if less, such unpaid principal
amount of each loan (a "Loan") (as recorded on the grid attached hereto or on
any additional pages thereof) made by the Bank to the undersigned and
outstanding under this note on July 31, 2007 (the "Maturity Date").

     The undersigned promises to pay interest on the unpaid balance of the
principal amount of each such Loan from and including the date of such Loan to
the last day of the interest Period thereof at either (i) a floating rate per
annum equal to the Prime Rate (a "Prime Loan"); (ii) a fixed rate per annum
equal to the Adjusted LIBO Rate applicable to such Loan plus 0.625% (a
"Eurodollar Loan"); or (iii) a fixed rate per annum equal to the Money Market
Rate applicable to such Loan (a "Money Market Loan"). Any principal not paid
when due shall bear interest from and including the date due until paid in full
at a rate per annum equal to the Default Rate. Interest shall be payable on the
relevant Interest Payment Date and shall be calculated on the basis of a year of
360 days for the actual number of days elapsed. Any extension of time for the
payment of the principal of this note resulting from the due date falling on a
non-Banking Day shall be included in the computation of interest.

     Anything in this note to the contrary notwithstanding, no Loans shall be
made hereunder, no letters of credit shall be issued by the Bank for the account
of the undersigned ("Letters of Credit") and no drafts shall be drawn by the
undersigned and accepted by the Bank ("Acceptance") if, as a result thereof, the
aggregate unpaid principal balance of all Loans made by the Bank to the
undersigned hereunder plus the aggregate undrawn face amount of all Letters of
Credit, the aggregate unreimbursed amount of all drafts drawn under Letters of
Credit and the aggregate outstanding face amount of Acceptances would exceed the
Note Amount or Reduced Note Amount as applicable for the relevant period.

     The date, amount, rate of interest and maturity date of each Loan and
payment(s) (if any) of principal, the Loan(s) to which such payment(s) will be
applied (which shall be at the discretion of the Bank) and the outstanding
principal balance of Loans shall be recorded by the Bank on its books and
records (which may be electronic in nature) and at any time and from time to
time may be, and shall be prior to any transfer and delivery of this note,
entered by the Bank on the schedule attached or any continuation of the schedule
attached hereto by the Bank (at the discretion of the Bank, any such entries may
aggregate Loans (and payments thereon) with the same interest rate and tenor
and, if made on a given date, may show only the Loans outstanding on such date).
Any such entries shall be conclusive in the absence of manifest error. The
failure by the Bank to make any or all such entries shall not relieve the
undersigned from its obligation to pay any and all amounts due hereunder.

<PAGE>

     1. DEFINITIONS. The terms listed below shall be defined as follows:

     "Adjusted LIBO Rate" means the LIBO Rate for such Loan divided by one minus
the Reserve Requirement.

     "Banking Day" means any day on which commercial banks are not authorized or
required to close in New York City and whenever such day relates to a Eurodollar
Loan or notice with respect to any Eurodollar Loan, a day on which dealings in
U.S. dollar deposits are also carried out in the London interbank market.

     "Code" means the Uniform Commercial Code of the State of New York.

     "Default Rate" means, in respect of any amount not paid when demanded, a
rate per annum during the period commencing on the date of demand until such
amount is paid in full equal to: (a) if a Prime Loan, a floating rate of 2%
above the rate of interest thereon; (b) if a Eurodollar Loan or Money Market
Loan, a fixed rate of 2% above the rate of interest in effect thereon at the
time of demand until the last day of the Interest Period thereof and,
thereafter, a floating rate of 2% above the rate of interest for a Prime Loan.

     "Event of Default" means each of the events stated in Section 7.

     "Facility Documents" means this note or any document executed by the
undersigned or by any Third Party granting security or support for this note and
all other agreements, instruments or other documents executed by the undersigned
or a Third Party or otherwise executed in connection with this note, whether by
guaranty, subordination, grant of a security interest or any other credit
support, or which is contained in any certificate, document, opinion, financial
or other statement furnished at the time under or in connection with any
Facility Document.

     "Interest Payment Date" means (a) with respect to any Prime Loan, the last
day of each month, or (b) with respect to any Eurodollar Loan or Money Market
Loan, the last day of the Interest Period applicable to which such Loan is a
part and, in the case of a Eurodollar Loan or a Money Market Loan with an
Interest Period of more than three months' duration, each day prior to the last
day of such Interest Period that occurs at intervals of three months' duration
after the first day of such Interest Period.

