Document:

Securities Holders Agreement

 Exhibit 10.5 
  

 SECURITIES HOLDERS AGREEMENT 
 by and among 
 SEITEL HOLDINGS, LLC, 
 VALUEACT CAPITAL MASTER FUND, L.P. 
 AND

 THE MANAGEMENT INVESTORS IDENTIFIED HEREIN 
 Dated as of January 8, 2007 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
		
	 DEFINED TERMS
	  	iii
		
	 ARTICLE I. RESTRICTIONS ON TRANSFER OF SECURITIES
	  	2
			
	 1.1.
	  	Restrictions on Transfers of Securities	  	2
			
	 1.2.
	  	Legend	  	4
			
	 1.3.
	  	Notation	  	5
		
	 ARTICLE II. OTHER COVENANTS AND REPRESENTATIONS
	  	5
			
	 2.1.
	  	Inspection and Access	  	5
			
	 2.2.
	  	Sale of the Company	  	6
			
	 2.3.
	  	Corporate Opportunity	  	7
			
	 2.4.
	  	Certain Tag-Along Rights	  	7
		
	 ARTICLE III. CORPORATE ACTIONS
	  	9
			
	 3.1.
	  	Certificate of Incorporation and Bylaws	  	9
			
	 3.2.
	  	Directors and Voting Agreements	  	10
			
	 3.3.
	  	Right to Remove Certain of the Company’s Directors	  	10
			
	 3.4.
	  	Right to Fill Certain Vacancies on the Board of Directors	  	11
			
	 3.5.
	  	Directors of Subsidiaries	  	11
			
	 3.6.
	  	Amendment of Certificate and Bylaws	  	11
			
	 3.7.
	  	Officers	  	11
		
	 ARTICLE IV. ADDITIONAL RESTRICTIONS ON SECURITIES HELD BY MANAGEMENT INVESTORS
	  	11
			
	 4.1.
	  	Repurchase Option	  	11
			
	 4.2.
	  	Repurchase Price	  	12
			
	 4.3.
	  	Certain Obligations of the Company	  	12
			
	 4.4
	  	Repurchase by ValueAct Capital	  	12
			
	 4.5.
	  	Repurchase by the Company	  	12
			
	 4.6.
	  	Repurchase by ValueAct Capital at the Option of the Holder	  	13
			
	 4.7.
	  	Closing	  	13
			
	 4.8.
	  	Fair Market Value	  	14

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
		
	 ARTICLE V. MISCELLANEOUS
	  	15
			
	 5.1.
	  	Effective Time	  	15
			
	 5.2.
	  	Amendment and Modification	  	15
			
	 5.3.
	  	Successors and Assigns	  	15
			
	 5.4.
	  	Separability	  	15
			
	 5.5.
	  	Notices	  	15
			
	 5.6.
	  	Governing Law	  	17
			
	 5.7.
	  	Headings; Definitions	  	17
			
	 5.8.
	  	Counterparts	  	18
			
	 5.9.
	  	Further Assurances	  	18
			
	 5.10.
	  	Termination	  	18
			
	 5.11.
	  	Remedies	  	18
			
	 5.12.
	  	Party No Longer Owning Securities	  	18
			
	 5.13.
	  	No Effect on Employment	  	18
			
	 5.14.
	  	Pronouns	  	18
			
	 5.15.
	  	Future Individual Investors	  	18
			
	 5.16.
	  	Entire Agreement	  	18

  

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 DEFINED TERMS 
  

			
	 Affiliate
	  	4
	 Agreement
	  	1
	 Approved Sale
	  	6
	 Available Shares
	  	13
	 Board of Directors
	  	10
	 Common Stock
	  	1
	 Company
	  	1
	 Company Repurchase Notice
	  	12
	 Effective Time
	  	1
	 Escrow Amount
	  	9
	 Escrow Notice
	  	9
	 Exchange Act
	  	4
	 Exchange Agreement
	  	1
	 Fair Market Value
	  	11
	 Holder Notice
	  	13
	 Incentive Securities
	  	1
	 Inclusion Notice
	  	7
	 Investor
	  	1
	 Investors
	  	1
	 Management Investors
	  	1
	 Merger Agreement
	  	1
	 Merger Sub
	  	1
	 Non-Included Tag Offeree
	  	7
	 Option Notice
	  	9
	 Performance
	  	1
	 Permitted Transferee
	  	3
	 Public Offering
	  	4
	 Put Option
	  	11
	 Release
	  	7
	 Remaining Available Shares
	  	13
	 Repurchase Option
	  	12
	 Required Holders
	  	6
	 Securities
	  	1
	 Securities Act
	  	2
	 Selling VAC Stockholder
	  	7
	 Seitel
	  	1
	 Subsidiary
	  	11
	 Tag-Along Rights
	  	8
	 Tag Offerees
	  	7
	 Termination
	  	11
	 Termination Date
	  	12
	 Transfer
	  	2
	 VAC Transferee
	  	7
	 ValueAct Capital
	  	1
	 ValueAct Capital Affiliates
	  	3
	 ValueAct Capital Associates
	  	4
	 ValueAct Capital Partner
	  	3
	 ValueAct Capital Repurchase Notice
	  	10
	 ValueAct Capital Group
	  	4
	 Value Notice
	  	13

  

 -iii- 

 SECURITIES HOLDERS AGREEMENT 
 THIS IS A SECURITIES HOLDERS AGREEMENT, dated as of January 8, 2007 (the “Agreement”), by and among Seitel Holdings, LLC, a
Delaware limited liability company (the “Company”), ValueAct Capital Master Fund, L.P., a British Virgin Islands limited partnership (“ValueAct Capital”), and the individuals listed on the signature pages hereto as
“Management Investors” (such individuals, the “Management Investors,” and each such individual, a , the “Management Investor”). ValueAct Capital and each of the Management Investors and any other investor
in the Company who becomes a party to or agrees to be bound by this Agreement are sometimes referred to herein individually as an “Investor” and collectively as the “Investors.” 
 BACKGROUND 
 A. This Agreement is
being entered into in anticipation of the consummation of the transactions contemplated by the Agreement and Plan of Merger, dated as of October 31, 2006 (the “Merger Agreement”), by and among the Company, Seitel Acquisition
Corp., a Delaware corporation (“Merger Sub”) and Seitel, Inc., a Delaware corporation (“Seitel”), and the Exchange Agreement, dated as of the date hereof (the “Exchange Agreement”), among the
Company and the Management Investors. 
 B. Pursuant to the terms of the Merger Agreement, Merger Sub will be merged with and into Seitel
with Seitel surviving as a wholly-owned subsidiary of the Company. The Company is expected to be converted to a Delaware corporation concurrently with the completion of the Merger (such time concurrent with the completion of the Merger as of which
such conversion has been effected, the “Effective Time”). 
 C. Pursuant to the terms of the Exchange Agreement, at the
Effective Time the Investors will hold the number of shares of common stock, par value $0.001 of the Company (the “Common Stock”), in each case as set forth opposite such Investor’s name on Schedule I hereto. 

D. The Investors and the Company wish to set forth herein certain agreements regarding their future relationships and their rights and obligations
with respect to Securities (as defined below) of the Company, which agreements shall be effective from after the Effective Time. 
 E. As
used herein, the term “Securities” shall mean Common Stock (including but not limited to any shares of Common Stock issued in connection with the exercise of options issued pursuant to the Seitel Holdings, Inc. 2007 Non-Qualified
Stock Option Plan, which shares of Common Stock are referred to herein as “Incentive Securities”) and any other shares of capital stock of the Company, and any securities convertible into or exchangeable for such capital stock, and
any options (including any options now or hereafter issued to Investors, including but not limited to options issued pursuant to the Seitel Holdings, Inc. 2007 Non-Qualified 

  

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Stock Option Plan), warrants or other rights to acquire such capital stock or securities, now or hereafter held by any party hereto, including all other
securities of the Company (or a successor to the Company) received on account of ownership of Common Stock, including all securities issued in connection with any merger, consolidation, stock dividend, stock distribution, stock split, reverse stock
split, stock combination, recapitalization, reclassification, subdivision, conversion or similar transaction in respect thereof. 
 Terms

 In consideration of the mutual covenants contained herein, and intending to be legally bound hereby, the parties hereto agree as
follows: 
 ARTICLE I. 
 RESTRICTIONS ON TRANSFER OF SECURITIES 
 1.1. Restrictions on Transfers of Securities. The following restrictions on
Transfer (as defined in Section 1.1(a) below) shall apply to all Securities owned by any Investor or Permitted Transferee (as defined in Section 1.1(b) below), except a Permitted Transferee by virtue of Section 1.1(b)(iv) hereof:

 (a) No Investor or Permitted Transferee other than ValueAct Capital shall Transfer (other than in connection with a
redemption or purchase by ValueAct Capital, a ValueAct Capital Affiliate or the Company) any Securities unless (i) such Transfer is to a person approved in advance in writing by the Required Holders (as defined in Section 2.2(a)), and
(ii) such Transfer complies with the provisions of this Section 1.1 and Article II hereof. Any purported Transfer in violation of this Agreement shall be null and void and of no force and effect, and the purported transferee shall have no
rights or privileges in or with respect to the Company. As used herein, “Transfer” includes the making of any sale, exchange, assignment, hypothecation, gift, security interest, pledge or other encumbrance, or any contract therefor,
any voting trust or other agreement or arrangement with respect to the transfer or grant of voting rights (except for the voting agreement set forth in Article III hereof) or any other beneficial interest in any of the Securities, the creation of
any other claim thereto or any other transfer or disposition whatsoever, whether voluntary or involuntary, affecting the right, title, interest or possession in or to such Securities. 
 Prior to any proposed Transfer of any Securities, the holder thereof shall give written notice to the Company describing the manner and
circumstances of the proposed Transfer, together with, if requested by the Company, a written opinion of legal counsel, addressed to the Company and the transfer agent for the Company’s equity securities, if other than the Company, and
reasonably satisfactory in form and substance to the Company, to the effect that the proposed Transfer of the Securities may be effected without registration under the Securities Act of 1933, as amended (the “Securities Act”). Each
certificate evidencing the 

  

