Document:

Exhibit

Exhibit 10.1

SEITEL HOLDINGS, INC.
2018 NON-QUALIFIED STOCK OPTION PLAN
EFFECTIVE OCTOBER 3, 2018
1.Purpose of Plan. This 2018 Non-Qualified Stock Option Plan (the “Plan”) of Seitel Holdings, Inc., a Delaware corporation (the “Company”), is designed to provide incentives to such present and future Employees of the Company or its Subsidiaries, as may be selected in the sole discretion of the Committee, through the grant of Options by the Company to Participants. This Plan is intended to advance the best interests of the Company by providing those persons who have a substantial responsibility for its management and growth with additional incentives by allowing them to acquire an ownership interest in the Company and thereby encouraging them to contribute to the success of the Company and to continue to provide services to or remain employed by the Company and its Subsidiaries (as the case may be). The availability and offering of Options under the Plan also increases the Company’s ability to attract and retain individuals of exceptional managerial talent upon whom, in large measure, the sustained progress, growth and profitability of the Company depends. All Options granted under the Plan prior to the consummation of a Public Offering are intended to be exempt from registration under the Securities Act of 1933 by virtue of Section 4(2) of the Securities Act of 1933, as amended, and/or Regulation D and/or Rule 701 promulgated thereunder by the Securities and Exchange Commission (“Exempt”); in the event that any provision of the Plan would cause any such option granted under the Plan to not be Exempt, the Plan shall be deemed automatically amended to the extent necessary to cause all Options granted under the Plan to be Exempt.

2.Definitions. Certain terms used in this Plan have the meanings set forth below, and capitalized terms used in this Plan and not defined herein shall have the meanings ascribed thereto in the Securities Holders Agreement:

“Affiliate” of a specified Person or entity means a Person or entity that, directly or indirectly, controls, is controlled by, or is under common control with, the Person or entity specified. For the purposes of the term “Affiliate,” control with respect to a Person, means the possession, directly or indirectly, of the power to (a) vote 10% or more of the securities having ordinary voting power for the election of directors (or comparable positions of such Person) or (b) direct or cause the direction of the management and policies of such Person, whether through voting of securities, by contract, or otherwise, and the terms controlling and controlled have meanings correlative to the foregoing.
“Agreement” means the agreement between the Company and a Participant pursuant to which an Option is granted and which specifies the terms and conditions of that Option, including the vesting requirements applicable to that Option. All Options granted under the Plan shall be evidenced by Agreements.
“Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3 under the Securities Exchange Act of 1934, as amended, and any successor to such rule.
“Board” means the Company’s board of directors.

“Cause” means a Participant’s:
(a)conviction of (or pleading nolo contendere to) a felony, a crime of moral turpitude, or any crime involving the Company or its Subsidiaries;

(b)willful or intentional misconduct or willful or gross neglect in connection with the performance of the Participant’s duties to the Company or its Subsidiaries;

(c)fraud, misappropriation or embezzlement;

(d)failure or refusal to substantially perform the Participant’s duties properly assigned to him or her (other than any such failure resulting from his or her Disability) after demand for substantial performance is delivered by the Board specifically identifying the manner in which the Board believes the Participant has not substantially performed such duties; or

(e)breach in any material respect of the material terms and provisions of this Plan, any Agreement or any other agreement between the Participant and the Company or any of its Subsidiaries (including any breach of the restrictive covenants set forth in any Agreement or other agreement).

Notwithstanding the foregoing, Cause shall not exist with respect to clauses (b), (d) or (e) until and unless the Participant fails to cure his or her improper actions (if capable of cure) within ten (10) days after written notice from the Board thereof; provided, however, that Participant shall be entitled to no more than one opportunity to cure.

“Change in Control” means the occurrence of any of the following events:
(a)    any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than one or more Existing Stockholders, is or becomes the Beneficial Owner of Voting Stock representing more than 65% of the voting power of the total outstanding Voting Stock of the Company, including by way of merger, consolidation or otherwise;

(b)    the Investor and its Affiliates cease to own at least 35% of the voting power of the total outstanding Voting Stock of the Company; or 

(c)    all or substantially all of the assets of the Company and its Subsidiaries (on a consolidated basis) are sold or otherwise transferred to any Person other than a wholly-owned Subsidiary of the Company or one or more Existing Stockholders.

For purposes of this definition, a Person shall not be deemed to have beneficial ownership of securities subject to a stock purchase agreement, merger agreement or similar agreement until the consummation of the transactions contemplated by such agreement.

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“Code” means the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder, as the same may be amended from time to time, and any successor statute.
“Committee” means the Board or a committee of the Board designated to administer the Plan.  Upon the consummation of a Public Offering, the Committee shall be composed of two or more directors appointed by the Board, each of whom shall be a “non-employee director” as defined in Rule 16b-3 under the Securities Exchange Act of 1934, as amended.
“Common Stock” means the Company’s common stock, par value $0.001 per share.
“Disability” means that a Participant, because of an accident or physical or mental illness, is incapable of performing his or her duties or services to the Company or any of its Subsidiaries; provided, however, that a Participant will be deemed to have become incapable of performing his or her duties or services to the Company or any of its Subsidiaries, if, and only if, he or she is incapable of doing so for (a) a continuous period of 180 days and remains so incapable at the end of such 180 day period or (b) periods amounting in the aggregate to 240 days within any one period of 365 days and remains so incapable at the end of such aggregate period of 240 days. Each Participant agrees to submit to any examination that is necessary for a determination of Disability and agrees to provide any information necessary for a determination of Disability, including any information that is protected by the Health Insurance Portability and Accountability Act.
“Employee” means a senior management employee of the Company and/or any of its Subsidiaries.  Notwithstanding the foregoing, the Board may, in its sole discretion, designate such other service providers, including without limitation, other employees, directors and/or consultants, of the Company and/or its Subsidiaries, as Employees for purposes of participation in the Plan. 
“Employment Agreement” means any employment agreement by and between a Participant and the Company and/or any of its Subsidiaries or Affiliates, as appropriate, as in effect from time to time.
“Employment Termination Date” means the first date on which a Participant is no longer employed by or providing services to the Company or its Subsidiaries for any or no reason.
“Equity Restructuring” means a nonreciprocal transaction between the Company and its stockholders, such as a stock dividend, stock split, spin-off, rights offering or recapitalization through a large, nonrecurring cash dividend, that affects the number or kind of shares of Common Stock (or other securities of the Company) or the share price of Common Stock (or other securities) and causes a change in the per share value of the Common Stock underlying outstanding Options.
“Existing Stockholders” means any of (a) Centerbridge Capital Partners II, L.P., Centerbridge Capital Partners SBS II, L.P. and any of their respective Affiliates (collectively, “Centerbridge Entities”), (b) any present or former managing director, director, general partner, member, limited partner, officer, stockholder or employee of any Centerbridge Entity, (c) any present or former officers and directors of the Company or any of its Subsidiaries, and (d) any (i) spouse, lineal descendant (in each case, natural or adopted), siblings or ancestors of any Person, who is an individual, in clauses (b) and (c) above, and (ii) any estate or trust, the beneficiaries of which, or 