     "Interests Period" means (a) with respect to any Eurodollar Loan, the
period commencing on the date of such Loan and ending on the numerically
corresponding day in the calendar month that is one, two, three or six months
thereafter, as the undersigned may elect or (b) with respect to any Money Market
Loan, the period commencing on the date of such Loan and ending on the last day
of the period for which such Loan is offered, as recorded by the Bank on the
grid hereto; provided, that (i) if any Interest Period would end on a day other
than a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless in the case of a Eurodollar Loan only, such next
succeeding Business Day would fall in the next calendar month, in which case
such Interest Period shall end on the next preceding Business Day and (ii) any
Interest Period pertaining to a Eurodollar Loan that commences on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the last calendar month of such Interest Period) shall end
on the last Business Day of the last calendar month of such Interest Period, For
purposes hereof, the date of a Loan initially shall be the date on which such
Loan is made and, in the case of the continuation of a Loan, thereafter shall be
the effective date of the most recent conversion or continuation of such Loan.

     "Liabilities" means all obligations and liabilities of the undersigned to
the Bank or its affiliates of whatever nature, including payment of this note,
whether now existing or hereafter incurred or acquired.

                                        2

<PAGE>

whether matured or unmatured, liquidated or unliquidated, direct or indirect,
absolute or contingent, primary or secondary, sole, joint, several or joint and
several, secured or unsecured.

     "LIBO Rate" means, with respect to any Eurodollar Loan for any Interest
Period, the rate quoted by the principal London branch of the Bank at
approximately 11:00 a.m. London time two (2) Business Days' prior to the first
day of such Interest Period for the offering to leading banks in the London
interbank market of dollar deposits in immediately available funds, for a period
for the offering to leading banks in the London interbank market of dollar
deposits in immediately available funds, for a period and in an amount,
comparable to such Interest Period and the principal amount of such Eurodollar
Loan, as it appears on Page 3756 of the Moneyline Telerate Markets.

     "Money Market Rate" means, if offered, a rate of interest per year as
offered by the Bank from time to time on any single commercial borrowing during
the period offered on such Loan. The Money Market Rate of interest available for
any subsequent borrowings may differ since Money Market Rates may fluctuate on a
daily basis.

     "Prime Rate" means that floating rate of interest from time to time
announced publicly by the Bank in New York, New York as its prime rate. The
Prime Rate shall be automatically adjusted on the date of any change thereto.

     "Regulation D" means Regulation D of the Board of Governors of the Federal
Reserve System.

     "Regulatory Change" means any change after the date of this note in United
States federal, state or municipal laws or any foreign laws or regulations
(including Regulation D) or the adoption or making after such date of any
interpretations, directives or requests applying to a class of banks, including
the Bank, of or under any United States federal, state or municipal laws or any
foreign laws or regulations (whether or not having the force of law) by any
court or governmental or monetary authority charged with the interpretation or
administration thereof.

     "Reserve Requirement" means, for any Eurodollar loan, the average maximum
rate at which reserves (including any marginal, supplemental or emergency
reserves) are required to be maintained during the term of such Loan under
Regulation D by member banks of the Federal Reserve System in New York City with
deposits exceeding one billion U.S. dollars, or as otherwise established by the
Board of Governors of the Federal Reserve System and any other banking authority
to which the Bank is subject, against "Eurocurrency liabilities" (as such term
is used in Regulation D). Without limiting the effect of the foregoing, the
Reserve Requirement shall reflect any other reserves required to be maintained
by such member banks by reason of any Regulatory Change against (x) any category
of liabilities which includes deposits by reference to which the LIBO Rate is to
be determined or (y) any category of extensions of credit or other assets which
include Eurodollar Loans. The Reserve Requirement shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.

     "Third Party" means any third party who supports or is liable with respect
to this noted due to the execution of any document granting support or security
or for this note, whether by guaranty, subordination, grant of security or any
other credit support.