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Securities transferred shall bear the legends set forth in Section 1.2(a) hereof, except that such certificate shall not bear the legend contained in
the first paragraph of Section 1.2(a) hereof if the opinion of counsel referred to above is to the further effect that such legends is not required in order to establish compliance with any provision of the Securities Act. 
 Nothing in this Section 1.1(a) shall prevent the Transfer, free of any restrictions under this Agreement, of Securities by an
Investor or a Permitted Transferee to one or more of its Permitted Transferees or to the Company, ValueAct Capital or a ValueAct Capital Affiliate; provided, however, that each such Permitted Transferee (except a Permitted Transferee
by virtue of Section 1.1(b)(iv) hereof) shall take such Securities subject to and be fully bound by the terms of this Agreement applicable to it with the same effect as if it was an Investor (or if the Permitted Transferee was a Management
Investor, a Management Investor) hereunder; and provided further, however, that (i) no person (other than a Permitted Transferee by virtue of Section 1.1(b)(iv) hereof) shall be a Permitted Transferee unless such transferee
executes and delivers a joinder to this Agreement reasonably satisfactory in form and substance to the Company which joinder states that such person agrees to be fully bound by this Agreement as if it were an Investor (or if the transferor to the
Permitted Transferee is a Management Investor hereunder, as a Management Investor) hereunder, and (ii) no Transfer shall be effected except in compliance with the registration requirements of the Securities Act and any applicable state
securities laws or pursuant to an available exemption therefrom. 
 (b) As used herein, “Permitted
Transferee” shall mean: 
 (i) in the case of any Investor who is a natural person, such person’s spouse or
children or grandchildren (in each case, natural or adopted), or any trust for the sole benefit of such person, such person’s spouse or children or grandchildren (in each case, natural or adopted), or any corporation, partnership or limited
liability company in which the direct and beneficial owner of all of the equity interests is such individual person or such person’s spouse or children or grandchildren (in each case, natural or adopted); 
 (ii) in the case of any Investor or Permitted Transferee who is a natural person, the heirs, executors, administrators or personal
representatives upon the death of such person or upon the incompetency or disability of such person for purposes of the protection and management of such person’s assets; 
 (iii) in the case of ValueAct Capital or its Permitted Transferees, (I) a general partner, managing partner or managing member of
ValueAct Capital or a managing member of VA Partners, LLC or ValueAct Capital Management, LLC (each of the foregoing, a “ValueAct Capital Partner”) and any corporation, partnership, limited liability company or other entity that is
controlled by a ValueAct Capital Partner or that is an Affiliate (as hereinafter defined) of ValueAct Capital or any ValueAct Capital Partner, or ValueAct Capital Partners, L.P., ValueAct Capital Partners II, L.P., ValueAct Capital International,
Ltd. and its successor ValueAct Capital International I, L.P. or ValueAct Capital International II, L.P. (each of the entities and individuals described in this clause (iii)(I) collectively, “ValueAct Capital Affiliates”), (II) any
present or former managing director, director, general partner, limited 

  

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partner, member, officer or employee of ValueAct Capital, a ValueAct Capital Partner or any ValueAct Capital Affiliate, or any spouse or lineal descendant
(natural or adopted), sibling or parent of any of the foregoing persons in this clause (II) or any heir, executor, administrator, testamentary trustee, legatee or beneficiary of any of the foregoing persons described in this clause (II) (provided
that no ValueAct Capital Affiliate that becomes such an entity primarily for the purpose of effecting a transfer of Securities shall be considered a Permitted Transferee) (collectively, “ValueAct Capital Associates”), and (III) any
trust, the beneficiaries of which, or any charitable trust, the grantor of which, or any corporation, limited liability company or partnership, the stockholders, members or general and limited partners of which, include only ValueAct Capital,
ValueAct Capital Partners, ValueAct Capital Affiliates or ValueAct Capital Associates (the persons referred to in (I) through (III), together with ValueAct Capital, being collectively referred to as the “ValueAct Capital
Group”); provided, however, that prior to the Company’s initial Public Offering (as defined below), no limited partner of any of ValueAct Capital, ValueAct Capital Partner, or ValueAct Capital Affiliate shall constitute a
Permitted Transferee to the extent that a Transfer of Securities to such limited partner would cause the Company to be subject to registration under Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). As used herein, “Public Offering” means a successfully completed firm commitment underwritten public offering pursuant to an effective registration statement under the Securities Act (other than a registration
statement on Form S-8 or S-4 or any similar or successor form or any other registration statement relating to an exchange offer or an offering of securities solely to the Company’s or a Subsidiary’s employees or security holders or to
security holders of a corporation or other entity being acquired by, or merged with, the Company or used to offer or sell a combination of debt and equity securities of the Company in which (i) not more than 10% of the gross proceeds from such
offering is attributable to the equity securities and (ii) after giving effect to such offering, the Company does not have a class of equity securities required to be registered under the Exchange Act) in respect of the offer and sale of shares
of Common Stock for the account of the Company resulting in aggregate net proceeds to the Company and any stockholder selling shares of Common Stock in such offering of not less than $50,000,000. 
 (iv) in the case of any Investor or Permitted Transferee, any person if such person takes such Securities pursuant to a sale in connection
with a Public Offering or, following a Public Offering, in open market transactions or under Rule 144 under the Securities Act. 
 (c) As used herein, “Affiliate” means, with respect to any person, any person directly or indirectly controlling, controlled by or under common control with such person. 
 1.2. Legend. Any certificates representing Securities shall bear the following legend (in addition to any other legend required under applicable
law): 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR THE SECURITIES LAWS OF ANY STATE 

  

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AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF WITHOUT REGISTRATION UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR
THE DELIVERY TO THE CORPORATION OF AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE CORPORATION, THAT SUCH REGISTRATION IS NOT REQUIRED. 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO THE TERMS AND CONDITIONS OF A SECURITIES HOLDERS AGREEMENT BY AND AMONG THE CORPORATION AND THE HOLDERS SPECIFIED THEREIN, AS AMENDED FROM TIME TO TIME (THE “SECURITIES
HOLDERS AGREEMENT”), A COPY OF WHICH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE CORPORATION. THE SALE, TRANSFER, ASSIGNMENT OR OTHER DISPOSITION OF THE SECURITIES IS SUBJECT TO THE TERMS OF SUCH AGREEMENT AND THE SECURITIES ARE
TRANSFERABLE OR OTHERWISE DISPOSABLE ONLY UPON PROOF OF COMPLIANCE THEREWITH. 
 1.3. Notation. A notation will be made in the
appropriate transfer records of the Company with respect to the restrictions on transfer of the Securities referred to in this Agreement. 
 ARTICLE II. 
 OTHER COVENANTS AND REPRESENTATIONS 
 2.1. Inspection and Access. The Company and its Subsidiaries (as defined below) shall provide to ValueAct Capital (so long as it or its Permitted
Transferees (other than Permitted Transferees pursuant to Section 1.1(b)(iv)) own any Securities) true and correct copies of all quarterly and annual financial reports of the Company and its Subsidiaries and budgets prepared by or on behalf of
the Company and its Subsidiaries, and such other documents, reports, financial data and other information as such party may reasonably request. The Company shall permit any authorized representatives designated by each such party to visit and
inspect any of the properties of the Company and its Subsidiaries, including its and their books of account (and to make copies and take extracts therefrom), and to discuss its and their affairs, finances and accounts with its and their officers and
their current and prior independent public accountants (and by this provision the Company authorizes such accountants to discuss with such representatives the affairs, finances and accounts of the Company and its Subsidiaries, whether or not a
representative of the Company is present), all at such reasonable times and as often as such party may reasonably request. 
  

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 2.2. Sale of the Company. 
 (a) So long as the Company has not consummated a Public Offering, if the Required Holders approve the sale of the Company, whether by
merger, consolidation, sale of outstanding capital stock, sale of all or substantially all of its assets or otherwise (any of the foregoing, an “Approved Sale”), (i) each Investor and Permitted Transferee will consent to, vote
for and raise no objections against, and waive dissenters and appraisal rights (if any) with respect to, the Approved Sale, (ii) if the Approved Sale is structured as a sale of stock, each Investor and Permitted Transferee will agree to sell
and will be permitted to sell all of such Investor’s or Permitted Transferee’s Common Stock on the terms and conditions approved by the Required Holders, and (iii) if the Approved Sale includes the sale, exchange, redemption,
cancellation or other disposition of securities convertible into or exchangeable for capital stock of the Company, or options, warrants or other rights to purchase such capital stock or securities, each Investor or Permitted Transferee will sell,
exchange, redeem, agree to cancel or otherwise dispose of such Securities or options, warrants or other rights on the terms and conditions approved by the Required Holders. Each Investor and Permitted Transferee will take all necessary and desirable
actions in connection with the consummation of an Approved Sale. As used herein, the term “Required Holders” means, as of any date, the holder(s) of the majority of the shares of Common Stock then outstanding. 
 (b) The obligations of each of the Investors and Permitted Transferees with respect to an Approved Sale are subject to the satisfaction of
the conditions that: (i) upon the consummation of the Approved Sale, all of the Investors and Permitted Transferees holding Common Stock will receive the same form and amount of consideration per share of Common Stock, or if any holder of
Common Stock is given an option as to the form and amount of consideration to be received in respect of Common Stock, all Investors and Permitted Transferees holding Common Stock will be given the same option and (ii) in the case of a holder of
any securities referred to in clause (iii) of paragraph (a) above, (I) in the event such Securities are vested, the holder shall receive in such Approved Sale, unless otherwise provided in the terms of any agreement or instrument
governing or evidencing such security, either (x) the same securities or other property that such holder would have received if such holder had converted, exchanged or exercised such security immediately prior to such Approved Sale (after
taking into account the conversion, exchange or exercise price applying to such Security and any applicable tax obligations of the holder in connection with such conversion, exchange or exercise) or (y) a security convertible or exchangeable
for, or option, warrant or right to purchase, capital stock or other securities of a successor entity having substantially equivalent value, or (II) in the case where such securities are not vested, unless otherwise provided in the terms of any
agreement or instrument governing or evidencing such security, such securities shall be cancelled. 
 (c) Each Investor and
Permitted Transferee acknowledges that its or his or her pro rata share (based upon the number of shares of Common Stock owned (or acquirable pursuant to options, warrants or other rights to purchase Common Stock or securities convertible into or
exchangeable for Common Stock) by such holder) of the aggregate proceeds of an Approved Sale may be reduced by transaction expenses related to such Approved Sale. 
  