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corporation, partnership, limited liability corporation or other entity, the stockholders, partners, members, owners or Persons holding a controlling interest of which, consist of one or more Persons referred to in the immediately preceding clause (i).
“Fair Market Value” means, as of any given date: (a) if the Common Stock is listed on any (i) established securities exchange (such as the New York Stock Exchange, the NASDAQ Global Market and the NASDAQ Global Select Market), (ii) national market system, (iii) automated quotation system on which the shares are listed, quoted or traded, or (iv) regularly quoted by a recognized securities dealer, the average closing sales price for a share of Common Stock as quoted on such exchange system or dealer over the immediately preceding thirty (30) days, as reported in The Wall Street Journal or such other source as the Committee deems reliable; or (b) if the Common Stock is not listed on an established securities exchange, national market system or automated quotation system, nor regularly quoted by a recognized securities dealer, the value determined by the Committee in good faith in its sole discretion.
“Investor” means, collectively, Centerbridge Capital Partners II, L.P., Centerbridge Capital Partners SBS II, L.P. and any of their respective Permitted Transferees.
“Non-Qualified Stock Option” means an option which is not intended to constitute an “Incentive Stock Option” within the meaning of Section 422 of the Code.
“Option” means a Non-Qualified Stock Option to purchase Common Stock of the Company granted pursuant to the Plan which has an exercise price no less than the Fair Market Value of the underlying Common Stock on the date of grant and has a term of no more than ten years.
“Participant” means a current or prospective Employee who is granted an Option hereunder. Notwithstanding anything in the Plan to the contrary, the grant of Options to a prospective Employee is conditioned upon such individual actually becoming an Employee.
“Person” means any individual, corporation, partnership, limited liability company, joint venture, incorporated or unincorporated association, joint-stock company, trust, unincorporated organization or government or other agency or political subdivision thereof or other entity of any kind.
“Section 409A” means Section 409A of the Code, together with any Department of Treasury Regulations and other interpretive guidance issued thereunder.
“Securities Act” means the Securities Act of 1933, as amended, and any successor statute thereto.
“Securities Holders Agreement” means the Second Amended and Restated Securities Holders Agreement dated as of July 17, 2018, by and among the Company, Centerbridge Capital Partners II, L.P., Centerbridge Capital Partners SBS II, L.P. and the Management Investors identified therein.
“Seitel” means Seitel, Inc., a wholly-owned subsidiary of the Company.

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“Subsidiary” means any corporation (other than the Company), partnership, joint venture or other business entity of which 50% or more of the outstanding voting power is owned, directly or indirectly, by the Company.
“Successor” means: (a) a Permitted Transferee, (b) the legal representative of the estate of a deceased Participant, (c) the Person or Persons who shall acquire the right to exercise an Option by bequest or inheritance or other transfer or by reason of the death of a Participant or (d) the Person or Persons who shall acquire the right to exercise an Option on behalf of a Participant as the result of a determination by a court or other governmental agency of the incapacity of the Participant.
“Voting Stock,” with respect to any Person, means securities of any class of equity interests of such Person entitling the holders thereof (whether at all times or for only so long as no senior class of stock or other relevant equity interest has voting power by reason of any contingency) to vote in the election of members of the Board of Directors or Managers of such Person.
3.Administration of the Plan.

(a)The Plan shall be administered by the Committee, which shall have full power to interpret and administer the Plan and full authority to act in selecting the Employees to whom Options will be granted, in executing Agreements with Participants under the Plan, in determining whether, and to what extent, Options may be transferable by a Participant in accordance with the Securities Holders Agreement, in determining the amount of Options to be granted to each such Employee, and in determining the terms and conditions of Options granted under the Plan.

(b)Subject to the other terms of the Plan, the Committee shall, in its discretion as reflected by the terms of the applicable Agreement: (i) determine from time to time those eligible Employees to whom Options are to be granted and the number of shares of Common Stock subject to each such Option; (ii) determine the time or times when and the manner and condition in which each Option shall vest or become exercisable and the duration of such exercise period, if applicable; and (iii) determine or impose other conditions to the receipt of Common Stock subject to the Option under the Plan as it may deem appropriate.

(c)The Committee may condition the vesting or exercise of an Option upon: (i) the Employee’s continued service over a period of time with the Company or its Subsidiaries, and/or (ii) any other conditions as specified in the applicable Agreement. If the specified conditions are not attained, the Participant shall forfeit the portion of the Option with respect to which those conditions are not attained, and the underlying Common Stock shall be forfeited to the Company.

(d)The Committee shall have the power to adopt regulations for carrying out the Plan and to make changes to such regulations as it shall, from time to time, deem advisable. Any interpretation by the Committee of the terms and provisions of the Plan and the administration thereof, and all actions taken by the Committee, shall be final and binding on Participants and Successors, if applicable. No member of the Committee or the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or any Agreement or Options.

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4.Shares of Common Stock Subject to the Plan.

(a)Subject to adjustment as provided in Section 6 hereof, 116,505 shares of Common Stock shall be authorized and available for Option grants under the Plan.

(b)Any shares of Common Stock issued hereunder may consist, in whole or in part, of authorized and unissued shares or treasury shares. If any shares of Common Stock subject to an Option granted hereunder are forfeited or such Option otherwise terminates, the shares of Common Stock subject to such Option, to the extent of any such forfeiture or termination, shall again be available for Options under the Plan.

5.Listing, Registration and Compliance with Laws and Regulations. Each Option shall be subject to the requirement that if at any time the Committee shall determine, in its discretion, that the listing, registration or qualification of the shares of Common Stock subject to the Option upon any securities exchange or under any federal, state or foreign securities or other law or regulation, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition to or in connection with the granting of such Option or the issue or purchase of shares of Common Stock thereunder, no such Option may be exercised or paid in shares of Common Stock, in whole or in part, unless such listing, registration, qualification, consent or approval (a “Required Listing”) shall have been effected or obtained, and the holder of each such Option will supply the Company with such certificates, representations and information as the Company shall request which are reasonably necessary or desirable in order for the Company to obtain such Required Listing, and shall otherwise cooperate with the Company in obtaining such Required Listing.

6.Adjustment for Change in Common Stock. In connection with the occurrence of any Equity Restructuring, the number and type of shares of Common Stock (or other securities or property) subject to each outstanding Option and the exercise price or grant price thereof, if applicable, shall be equitably adjusted. Such adjustments shall be nondiscretionary and shall be final and binding on the affected Participant and the Company. In the event of a reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation or other change in Common Stock other than an Equity Restructuring, the Committee may make such equitable adjustments, if any, as the Committee in its discretion may deem appropriate to reflect such event with respect to the number and type of shares of Common Stock (or other securities or property) subject to outstanding Options and the exercise price or grant price thereof. In addition, in the event of any Equity Restructuring or other event described in this Section 6, the Committee may make such equitable adjustments, if any, as the Committee, in its discretion, may deem appropriate to reflect such event with respect to the other terms and conditions of any outstanding Options (including, without limitation, any applicable performance targets or criteria with respect thereto) and the aggregate number and type of securities that may be issued under the Plan (including, but not limited to, adjustments of the limitations in Section 4 on the maximum number and kind of shares that may be issued under the Plan).

7.Taxes. The Company shall be entitled, if necessary or desirable, to withhold (or secure payment from a Participant in lieu of withholding) the amount of any withholding or other 

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tax due from the Company with respect to any amount payable and/or shares of Common Stock issuable under this Plan, and the Company may defer such payment or issuance unless indemnified to the Board’s satisfaction. In any event, each Participant shall be required to indemnify the Company and hold it harmless for any and all withholding and similar tax obligations arising as a result of the grant or exercise of Options hereunder or the issuance of any Common Stock upon exercise of the Options.

