-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Jh3su/3QOhA5rrbIwNE5O+05aHAzImKn2XsjVwdiDaW3EX6/bZo/d61YC4X39k/s
 Zcklu8/5qhhFkqki9vOYtQ==

<SEC-DOCUMENT>0000950129-06-005951.txt : 20060531
<SEC-HEADER>0000950129-06-005951.hdr.sgml : 20060531
<ACCEPTANCE-DATETIME>20060531171937
ACCESSION NUMBER:		0000950129-06-005951
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20060727
FILED AS OF DATE:		20060531
DATE AS OF CHANGE:		20060531
EFFECTIVENESS DATE:		20060531

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MITCHAM INDUSTRIES INC
		CENTRAL INDEX KEY:			0000926423
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359]
		IRS NUMBER:				760210849
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25142
		FILM NUMBER:		06877671

	BUSINESS ADDRESS:	
		STREET 1:		8141 SH 75 SOUTH
		STREET 2:		PO BOX 1175
		CITY:			HUNTSVILLE
		STATE:			TX
		ZIP:			77342
		BUSINESS PHONE:		9362912277

	MAIL ADDRESS:	
		STREET 1:		P O BOX 1175
		CITY:			HUNTSVILLE
		STATE:			TX
		ZIP:			77342
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>h36669ddef14a.htm
<DESCRIPTION>MITCHAM INDUSTRIES, INC.
<TEXT>
<HTML>
<HEAD>
<TITLE>def14a</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<CENTER>
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="70%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="13%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="15%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD colspan="3" nowrap align="center">OMB APPROVAL</TD>
</TR>
<TR valign="bottom">
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD colspan="3" nowrap align="center"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD valign="top">&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="left" valign="top">
OMB Number:
</TD>
        <TD>&nbsp;</TD>
        <TD align="right" valign="top">3235-0059</TD>
</TR>

<TR valign="bottom">
        <TD valign="top">&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align="left" valign="top">
Expires:
</TD>
        <TD>&nbsp;</TD>

<TD nowrap align="right" valign="top">February&nbsp;28, 2006</TD>
</TR>

<TR valign="bottom">
        <TD valign="top">&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD colspan="2" nowrap align="left" valign="top">Estimated average burden<br>hours per

response</TD>

        <TD align="right" valign="bottom">12.75</TD>
</TR>

</TABLE>
</CENTER>

<P style="font-size: 10pt" align="center"><B>UNITED STATES<BR>SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B>


<P style="font-size: 10pt" align="center"><B>SCHEDULE 14A</B>



<P style="font-size: 10pt" align="center">Proxy Statement Pursuant to Section 14(a) of the Securities<BR>
Exchange Act of 1934 (Amendment No.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)


<P>
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>Filed by the Registrant
&nbsp;&nbsp;<FONT face="wingdings">&#254;</FONT></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>Filed by a Party other than the Registrant
&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>Check the appropriate box:</TD>
</TR>
</TABLE>
<P style="font-size: 10pt">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT face="wingdings">&#111;</font>&nbsp;&nbsp; Preliminary Proxy Statement</TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>

<TD><FONT face="wingdings">&#111;</font>&nbsp;&nbsp;
<B>Confidential, for Use of the Commission Only (as permitted by
Rule&nbsp;14a-6(e)(2))</B></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>

<TD><FONT face="wingdings">&#254;</font>&nbsp;&nbsp; Definitive Proxy Statement</TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT face="wingdings">&#111;</font>&nbsp;&nbsp; Definitive Additional Materials</TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT face="wingdings">&#111;</font>&nbsp;&nbsp;
Soliciting Material Pursuant to &#167;240.14a-12</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 24pt">MITCHAM INDUSTRIES, INC
<HR size="1" noshade><DIV align="center" style="font-size: 10pt">(Name
of Registrant as Specified In Its Charter)</DIV>
<P align="center" style="font-size: 10pt"><HR size="1" noshade><DIV align="center" style="font-size: 10pt">(Name
of Person(s) Filing Proxy Statement, if other than the
Registrant)</DIV>

<P style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of Filing Fee (Check the appropriate box):


<P style="font-size: 10pt">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>

<TD><FONT face="wingdings">&#254;</FONT>&nbsp;&nbsp; No fee required.</TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>