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 2.3. Corporate Opportunity. To the fullest extent permitted by any applicable law, the doctrine of
corporate opportunity, or any other analogous doctrine, shall not apply with respect to ValueAct Capital or ValueAct Capital Affiliates or representatives thereof (including any directors of the Company designated by such persons). In particular,
(a) ValueAct Capital and ValueAct Capital Affiliates shall have the right to engage in business activities, whether or not in competition with the Company or any of its Subsidiaries or the Company’s or any of its Subsidiaries’
business activities, without consulting any other Investor, and (b) ValueAct Capital and ValueAct Capital Affiliates shall not have any obligation to any other Investor with respect to any opportunity to acquire property or make investments at
any time. 
 2.4. Tag-Along Rights. 
 (a) A member of the ValueAct Capital Group shall not sell or otherwise effect the Transfer of any Common Stock (or other Securities) (in one or a series of transactions) to a third party other than a Permitted
Transferee or to the Company (in either case, the “VAC Transferee”) unless all other Investors at such time (the “Tag Offerees”) are offered an opportunity to participate ratably (as determined according to
Section 2.4(b) below) in such transaction on the same terms as are to be received by the selling member of the ValueAct Capital Group (the “Selling VAC Stockholder”). 
 (b) Prior to any sale of any Common Stock subject to these provisions, the Selling VAC Stockholder shall notify the Company in writing of
the proposed sale. Such notice (the “Inclusion Notice”) shall set forth: (A) the number of shares of Common Stock subject to the proposed sale; (B) the name and address of the VAC Transferee; and (C) the proposed
amount of consideration and terms and conditions of payment offered by such VAC Transferee. The Company shall promptly, and in any event within 10 days of the receipt by the Company of the Inclusion Notice, mail or cause to be mailed the Inclusion
Notice to each Investor who owns shares of Common Stock. An Investor may exercise the tag-along right pursuant to this Section 2.4(a) and 2.4(b) (the “Tag-Along Right”) by delivery of a written notice (the “Tag-Along
Notice”) to the Selling VAC Stockholder within 10 days of the date the Company mailed or caused to be mailed the Inclusion Notice. The Tag-Along Notice shall state the number of shares of Common Stock that the Investor proposes to include
in the proposed sale upon the terms and conditions set forth in the Inclusion Notice; provided, however, that if the proposed VAC Transferee is unwilling to purchase all of the Common Stock requested to be sold by all exercising Tag
Offerees together with the Selling VAC Stockholder, then each Tag Offeree shall have the right to sell pursuant to such VAC Transferee’s offer, and upon the terms and conditions set forth in the Inclusion Notice, a number of such Tag
Offeree’s shares of Common Stock equal to such Tag Offeree’s pro rata percentage (based on the shares of Common Stock held by the Selling VAC Stockholder and Tag Offerees exercising their Tag-Along Rights) of Common Stock proposed to be
transferred by the Selling VAC Stockholder pursuant to this Section 2.4. If any Investor elects not to participate in full or in part on a pro-rata basis, the Selling VAC Stockholder may increase the number of shares sold by it or him or her by
the number of shares any such Investor elects not to include pursuant to the terms hereof. If no Tag-Along Notice is received during the 10-day period referred to above, the Selling VAC 

  

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Stockholder shall have the right for a 120-day period to effect the proposed sale of shares of Common Stock on terms and conditions no more favorable than
those stated in the notice and in accordance with the provisions of this Section 2.4. 
 (c) If the proposed VAC
Transferee of Common Stock proposed to be transferred by a Selling VAC Stockholder is unwilling to purchase any Common Stock from a Tag Offeree even after any pro rata reduction pursuant to Section 2.4(b) (a “Non-Included Tag
Offeree”), such Non-Included Tag Offeree may elect to require such Selling VAC Stockholder to purchase from such Non-Included Tag Offeree, for cash (in U.S. dollars), Common Stock having a purchase price equal to the aggregate purchase
price such Non-Included Tag Offeree would have received in connection with the closing of such sale by the Selling VAC Stockholder if such Non-Included Tag Offeree had been able to exercise its Tag-Along Rights (but only to the extent of its pro
rata percentage) with respect to such sale. The closing of such sale to the Selling VAC Stockholder shall occur concurrently with or immediately following such sale by the Selling VAC Stockholder. 
 (d) Each Investor acknowledges for itself, himself or herself and his, her or its transferees that ValueAct Capital or another member of
the ValueAct Group may grant in the future tag-along rights to other holders of Common Stock and such holders will (a) have substantially the same opportunity to participate in sales by a member of the ValueAct Group as provided to the parties
hereto, and (b) be included in the calculation of the pro rata basis upon which Investors may participate in a sale. 
 (e) The tag-along obligations of a Selling VAC Stockholders and the rights of the Investors with respect thereto provided under this Section 2.4 shall terminate upon the earlier of (a) such time as at least ten percent
(10%) of the outstanding shares of Common Stock shall have been sold pursuant to a Public Offering and (b) as to the ValueAct Capital Group and its Affiliates, the day after the date on which the ValueAct Capital Group and its Affiliates
own less than ten percent (10%) of the Common Stock on a fully diluted basis. 
 (f) Notwithstanding the requirements of
this Section 2.4, a Selling VAC Stockholder may sell shares of Common Stock at any time without complying with the requirements of Section 2.4(b) so long as the Selling VAC Stockholder or the VAC Transferee deposits into escrow with a
third party at the time of sale or other Transfer that amount of the consideration received in such sale or other Transfer equal to the “Escrow Amount.” The “Escrow Amount” shall equal that amount of consideration as all
the Investors would have been entitled to receive if they had the opportunity to participate in the sale on a pro rata basis, determined as if each Investor (A) delivered a Tag-Along Notice to the Selling VAC Stockholder in the time period set
forth in Section 2.4(b) and (B) proposed to include all of his, her or its shares of Common Stock in the sale. No later than five (5) business days after the date of the sale, the Selling VAC Stockholder shall notify the Company in
writing of the sale. Such notice (the “Escrow Notice”) shall set forth the information required in the Inclusion Notice, and in addition, such notice shall state the name of the escrow agent. The Company shall promptly, and in any
event within 10 days, mail or cause to be mailed the Escrow Notice to each Investor. A 

  

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holder may exercise his, her or its tag-along right with respect to an Escrow Notice by delivery to the Selling VAC Stockholder, within 10 days of the date
the Company mailed or caused to be mailed the Escrow Notice, of (i) a written notice specifying the number of shares of Common Stock it, he or she proposes to sell and (ii) the certificates for such shares of Common Stock, with stock
powers duly endorsed in blank. Promptly after the expiration of the 10th day after the Company has mailed or caused to be mailed the Escrow Notice, (A) the Selling VAC Stockholder shall purchase that number of shares of Common Stock as the
Selling VAC Stockholder would have been required to include in the sale had the Selling VAC Stockholder complied with the provisions of Section 2.4(b), (B) all shares of Common Stock not required to be purchased by the Selling VAC
Stockholder shall be returned to the applicable Investors, and (C) all remaining funds and other consideration held in escrow shall be released to the Selling VAC Stockholder. If the Selling VAC Stockholder received consideration other than
cash in its sale, the Selling VAC Stockholder shall purchase the shares of Common Stock tendered by paying to the Investors non-cash consideration and cash in the same proportion as received by the Selling VAC Stockholder in the sale. 
 (g) Notwithstanding anything in this Agreement to the contrary, a Selling VAC Stockholder may make any of the following Transfers without
offering the Investors the opportunity to participate: (i) sales in connection with a Public Offering under the Securities Act or following a Public Offering in open market transactions or under Rule 144 under the Securities Act and
(ii) sales pursuant to an Approved Sale, provided, however, that for purposes of this Section 2.4(g)(ii) only, a transaction in which the Selling VAC Stockholder does not sell or otherwise dispose of all of its, his or her
Common Stock and other capital stock of the Company shall not be considered an Approved Sale enabling a Transfer to be made without the Investors either being offered the opportunity to participate in accordance with Section 2.4(b) or the
Selling VAC Stockholder complying instead with Section 2.4(f). 
 (h) Each Investor who exercises his, her or its rights
pursuant to this Section 2.4 shall, at the request of the Selling VAC Stockholder and without further cost and expense to the Selling VAC Stockholder , execute and deliver such other instruments of conveyance and transfer, including any sales
or indemnification agreements, and take such other actions as may reasonably be requested to consummate the proposed sale of Common Stock by the Selling VAC Stockholder and the Investors who have exercised their tag-along rights pursuant to this
Section 2.4. 
 ARTICLE III. 
 CORPORATE ACTIONS 
 3.1. Certificate of Incorporation and Bylaws. Each Investor has reviewed the Certificate of
Incorporation and Bylaws of the Company in the forms attached hereto as Exhibit A and Exhibit B, respectively, and each Investor who executes this Agreement on the closing date contemplated by the Merger Agreement hereby approves and
ratifies the same. 
  

 - 9 - 

 3.2. Directors and Voting Agreements. 
 (a) Each Investor and Permitted Transferee agrees that it shall take, at any time and from time to time, all action necessary (including
voting the Common Stock entitled to vote owned by him, her or it, calling special meetings of stockholders and executing and delivering written consents) to ensure that the Board of Directors of the Company (the “Board of
Directors”) is composed of such number of directors as determined by ValueAct Capital. The initial Board of Directors shall be composed of: Robert D. Monson, Peter H. Kamin, Gregory P. Spivy and Jeffrey W. Ubben. 
 (b) Each Investor and Permitted Transferee agrees to take all necessary action to cause the composition of the Board of Directors to
remain in accordance with Section 3.2(a) hereof (including, without limitation, voting or causing to vote or acting by written consent with respect to, all shares of Common Stock entitled to vote thereon or any other voting capital stock of the
Company now or hereafter owned or held by such Investor or Permitted Transferee in favor of such persons) and to act itself (if a member of the Board of Directors) or cause its designee (if any) on the Board of Directors to vote or act by written
consent to cause the composition of the Board of Directors to remain in accordance with Section 3.2(a) hereof. 
 (c) In
the event ValueAct Capital, together with its respective Affiliates and Permitted Transferees, owns in the aggregate less than 50% of the outstanding Common Stock, the rights of the Company to designate all of the directors of the Company as set
forth in paragraph (a) above shall be modified to provide that so long as ValueAct Capital, its Affiliates and Permitted Transferees continue to own Securities of the Company, ValueAct Capital shall have the right to designate the percentage of
directors equal to the number of Securities collectively owned by ValueAct Capital, its Affiliates and Permitted Transferees divided by the aggregate number of issued and outstanding shares of Common Stock. In the event this percentage would give
ValueAct Capital the right to designate a fraction of a director, such fractional right shall be deemed the right to designate one additional director. 
 3.3. Right to Remove Certain of the Company’s Directors. ValueAct Capital may request that any director be removed (with or without cause) by written notice to the other Investors, and, in any such event,
each Investor and Permitted Transferee shall promptly consent in writing or vote or cause to be voted all shares of Common Stock entitled to vote thereon now or hereafter owned or controlled by it for the removal of such person as a director.

 3.4. Right to Fill Certain Vacancies on the Board of Directors. In the event that a vacancy is created on the Board of Directors at
any time by the death, disability, retirement, resignation or removal (with or without cause) or if otherwise there shall exist or occur any vacancy on the Board of Directors, such vacancy shall not be filled by the remaining members of the Board of
Directors, but each Investor and Permitted Transferee hereby agrees promptly to consent in writing or vote or cause to be voted all shares of Common Stock entitled to vote thereon or any other voting capital stock of the Company now or hereafter
owned or controlled by it to elect that individual designated to fill such vacancy and serve as a director, as shall be designated by the Investor or Investors then entitled to designate such director under Section 3.2 hereof. 
  