8.Termination and Amendment. The Committee at any time may suspend or terminate this Plan and make such additions or amendments as it deems advisable under this Plan (except that it may not extend the term of this Plan); provided that, subject to the other provisions hereof, the Committee may not change any of the terms of a Participant’s Agreement in a manner which would have a material adverse effect on the Participant without such Participant’s consent. Notwithstanding the foregoing, to the extent any such amendment to the Securities Holders Agreement affects the terms of the Plan or a Participant’s Agreement, the Participant and any Successor shall be deemed to have consented to that amendment. No Options shall be granted or Common Stock issued hereunder after October 3, 2028.

9.Participant Acknowledgments. In connection with the grant of any Option and/or the issuance of any Common Stock pursuant to this Plan, each Participant acknowledges and agrees, that as a condition to any such grant or issuance:

(a)Unless otherwise determined by the Committee, the Company will have no duty or obligation to disclose to any Participant, and no Participant will have any right to be advised of, any material information regarding the Company or its Subsidiaries at any time prior to, upon or in connection with the exercise of any repurchase rights in the Securities Holders Agreement, with respect to any Option or Common Stock acquired upon the exercise of an Option.

(b)Such Participant will have consulted, or will have had an opportunity to consult with, independent legal counsel regarding his or her rights and obligations under this Plan and any written agreement evidencing any grant of any Option or the issuance of any Common Stock and he or she fully understands the terms and conditions contained herein and therein.

10.Application of Securities Holders Agreement; Restrictions on Transfer.

(a)Each Participant and his or her Permitted Transferees shall be required to join the Securities Holders Agreement and agree to be subject to its terms upon receipt of an Option and/or exercise of an Option granted hereunder.

(b)Except as provided below, Options may not be pledged, assigned or transferred for any reason during a Participant’s lifetime, and any attempt to do so shall be void and the relevant Option shall be forfeited. The Committee may grant Options that are transferable by a Participant during his or her lifetime, but such Options shall be transferable only to the extent specifically provided in an agreement entered into with the Participant or in the Securities Holders Agreement. The transferee of a Participant shall, in all cases, be subject to the Plan, the Securities Holders Agreement and the provisions of the Agreement between the Company and the Participant.

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(c)In addition, and notwithstanding anything to the contrary herein, any Option (and Common Stock acquired upon exercise thereof) will, regardless of whether subject to restrictions or conditions or whether vested under the applicable terms of the Plan or Agreement, be subject to the Repurchase Option upon any termination of the Employee’s employment or other service with the Company or any Subsidiary in accordance with the terms of the Securities Holders Agreement.

11.Approved Sale, Public Offering or Other Corporate Transaction

(a)Notwithstanding any provision in the Plan to the contrary and unless otherwise provided in the applicable Participant’s Agreement, in the event of (x) an Approved Sale, (y) a Public Offering or (z) a Change in Control (each, a “Transaction”), the Committee may, in its sole discretion:

(i)accelerate the exercisability of all or a portion of Options to the extent the Committee deems appropriate,

(ii)cancel all outstanding vested Options in exchange for a cash payment in an amount equal to the excess, if any, of the Fair Market Value of the Common Stock underlying the unexercised portion of the Option as of the date of the Transaction over the exercise price of such portion; provided that, for the avoidance of doubt, if the amount that could have been obtained upon the exercise or settlement of such Option is equal to or less than zero, then such Option may be terminated without payment,

(iii)terminate all Options immediately prior to the Transaction, provided that, prior to such termination, the Company first provides each relevant Participant with an opportunity to exercise the Option within a specified period following the date on which the Company provides the Participant with a written notice of such Transaction and of the Company’s intention to terminate the Option immediately prior to such Transaction, 

(iv)require the successor corporation, following a Transaction if the Company does not survive such Transaction, to assume all outstanding Options or to substitute such Options with Options involving the common stock of such successor corporation on terms and conditions necessary to preserve the rights of the affected Participants, or

(v)take some combination of the foregoing actions, which need not be the same among all Participants and/or all of their outstanding Options. 

12.Change in Control. Notwithstanding Section 2.2 of the Securities Holders Agreement, and without limiting the provisions of Section 11 hereof, in contemplation of any Change in Control, at the request of the Company, (a) each Participant will be obligated to consent to, vote for and raise no objections against, and waive dissenters and appraisal rights (if any) with respect to, the Change in Control, (b) if the Change in Control is structured as a sale of stock, each Participant will agree to sell such Participant’s Common Stock (and shall deliver such Participant’s shares of Common Stock with appropriate instruments of transfer as may reasonably be requested by the 

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Company, free and clear of all claims, liens or other encumbrances) on the terms and conditions approved by the Company; provided that such terms and conditions must be the same terms and conditions that apply to the Centerbridge Entities, and (c) if the Change in Control 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 Participant 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 Company. Notwithstanding Section 2.2 of the Securities Holders Agreement, and without limiting the provisions of Section 11 hereof, each Participant will take all necessary and desirable actions in connection with the consummation of a Change in Control, including executing all documents, including a sale, purchase or merger agreement, reasonably requested by the Company or any of the Centerbridge Entities and containing the terms and conditions of the Change in Control; provided, however, that no Participant shall be required to make any representations or warranties in any agreement relating to a Change in Control other than representations and warranties relating to such Participant, as applicable, and the ownership of his or her Common Stock that are customary in similar transactions, including representations and warranties relating to title, authorization and execution and delivery, nor shall any Participant be required to provide indemnification with respect to any representations or warranties made by any other Participant or in an amount exceeding the amount of the gross proceeds received by such Participant in the Change in Control and any such indemnification obligation shall be shared pro rata (in accordance with the securities being sold) by all holders selling securities in such transaction (other than indemnification as a result of a breach of a representation or warranty as to title, which shall be solely the responsibility of the applicable holder and shall not be subject to any limitation of liability hereunder).

13.Section 409A. To the extent that the Committee determines that any Option granted under the Plan is subject to, as opposed to exempt from, Section 409A, the Agreement evidencing such Option shall incorporate the terms and conditions required by Section 409A. To the extent applicable, the Plan and any Agreements shall be interpreted in accordance with Section 409A. Notwithstanding any provision of the Plan to the contrary, in the event that the Committee determines that any Option may be subject to Section 409A, the Committee may adopt such amendments to the Plan and the applicable Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Committee determines are necessary or appropriate to (a) exempt the Option from Section 409A and/or preserve the intended tax treatment of the benefits provided with respect to the Option, or (b) comply with the requirements of Section 409A and thereby avoid the application of any penalty taxes thereunder. The Company makes no representation or warranty regarding the tax treatment of any Option granted hereunder, and by accepting any Option each Participant understands that tax consequences (including, without limitation, application of Section 409A) may arise on account of such Option.

14.Relationship to Other Benefits. No payment pursuant to the Plan shall be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any of its Affiliates, except to the extent otherwise expressly provided in writing in such other plan or an agreement thereunder.

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15.Severability. Whenever possible, each provision of this Plan will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Plan is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Plan will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

16.Remedies. The Company will be entitled to enforce its rights under this Plan specifically, to recover damages and costs (including reasonable attorneys’ fees) caused by any breach of any provision of this Plan and to exercise all other rights existing in its favor. Each Participant acknowledges and agrees that money damages may not be an adequate remedy for any breach of the provisions of this Plan and that the Company may, in its sole discretion, apply to any court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent any violations of the provisions of this Plan.

17.Business Days. If any time period for giving notice or taking action hereunder expires on a day which is a Saturday, Sunday or holiday in the state in which the Company’s chief executive office is located, the time period shall be automatically extended to the business day immediately following such Saturday, Sunday or holiday.