     2. BORROWINGS AND PREPAYMENTS. The undersigned shall give the Bank notice
of each borrowing request by 12:00 noon, New York City time three (3) Banking
Days prior to each requested borrowing of a Eurodollar Loan and by 12:00 noon
New York City time on the date of each requested borrowing of a Prime Loan or a
Money Market Loan; provided that no Eurodollar Loan shall be in a minimum amount
equal to less than $100,000. The undersigned shall have the right to make
prepayments of principal at any time or from time to time; provided that: (a)
the undersigned shall give the Bank

                                        3

<PAGE>

irrevocable notice of each prepayment by 12:00 noon New York City time three (3)
Banking Days prior to prepayment of a Eurodollar Loan, one (1) Banking Day prior
to prepayment of Money Market Loan and by 12:00 noon New York City time on the
date of prepayment of a Prime Loan; (b) Eurodollar Loans and Money Market Loans
may be prepaid prior to the last day of the Interest Period thereof only if
accompanied by payment of the additional payments calculated in accordance with
paragraph 5 below; and (c) all prepayments shall be in a minimum amount equal to
the lesser $100,000 or the unpaid principal amount of this note. If the
undersigned fails to notify the Bank, in accordance with the terms hereof, prior
to the maturity date of any Eurodollar Loan or Money Loan to continue such Loan
as a Eurodollar Loan or Money Market Loan, such Loan shall be converted to a
Prime Loan on its maturity date.

     3. ADDITIONAL COSTS. (a) If as a result of any Regulatory Change which (i)
changed the basis of taxation of any amounts payable to the Bank under this note
(other than taxes imposed on the overall net income of the Bank or the lending
office by the jurisdictions in which the principal office of the Bank or the
lending office are located) or (ii) imposes or modifies any reserve, special
deposit, deposit insurance or assessments, minimum capital, capital ratios or
similar requirements relating to any extension of credit or other assets of, or
any deposits with or other liabilities of the Bank, or (iii) imposes any other
condition affecting this note, the Bank determines (which determination shall be
conclusive absent manifest error) that the cost to it of making or maintaining a
Eurodollar Loan or a Money Market Loan is increased or any amount received or
receivable by the Bank under this note is reduced, then the undersigned will pay
to the Bank on demand an additional amount that the Bank determines will
compensate it for the increased cost or reduction in amount.

     (b) Without limiting the effect of the foregoing provisions of this Section
3 (but without duplication), the undersigned shall pay to the Bank from time to
time on request such amounts as the Bank may determine to be necessary to
compensate the Bank for any costs which it determines are attributable to the
maintenance by it or any of its affiliates pursuant to any law or regulation of
any jurisdiction or any interpretation, directive or request (whether or not
having the force of law and whether in effect on the date of this note or
thereafter) of any court or governmental or monetary authority of capital in
respect of the Loans hereunder (such compensation to include, without
limitation, an amount equal to any reduction in return on assets or equity of
the Bank to a level below that which it could have achieved but for such law,
regulation, interpretation directive or request).

     4. UNAVAILABILITY, INADEQUACY OR ILLEGALITY OF LIBO RATE. Anything herein
to the contrary notwithstanding, if the Bank reasonably determines (which
determination shall be conclusive) that:

     (a) quotations of interest rates for the relevant deposits referred to in
the definition of LIBO Rate are not being provided in the relevant amounts or
for the relevant maturities for purposes of determining the rate of interest for
a Eurodollar Loan; or

     (b) the definition of LIBO Rate does not adequately cover the cost to the
Bank of making or maintaining a Eurodollar Loan; or

     (c) as a result of any Regulatory Change (or any change in the
interpretation thereof) adopted after the date hereof, the principal office of
the Bank or the lending office is subject to any taxes, reserves, limitations,
or other charges, requirements or restrictions on any claims of such office on
non-United States residents (including, without limitation, claims on non-United
States offices or affiliates of the Bank) or in respect of the excess above a
specified level of such claims; or

                                        4

<PAGE>

     (d) it is unlawful for the Bank or the lending office to maintain any
Eurodollar Loan at the LIBO Rate.

THEN, the Bank shall give the undersigned prompt notice thereof, and so long as
such condition remains in effect, any existing Eurodollar Loan shall bear
interest as a Prime Loan and the Bank shall make no Eurodollar Loans.