 - 10 - 

 3.5. Directors of Subsidiaries. If requested by ValueAct Capital, the Company shall cause the
board of directors of any “Subsidiary” (defined as “a corporation, partnership, limited liability company or other business entity with respect to which the Company and/or any direct or indirect subsidiary of the Company
individually or collectively own 50% or more of the total combined voting power of all classes of stock (or other voting interests)”) to be identical to the Board of Directors, except in the case of any foreign Subsidiaries which may have a
board of directors containing additional members in order to comply with the applicable foreign laws. 
 3.6. Amendment of Certificate and
Bylaws. Each Investor and Permitted Transferee agrees that it shall not consent in writing or vote or cause to be voted any shares of Common Stock now or hereafter owned or controlled by it in favor of any amendment, repeal, modification,
alteration or rescission of, or the adoption of any provision in the Company’s Certificate of Incorporation or Bylaws inconsistent with Article III of this Agreement unless ValueAct Capital consents in writing thereto. 
 3.7. Officers. Each Investor approves the election of such officers as may be elected or appointed by the Company or the Board of Directors.

 ARTICLE IV. 
 ADDITIONAL
RESTRICTIONS ON SECURITIES HELD BY MANAGEMENT INVESTORS 
 4.1. Repurchase and Put Options. If a Management Investor is no longer an
employee or director, as applicable, of the Company or any of its Subsidiaries for any reason (the “Termination”), all of the Securities (including but not limited to Incentive Securities) held by that Management Investor (whether
held directly by the Management Investor or by one or more of his or her Affiliates or Permitted Transferees, other than the Company, ValueAct Capital or a ValueAct Capital Affiliate) will be subject to repurchase by ValueAct Capital and the
Company, at their option, pursuant to the terms and conditions set forth in this Article IV (the “Repurchase Option”). If the Repurchase Option is not exercised with regard to all applicable Securities consisting of Common Stock or
other shares of capital stock of the Company following a Termination, then all, but not less than all, such remaining Securities consisting of Common Stock or other shares of capital stock of the Company held by such holder will be subject to
repurchase by ValueAct Capital, at the option of such holder (which option may only be exercised with respect to all such Securities held by the holder), pursuant to the terms and conditions set forth in this Article IV (the “Put
Option”). 
 4.2. Repurchase Price. At any time on or after the date of Termination (“Termination Date”),
ValueAct Capital and the Company may elect to repurchase all or a portion of the Securities held by the Management Investor, and the Management Investor and his or her Affiliates or Permitted Transferees may elect to require ValueAct Capital to
repurchase any Common Stock or other shares of capital stock of the Company, in each case at the Fair Market Value (as defined below) on the Termination Date in accordance with Sections 4.4, 4.5, 4.6 or 4.7 of this Agreement, as applicable.

  

 - 11 - 

 4.3. Certain Obligations of the Company. In addition to any other obligation of the Company set
forth herein, in the event of any Termination, the Company shall give ValueAct Capital prompt notice of any Termination, which notice of Termination shall in any event be given to ValueAct Capital by the Company within two (2) business days of
the Termination Date (as defined below). The Company also shall be required to inform ValueAct Capital in writing promptly following the request of ValueAct Capital at any time and from time to time of (i) the total number of Securities held by
any Management Investor, such Management Investor’s Affiliates and such Management Investor’s Permitted Transferees (collectively, the “Available Shares”) and (ii) the price for each Available Share. 
 4.4. Repurchase by ValueAct Capital. ValueAct Capital, or ValueAct Capital’s designated ValueAct Capital Affiliate(s), may elect to purchase
any or all of the Available Shares held by any Management Investor by delivery of written notice (the “ValueAct Capital Repurchase Notice”) to the Management Investor and to the Company (and/or his or her Affiliates and transferees,
as appropriate) within 180 days after the Termination Date. The ValueAct Capital Repurchase Notice shall set forth the number and type of Securities to be acquired from the Management Investor and his or her Affiliates and Permitted Transferees, the
aggregate consideration to be paid for such Securities and the time and place for the closing of the transaction. The number of Securities to be repurchased by ValueAct Capital or ValueAct Capital’s designated ValueAct Capital Affiliate(s)
shall first be satisfied to the extent possible from the Common Stock held by the Management Investor at the time of delivery of the ValueAct Capital Repurchase Notice. If the number of Securities then held by the Management Investor is less than
the total number of Securities ValueAct Capital or its designated ValueAct Capital Affiliate(s) has elected to repurchase, then ValueAct Capital or ValueAct Capital’s designated ValueAct Capital Affiliate(s) shall repurchase the remaining
shares elected to be repurchased first from the Management Investor’s Affiliates, and then from the Management Investor’s Permitted Transferees. 
 4.5. Repurchase by the Company. If for any reason ValueAct Capital or its designated ValueAct Capital Affiliate(s) does not elect to repurchase all of the Securities pursuant to the Repurchase Option, then the
Company shall be entitled to exercise ValueAct Capital’s Repurchase Option in the manner set forth in Section 4.4 to purchase all of the Securities not purchased by ValueAct Capital or ValueAct Capital’s designated ValueAct Capital
Affiliate(s) (the “Remaining Available Shares”). As soon as practicable after the Company has determined that there shall be Remaining Available Shares, but in any event within 20 days after the delivery of a ValueAct Capital
Repurchase Notice or 20 days after the date which is 180 days after the Termination Date, whichever is earlier, the Company shall notify the Management Investor and any other holder(s) of Securities as to whether the Company will be purchasing the
Securities from the Investor(s) (the “Company Repurchase Notice”), which Company Repurchase Notice shall set forth the number and type of Securities to be acquired from the Management Investor and his or her Affiliates and Permitted
Transferees, the aggregate consideration to be paid for such Securities and the time and place for the closing of the transaction. 
  

 - 12 - 

 4.6. Repurchase by ValueAct Capital at the Option of the Holder. (a) If for any reason
ValueAct Capital or its designated ValueAct Capital Affiliate(s) or the Company does not elect to repurchase all of the Securities consisting of Common Stock or other shares of capital stock of the Company pursuant to the Repurchase Option, then the
Management Investor and any other holder(s) of Common Stock or other shares of capital stock subject to the Repurchase Option shall be entitled to require ValueAct Capital to repurchase such Securities (provided that ValueAct Capital may designate a
ValueAct Capital Affiliate to repurchase such Securities). Within 30 days after the date on which the Company Repurchase Option expires or 30 days after the date that the Company exercised the Company Repurchase Option (in the event that it elected
to repurchase less than all of such Investor’s Securities consisting of Common Stock or other Capital Stock of the Company), the Investor and/or any other such holder(s) may notify the Company and ValueAct Capital of its intent to exercise its
Put Option with respect to all Securities that such holder owns which consist of Common Stock or other capital stock of the Company (the “Holder Notice”). Within 30 days after receipt of a proper Holder Notice, the Company shall
notify the relevant holder(s) and ValueAct Capital of the relevant Fair Market Value as determined by the Board (the “Value Notice”), and of the time and place for the closing of the transaction. 
 (b) Each Investor and/or any other such holder who delivers a Holder Notice shall, at the request of the Company or ValueAct Capital and
without further cost and expense to the the Company or ValueAct Capital , execute and deliver such other instruments of conveyance and transfer, including any sales or indemnification agreements, and take such other actions as may reasonably be
requested to consummate the Transfer. At the closing, the Investor and/or such other holder will deliver certificates representing all the Securities subject to the Put Option (accompanied by appropriate documentation of authority to transfer). The
Investor and/or such other holder will deliver such securities free and clear of all liens, claims and encumbrances (other than any encumbrances arising under this Agreement). The Company will be entitled to receive customary representations and
warranties as to ownership, title, authority to sell and the like from the sellers regarding such sale and to require that all sellers’ signatures be guaranteed. 
 4.7 Closing. The closing of the transactions contemplated by this Article IV will take place on the date designated in the applicable ValueAct Capital Repurchase Notice, Company Repurchase Notice or Value
Notice, which date, in the case of a repurchase pursuant to Section 4.4 or 4.5 above, will not be more than 30 days after the expiration of the 180 day period referred to in Section 4.4 above, and in the case of a repurchase pursuant to
Section 4.6 above, will not be more than 30 days after the expiration of the 30 day period referred to in Section 4.6 above. ValueAct Capital, or ValueAct Capital’s designated ValueAct Capital Affiliate(s), will pay for the Securities
to be purchased by it by delivery of a check payable to the holder of such Securities. The Company will pay for the Securities to be purchased by it by first offsetting amounts outstanding under any bona fide debts owing by the Management Investor
to the Company or any of its Subsidiaries, now existing or hereinafter arising (irrespective as to whether such amounts are owing by the holder of such Securities), and will pay the remainder of the purchase price by delivery of a bank check payable
to the holder of such Securities. 

  

 - 13 - 

 
Notwithstanding anything to the contrary contained in this Agreement, all repurchases of Securities by the Company will be subject to applicable restrictions
contained in the General Corporation Law of the State of Delaware and in the Company’s and its Subsidiaries’ debt and equity financing agreements. If any such restrictions prohibit the repurchase of Securities hereunder which the Company
is otherwise entitled to make, the Company may make such repurchases as soon as it is permitted to do so under such restrictions (and, prior thereto, there shall be no breach of the terms hereof by the Company). The party or parties exercising the
Repurchase Option, whether ValueAct Capital, ValueAct Capital’s designated ValueAct Capital Affiliate(s) or the Company, as the case may be, will receive customary representations and warranties from each seller regarding the sale of the
Securities, including, but not limited to, representations that such seller has good and marketable title to the Securities to be transferred free and clear of all liens, claims and other encumbrances. 
 4.8 Fair Market Value. As used herein, “Fair Market Value” has the meaning indicated below: 
 “Fair Market Value” for each share of Securities means, as of the date the ValueAct Capital Repurchase Notice or the Company Repurchase
Notice is given, the relevant fair market value price as determined in good faith by the Board of Directors. If the Management Investor or current holder of the Management Investor’s Securities disagrees with such determination, the Board and
the Management Investor will negotiate in good faith to agree on such Fair Market Value. If such agreement is not reached within 10 days after the delivery of notice to the Board of Directors of such Management Investor’s disagreement, the Fair
Market Value shall be determined by an independent and nationally recognized appraiser selected by the Board (subject to the approval of the Management Investor, not to be unreasonably withheld), which appraiser shall be instructed to submit to the
Board and the Management Investor a report within 30 days of its engagement setting forth such determination. The costs and expenses of such appraiser shall be borne 50% by the Company and 50% by the Management Investor, unless (i) the
appraiser’s valuation is not less than 25% greater than the amount determined by the Board, in which case 100% of the costs and expenses of the appraiser shall be borne by the Company or (ii) the appraiser’s valuation is not more than
10% greater than, or is less than or equal to, the amount determined by the Board, in which case 100% of the costs and expenses of the appraiser shall be borne by the Management Investor. The determination of such appraiser shall be final and
binding upon all parties. Notwithstanding the foregoing, if any appraisal under this subparagraph (b) has been completed within the six month period prior to the determination of the Board, at the option of the Company, such appraised value
shall be the final and binding Fair Market Value for purposes hereof. The termination of the exercise period of the Repurchase Option set forth in Section 4.4 and of the Put Option set forth in Section 4.6, as applicable, shall be tolled
during the pendency of and until ten (10) days following the conclusion of any negotiation or arbitration of the Fair Market Value. Further, in the event of any such negotiation or arbitration, the Company and/or ValueAct Capital, as
applicable, shall have the right to revoke any notice of exercise of the Repurchase Option previously given by such party and the applicable holder(s) shall have the right to revoke any notice of exercise of the Put Option previously given by such
party, as applicable (provided that, in either case, no closing with respect thereto has occurred). 
  