18.Governing Law. All issues concerning this Plan will be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision of rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the law of any jurisdiction other than the State of Delaware. Each of the Company and each Participant waives the necessity for personal service of any and all process upon it, him or her and consents that all such service of process may be made by registered or certified mail (return receipt requested) or an overnight courier with delivery confirmation, in each case directed to such party in accordance with the notice requirements set forth in this Plan, and service so made will be deemed to be completed on the date of actual receipt. Each of the Company and each Participant consents to service of process as aforesaid. Nothing in this Plan will prohibit personal service in lieu of the service by certified or registered mail or an overnight courier with delivery confirmation contemplated herein.

19.No Rights As Stockholder; Certificates.  Subject to the provisions of the applicable Agreement, no Participant shall have any rights as a stockholder with respect to any shares of Common Stock to be distributed with respect to an Option until becoming the record holder of such shares. Notwithstanding any other provision of the Plan, unless otherwise determined by the Committee or required by any applicable law, rule or regulation, the Company shall not be required to deliver to any Participant certificates evidencing shares of Common Stock issued in connection with any Option and instead such shares of Common Stock may be recorded in the books of the Company (or, as applicable, its transfer agent or stock plan administrator). The Company may place legends on stock certificates issued under the Plan deemed necessary or appropriate by the Committee in order to comply with applicable law, rule or regulation.

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20.Data Collection. By participating in the Plan or accepting any rights granted under it, each Participant consents to the collection and processing of personal data relating to Participant so that the Company and its Affiliates can fulfill their obligations and exercise their rights under the Plan and generally administer and manage the Plan. This data will include, but may not be limited to, data about participation in the Plan and shares offered or received, purchased or sold under the Plan from time to time and other appropriate financial and other data (such as the date on which the Awards were granted) about Participant and his or her participation in the Plan.

21.Notices. Any notice required or permitted under this Plan or any agreement executed and delivered in connection with this Plan shall be in writing and shall be either delivered by reputable overnight courier with delivery confirmation, personally delivered, or certified or registered mail, return receipt requested, to any Participant at the address indicated in the Company’s records for such Person, and to the Company at the addresses below:

Notices to the Company:

Seitel Holdings, Inc.
10811 S. Westview Circle Drive 
Houston, Texas 77043
Attention:    General Counsel 

Seitel Holdings, Inc.
c/o Centerbridge Capital Partners, L.P.
375 Park Avenue, 12th Floor 
New York, New York 10152 
Attention:     Kyle Cruz
James Patterson
or such other address or to the attention of such other person as the recipient party shall have specified by prior written notice to the sending party. Any notice under this Plan shall be deemed to have been given when so delivered or mailed.

11Exhibit

Exhibit 10.2

SEITEL HOLDINGS, INC.
STOCK OPTION AGREEMENT
THIS STOCK OPTION AGREEMENT (this “Agreement”) is entered into as of October 3, 2018 (the “Grant Date”) between Seitel Holdings, Inc., a Delaware corporation (the “Company”), and Robert D. Monson (“Participant”).
Pursuant to the Company’s 2018 Non-Qualified Stock Option Plan (the “Plan”), a copy of which is attached hereto as Exhibit A, the administrative committee of the Plan (the “Committee”) hereby grants Participant certain options to acquire shares of the Company’s common stock, par value $.001 per share (the “Common Stock”), subject to the terms and conditions provided herein and the applicable terms of the Plan and Securities Holders Agreement.
Certain provisions of this Agreement are intended for the benefit of, and shall be enforceable by, Investor (as defined in the Plan). In the event a provision of this Agreement is inconsistent or conflicts with the provisions of the Plan, the provisions of the Plan will govern and prevail.
NOW THEREFORE, the parties hereto agree as follows:
1.Plan Acknowledgement. Each of the undersigned agrees that this Agreement has been executed and delivered, and the Options have been granted hereunder, in connection with and as a part of the compensation and incentive arrangements between the Company and Participant and, except as otherwise specified herein, pursuant to, and subject to each of the terms and conditions of, the Plan and the Securities Holders Agreement, and Participant agrees to be bound by, and comply with, the terms of the Plan and the Securities Holders Agreement. In the event of a conflict between the Employment Agreement and this Agreement, the terms of this Agreement shall control. Without limiting the foregoing, no provisions in the Employment Agreement providing for acceleration of vesting of equity awards shall apply to the Options.

2.Definitions. Capitalized terms used in this Agreement and not defined shall have the meanings ascribed thereto in the Plan or, if no meaning is ascribed thereto in the Plan, the meaning ascribed thereto in the Securities Holders Agreement. In addition, the following terms shall have the following meanings:

(a)“2.0X Exit-Vesting Options” means Options that vest based on both continued employment following the Grant Date and satisfaction of the performance criteria set forth in Section 4(b) below.

(b)“2.5X Exit-Vesting Options” means Options that vest based on both continued employment following the Grant Date and satisfaction of the performance criteria set forth in Section 4(c) below.

(c)“Centerbridge Inflows” means, as of a Measurement Date, without duplication, the aggregate of all cash and cash equivalents received by the Centerbridge Entities between July 17, 2018 and such Measurement Date with respect to their ownership of equity 

securities of the Company, including any proceeds (so long as such proceeds constitute cash or cash equivalents) from the sale of equity securities of the Company by the Centerbridge Entities, whether by way of merger, stock sale or otherwise, and from cash dividends and other cash distributions made by the Company with respect to equity securities of the Company, but excluding directors’ fees, expense reimbursements, and transaction or consulting fees approved by the Board. For the avoidance of doubt, in each case, Centerbridge Inflows will be determined on a net basis, after giving effect to any vesting of Time-Vesting Options, 2.0X Exit-Vesting Options or 2.5X Exit-Vesting Options, which may require an iterative calculation.

(d)“Centerbridge MOIC Hurdle” means the quotient obtained by dividing (i) all Centerbridge Inflows by (ii) all Centerbridge Outflows. The Centerbridge MOIC Hurdle shall be determined in good faith by the Committee.

(e)“Centerbridge Outflows” means (i) $62,463,375 plus (ii) without duplication, the aggregate of the cash purchase price or contribution made by the Centerbridge Entities (on a cumulative basis) with respect to or in exchange for all of the securities of the Company acquired by the Centerbridge Entities from July 17, 2018 through the applicable Measurement Date.

(f)“Competitor” means a Person or any Affiliate of such Person (in each case, other than the Investor and its investment funds), that is determined in good faith by the Board to be a competitor directly or indirectly with the Company or any of its Subsidiaries.

(g)“Earned Portion” means the portion of Participant’s 2.0X Exit-Vesting Options or 2.5X Exit-Vesting Options, respectively, that has been earned for purposes of Section 3(b) pursuant to the following sentence.  Participant shall earn 20% of his 2.0X Exit-Vesting Options and 20% of his 2.5X Exit-Vesting Options on each of the first five anniversaries of the Grant Date, subject to his continued employment with the Company or any of its Subsidiaries, or provision of continued Board service pursuant to Section 4(d) below, through the applicable anniversary. 

(h)“Measurement Date” means, with respect to the Centerbridge Entities, each date on which a Centerbridge Inflow or Centerbridge Outflow occurs.

(i)“Original Value” for each share of Common Stock which is originally issued upon the exercise of any Option will be equal to the exercise price paid by Participant in cash for such share of Common Stock, as proportionally adjusted for all mergers, stock splits, stock dividends and other recapitalizations affecting the Common Stock subsequent to the Grant Date.