     5. BREAK FUNDING PAYMENTS. In the event of (a) the payment of any principal
of any Eurodollar Loan or Money Market Loan other than on the last day of an
Interest Period applicable thereto (including as a result of an Event of
Default), (b) the conversion of any Eurodollar Loan or Money Market Loan other
than on the last day of the Interest Period applicable thereto, or (c) the
failure to borrow, convert, continue on the date specified in any notice
delivered pursuant hereto, then, in any such event, the undersigned shall
compensate the Bank for the loss, cost and expense attributable to such event.
In the case of a Eurodollar Loan or Money Market Loan, such loss, cost or
expense to the Bank shall be deemed to include an amount determined by the Bank
to be the excess, if any, of (i) the amount of interest which would have accrued
on the principal amount of such Eurodollar Loan or Money Market Loan had such
event not occurred, at the Adjusted LIBO Rate that would have been applicable to
such Eurodollar Loan or the Money Market Rate that would have been applicable to
such Money Market Loan, as the case may be, for the period from the date of such
event to the last day of the then current Interest Period therefor (or, in the
case of a failure to borrow, convert or continue, for the period that would have
been the Interest Period for such Eurodollar Loan or Money Market Loan), over
(ii) the amount of interest which would accrue on such principal amount for such
period at the interest rate which the Bank would bid were it to bid, at the
commencement of such period, for dollar deposits of a comparable amount and
period from other banks in the eurodollar market. A certificate of the Bank
setting forth any amount or amounts that the Bank is entitle to receive pursuant
to this Section shall be delivered to the Bank and shall be conclusive absent
manifest error. The undersigned shall pay the Bank the amount shown as due on
any such certificate within 10 days after receipt thereof.

     6. BANK'S RIGHT OF SETOFF. The Bank retains all rights of setoff that it
may have under applicable law or contract, including, without limitation, at its
option, to setoff balances (general or special, time or demand, provisional or
final) held by it for the account of the undersigned at any of Bank's offices,
in dollars or in any other currency, against any amount payable under this Note
which is not paid when due (regardless of whether such balances are then due to
the undersigned).

     7. EVENTS OF DEFAULT. If any of the following events of default shall occur
with respect to any of the undersigned or any Third Party:

     (a) the undersigned shall fail to pay any principal, interest or any other
amount payable under this note, or any other Liability, as and when due and
payable; or

     (b) the undersigned or any Third Party shall fail to perform or observe any
covenant or agreement contained in any Facility Document, and such failure shall
continue for 30 consecutive days; or

     (c) the undersigned or any Third Party shall fail to pay when due any
indebtedness in excess of $5,000,000 or more (including but not limited to
indebtedness for borrowed money) or if any such indebtedness shall become due
and payable, or be capable of being due and payable at the option of the holder
thereof, prior to the scheduled maturity thereof; or

     (d) the undersigned or any Third Party: (i) shall generally not, or be
unable to, or shall admit in writing its inability to, pay its debts as such
debts become due; (ii) shall make an assignment for the benefit

                                        5

<PAGE>

of creditors; (iii) shall commence any proceeding or file a petition seeking
relief under any bankruptcy, insolvency, reorganization, receivership,
dissolution, liquidation or other similar Federal, state or foreign law or
seeking the appointment of a receiver, trustee, custodian, conservator or
similar official for all or a substantial part or its property or (iv) shall
have any such proceeding commenced or petition filed against it and the same
shall remain undismissed for a period of 30 days or shall consent or acquiesce
thereto; or

     (e) the undersigned or any Third Party shall merge or consolidate with or
into, or convert into, any other legal entity; or

     (f) any Facility Document shall at any time and for any reason cease to be
in full force and effect or shall be declared null and void, or the undersigned
or any relevant Third Party shall deny or contest any further liability or
obligation thereunder or the validity or enforceability thereof or of any lien
or security interest created thereby; or

     (g) any lien, mortgage, pledge, security interest or other encumbrance of
any kind shall be created or imposed upon any property or asset of the
undersigned or any Third Party without the Bank's written consent thereto,
except as permitted pursuant to Section 8.3 of the Credit Agreement dated as of
December 15, 2005 among the undersigned (as Borrower), the Lenders signatory
thereto and the Bank (as Administrative Agent, Swingline Bank and Issuing
Agent); or

     (h) any action or proceeding before any court or governmental agency or
authority which involves forfeiture of any property or assets of the undersigned
or a Third Party shall have been commenced or if any such forfeiture or other
seizure or assumption of custody or control over such assets by any court or
governmental agency or authority shall occur; or