<TD><FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;
Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(4) and
0-11.</TD>
</TR>
</TABLE>
<P style="font-size: 10pt">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1)&nbsp;Title of each class of securities to which transaction applies:</TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P style="font-size: 10pt">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2)&nbsp;Aggregate number of securities to which transaction applies:</TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P style="font-size: 10pt">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3)&nbsp;Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule&nbsp;0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):</TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P style="font-size: 10pt">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4)&nbsp;Proposed maximum aggregate value of transaction:</TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P style="font-size: 10pt">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5)&nbsp;Total fee paid:</TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P style="font-size: 10pt">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp; Fee paid previously with preliminary materials.</TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P style="font-size: 10pt">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp; Check box if any part of the fee is offset as provided by Exchange Act
Rule&nbsp;0-11(a)(2) and identify the filing for which the offsetting fee
was paid previously. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of its filing.</TD>
</TR>
</TABLE>
<P style="font-size: 10pt">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1)&nbsp;Amount Previously Paid:</TD>
</TR>
</TABLE>
<HR size="1" noshade>


<P style="font-size: 10pt">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2)&nbsp;Form, Schedule or Registration Statement No.:</TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P style="font-size: 10pt">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3)&nbsp;Filing Party:</TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P style="font-size: 10pt">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4)&nbsp;Date Filed:</TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P style="font-size: 10pt">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR>
        <TD width="20%"></TD>
        <TD width="80%"></TD>
</TR>
<TR valign="top">
        <TD valign="bottom">SEC 1913 (02-02)</TD>
        <TD><b>Persons who are to respond to the collection of information
contained in this form are not required to respond unless the form displays a currently valid
OMB control number.</b></TD>
</TR>
</TABLE>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>MITCHAM INDUSTRIES, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>8141 SH 75 SOUTH</B></DIV>


<DIV align="center" style="font-size: 10pt"><B>P.O. BOX 1175</B></DIV>


<DIV align="center" style="font-size: 10pt"><B>HUNTSVILLE, TEXAS 77342-1175</B></DIV>



<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>NOTICE OF ANNUAL MEETING OF SHAREHOLDERS<BR>
TO BE HELD JULY 27, 2006</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">To our Shareholders:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will hold the Annual Meeting of Shareholders of Mitcham Industries, Inc., a Texas
corporation, on Thursday, July&nbsp;27, 2006, at the Houston Marriott North, 225 North Sam Houston
Parkway East, Houston, Texas at 10:00&nbsp;a.m., local time, for the following purposes:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The election of five individuals to serve on our Board of Directors until the next annual
meeting of shareholders or until their respective successors are elected and qualified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;To adopt the Mitcham Industries, Inc. Stock Awards Plan, which will replace our 1998
Amended and Restated Stock Awards Plan and our 2000 Stock Option Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;To ratify the selection by the Audit Committee of our Board of Directors of Hein &#038;
Associates LLP as our independent auditors for the fiscal year ending January&nbsp;31, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;The transaction of such other business as may properly come before the meeting and any
adjournment thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors has established the close of business on June&nbsp;5, 2006, as the record
date for determining the shareholders entitled to notice of and to vote at the Annual Meeting of
Shareholders to be held July&nbsp;27, 2006, and any adjournment or postponement thereof.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>YOU ARE CORDIALLY INVITED TO ATTEND THE ANNUAL MEETING. TO ASSURE YOUR REPRESENTATION AT THE
ANNUAL MEETING OF SHAREHOLDERS, EVEN IF YOU PLAN TO ATTEND, PLEASE COMPLETE, SIGN AND MAIL THE
ENCLOSED PROXY AS PROMPTLY AS POSSIBLE IN THE ACCOMPANYING ENVELOPE.</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sincerely,</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top"><IMG src="h36669dh3666901.gif" alt="-s- Billy F. Mitcham, Jr."></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Billy F. Mitcham, Jr.<BR>
<I>President and Chief Executive Officer</I></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">June&nbsp;9, 2006
</DIV>