(j)“Restrictive Period” means the period of Participant’s employment or service with the Company or any of its Subsidiaries, plus twelve (12) months after Participant’s Employment Termination Date.

(k)“Time-Vesting Options” means Options that vest solely based on time elapsed from the Grant Date.

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3.Option Grant.

(a)General.  The Company hereby grants to Participant, pursuant to the Plan, 29,126 Options, with one share of Common Stock subject to each Option, at an exercise price per share of $40.45 (the “Per Share Exercise Price”), effective as of the Grant Date (the “Options”). The vesting of the Options are as follows: (i) 16,644 of the Options are Time-Vesting Options, (ii) 6,241 of the Options are 2.0X Exit-Vesting Options, and (iii) 6,241 of the Options are 2.5X Exit-Vesting Options (see Exercisability, Sections 4(a) to 4(d) below). The Options will expire on the close of business on the tenth anniversary of the Grant Date, subject to earlier expiration as provided herein or in the Plan.  The Options are non-qualified stock options and are not intended to be “incentive stock options” within the meaning of Section 422 of the Code.

(b)Early Expiration of Options. Except as set forth in this Section 3(b), any portion of the Options granted hereunder that have not vested and become exercisable as of the Employment Termination Date shall expire and be forfeited on such date and may not be exercised under any circumstance, and Exhibit B provides a condensed overview of the key terms of this Section 3(b). Any portion of the Options granted hereunder that have vested and become exercisable as of the Employment Termination Date (or, in the case of the Earned Portion of the 2.0X Exit-Vesting Options and the Earned Portion of the 2.5X Exit-Vesting Options, as of a Measurement Date or a Change in Control following the Employment Termination Date) shall expire and be forfeited on:

(i)the close of business on the tenth anniversary of the date of this Agreement (the “Expiration Date, if (A) (I) Participant provides Seitel with at least one (1) year’s advance written notice of his resignation (the “Required Notice”) and remains continuously employed with Seitel during such one (1)-year period (the “Notice Period”); (II) the Company requests that Participant serve on the Board at the end of the Notice Period; and (III) Participant serves on the Board for a period of time following the end of the Notice Period but his Board service terminates prior to the consummation of a Change of Control; (B) Participant provides Seitel with the Required Notice but does not remain continuously employed with Seitel during the Notice Period due to (I) his earlier resignation for Good Reason or (II) an earlier termination of his employment by the Company without Cause (not due to his death or Disability); or (C) Participant’s Employment Termination Date results from his death or Disability (each, a “Good Leaver Termination”).  Additionally, upon any such Good Leaver Termination, (I) the Earned Portion of the 2.0X Exit-Vesting Options and the Earned Portion of the 2.5X Exit-Vesting Options shall remain outstanding and eligible to vest in accordance with Sections 4(b) and 4(c) below until the Expiration Date (or, if earlier, until the consummation of a Change of Control) (as applicable, the “Final Performance Vesting Date”), and any such Earned Portion that has not so vested as of such Final Performance Vesting Date shall expire and be forfeited on such Final Performance Vesting Date).

(ii)the earlier of (A) the Expiration Date and (B) thirty (30) days after the Employment Termination Date (or, in the case of the Earned Portion of the 2.0X Exit-Vesting Options and the Earned Portion of the 2.5X Exit-Vesting Options discussed in the 

3

following sentence, thirty (30) days after vesting in accordance with Sections 4(b) or 4(c) below, if any), if the Employment Termination Date occurred due to a resignation by Participant for Good Reason and Participant did not provide Seitel with the Required Notice prior to such resignation (a “Non-Qualifying Good Reason Resignation”).  In the event of such a Non-Qualifying Good Reason Resignation, the Earned Portion of the 2.0X Exit-Vesting Options and the Earned Portion of the 2.5X Exit-Vesting Options shall remain outstanding and eligible to vest in accordance with Sections 4(b) and 4(c) below until the six (6)-month anniversary of the Employment Termination Date (and any such Earned Portion that has not so vested as of such six (6)-month anniversary shall expire and be forfeited on such six (6)-month anniversary); 

(iii)immediately upon the Employment Termination Date, if Participant’s discharge was (A) by the Company for Cause, (B) by Participant at a time that Cause exists, (C) by Participant without Good Reason and without providing Seitel the Required Notice, or (D) by Participant without Good Reason during the Notice Period; and

(iv)effective as of the Company’s determination date, if Participant’s discharge was by the Company without Cause but the Company subsequently determined (no later than the three (3)-month anniversary of the Employment Termination Date) that grounds for a Cause discharge existed at the time of such discharge.

(c)For the avoidance of doubt, and notwithstanding any provision in this Agreement to the contrary, if Participant (i) is discharged by the Company for Cause, (ii) resigns at a time that Cause exists, (iii) is discharged by the Company without Cause but the Company subsequently determines (no later than the three (3)-month anniversary of the Employment Termination Date) that grounds for a Cause discharge existed at the time of such discharge, (iv)  does not provide Seitel with the Required Notice, or (v) resigns without Good Reason during the Notice Period (as applicable, a “Triggering Event”), (A) all of Participant’s Options not previously exercised shall expire and be forfeited whether exercisable or not; (B) the Company will be entitled to repurchase, pursuant to Article IV of the Securities Holders Agreement, the shares of Common Stock previously received by Participant in connection with the exercise of the Options, provided that, notwithstanding anything to the contrary in the Securities Holders Agreement, the exercise price for such shares of Common Stock will equal the lesser of (I) the Fair Market Value thereof as of the time of the repurchase and (II) the Original Value thereof; and (C) within ten (10) days of the Company’s written notice that a Triggering Event has occurred, Participant must repay to the Company any cash proceeds received by Participant from the sale of shares of Common Stock issued upon exercise of the Options that are in excess of the lesser of (I) the Fair Market Value of such shares of Common Stock as of the Triggering Event and (II) the Original Value thereof.

(d)Procedure for Exercise. At any time after all or any portion of the Options granted hereunder have become vested and exercisable with respect to any shares of Common Stock subject thereto and prior to the close of business on the tenth anniversary of the Grant Date (except as provided for in Section 3(b) above or Section 5 below), Participant may exercise all or any portion of the Options granted hereunder with respect to the Common Stock underlying such Options to the extent vested pursuant to Section 4 below by delivering written notice of exercise to the 

4

Company, together with (i) a written acknowledgment that Participant has read and has been afforded an opportunity to ask questions of the management of the Company regarding all financial and other information provided to Participant regarding the Company and its Subsidiaries, (ii) payment in full, either (A) by delivery of a cashier’s, personal or certified check or wire transfer of immediately available funds to the Company, in the amount equal to the number of shares of Common Stock to be acquired multiplied by the Per Share Exercise Price (the “Total Exercise Price”), or (B) if permitted by the Board, by delivering to the Company a full-recourse promissory note in the amount equal to the Total Exercise Price, (iii) payment in full of all required withholding taxes due as further described in Section 10 below, (iv) a joinder to the Securities Holders Agreement satisfactory in form and content to the Committee and (v) any written representations as may be required in the Committee’s reasonable discretion to evidence compliance with federal, state and foreign securities laws.