     (i) one or more verdicts, judgments, decrees or orders for the payment of
money in excess of $5,000,000 in the aggregate shall be rendered against the
undersigned and shall continue in effect for a period of 60 consecutive days
without being vacated, or stayed pending appeal (or the satisfaction or bonding
or any such verdict, judgment, decree or order shall, in the Bank's reasonable
judgment, constitute a material adverse change), any proceedings to execute any
such verdict, judgment, decree or order shall be commenced, or if any
attachment, distraint, levy or other restraint shall be placed upon any property
or assets of the undersigned or any Third Party;

THEN, in any such case, the unpaid principal amount of this note, together with
accrued interest and all other Liabilities, shall immediately become due and
payable without any notice or other action by the Bank. The undersigned waive(s)
presentment, notice of dishonor, protest and any other notice or formality with
respect to this note. All rights and remedies provided in this note or otherwise
available to the Bank shall be cumulative and not exclusive and each may be
exercised by the Bank from time to time and as often as may be necessary.

     8. ENFORCEMENT. The Bank may, upon the occurrence and continuation of an
Event of Default, proceed to enforce payment of the same and exercise any of or
all the rights and remedies afforded the Bank by the Code or otherwise possessed
by the Bank. Any requirement of the Code for reasonable notice to the
undersigned shall be deemed to have been complied with if such notice is mailed,
postage prepaid, to the undersigned and such other persons entitled to notice,
at the addresses shown on the records of the Bank at least four (4) Business
Days prior to the time of sale, disposition or other event requiring notice
under the Code.

     9. TRANSFER. Upon any transfer of this note, the undersigned hereby waiving
notice of any such transfer, the Bank may deliver the Assets With Bank or any
part thereof to the transferee who shall

                                        6

<PAGE>

thereupon became vested with all the rights herein or under applicable law given
to the Bank with respect thereto and the bank shall transfer forever be relieved
and fully discharge from any liability or responsibility in the matter; but the
Bank shall retain all rights hereby given to it with respect to any Liabilities
and Assets With Bank not so transferred. No modification or waiver of any of the
provisions of this note shall be effective unless in writing, signed by the
Bank, and only to the extent therein set forth; nor shall any such waiver be
applicable except in the specific instance for which given. This agreement set
forth the entire understanding of the parties, and the undersigned acknowledges
that no oral or other agreements, conditions, promises, understandings,
representations or warranties exist in regard to the obligations hereunder,
except those specifically set forth herein.

     10. JURISDICTION AND WAIVER. The undersigned hereby irrevocably consents to
the in personam jurisdiction of the federal and/or state courts located within
the State of New York over controversies arising from or relating to this note
or the Liabilities AND IRREVOCABLY WAIVES TRIAL BY JURY AND the right to
interpose any counterclaim or offset of any nature in any such litigation. The
undersigned further irrevocably waives presentment, demand, protest, notice of
dishonor and all other notices or demands of any kind in connection with this
note or any liabilities.

     11. MISCELLANEOUS. Each reference herein to the Bank shall be deemed to
include its successor, endorsees, and assigns, in whose favor the provisions
hereof shall also inure. Each reference herein to the undersigned shall be
deemed to include the successors and assigns of the undersigned, all of whom
shall be bound by the provisions hereof.

     The undersigned agrees to pay to the Bank, as soon as incurred, all costs
and reasonable and documented expenses incidental to the care, preservation,
processing, sale or collection of or realization upon any of or all the Assets
With Bank or incurred in connection with the enforcement or collection of this
note, or in any way relating to the rights of the Bank hereunder, including
reasonable outside counsel fees and expenses. Each and every right and remedy
hereby granted to the Bank or allowed to it by law shall be cumulative and not
exclusive and each may be exercised by the Bank from time to time and as often
as may be necessary. The undersigned shall have the sole responsibility for
notifying the Bank in writing that the undersigned wishes to take advantage of
any redemption, conversion or other similar right with respect to any of the
Assets With Bank. The Bank may release any party (including any partner of any
undersigned) without notice to any of the undersigned, whether as co-maker,
endorsers, guarantors, sureties, assign or otherwise, without affecting the
liability of any of the undersigned hereof or any partner of any undersigned
hereof.