 - 14 - 

 ARTICLE V. 
 MISCELLANEOUS 
 5.1. Effective Time. The provisions of Articles I, II, III and IV of this
Agreement shall be effective from and after the Effective Time. The provisions of this Article V are effective from and after the date hereof. 
 5.2. Amendment and Modification. Prior to the Effective Time, this Agreement may be amended or modified, or any provision hereof may be waived, provided, however, that such amendment, modification or waiver is set forth
in a writing executed by the parties hereto, provided, further, however, that in the event of a breach or default by one or more of the Management Investors hereunder, an amendment hereto need not be signed by such Management
Investor to be effective if such Management Investor will no longer be a party to the Agreement after giving effect to such amendment. From and after the Effective Time, this Agreement may be amended or modified, or any provision hereof may be
waived, provided that such amendment, modification or waiver is set forth in a writing executed by the Company and the Required Holders; provided, however, that any amendment of this Agreement which materially adversely affects any
Investor in a manner materially different from other Investors (other than due to any difference in the number of shares or other Securities owned by any such Investor) shall require the prior written consent of such Investor. No course of dealing
between or among any persons having any interest in this Agreement will be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any person under or by reason of this Agreement. 
 5.3. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the successors and permitted
assigns and executors, administrators and heirs of each party hereto. Except as contemplated hereby within this Section 5.3 or in connection with Transfers of Securities permitted by this Agreement, this Agreement, and any rights or obligations
existing hereunder, may not be assigned or otherwise transferred by any party without the prior written consent of the other parties hereto. 
 5.4. Separability. In the event that any provision of this Agreement or the application of any provision hereof is declared to be illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions shall remain in full force and effect unless deletion of such provision causes this Agreement to become materially adverse to any party, in which event the parties shall use reasonable efforts to arrive at an accommodation which best
preserves for the parties the benefits and obligations of the offending provision. 
  

 - 15 - 

 5.5. Notices. All notices provided for or permitted hereunder shall be made in writing by
hand-delivery, registered or certified first-class mail, fax or reputable courier guaranteeing overnight delivery to the other party at the following addresses (or at such other address as shall be given in writing by any party to the others):

 If to the Company: 
 Seitel Holdings, LLC 
 c/o ValueAct Capital Master Fund, L.P. 
 435 Pacific Avenue, 4th Floor 
 San Francisco, CA 94133 
 Telecopier: (415) 362-5727 
 Attention: Allison Bennington, General Counsel 
 with a required copy to: 
 Dechert LLP 
 Cira Centre 
 2929 Arch Street 
 Philadelphia, PA 19104 
 Facsimile: (215) 994-2222 
 Attention: Christopher G. Karras 
 If to ValueAct Capital, to: 
 ValueAct Capital Master Fund, L.P. 
 435 Pacific Avenue, 4th Floor 
 San Francisco, CA 94133 
 Telecopier: (415) 362-5727 
 Attention: Allison Bennington, General Counsel 
 with a required copy to: 
 Dechert LLP 
 Cira Centre 
 2929 Arch Street 
 Philadelphia, PA 19104 
 Telecopier: (215) 994-2222 
 Attention: Christopher G. Karras 
 if to any of the Management Investors, to such Management Investor’s address as set forth on the signature page hereto or such other address as may be specified from time to time in writing to the Company by such Management Investor.

  

 - 16 - 

 All such notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if delivered personally, sent by telecopier (subject to electronic confirmation of such facsimile transmission and the sending (on the date of such facsimile transmission) of a confirmation copy of such facsimile by
nationally recognized overnight courier service or by certified or registered mail, postage prepaid) or on the second business day after being sent by nationally recognized overnight courier service or on the fifth business day after being sent by
registered or certified mail (postage prepaid, return receipt requested) to the respective party. 
 5.6. Governing Law. This
Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware, without giving effect to principles of conflicts of law. 
 5.7. Headings; Definitions. The headings preceding the text of the sections and subsections of this Agreement are for convenience of reference only and shall not constitute a part of this Agreement, nor shall
they affect its meaning, construction or effect. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms.

 5.8. Counterparts. This Agreement may be executed in two or more counterparts and by the parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original, and all of which taken together shall constitute one and the same instrument. 
 5.9. Further Assurances. Each party shall cooperate and take such action as may be reasonably requested by another party in order to carry out the provisions and purposes of this Agreement and the transactions contemplated hereby.

 5.10. Termination. This Agreement shall terminate (a) on the written agreement of the Investors who are parties hereto or when
all the Investors except any one Investor no longer hold any Securities, (b) if the Effective Time shall not have occurred, upon the termination of the Merger Agreement in accordance with its terms or (c) upon the date of the consummation
of the Company’s initial Public Offering. If this Agreement terminates pursuant to Section 5.10(b), this Agreement shall become void and of no effect with no liability on the part of either party (or any stockholder, director, officer,
employee, agent, consultant or representative of such party) to the other parties hereto, except that no such termination shall relieve any party hereto of any liability or damages resulting from any willful breach by such party of this Agreement.

 5.11. Remedies. In the event of a breach or a threatened breach by any party to this Agreement of its obligations under this
Agreement, any party injured or to be injured by such breach, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The
parties agree that the provisions of this Agreement shall be specifically enforceable, it being agreed by the parties that the remedy at law, including monetary damages, for breach of such provision will be inadequate compensation for any loss and
that any defense in any action for specific performance that a remedy at law would be adequate is waived. 
  

 - 17 - 

 5.12. Party No Longer Owning Securities. If a party hereto ceases to own any Securities after the
Effective Time and following the consummation of a transaction permitted under this Agreement, such party will no longer be deemed to be an Investor or Management Investor for purposes of this Agreement. 
 5.13. No Effect on Employment. Nothing herein contained shall confer on the Management Investor the right to be employed by or remain in the
employ or service of the Company or any of its Subsidiaries or Affiliates. 
 5.14. Pronouns. Whenever the context may require, any
pronouns used herein shall be deemed also to include the corresponding neuter, masculine or feminine forms. 
 5.15. Future Individual
Investors. The parties hereto agree that any current or future employee of the Company or any of its Subsidiaries or other person who agrees to purchase Securities from the Company subsequent to the date hereof may become a signatory to this
Agreement by executing a written instrument setting forth that such person agrees to be bound by the terms and conditions of this Agreement and this Agreement will be deemed to be amended to include such person as a Management Investor (or Investor,
as determined by the Company) and the number of Securities purchased by him or her. Without limiting the generality of the foregoing, any person who has received an award of options to purchase Common Stock under the Seitel Holdings, Inc. 2007
Non-Qualified Stock Option Plan shall be bound by the terms and conditions of the Agreement as a Management Investor. 
 5.16. Entire
Agreement. This Agreement sets forth the entire agreement and understanding among the parties and supersedes all prior agreements and understandings, written or oral, relating to the subject matter of this Agreement. 
  

 - 18 - 

 IN WITNESS WHEREOF, the parties hereto have executed this Securities Holders Agreement the day and year
first above written. 
  

									
	COMPANY	 		 	SEITEL HOLDINGS, LLC
			
		 		 	BY: VA Partners, LLC, its Manager
					
		 		 		 	By:	 	/s/ Authorized Signatory
		 		 		 	Name:	 	
		 		 		 	Title:	 	Managing Member
			
	VALUEACT CAPITAL	 		 	VALUEACT CAPITAL MASTER FUND, L.P.
			
		 		 	 By:   VA Partners, LLC,
 its General Partner

					
		 		 		 	By:	 	/s/ Authorized Signatory
		 		 		 	Name:	 	
		 		 		 	Title:	 	Managing Member

  

 -Signatures - i- 

 MANAGEMENT INVESTORS 
  

	
	
	/s/ Robert D. Monson
	Robert D. Monson
	
	Address:
	
	Telecopier No.: ___________________
	Telephone No.: ___________________
	
	/s/ William J. Restrepo
	William J. Restrepo
	
	Address:
	
	Telecopier No.: ___________________
	Telephone No.: ___________________
	
	/s/ Kevin P. Callaghan
	Kevin P. Callaghan
	
	Address:
	
	Telecopier No.: ___________________
	Telephone No.: ___________________
	
	/s/ Marcia H. Kendrick
	Marcia H. Kendrick
	
	Address:
	
	Telecopier No.: ___________________
	Telephone No.: ___________________

  

 -Signatures - ii- 

 MANAGEMENT INVESTORS 
 (continued) 
  

	
	
	/s/ Robert J. Simon
	Robert J. Simon
	
	Address:
	
	Telecopier No.: ___________________
	Telephone No.: ___________________
	
	/s/ Garis C. Smith
	Garis C. Smith
	
	Address:
	
	Telecopier No.: ___________________
	Telephone No.: ___________________
	
	/s/ Randall Sides
	Randall Sides
	
	Address:
	
	Telecopier No.: ___________________
	Telephone No.: ___________________
	
	/s/ Richard Kelvin
	Richard Kelvin
	
	Address:
	
	Telecopier No.: ___________________
	Telephone No.: ___________________

  

 -Signatures - iii- 

 Schedule I 
 Investors 
  

			
	 	  	Securities
	 Securities Holder
	  	Common Stock
	 ValueAct Capital
	  	996,553
	 Robert D. Monson
	  	1,108
	 William J. Restrepo
	  	580
	 Kevin P. Callaghan
	  	669
	 Marcia H. Kendrick
	  	183
	 Robert J. Simon
	  	456
	 Garis C. Smith
	  	137
	 Randall Sides
	  	175
	 Richard Kelvin
	  	139

 Exhibit A 
 Certificate of Incorporation 

 Exhibit B 
 BylawsRegistration Rights Agreement

 Exhibit 10.6 
  

 REGISTRATION RIGHTS AGREEMENT 
 by and among 
 SEITEL HOLDINGS, LLC, 
 VALUEACT CAPITAL MASTER FUND, L.P., 
 AND

 THE MANAGEMENT INVESTORS IDENTIFIED HEREIN 
 DATED AS OF JANUARY 8, 2007 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
			
	1.	  	Definitions	  	1
			
	2.	  	Registrable Securities	  	3
			
	3.	  	Incidental Registration	  	3
			
	4.	  	Registration Procedures	  	5
			
	5.	  	Indemnification	  	7
			
	6.	  	Hold-Back Agreements	  	9
			
	7.	  	Underwritten Registration	  	9
			
	8.	  	Miscellaneous	  	9

  