<P align="center" style="font-size: 10pt">
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Page</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101">SOLICITATION OF PROXIES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#102">Purpose, Place, Date and Time</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#103">Expenses of Solicitation</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#104">Shareholders Sharing the Same Last Name and Address</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#105">VOTING OF SECURITIES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#106">Record Date; Shareholders Entitled to Vote</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#107">Quorum</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#108">Vote Required</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#109">Revocation of Proxies</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#110">PRINCIPAL HOLDERS OF SECURITIES AND SECURITY OWNERSHIP OF MANAGEMENT</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#111">PROPOSAL 1 ELECTION OF DIRECTORS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#112">Business Experience of Our Directors and Executive Officers</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#113">Determination of Director Independence</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#114">Attendance at Board and Committee Meetings</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#115">Committees of the Board of Directors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#116">Shareholder Communication with Our Board of Directors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#117">Code of Ethics</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#118">Compensation of Directors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#119">Compensation Committee Interlocks and Insider Participation</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#120">EXECUTIVE COMPENSATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#121">COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#122">Compensation Philosophy and Objectives</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#123"> Executive Officers</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#124">Compensation for the Chief Executive Officer</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#125">PERFORMANCE GRAPH</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#126">CERTAIN TRANSACTIONS AND RELATIONSHIPS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#133">PROPOSAL 2 APPROVAL OF MITCHAM INDUSTRIES, INC. STOCK AWARDS PLAN</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#134">Purpose and Key Features of the Plan</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#135">Number of Shares Subject to the Plan</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#136">Administration</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#137">Eligibility</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#138">Term of Plan</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#139">Stock Options and SARs</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#140">Restricted Stock</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#141">Performance Awards</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#142">Phantom Stock Awards</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#143">Stock Payments</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#144">Other Stock-Based Award</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#145">Performance-Based Compensation</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#146">New Plan Benefits</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#147">Miscellaneous</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#148">Federal Income Tax Aspects of the Plan</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#149">Inapplicability of ERISA</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#127">AUDIT COMMITTEE REPORT</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#128">PROPOSAL 3 RATIFICATION OF THE SELECTION OF INDEPENDENT AUDITORS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#129">FEES AND EXPENSES OF HEIN &#038; ASSOCIATES LLP</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#130">ANNUAL REPORT</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#131">OTHER MATTERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#132">SUBMISSION OF SHAREHOLDER PROPOSALS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#133">MITCHAM
INDUSTRIES, INC. STOCK AWARDS PLAN</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-1</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>


<P align="center" style="font-size: 10pt">i
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 40%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MITCHAM INDUSTRIES, INC.<BR>
8141 SH 75 South<BR>
P.O. Box 1175<BR>
Huntsville, Texas 77342-1175</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 40%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROXY STATEMENT<BR>
FOR<BR>
ANNUAL MEETING OF SHAREHOLDERS<BR>
To be Held July&nbsp;27, 2006</B>
</DIV>

<DIV align="left">
<A name="101"></A>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 40%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 14pt"><B>SOLICITATION OF PROXIES</B>

</DIV>

<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Purpose, Place, Date and Time</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Proxy Statement is furnished in connection with the solicitation by the Board of
Directors of Mitcham Industries, Inc., a Texas corporation, of proxies from the holders of record
of our common stock, par value $.01 per share (&#147;Common Stock&#148;), at the close of business on June&nbsp;5,
2006, for use in voting at the Annual Meeting of Shareholders (the &#147;Annual Meeting&#148;) to be held at
the Houston Marriott North, 225 North Sam Houston Parkway East, Houston, Texas at 10:00&nbsp;a.m., local
time, on Thursday, July&nbsp;27, 2006, and any adjournment or postponement thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Proxy Statement, the attached proxy card and our Annual Report for the fiscal year ended
January&nbsp;31, 2006 are being mailed together on or about
June&nbsp;9, 2006, to each of our
shareholders entitled to notice of and to vote at the Annual Meeting. Our principal place of
business is located at 8141 SH 75 South, Huntsville, Texas 77340 and our mailing address is P.O.
Box 1175, Huntsville, Texas 77342-1175.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Properly executed proxies will be voted as directed. If no direction is indicated therein,
proxies received in response to this solicitation will be voted <B>FOR</B>: (i)&nbsp;the election of each of
the five individuals nominated for election as directors; (ii)&nbsp;the adoption of the Mitcham
Industries, Inc. Stock Awards Plan, which will replace our 1998 Amended and Restated Stock Awards
Plan and our 2000 Stock Option Plan; (iii)&nbsp;the ratification of the selection of Hein &#038; Associates
LLP as our independent auditors by our Audit Committee for the fiscal year ending January&nbsp;31, 2007;
and (iv)&nbsp;as recommended by our Board of Directors with regard to any other matters, or if no
recommendation is given, at the discretion of the appointed proxies.
</DIV>
<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Expenses of Solicitation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The solicitation of proxies will be conducted by mail and we will bear all costs associated
with such solicitation, which we anticipate will cost approximately $10,000. In addition to the
direct expenses of preparing and mailing the solicitation materials in connection with the Annual
Meeting, we will reimburse brokerage houses, custodians, nominees and fiduciaries for all
reasonable out-of-pocket expenses incurred in connection with the forwarding of our solicitation
materials to the beneficial owners of Common Stock. In addition, we may conduct further
solicitations of proxies in person or by telephone through our directors, officers and employees,
none of whom will receive any additional salary or compensation for assisting in the solicitation
of proxies.
</DIV>