(e)Securities Laws Restrictions. Participant acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of federal, state and foreign securities laws, rules and regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Options are granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. Participant represents that when Participant exercises any portion of the Options, Participant will be purchasing the Common Stock subject thereto for Participant’s own account and not on behalf of others. Participant understands and acknowledges that federal, state and foreign securities laws govern and restrict Participant’s right to offer, sell or otherwise dispose of any portion of the Options or the Common Stock subject thereto unless Participant’s offer, sale or other disposition thereof is registered under the Securities Act and federal, state and foreign securities laws or, in the opinion of the Company’s counsel, such offer, sale or other disposition is exempt from registration thereunder. Participant agrees that Participant will not offer, sell or otherwise dispose of any Common Stock in any manner which would: (i) require the Company to file any registration statement (or similar filing under applicable securities law) with the Securities and Exchange Commission or to amend or supplement any such filing or (ii) violate or cause the Company to violate the Securities Act, the rules and regulations promulgated thereunder or any other applicable securities law. Participant further understands that any certificates for any Common Stock which Participant purchases upon exercise of the Options shall bear the legend set forth in the Securities Holders Agreement or such other legends as the Company deems necessary or desirable in connection with the Securities Act or other rules, regulations or laws.

(f)Limited Transferability of the Options; Joinder to Securities Holders Agreement. The Options granted hereunder are personal to Participant and are not transferable by Participant, except as provided in the Securities Holders Agreement and upon the death of Participant. Participant agrees to exercise a joinder to the Securities Holders Agreement and to be bound by the terms and conditions contained therein. Participant acknowledges and agrees that the Options shall be treated as “Incentive Securities” under the applicable provisions of the Securities Holders Agreement. Participant acknowledges and agrees that the Options and any Common Stock acquired upon the exercise thereof, and any right or interest therein, may not be sold, transferred, 

5

gifted, donated, pledged, hypothecated, disposed of or assigned by Participant, except as expressly provided in the Securities Holders Agreement and upon the death of Participant.

4.Exercisability. The Options shall become vested and exercisable in accordance with the provisions of this Section 4.  Participant may exercise only those Options that have vested.

(a)Time-Vesting. The Time-Vesting Options shall vest as follows:

(i)20% shall vest on each anniversary of the Grant Date, until the Time-Vesting Options are fully vested on the fifth anniversary of the Grant Date, in each case, subject to Participant’s continued employment with the Company or any of its Subsidiaries through the applicable anniversary of the Grant Date.

(ii)If a Change in Control occurs, the Board has the discretion to vest all of Participant’s then-unvested Time-Vesting Options, subject to Participant’s continued employment with the Company or any of its Subsidiaries through the date of such Change in Control.

(b)2.0X Exit-Vesting. The 2.0X Exit-Vesting Options shall vest as follows:

(i)100.00% shall vest on a Measurement Date, subject to Participant’s continued employment with the Company or any of its Subsidiaries through such Measurement Date (except as set forth in Section 3(b) with respect to the Earned Portion of the 2.0X Exit-Vesting Options), if the Centerbridge MOIC Hurdle equals at least 2.0.

(ii)If a Change in Control occurs, any then-unvested 2.0X Exit-Vesting Options shall vest if the performance condition in Section 4(b)(i) above is satisfied (subject to Participant’s continued employment with the Company or any of its Subsidiaries through the Change in Control (except as set forth in Section 3(b) with respect to the Earned Portion of the 2.0X Exit-Vesting Options)). If such performance condition is not satisfied, the unvested 2.0X Exit-Vesting Options shall remain outstanding until vesting occurs pursuant to Section 4(b)(i).

(iii) If the Centerbridge Entities have divested 100% of their Common Stock for non-cash consideration or a combination of cash and non-cash consideration, and inclusion of the fair market value of the non-cash consideration (as determined by the Committee in good faith in its sole discretion) in the calculation of the Centerbridge Inflows would result in the Centerbridge MOIC Hurdle equaling (A) at least 2.0, then any then-unvested 2.0X Exit-Vesting Options shall vest as of such divestiture; and (B) less than 2.0, then any then-unvested 2.0X Exit-Vesting Options shall remain outstanding and eligible to vest pursuant to Section 4(b)(i) (regardless of whether Participant continues to be employed with the Company or any of its Subsidiaries after the date of such 100% divestiture) as the Centerbridge Entities divest the non-cash consideration for cash, provided that if the Centerbridge Entities have divested 100% of the non-cash consideration for cash and the performance condition with respect to the 2.0X Exit-Vesting Options shall have not been 

6

satisfied as of such divestiture, such portion of such 2.0X Exit-Vesting Options shall expire and be forfeited as of the date of such divestiture and may no longer be exercised in any circumstance.  Participant may sell any equity securities underlying 2.0X Exit-Vesting Options that vest pursuant to this Section 4(b)(iii) on a pro rata basis with the Centerbridge Entities but may not sell such equity securities at a faster rate than the Centerbridge Entities. For the avoidance of doubt, any 2.0X Exit-Vesting Options that vest pursuant to this Section 4(b)(iii) shall not be subject to the early expiration provisions set forth in Section 3(b), except in connection with a Triggering Event.

(iv)If the Centerbridge Entities have divested 100% of their Common Stock for solely cash consideration and the performance condition with respect to the 2.0X Exit-Vesting Options shall have not been satisfied as of such divestiture, such portion of such 2.0X Exit-Vesting Options shall expire and be forfeited as of the date of such divestiture and may no longer be exercised in any circumstance.

(c)2.5X Exit-Vesting. The 2.5X Exit-Vesting Options shall vest as follows:

(i)100.00% shall vest on a Measurement Date, subject to Participant’s continued employment with the Company or any of its Subsidiaries through such Measurement Date (except as set forth in Section 3(b) with respect to the Earned Portion of the 2.0X Exit-Vesting Options), if the Centerbridge MOIC Hurdle equals at least 2.5.

(ii)If a Change in Control occurs, any then-unvested 2.5X Exit-Vesting Options shall vest if the performance condition in Section 4(c)(i) above is satisfied (subject to Participant’s continued employment with the Company or any of its Subsidiaries through the Change in Control (except as set forth in Section 3(b) with respect to the Earned Portion of the 2.5X Exit-Vesting Options). If such performance condition is not satisfied, the unvested 2.5X Exit-Vesting Options shall remain outstanding until vesting occurs pursuant to Section 4(c)(i).

(iii)If the Centerbridge Entities have divested 100% of their Common Stock for non-cash consideration or a combination of cash and non-cash consideration, and inclusion of the fair market value of the non-cash consideration (as determined by the Committee in good faith in its sole discretion) in the calculation of the Centerbridge Inflows would result in the Centerbridge MOIC Hurdle equaling (A) at least 2.0, then any then-unvested 2.5X Exit-Vesting Options shall remain outstanding and eligible to vest pursuant to Section 4(c)(i) (regardless of whether Participant continues to be employed with the Company or any of its Subsidiaries after the date of such 100% divestiture) as the Centerbridge Entities divest the non-cash consideration for cash, provided that if the Centerbridge Entities have divested 100% of the non-cash consideration for cash and the performance condition with respect to the 2.5X Exit-Vesting Options shall have not been satisfied as of such divestiture, such portion of such 2.5X Exit-Vesting Options shall expire and be forfeited as of the date of such divestiture and may no longer be exercised in any circumstance; and (B) less than 2.0, then any then-unvested 2.5X Exit-Vesting Options shall expire and be forfeited as of the date of such divestiture and may no longer be exercised in 

7

any circumstance.  Participant may sell any equity securities underlying 2.5X Exit-Vesting Options that vest pursuant to this Section 4(c)(iii) on a pro rata basis with the Centerbridge Entities but may not sell such equity securities at a faster rate than the Centerbridge Entities. For the avoidance of doubt, any 2.5X Exit-Vesting Options that vest pursuant to this Section 4(c)(iii) shall not be subject to the early expiration provisions set forth in Section 3(b), except in connection with a Triggering Event.