 -i- 

 DEFINED TERMS 
  

			
	Additional Party	  	9
	Affiliate	  	1
	Agreement	  	1
	Commission	  	1
	Common Stock	  	1
	Company	  	1
	Damages	  	6
	Effective Time	  	1
	Exchange Act	  	1
	Exchange Agreement	  	1
	Incidental Registration	  	3
	Investor	  	1
	Investors	  	1
	Management Investors	  	1
	Merger Agreement	  	1
	Merger Sub	  	1
	Notice	  	3
	Person	  	1
	Prospectus	  	1
	Public Offering	  	1
	Registrable Securities	  	2
	Registration Expenses	  	2
	Registration Statement	  	2
	Securities Act	  	2
	Securities Holders Agreement	  	2
	Seitel	  	1
	Special Registration Statement	  	2
	Underwritten Offering	  	2
	Underwritten Registration	  	2
	ValueAct Capital	  	1

 REGISTRATION RIGHTS AGREEMENT 
 THIS IS A REGISTRATION RIGHTS AGREEMENT, dated as of January 8, 2007 (the “Agreement”), by and among Seitel Holdings, LLC, a Delaware
limited liability company (the “Company”), ValueAct Capital Master Fund, L.P., a British Virgin Islands limited partnership (“ValueAct Capital”), and the individuals listed on the signature pages hereto as
“Management Investors” (such individuals, the “Management Investors”). ValueAct Capital, the Management Investors and any other investor in the Company who becomes a party to or agrees to be bound by this Agreement, are
sometimes referred to herein individually as an “Investor” and collectively as the “Investors.” 
 A. This
Agreement is being entered into in anticipation of the consummation of the transactions contemplated by the Agreement and Plan of Merger, dated as of October 31, 2006 (the “Merger Agreement”), by and among the Company, Seitel
Acquisition Corp., a Delaware corporation (“Merger Sub”) and Seitel, Inc., a Delaware corporation (“Seitel”), and the Exchange Agreement, dated as of the date hereof (the “Exchange Agreement”),
among the Company and the Management Investors. 
 B. Pursuant to the terms of the Merger Agreement, Merger Sub will be merged with and into
Seitel with Seitel surviving as a wholly-owned subsidiary of the Company. The Company is expected to be converted to a Delaware corporation concurrently with the completion of the Merger (such time concurrent with the completion of the Merger as of
which such conversion has been effected, the “Effective Time”). 
 C. In order to induce the Investors to enter into the
Exchange Agreement, the Company has agreed to provide the registration rights set forth in this Agreement from and after the Effective Time. 
 Terms 
 In consideration of the mutual covenants contained herein and intending to be legally bound hereby, the parties
agree as follows: 
 1. Definitions. 
 As used in this Agreement, the following capitalized terms shall have the following meanings: 
 “Affiliate” has the meaning set forth in Rule 12b-2 of the Rules promulgated under the Exchange Act. 
 “Commission” means the Securities and Exchange Commission. 
 “Common Stock” means the Common
Stock, par value $.001 per share, of the Company, as adjusted for any stock dividend or distribution payable thereon or stock split, reverse stock split, recapitalization, reclassification, reorganization, exchange, subdivision or combination
thereof. 
  

 1 

 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

 “Person” means an individual, partnership, limited liability company, corporation, trust or unincorporated organization,
or a government or agency or political subdivision thereof or any other entity of any kind. 
 “Prospectus” means the
prospectus included in any Registration Statement, as amended or supplemented by any prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and all other
amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference in such Prospectus. 
 “Public Offering” means a successfully completed firm commitment underwritten public offering pursuant to an effective registration statement under the Securities Act (other than a Special Registration Statement) in respect
of the offer and sale of shares of Common Stock for the account of the Company resulting in aggregate net proceeds to the Company and any stockholder selling shares of Common Stock in such offering of not less than $50,000,000. 
 “Registration Expenses” means the costs and expenses of all registrations and qualifications under the Securities Act, and of all other
actions the Company is required to take in order to effect the registration of Registrable Securities under the Securities Act pursuant to this Agreement (including all federal and state registration and filing fees, printing expenses, fees and
disbursements of counsel for the Company and the fees and expenses of the Company’s independent public accountants (including the expenses of any special audit and “cold comfort” letters required by or incident to such registration)),
and the fees and disbursements of one counsel for the holders of Registrable Securities whose shares are included in a Registration Statement, which counsel shall be selected by the holder(s) of a majority of the Registrable Securities whose shares
are included in a Registration Statement, whether or not any Registration Statement is filed or becomes effective, other than the costs and expenses of any Investors whose Registrable Securities are to be registered pursuant to this Agreement
comprising underwriters’ commissions, brokerage fees, transfer taxes or the fees and expenses of any accountants, counsel (other than the one counsel reference above) or other representatives retained by any Investor. 
 “Registration Statement” means any registration statement of the Company which covers any of the Registrable Securities pursuant to the
provisions of this Agreement, including the Prospectus, amendments and supplements to such Registration Statement, including post-effective amendments, all exhibits and all material incorporated by reference in such Registration Statement.

 “Registrable Securities” has the meaning set forth in Section 2 of this Agreement. 
 “Securities Act” means the Securities Act of 1933, as amended from time to time. 
 “Securities Holders Agreement” means the Securities Holders Agreement, dated as of the date hereof, among the Company, ValueAct Capital
and the Management Investors. 
  

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 “Special Registration Statement” means a registration statement on Form S-8 or S-4 or
any similar or successor form or any other registration statement relating to an exchange offer or an offering of securities solely to the Company’s or a direct or indirect subsidiary’s employees or security holders or to security holders
of a corporation or other entity being acquired by, or merged with, the Company or used to offer or sell a combination of debt and equity securities of the Company in which (i) not more than 10% of the gross proceeds from such offering is
attributable to the equity securities and (ii) after giving effect to such offering, the Company does not have a class of equity securities required to be registered under the Exchange Act. 
 “Underwritten Registration” or “Underwritten Offering” means a registration in which securities of the Company are sold
to an underwriter for reoffering to the public. 
 2. Registrable Securities. The securities entitled to the benefits of this
Agreement are the Registrable Securities. As used herein, “Registrable Securities” means the shares of Common Stock owned by the Investors or their Affiliates or Permitted Transferees (as defined in the Securities Holders Agreement)
that are issued and outstanding on the date hereof and the shares of Common Stock that become issued and outstanding after the date hereof that are owned by the Investors or their Affiliates or Permitted Transferees; provided, however,
that any share of Common Stock shall cease to be a Registrable Security when (a) it has been effectively registered under the Securities Act and disposed of in accordance with the registration statement covering such Common Stock; (b) it
is distributed to the public pursuant to Rule 144 (or any similar provisions then in force) under the Securities Act; or (c) it has otherwise been transferred and a new certificate or other evidence of ownership for such Common Stock not
bearing or required to bear a legend as set forth in Section 1.2 of the Securities Holders Agreement (or other legend of similar import) and not subject to any stop transfer order has been delivered by or on behalf of the Company and no other
restriction on transfer exists under the Securities Act. 
 3. Incidental Registration. 
 (a) Right to Include Common Stock. If at any time after the completion of the Company’s initial Public Offering the Company at
any time proposes to register any offer or sale of its Common Stock under the Securities Act (other than on a Special Registration Statement), whether or not for sale for its own account, it will give at least 30 days prior written notice (the
“Notice” (which request shall specify the aggregate number of the Registrable Securities to be registered and will also specify the intended method of disposition thereof) to all holders of Registrable Securities of its intention to
file a registration statement under the Securities Act and of such holders’ rights under this Section 3. Upon the written request of any such holders of Registrable Securities made within 20 days of the date of the Notice, the Company will
use its best efforts to effect the registration under the Securities Act of the offer and sale of all Registrable Securities which the Company has been so requested to register by the holders thereof (an “Incidental Registration”),
to the extent required to permit the public disposition (in accordance with such intended methods thereof) of the Registrable Securities subject to such requests; provided, however, that (i) if, any time after giving written
notice of its intention to register the offer and sale of shares of Common Stock and prior to the effective date of the registration statement filed in connection with such registration, the 

  

 - 3 - 

 
Company shall determine for any reason not to register the Company’s Common Stock, the Company shall give written notice of such determination to each
holder of Registrable Securities and, thereupon, shall be relieved of its obligation to register any offer and sale of Registrable Securities in connection with such registration (but not from its obligation to pay the Registration Expenses in
connection therewith); (ii) if a registration undertaken pursuant to this Section 3 shall involve an Underwritten Offering, any holder of Registrable Securities requesting to be included in such registration may elect, in writing at least
20 days prior to the effective date of the registration statement filed in connection with such registration, not to register the offer and sale of such holder’s Registrable Securities in connection with such registration; and (iii) if, at
any time after the 180-day or shorter period specified in Section 4(b), the sale of the securities has not been completed, the Company may withdraw from the registration on a pro rata basis (based on the number of Registrable Securities
requested by each holder of Registrable Securities to be subject to such registration) of the offer and sale of the Registrable Securities of which the Company has been requested to register and which have not been sold. 
 (b) Priority in Incidental Registrations. If a registration pursuant to Section 3(a) involves an Underwritten Offering and the
managing underwriter or underwriters advise the Company in writing that, in its or their opinion, the total number of shares of Common Stock to be included in such registration, including the Registrable Securities requested to be included pursuant
to this Section 3, exceeds the maximum number of shares of Common Stock specified by the managing underwriter or underwriters that may be distributed without materially and adversely affecting the price, timing or distribution of such shares of
Common Stock, then the Company shall include in such registration only such maximum number of Registrable Securities which, in the reasonable opinion of such underwriter or underwriters, can be sold in the following order of priority:
(i) first, all of the shares of Common Stock that the Company proposes to sell for its own account, if any, (ii) second, the Registrable Securities of ValueAct Capital and any ValueAct Capital Affiliates (as defined in the Securities
Holders Agreement) and the Registrable Securities of the Management Investors and their Permitted Transferees that are requested to be included in such Incidental Registration, and (iii) third, the Registrable Securities of any other holder of
Registrable Securities that are requested to be included in such Incidental Registration. To the extent that shares of Common Stock to be included in the Incidental Registration must be allocated among the holder(s) of Registrable Securities
pursuant to clauses (ii) and (iii) above, such shares shall be allocated pro rata among the applicable holder(s) of Registrable Securities based on the number of shares of Common Stock that such holder(s) of Registrable Securities shall
have requested to be included therein. 
 (c) Expenses. The Company will pay all Registration Expenses in connection
with any registration of Registrable Securities requested pursuant to this Section 3. 
 (d) Liability for Delay.
The Company shall not be held responsible for any delay in the filing or processing of a registration statement which includes any Registrable Securities due to requests by holders of Registrable Securities pursuant to this Section 3 nor for
any delay in requesting the effectiveness of such registration statement. 
  