                                       7

<PAGE>

     12. GOVERNING LAW. This note shall be governed by and construed in
accordance with the laws of the State of New York and, as to interest rates,
applicable Federal law.

                                        MOVADO GROUP,INC.

                                        By: /s/ Eugene J. Karpovich
                                            ------------------------------------
                                        Name: Eugene J. Karpovich
                                        Title: SVP, CFO

                                        Address for notices: 650 From Road
                                        Paramus, New Jersey 07652
                                        Attn: Eugene J. Karpovich,
                                              Senior Vice President &
                                              Chief Financial Officer
                                        Telecopier: 201-267-8240
                                        Telephone:  201-267-8600

                                       8exv10w1

 

Exhibit 10.1

FIRST AMENDMENT TO

EMPLOYMENT AGREEMENT

     This First Amendment to Employment Agreement (this “Amendment”), dated as of September 6,
2006, is made and entered into by and between Input/Output, Inc., a Delaware corporation
(hereinafter referred to as “Employer”), and Robert P. Peebler, an individual currently residing in
Harris County, Texas (hereinafter referred to as “Employee”).

W I T N E S S E T H:

     WHEREAS, Employer and Employee entered into an Employment Agreement (the “Agreement”)
effective March 31, 2003; and

     WHEREAS, the parties desire to amend the Agreement to reflect certain changes in compensation
and in the term of the Agreement.

     NOW, THEREFORE, in consideration of the mutual promises contained herein and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Employer
and Employee agree as follows:

     1. Section 1(b) of the Agreement is hereby amended to read in its entirety as follows:

While employed hereunder, Employee will devote his full-time, efforts, skills and
attention for the benefit of and with his primary attention to the affairs of
Employer in order that he may faithfully perform his duties and obligations to
Employer. The preceding sentence will not, however, be deemed to restrict Employee
from attending to matters or engaging in activities not directly related to the
business of Employer, provided that (i) such activities or matters are reasonable in
scope and time commitment and not otherwise in violation of this Agreement, and (ii)
Employee will not become a director of any corporation or other entity (excluding
charitable or other non-profit organizations) without prior written disclosure to,
and consent of, Employer.

     2. Section 2(a) of the Agreement is hereby amended to read in its entirety as follows:

Effective as of August 1, 2006, Employer will pay to Employee through the term of
this Agreement a base salary at the rate of $500,000 per annum (such base salary, as
it may be increased by the Compensation Committee of the Board as hereinafter
provided, is referred to herein as the “Base Salary”). The Compensation Committee
of the Board will review the Base Salary from time to time and, during the term of
this Agreement, may increase, but may not decrease, the Base Salary. The Base
Salary will be paid to Employee in equal installments every two weeks or on such
other schedule as Employer may establish from time to time for its management
personnel.

 

 

     3. Section 2(b) of the Agreement is hereby amended to read in its entirety as follows:

Employee will be eligible to participate in Employer’s annual incentive plan (the
“Incentive Plan Bonus”) for fiscal year 2006 and each full year thereafter during
the Term of this Agreement, with target Incentive Plan Bonus at 75% of Base Salary
and with maximum Incentive Plan Bonus at 150% of Base Salary. In accordance with
the terms of the annual incentive plan and as approved by the Compensation Committee
of the Board, the Incentive Plan Bonus will be earned upon achievement of
pre-designated Employer financial performance targets and achievement of
pre-designated Employee critical success factors during each applicable year.

     4. Section 2(c) of the Agreement is hereby amended to add the following:

     (i) In 2007, Employee shall be entitled to receive a grant of the number of
shares of restricted common stock of Employer determined by dividing (a) the amount
of the annual Incentive Plan Bonus, if any, earned by Employee for fiscal year 2006
by (b) the average of the closing sales price per share on the New York Stock
Exchange of Employer’s shares of common stock for the ten (10) business days ending
on and including the last full trading day on which shares of Employer’s common
stock are traded on the New York Stock Exchange (the “Final 10-Day Average Price”)
in 2006. This restricted stock award will provide for vesting of all of the shares
of restricted stock on the date that is the second anniversary date of the date of
grant of such award. The date of grant of this award will be the first available
grant date (under the then-existing policies of Employer relating to determination
of grant dates for restricted stock awards) after the determination of the amount
of the Incentive Plan Bonus earned by Employee for fiscal year 2006. The remaining
terms and conditions of the restricted stock award will be governed by the
applicable restricted stock agreement and the terms and conditions of the
Input/Output, Inc. 2004 Long-Term Incentive Plan or such other stock plan as shall
be determined by Employer (the “Plan”).