(iv)If the Centerbridge Entities have divested 100% of their Common Stock for solely cash consideration and the performance condition with respect to any portion of the 2.5X Exit-Vesting Options shall have not been satisfied as of such divestiture, such portion of such 2.5X Exit-Vesting Options shall expire and be forfeited as of the date of such divestiture and may no longer be exercised in any circumstance.

(d)Credit for Board Service.  Notwithstanding anything to the contrary contained herein or in the Plan, if (i) Participant provides Seitel with the Required Notice and remains continuously employed with Seitel during the Notice Period, and (ii) the Company requests that Participant serve on the Board following the end of the Notice Period, Participant’s Board service will be treated as continued employment with the Company or one of its Subsidiaries for purposes of continued vesting of the Options (i.e., the Options will vest in the ordinary course as described above in this Section 4 for the duration of Participant’s Board service, including with respect to the treatment of the Options upon a Change in Control, if Participant’s Board service continues through consummation of a Change in Control).  For the avoidance of doubt, if Participant’s Board service terminates prior to the consummation of a Change in Control, any then-unvested Time-Vesting Options shall expire and be forfeited as of Participant’s Board service termination date, and following Participant’s Board service termination date, the Earned Portions shall not be eligible to vest in accordance with Section 4(a) above.  Exhibit B provides a condensed overview of the key terms of this Section 4(d).

5.Restrictive Covenants.   The Company and its Subsidiaries operate in a highly sensitive and competitive commercial environment.  As part of his employment and/or service with the Company and its Subsidiaries, Participant will be exposed to highly confidential and sensitive information regarding the Company’s and its Subsidiaries’ business operations, including corporate strategy, pricing and other market information, know-how, trade secrets, and valuable customer, supplier, strategic partner, licensee, licensor, lessor, regulatory and employee relationships. It is critical that the Company take all necessary steps to safeguard its legitimate protectable interests in such information and to prevent any of its Competitors or any other persons from obtaining any such information. Therefore, as consideration for the Company’s agreement to award the Options to Participant, Participant hereby agrees that, for purposes of this Agreement and the Plan, the restrictive covenants set forth in the Employment Agreement shall apply (the “Employment Agreement Restrictive Covenants”). Accordingly, (x) the Employment Agreement Restrictive Covenants are incorporated herein by reference in their entirety, as fully as though set forth herein; (y) all references to restrictive covenants in this Agreement or the Plan will be considered references to the Employment Agreement Restrictive Covenants; and (z) this Agreement and the Plan will be interpreted and applied consistently with the parties’ intent that the end result should be the same as if the Employment Agreement Restrictive Covenants were actually set forth herein.

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(a)No Restriction on Earning a Living.  Participant hereby acknowledges that the Employment Agreement Restrictive Covenants do not preclude Participant from earning a livelihood, nor do they unreasonably impose limitations on Participant’s ability to earn a living.  In addition, Participant hereby acknowledges that the potential harm to the Company and/or their Subsidiaries of non-enforcement of the Employment Agreement Restrictive Covenants outweighs any harm to Participant of enforcement (by injunction or otherwise) of the Employment Agreement Restrictive Covenants against Participant. If any portion of the provisions of the Employment Agreement Restrictive Covenants is found to be invalid or unenforceable by a court of competent jurisdiction because its duration, territory, definition of activities covered, or definition of information covered is considered to be unreasonable in scope, the invalid or unenforceable term shall be redefined, or a new enforceable term provided, such that the intent of the Company and Participant in agreeing to the provisions of the Employment Agreement Restrictive Covenants will not be impaired and the provision in question shall be enforceable to the fullest extent of applicable law.

(b)Forfeiture Upon Breach.  Upon Participant’s breach of any of the provisions of the Employment Agreement Restrictive Covenants, (i) all of Participant’s Options not previously exercised shall expire and be forfeited whether exercisable or not; (ii) the Company will be entitled to repurchase, pursuant to Article IV of the Securities Holders Agreement, the shares of Common Stock previously received by Participant in connection with the exercise of the Options, provided that, notwithstanding anything to the contrary in the Securities Holders Agreement, the exercise price for such shares of Common Stock will equal the lesser of (A) the Fair Market Value thereof as of the time of the repurchase and (B) the Original Value thereof; and (iii) within ten (10) days of the Company’s written notice that a breach has occurred, Participant must repay to the Company any cash proceeds received by Participant from the sale of shares of Common Stock issued upon exercise of the Options that are in excess of the lesser of (A) the then-current Fair Market Value of such shares of Common Stock and (B) the Original Value thereof.

(c)Additional Acknowledgements; Remedies.  Participant acknowledges that the restrictions contained in the Employment Agreement Restrictive Covenants are reasonable and necessary to protect the legitimate interests of the Company and its Subsidiaries and that the Company would not have entered into this Agreement in the absence of such restrictions.  Participant also acknowledges that any breach by Participant of the Employment Agreement Restrictive Covenants will cause continuing and irreparable injury to the Company and its Subsidiaries for which monetary damages would not be an adequate remedy. Participant shall not, in any action or proceeding to enforce any of the provisions of the Plan or this Agreement, assert the claim or defense that an adequate remedy at law exists or that the Employment Agreement Restrictive Covenants are unreasonable or otherwise not enforceable in accordance with their terms. In the event that, notwithstanding the foregoing, Participant challenges the reasonableness or enforceability of the restrictions contained in the Employment Agreement Restrictive Covenants, Participant shall pay the attorneys’ fees of the Company and/or its Subsidiaries, as applicable. In the event of such breach by Participant, the Company or any of its Subsidiaries shall have the right to enforce the provisions of the Employment Agreement Restrictive Covenants by seeking injunctive or other relief in any court, and the Plan and this Agreement shall not in any way limit remedies of law or in equity 

9

otherwise available to such entity. The periods of time set forth in the Employment Agreement Restrictive Covenants shall not include, and shall be deemed extended by, any time required for litigation to enforce the relevant covenant periods, provided that the Company or any of its Subsidiaries is successful on the merits in any such litigation. The “time required for litigation” is herein defined to mean the period of time from the earlier of Participant’s first breach of such covenants or service of process upon Participant through the expiration of all appeals related to such litigation.

(d)Survival of Provisions. The obligations contained in the Employment Agreement Restrictive Covenants shall survive the termination of Participant’s employment or service with the Company and its Subsidiaries and shall be fully enforceable thereafter.

6.Participant’s Representations. Participant hereby represents and warrants to the Company that (a) the execution, delivery and performance of this Agreement by Participant does not and will not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which Participant is a party or by which Participant is bound, (b) Participant is not a party to or bound by any employment agreement, noncompete agreement or confidentiality agreement with any other person or entity (other than the Company and/or one of its Subsidiaries), and (c) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid and binding obligation of Participant, enforceable in accordance with its terms. Participant hereby acknowledges and represents that Participant has consulted with (or has had an opportunity to consult with) independent legal counsel regarding Participant’s rights and obligations under this Agreement (including, without limitation, the Plan), and that Participant fully understands the terms and conditions contained herein and therein.

7.Repurchase Rights. If Participant is no longer employed by the Company or its Subsidiaries for any or no reason, the Options and any Common Stock acquired by exercise thereof (whether held by such Participant or one or more transferees, other than the Company or Investor) will be subject to repurchase in accordance with the terms of the Securities Holders Agreement.