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 (e) Participation in Underwritten Registrations. No holder of Registrable
Securities may participate in any Underwritten Registration hereunder unless such holder (i) agrees to sell his, her or its Common Stock on the basis provided in any underwriting arrangements approved by the persons who have selected the
underwriter and (ii) accurately completes in a timely manner and executes all questionnaires, powers of attorney, escrow agreements, underwriting agreements and other documents customarily required under the terms of such underwriting
arrangements. 
 4. Registration Procedures. If and whenever the Company is required to use its best efforts to effect or cause the
registration of any Registrable Securities under the Securities Act as provided in this Agreement, the Company will, as expeditiously as reasonably possible: 
 (a) prepare and file with the Commission a registration statement with respect to such Registrable Securities, and use its best efforts to
cause such registration statement to become effective and to keep the sellers of Registrable Securities advised in writing of the initiation and progress of proceedings regarding such registration, provided, however, that the Company
may discontinue any registration of its securities which is being effected pursuant to Section 3 herein at any time prior to the effective date of the registration statement relating thereto (but only to the extent set forth in the proviso
contained in Section 3(a)); 
 (b) prepare and file with the Commission such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective for a period of not less than 180 days or such shorter period which will terminate when all Registrable
Securities covered by such registration statement have been sold (but not before the expiration of the 90-day period referred to in Section 4(3) of the Securities Act and Rule 174 thereunder, if applicable) and comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such registration statement during such period in accordance with the intended methods of disposition by the seller or sellers thereof set forth in such registration
statement; provided, however, that prior to filing with the Commission any such registration statement, prospectus or amendment or supplement thereto, the Company shall furnish copies thereof to counsel for the sellers of Registrable
Securities under such registration statement, which document will be subject to reasonably prompt review by such counsel; 
 (c) furnish to each seller of such Registrable Securities such number of copies of such registration statement and of each such amendment and supplement thereof (in each case including all exhibits), such number of copies of the prospectus
included in such registration statement (including each preliminary prospectus and summary prospectus), in conformity with the requirements of the Securities Act, and such other documents as such seller may reasonably request in order to facilitate
the disposition of the Registrable Securities by such seller; 
 (d) use its best efforts to register or qualify such
Registrable Securities covered by such registration statement under such other securities or blue sky laws of such jurisdictions as each seller shall request, and do any and all other acts and things which may be necessary or advisable to enable
such seller to consummate the disposition in such jurisdictions 

  

 - 5 - 

 
of the Registrable Securities owned by such seller; provided, however, that the Company shall not be required to qualify generally to do
business in any jurisdiction where it is not then so qualified or to take any action which would subject it to general service of process in any such jurisdiction where it is not then so subject or subject itself to general taxation in any
jurisdiction where it is not then so subject; 
 (e) immediately notify each seller of any Registrable Securities covered by
such registration statement, at any time when a prospectus relating thereto is required to be delivered under the Act within the appropriate period mentioned in clause (b) of this Section 5, of the Company becoming aware that the
prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the
light of the circumstances then existing, and within ten days prepare and furnish to all sellers a reasonable number of copies of an amended or supplemental prospectus as may be necessary so that, as thereafter delivered to the purchasers of such
Registrable Securities, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the
circumstances then existing; 
 (f) use its best efforts to list such Registrable Securities on any securities exchange on
which the Common Stock is then listed or NASDAQ if the Common Stock is then quoted on NASDAQ, if such Registrable Securities are not already so listed or quoted and if such listing is then permitted under the rules of such exchange or NASDAQ, and
provide an independent transfer agent and registrar for such Registrable Securities covered by such registration statement not later than the effective date of such registration statement; 
 The Company may require each seller of Registrable Securities as to which any registration is being effected promptly to furnish to the Company
(i) an opinion of counsel for such seller dated the effective date of the registration statement relating to such seller’s Registrable Securities (or, if such registration involves an underwritten Public Offering, dated the date of the
closing under the underwriting agreement), reasonably satisfactory in form and substance to the Company (and the managing underwriter, if any) and (ii) such information regarding the distribution of such Registrable Securities as may be legally
required. Such information shall be furnished in writing and shall state that it is being furnished for use in the registration statement. 
 Each holder of Registrable Securities agrees by acquisition of such Registrable Securities that, upon receipt of any notice from the Company of the happening of any event of the kind described in clause (e) of this Section 4, such
holder will forthwith discontinue disposition of Registrable Securities pursuant to the registration statement covering such Registrable Securities until such holder’s receipt of the supplemented or amended prospectus contemplated by clause
(e) of this Section 4, and, if so directed by the Company, such holder will deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such holder’s possession, of the prospectus
covering such Registrable Securities current at the time of receipt of the Company’s notice. In the event the Company shall give any such notice, the period mentioned in clause (b) of this Section 4 shall be extended by the number of
days during the period from and including the date of the giving of such notice pursuant to clause 

  

 - 6 - 

 
(e) of this Section 4 and including the date when each seller of Registrable Securities covered by such registration statement shall have received the
copies of the supplemented or amended prospectus contemplated by clause (e) of this Section 4. 
 5. Indemnification.

 (a) Indemnification by the Company. The Company hereby agrees to indemnify and hold harmless each holder of
Registrable Securities which shall have been registered under the Securities Act, and such holder’s officers, directors, employees and agents and each other Person, if any, who controls such holder within the meaning of the Securities Act and
each other Person (including underwriters) who participates in the offering of such Registrable Securities against any losses, claims, damages, liabilities, reasonable attorneys’ fees, costs or expenses (collectively, the
“Damages”), joint or several, to which such holder or controlling Person or participating Person may become subject under the Securities Act or otherwise, insofar as such Damages (or proceedings in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of any material fact made by the Company or its agents contained in any registration statement under which such Registrable Securities are registered under the Securities Act, in any
preliminary prospectus or final prospectus contained therein, or in any amendment or supplement thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, and will reimburse such holder of Registrable Securities or such controlling Person or participating Person in connection with investigating or defending any such Damages or proceeding; provided,
however, that the Company will not be liable in any such case to the extent that any such Damages arise out of or are based upon (i) an untrue statement or alleged untrue statement or omission or alleged omission made in such
registration statement, said preliminary or final prospectus or said amendment or supplement thereto in reliance upon and in conformity with written information furnished to the Company by such holder or such controlling or participating Person, as
the case may be, specifically for use in the preparation thereof; or (ii) an untrue statement or alleged untrue statement, omission or alleged omission in a prospectus if such untrue statement or alleged untrue statement, omission or alleged
omission is corrected in an amendment or supplement to the prospectus which amendment or supplement is delivered to such holder in a timely manner and such holder thereafter fails to deliver such prospectus as so amended or supplemented prior to or
concurrently with the sale of such Registrable Securities to the Person asserting such Damages. 
 (b) Indemnification by
the Holders of Registrable Securities Which Are Registered. It shall be a condition of the Company’s obligations under this Agreement to effect any registration under the Securities Act that there shall have been delivered to the Company an
agreement or agreements duly executed by each holder of Registrable Securities to be so registered, whereby each such holder agrees to indemnify and hold harmless the Company, its directors, officers, employees and agents and each other Person, if
any, which controls the Company within the meaning of the Securities Act against any Damages, severally, but not jointly, to which the Company, or such other Person or such Person controlling the Company may become subject under the Securities Act
or otherwise, but only to the extent that such Damages (or proceedings in respect thereof) arise out of or are based upon any untrue statements or alleged untrue statement of any material fact contained, on the effective date thereof, in any 

  

 - 7 - 

 
registration statement under which such Registrable Securities are registered under the Securities Act, in any preliminary prospectus or final prospectus
contained therein or in any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not
misleading, which, in each such case, has been made in or omitted from such registration statement, said preliminary or final prospectus or said amendment or supplement in reliance upon, and in conformity with, written information furnished to the
Company by such holder of Registrable Securities specifically for use in the preparation thereof. The Company shall be entitled to receive indemnities from underwriters, selling brokers, dealer managers and similar securities industry professionals
participating in the distribution, to the same extent as provided above, with respect to information furnished in writing by such Persons specifically for inclusion in any prospectus or registration statement. 
 (c) Conduct of Indemnification Proceedings. Any Person entitled to indemnification hereunder shall (i) give prompt written
notice to the indemnifying party of the commencement of any action or proceeding involving a claim referred to in the preceding paragraphs of this Section 6 (provided the failure of any indemnified party to give such notice shall not relieve
the indemnifying party of its obligations under this Section 6 except to the extent of any damages caused solely by such failure), and (ii) unless the indemnified party has been advised by its counsel that a conflict of interest exists or
may exist between such indemnified and indemnifying parties under applicable standards of professional responsibility, with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party. Whether or not such defense is assumed by the indemnifying party, the indemnifying party will not be subject to any liability for any settlement made without its consent (but such consent will not be
unreasonably withheld). No indemnifying party will consent to the entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a
release from all liability in respect of such claim or litigation; provided, however, that no indemnifying party will consent to the entry of any judgment or enter into any settlement (other than for the payment of money only) without
the consent of the indemnified party (which consent will not be unreasonably withheld). An indemnifying party who is not entitled to, or elects not to, assume the defense of the claim, will not be obligated to pay the fees and expenses of more than
one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict of interest exists or may exist between such indemnified party and any other such
indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel or counsels. 
 (d) Contribution. If for any reason the indemnification provided for in the preceding Sections 5(a) or 5(b) is unavailable to an
indemnified party in respect of any Damages referred to therein, the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of such Damages in such proportion as is appropriate to reflect the relative
benefits received by, and the relative fault of, the indemnified party and the indemnifying party, as well as any other appropriate equitable considerations; provided, however, that in no event shall the liability of any selling holder
of Registrable Securities hereunder (whether in respect of indemnification or contribution obligations) be greater in amount than the difference between the dollar amount of the proceeds received by such holder 

  