     (ii) In 2007, in addition to the award of shares described in Section 2(c)(i)
above, Employee shall be entitled to receive a grant of the number of shares of
restricted common stock of Employer determined by dividing (a) the annual Base
Salary of Employee as in effect on the date of grant by (b) the Final 10-Day Average
Price in 2006. The date of grant of this award will be the same grant date as
provided for the restricted stock award to Employee pursuant to Section 2(c)(i)
above. This restricted stock will vest in equal annual amounts over a four-year
period on the anniversary of the grant date. The remaining terms and conditions of
this restricted stock award will be governed by the applicable restricted stock
agreement and the terms and conditions of the Plan.

2

 

     (iii) In each calendar year after 2007 during the Term of this Agreement,
Employee shall be entitled to receive grant(s) of (a) the number of shares of
restricted common stock of Employer determined pursuant to this Section 2(c)(iii)
and (b) stock options to purchase the number of shares of common stock of Employer
determined by the Compensation Committee of the Board, in each case pursuant to the
terms and conditions of the Plan. The number of shares with respect to the
restricted stock award to Employee described in this Section 2(c)(iii) will be
determined by dividing (a) the amount of the annual Incentive Plan Bonus, if any,
earned by Employee for the preceding year by (b) the Final 10-Day Average Price for
the preceding year. This restricted stock award will provide for vesting of all of
the shares of restricted stock on the date that is the second anniversary date of
the date of grant of such award. The date of grant of this award will be the first
available grant date (under the then-existing policies of Employer relating to
determination of grant dates for restricted stock awards) after the determination of
the amount of the Incentive Plan Bonus earned by Employee for the preceding year.
The remaining terms and conditions of the restricted stock award will be governed by
the applicable restricted stock agreement and the terms and conditions of the Plan.

     5. Section 4 of the Agreement is hereby amended to read in its entirety as follows:

Employee’s employment with Employer will commence on March 31, 2003, and will
continue for seven (7) years to expire on December 31, 2010 (the “Term”), unless
terminated earlier in accordance with Section 5.

     6. Section 6(d)(2) of the Agreement is hereby amended to read in its entirety as follows:

     (2) (i) all Incentive Plan Bonuses then due to Employee, if any, under the
terms of the relevant incentive compensation plan in effect for any previous year
and (ii) a prorated portion of the target Incentive Plan Bonus Employee would have
been eligible to receive under any incentive compensation plan in effect with
respect to the current year, regardless of any limitations otherwise applicable to
the incentive compensation plan (i.e., the failure to have completed the current
measurement period, the failure to be a full-time employee of Employer as of the
Incentive Plan Bonus payment date or the failure to achieve any performance goal
applicable to all or any portion of the current measurement period).

     7. The Employment Agreement, as amended hereby, is in all respects ratified, approved and
confirmed.

     8. In accordance with the terms of the Plan, any voluntary termination of employment from the
Company upon or after the expiration of the full Term of the Agreement shall be treated for all
purposes under the Plan as a termination due to the retirement of Employee.

3

 

     9. If necessary to avoid potential adverse tax consequences to the parties, the parties agree
to amend the Agreement further in conformance with section 409A of the Internal Revenue Code of
1986, as amended, upon clarification by the Department of the Treasury as to the Treasury
Regulations regarding same set forth in 26 CFR part 1.

     10. This Amendment may be executed in any number of counterparts, all of which together make
and shall constitute one and the same instrument and either party may execute this Amendment by
signing any such counterpart.

     11. This Amendment shall in all respects be governed by, and construed in accordance with, the
laws of the State of Texas, including all matters of construction, validity and performance.

[The next following page is the signature page]

4

 

     IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed this
Agreement as of the date set forth above.

	 	 	 	 	 
	 	 	EMPLOYER:
	 
	 	 	 	 
	 	 	INPUT/OUTPUT, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David L. Roland
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	Title: Vice President and General Counsel
	 
	 	 	 	 
	 	 	EMPLOYEE:
	 
	 	 	 	 
	 	 	/s/ Robert P. Peebler
	 	 	 
	 	 	Robert P. Peebler

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]