8.No Put Option. Notwithstanding anything to the contrary herein or in the Securities Holders Agreement, the Put Option described in Article IV of the Securities Holders Agreement shall not apply to the Common Stock acquired upon exercise of the Options.

9.Rights of Participants. Nothing in this Agreement shall interfere with or limit in any way the right of the Company or any of its Subsidiaries to terminate Participant’s employment at any time (with or without Cause), nor confer upon Participant any right to continue in the employ of the Company or any of its Subsidiaries for any period of time or to continue Participant’s present (or any other) rate of compensation, and in the event of Participant’s termination of employment (including, but not limited to, termination by the Company without Cause), any portion of Participant’s Options that was not previously vested and exercisable shall expire and be forfeited, except as otherwise provided herein. Nothing in this Agreement shall confer upon Participant any right to be selected again as a Plan participant, and nothing in the Plan or this Agreement shall provide for any adjustment to the number of shares of Common Stock subject to Participant’s Options upon the occurrence of subsequent events except as provided in Section 11 below. 

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Participant shall not be, nor have the rights or privileges of, a stockholder of the Company, including, without limitation, voting rights and rights to dividends, in respect of any shares of Common Stock purchasable upon the exercise of any of the Options unless and until such shares shall have been issued by the Company and held of record by Participant (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).

10.Payment of Taxes. Upon exercise of any portion of the Options, Participant shall pay any and all amounts due under this Agreement including such federal, state, local and other withholding taxes as may be required pursuant to applicable law or regulation. The Company shall have the right to deduct any such withholding taxes from any compensation payable to Participant.

11.Adjustments. Upon the occurrence of certain events relating to the shares of Common Stock contemplated by Section 6 of the Plan, the Board may make certain adjustments in the number and type of securities covered by the Options and the Per Share Exercise Price specified herein, as set forth in such Section 6, in order to prevent the dilution or enlargement of rights under the Options.

12.Notices. Any notices required or permitted under this Agreement or the Plan will be delivered in accordance with the requirements of the Plan.

13.Section 409A. The Options are not intended to constitute “nonqualified deferred compensation” within the meaning of Section 409A. However, notwithstanding any other provision of the Plan or this Agreement, if at any time the Committee determines that the Options (or any portion thereof) may be subject to Section 409A, the Committee shall have the right in its sole discretion (without any obligation to do so or to indemnify Participant or any other person for failure to do so) to adopt such amendments to the Plan or this Agreement, or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Committee determines are necessary or appropriate either for the Options to be exempt from the application of Section 409A or to comply with the requirements of Section 409A.

14.General Provisions.

(a)Transfers in Violation of Agreement. Any pledge, assignment, transfer or attempted transfer of any portion of the Options or Common Stock acquired or acquirable with respect thereto in violation of any provision of this Agreement, the Plan or the Securities Holders 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.

(b)Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

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(c)Complete Agreement. This Agreement and the Plan and the other documents expressly referred to herein and therein embody the complete agreement and understanding among the parties and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in anyway.

(d)Counterparts. This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

(e)Successors and Assigns. Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be enforceable by Participant, the Company, Investor and their respective successors and assigns (including subsequent holders of Common Stock issued in respect of the Options); provided, that the rights and obligations of Participant under this Agreement shall not be assignable except in connection with a permitted transfer in accordance with this Agreement and the Securities Holders Agreement.

(f)Choice of Law. This Agreement shall be construed, interpreted and the rights of the parties determined in accordance with the laws of the State of Delaware (without reference to any choice of law rules that would require the application of the laws of any other jurisdiction).

(g)Amendment and Waiver. To the extent permitted by the Plan, the provisions of this Agreement may be amended or waived at any time or from time to time with the prior written consent of the Company and the Investor; provided that, except as may otherwise be provided by the Plan, no amendment or waiver of this Agreement shall adversely affect the Options in any material way without the prior written consent of Participant.

15.Third-Party Beneficiaries. Certain provisions of this Agreement are entered into for the benefit of and shall be enforceable by Investor as provided herein.

16.Business Days. If any time period for giving notice or taking action hereunder expires on a day which is a Saturday, Sunday or legal holiday in the state in which the Company’s principal office is located, the time period shall be automatically extended to the business day immediately following such Saturday, Sunday or holiday.

[signature page follows]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.
	
			
	 
	SEITEL HOLDINGS, INC.

	 
	 
	 

	 
	 
	 

	 
	By:
	 

	 
	Name:
	 

	 
	Title:
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	PARTICIPANT

	 
	 
	 

	 
	 
	 

	 
	By:
	 

	 
	Name:
	Robert D. Monson

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EXHIBIT A
SEITEL HOLDINGS, INC.
2018 NON-QUALIFIED STOCK OPTION PLAN
See attached.

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EXHIBIT B
	
						
	Scenario
	Description
	Vested 
Time-Vesting Options
	Time-Vested Performance-Vesting Options
	Unvested 
Time-Vesting Options
	Fully Unvested (i.e. Not Time-Vested) Performance-Vesting Options

	1
	•     Fulfills one year notice and employment requirement 
•     Joins the Board upon termination 
•     Serves on the Board continuously through a Sponsor Exit Event
	Exercisable until the original expiration date
	Eligible to performance vest until earlier of (i) the original expiration date and (ii) a Sponsor Exit Event*
	Continue to vest in the ordinary course during Board service
	Continue to time vest and be eligible to performance vest in the ordinary course during Board service

	2
	•     Fulfills one year notice and employment requirement 
•     Joins the Board upon termination 
•     Commences service on the Board but does not serve continuously through a Sponsor Exit Event
	Exercisable until the original expiration date
	Eligible to performance vest until earlier of (i) the original expiration date and (ii) a Sponsor Exit Event*
	Continue to vest in the ordinary course during Board service, with any remaining unvested Time-Vesting Options forfeited upon termination of Board service
	Continue to time vest and be eligible to performance vest in the ordinary course during Board service, with any remaining fully unvested Performance-Vesting Options forfeited upon termination of Board service*

	3
	•     Provides one year’s notice
•     Employment terminated during one year  notice period due to (i) termination by the  Company without Cause (not due to death or Disability) or (ii) resignation by the Executive for Good Reason 
	Exercisable until the original expiration date
	Eligible to performance vest until earlier of (i) the original expiration date and (ii) a Sponsor Exit Event*
	Forfeited upon termination of employment
	Forfeited upon termination of employment*

	4
	•     Termination due to death or Disability
	Exercisable until the original expiration date
	Eligible to performance vest until earlier of (i) the original expiration date and (ii) a Sponsor Exit Event*
	Forfeited upon termination of employment
	Forfeited upon termination of employment*

	5
	•     Does not provide one year’s notice
•     Employment terminated due to resignation by the Executive for Good Reason 
	Exercisable until earlier of the (i) 30th day following the termination date and (ii) original expiration date
	Eligible to performance vest for six months following the termination date
	Forfeited upon termination of employment
	Forfeited upon termination of employment 

	6
	•     Provides one year’s notice
•     Employment terminated during one year notice period due to resignation by the Executive without Good Reason
	Forfeited upon termination of employment
	Forfeited upon termination of employment
	Forfeited upon termination of employment
	Forfeited upon termination of employment

	7
	•     Does not provide one year’s notice
•     Employment terminated due to resignation  by the Executive without Good Reason 

	8
	•     Termination for Cause or resignation under Cause circumstances

* Subject to Sections 4(b)(iii) and 4(c)(iii) of the Agreement.

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