 - 8 - 

 
upon the sale of the Registrable Securities giving rise to such contribution obligation and all amounts previously contributed by such holder with respect to
such Damages. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of fraudulent misrepresentation. 
 6. Hold-Back Agreements. Each holder of Registrable Securities whose Registrable Securities are eligible for inclusion in a Registration Statement
filed pursuant to Section 3 agrees, if requested by the managing underwriter or underwriters in an Underwritten Offering of any Registrable Securities, not to effect any public sale or distribution of Registrable Securities, including a sale
pursuant to Rule 144 (or any similar provision then in force) under the Securities Act (except as part of such Underwritten Registration), during the 10-day period prior to, and for a period of up to 180-days (as required by the managing underwriter
in its reasonable discretion) beginning on the effective date of such Registration Statement, to the extent timely notified of such offering in writing by the Company or the managing underwriter or underwriters. 
 7. Underwritten Registration. 
 If
any of the Registrable Securities covered by any Incidental Registration are to be sold in an Underwritten Offering, the investment banker or investment bankers and manager or managers that will administer and underwrite the offering will be
selected by the Company. 
 Notwithstanding anything herein to the contrary, no Person may participate in any Underwritten Registration
hereunder unless such Person (a) agrees to sell such Person’s securities on the basis provided in any underwritten arrangements approved by the Persons entitled hereunder to approve such arrangement and (b) accurately completes and
executes all questionnaires, powers of attorney, indemnities, custody agreements, underwriting agreements and other customary documents required under the terms of such underwriting arrangements; provided, however, that no holder of
Registrable Securities will be required to provide representations and warranties or indemnities or otherwise become subject to liabilities or obligations in any such underwriting agreement that are not customary for investors of its type in such
transaction. 
 8. Miscellaneous. 
 (a) Effective Time. The provisions of Sections 2, 3, 4, 5, 6 and 7 of this Agreement shall be effective from and after the Effective Time. The provisions of Section 1 and this Section 8 are effective
from and after the date hereof 
 (b) Amendment and Modification. Prior to the Effective Time, this Agreement may be
amended or modified, or any provision hereof may be waived, provided, however, that such amendment, modification or waiver is set forth in a writing executed by the parties hereto, provided, further, however, that
in the event of a breach or default by one or more of the Management Investors hereunder, an amendment hereto need not be signed by such Management Investor to be effective if such Management Investor will no longer be a party to the Agreement after
giving effect to such amendment. From and after the Effective Time, this Agreement may be amended or modified, or any provision hereof may be waived, provided that 

  

 - 9 - 

 
such amendment or waiver is set forth in a writing executed by (i) the Company, (ii) the Required Holders (as defined in the Securities Holders
Agreement) and (iii) in the case of any amendment which materially and adversely affects any Investor differently from any other Investor (other than due to any difference in the number of shares owned by any such Investor), such Investor. No
course of dealing between or among any persons having any interest in this Agreement will be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any person under or by reason of this Agreement.

 (c) Additional Parties. The Board of Directors of the Company shall be entitled, but not obligated, with the consent
of Person(s) holding at least 70% of the Registrable Securities, to allow any purchaser or acquirer of equity securities (or securities or rights convertible or exercisable into equity securities), of the same type and class of the Registrable
Securities, to execute a counterpart to this Agreement and become a party hereto (each, an “Additional Party”), in which case the equity securities issued or issuable to any such Additional Party shall be deemed to be
“Registrable Securities” subject to the terms and conditions hereof and such Additional Party shall be deemed to be a holder of “Registrable Securities” for purposes hereof. Except as set forth in this Section 8(b), the
Company will not grant to any other persons any registration rights. 
 (d) Survival of Representations and Warranties.
All representations, warranties, covenants and agreements set forth in this Agreement will survive the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby, regardless of any investigation made by an
Investor or on its behalf. 
 (e) Successors and Assigns. This Agreement and all of the provisions hereof shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns and executors, administrators and heirs. 
 (f) Separability. In the event that any provision of this Agreement or the application of any provision hereof is declared to be illegal, invalid or otherwise unenforceable by a court of competent jurisdiction,
the remainder of this Agreement shall not be affected except to the extent necessary to delete such illegal, invalid or unenforceable provision unless that provision held invalid shall substantially impair the benefits of the remaining portions of
this Agreement. 
 (g) Notices. All notices provided for or permitted hereunder shall be made in writing by
hand-delivery, registered or certified first-class mail, fax or reputable courier guaranteeing overnight delivery to the other party at the following addresses (or at such other address as shall be given in writing by any party to the others):

 If to the Company: 
 Seitel
Holdings, LLC 
 c/o ValueAct Capital Master Fund, L.P. 
 435 Pacific Avenue, 4th Floor 
 San Francisco, CA 94133 
 Telecopier: (415) 362-5727 
 Attention:
Allison Bennington, General Counsel 
  

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 with a required copy to: 
 Dechert LLP 
 Cira Centre 
 2929 Arch Street 
 Philadelphia, PA 19104 
 Facsimile: (215) 994-2222 
 Attention:
Christopher G. Karras 
 If to ValueAct Capital, to: 
 ValueAct Capital Master Fund, L.P. 
 435 Pacific Avenue, 4th Floor 
 San Francisco, CA 94133 
 Facsimile:
(415) 362-5727 
 Attention: Allison Bennington, General Counsel 
 with a required copy to: 
 Dechert LLP

 Cira Centre 
 2929 Arch Street

 Philadelphia, PA 19104 
 Facsimile: (215) 994-2222 
 Attention: Christopher G. Karras 
 if to any of the Investors, to such Investor’s address as set forth on the signature page hereto or such other address as may be
specified from time to time in writing to the Company by such Investor. 
 All such notices and other communications hereunder
shall be in writing and shall be deemed to have been duly given if delivered personally, sent by telecopier (subject to electronic confirmation of such facsimile transmission and the sending (on the date of such facsimile transmission) of a
confirmation copy of such facsimile by nationally recognized overnight courier service or by certified or registered mail, postage prepaid) or on the second business day after being sent by nationally recognized overnight courier service or on the
fifth business day after being sent by registered or certified mail (postage prepaid, return receipt requested) to the respective party. 
 (h) Governing Law. The validity, performance, construction and effect of this Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware, without giving effect to
principles of conflicts of law. 
 (i) Headings; Definitions. The headings in this Agreement are for convenience of
reference only and shall not constitute a part of this Agreement, nor shall they 

  

 - 11 - 

 
affect their meaning, construction or effect. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such
terms and to the masculine as well as to the feminine and neuter genders of such terms. All capitalized terms used but not otherwise defined herein shall have the meanings ascribed thereto in the Securities Holders Agreement. 
 (j) Counterparts. This Agreement may be executed in two or more counterparts and by the parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original, and all of which taken together shall constitute one and the same instrument. 
 (k) Further Assurances. Each party shall cooperate and take such action as may be reasonably requested by another party in order to carry out the provisions and purposes of this Agreement and the transactions
contemplated hereby. 
 (l) Termination. Unless sooner terminated in accordance with its terms, this Agreement shall
terminate (i) on the fifteenth anniversary of the date of this Agreement; provided that the indemnification rights and obligations set forth in Section 6 hereof shall survive the termination of this Agreement or (ii) if the Effective
Time shall not have occurred, upon the termination of the Merger Agreement in accordance with its terms. If this Agreement terminates pursuant to Section 8(l)(ii), this Agreement shall become void and of no effect with no liability on the part
of either party (or any stockholder, director, officer, employee, agent, consultant or representative of such party) to the other parties hereto, except that no such termination shall relieve any party hereto of any liability or damages resulting
from any willful breach by such party of this Agreement. 
 (m) Remedies. In the event of a breach or a threatened
breach by any party to this Agreement of its obligations hereunder, any party injured or to be injured by such breach, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific
performance of its rights under this Agreement, it being agreed by the parties that the remedy at law, including monetary damages, for breach of such provision will be inadequate compensation for any loss and that any defense in any action for
specific performance that a remedy at law would be adequate is waived. 
 (n) Party No Longer Owning Securities. If a
party hereto ceases to own any Common Stock, such party will no longer be deemed to be an Investor for purposes of this Agreement; provided that the indemnification rights and obligations set forth in Section 6 hereof shall survive any such
cessation of ownership. 
 (o) Pronouns. Whenever the context may require, any pronouns used herein shall be deemed
also to include the corresponding neuter, masculine or feminine forms. 
 (p) No Effect on Employment. Nothing herein
contained shall confer on any Investor the right to remain in the employ or service of the Company or any of its subsidiaries or Affiliates. 
 (q) Attorneys’ Fees. In the event any party hereto commences any action to enforce any rights of such party hereunder, the prevailing party in such action shall be entitled to recover such party’s
costs and expenses incurred in such action, including, without limitation, reasonable attorneys’ fees. 
  

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 (r) Current Public Information. At all times after the Company has filed a
registration statement with the Commission pursuant to the requirements of either the Securities Act or the Exchange Act, and as long as the Investors shall hold any Registrable Securities, the Company will file all reports required to be filed by
it under the Securities Act and the Exchange Act and the rules and regulations adopted by the Commission thereunder, and will take such further action as any holder or holders of Registrable Securities may reasonably request, all to the extent
required to enable such holders to sell Registrable Securities pursuant to Rule 144 under the Securities Act (as such rule may be amended from time to time) or any similar rule or regulation hereafter adopted by the Commission. 
 (s) Entire Agreement. This Agreement sets forth the entire agreement and understandings among the parties as to the subject matter
hereof and merges and supersedes all prior discussions and understandings of any and every nature among them. 
  

 - 13 - 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  
  

									
	COMPANY	 		 	SEITEL HOLDINGS, LLC
				
		 		 	BY:	 	VA Partners, LLC, its Manager
					
		 		 		 	By:	 	/s/ Authorized Signatory
		 		 		 	Name:	 	
		 		 		 	Title:	 	Managing Member
			
	VALUEACT CAPITAL	 		 	VALUEACT CAPITAL MASTER FUND, L.P.
				
		 		 	By:	 	VA Partners, LLC, its General Partner
					
		 		 		 	By:	 	/s/ Authorized Signatory
		 		 		 	Name:	 	
		 		 		 	Title:	 	Managing Member
			
	MANAGEMENT INVESTORS	 		 	
			
		 		 	/s/ Robert D. Monson
		 		 		 	Robert D. Monson
				
		 		 		 	Address:
				
		 		 		 	Telecopier No.: ___________________
		 		 		 	Telephone No.: ___________________
			
		 		 	
				
		 		 		 	/s/ William J. Restrepo
		 		 		 	William J. Restrepo
				
		 		 		 	Address:
				
		 		 		 	Telecopier No.: ___________________
		 		 		 	Telephone No.: ___________________

 MANAGEMENT INVESTORS 
 (continued) 

	
	/s/ Kevin P. Callaghan
	Kevin P. Callaghan
	
	Address:
	
	Telecopier No.: ___________________
	Telephone No.: ___________________
	
	/s/ Marcia H. Kendrick
	Marcia H. Kendrick
	
	Address:
	
	Telecopier No.: ___________________
	Telephone No.: ___________________
	
	/s/ Robert J. Simon
	Robert J. Simon
	
	Address:
	
	Telecopier No.: ___________________
	Telephone No.: ___________________
	
	/s/ Garis C. Smith
	Garis C. Smith
	
	Address:
	
	Telecopier No.: ___________________
	Telephone No.: ___________________

 MANAGEMENT INVESTORS 
 (continued) 

	
	/s/ Randall Sides
	Randall Sides
	
	Address:
	
	Telecopier No.: ___________________
	Telephone No.: ___________________
	
	/s/ Richard Kelvin
	Richard Kelvin
	
	Address:
	
	Telecopier No.: ___________________
	Telephone No.: ___________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00126-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00126-of-00352.parquet"}]]