<P align="center" style="font-size: 10pt">1
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Shareholders Sharing the Same Last Name and Address</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are sending only one copy of our proxy statement to shareholders who share the same last
name and address, unless they have notified us that they want to continue receiving multiple
copies. This practice, known as &#147;householding,&#148; is designed to reduce duplicate mailings and save
significant printing and postage costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you received a householded mailing this year and you would like to have additional copies
of our proxy statement mailed to you or you would like to opt out of this practice for future
mailings, please submit your request to our Corporate Secretary in writing at Mitcham Industries,
Inc., P.O. Box 1175, Huntsville, Texas 77342-1175. You may also contact us if you received multiple
copies of the annual meeting materials and would prefer to receive a single copy in the future.
</DIV>
<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>VOTING OF SECURITIES</B>
</DIV>

<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Record Date; Shareholders Entitled to Vote</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors has fixed the close of business on June&nbsp;5, 2006, as the record date for
determining the holders of shares of Common Stock entitled to notice of and to vote at the Annual
Meeting. As of the close of business on June&nbsp;5, 2006, we expect there will be approximately
9,587,610 issued and outstanding shares of Common Stock, each of which is entitled to one vote on
each item of business to be conducted at the Annual Meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a period of 10&nbsp;days prior to the Annual Meeting, a list of the shareholders entitled to
vote at the Annual Meeting will be available for inspection during normal business hours at our
principal place of business, which is located at 8141 SH 75 South, Huntsville, Texas 77340.
</DIV>
<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Quorum</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Second Amended and Restated Bylaws provide that the presence at the Annual Meeting, either
in person or by proxy, of the holders of a majority of the outstanding shares of Common Stock will
constitute a quorum for the transaction of business. Abstentions from and broker non-votes on the
proposal to approve the Stock Awards Plan and to elect directors will be counted for purposes of determining the presence of a quorum,
but broker non-votes will not be included in the total shares voted for or against any nominee. A broker non-vote
occurs if a broker or other nominee holding shares of Common Stock for a beneficial owner does not
vote on a proposal because the broker or nominee does not have discretionary authority to vote the
applicable shares of Common Stock and has not received instructions from the beneficial owner with
respect to how to vote such shares of Common Stock on the particular item of business.
</DIV>
<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Vote Required</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assuming a quorum is present, the election of directors will require a plurality of the votes
cast at the Annual Meeting. Approval of the adoption of our Stock Awards Plan will require the
affirmative vote of a majority of the total votes cast at the Annual Meeting. The ratification of the
selected independent auditors will require the affirmative vote of a
majority of the total votes cast at the Annual Meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All votes will be tabulated by the inspector of elections appointed for the Annual Meeting,
who will separately tabulate votes for and against, abstentions and broker non-votes. Abstentions
from any item of business other than the election of directors will have the same legal effect as a
vote against the applicable proposal, but a broker non-vote will not be counted for purposes of
determining whether a
</DIV>

<P align="center" style="font-size: 10pt">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">majority
vote is achieved with respect to the approval of the Stock Awards
Plan, the ratification of the selected independent
auditors or any other item of business properly coming before the Annual Meeting.
</DIV>
<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Revocation of Proxies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any proxy given on the enclosed proxy card may be revoked by the applicable shareholder at any
time before it is voted by (i)&nbsp;providing us with a written revocation notice or another proxy card
or other form of proxy bearing a later date (in each case, delivered to our principal place of
business at 8141 SH 75 South, Huntsville, Texas 77340, with our mailing address being P.O. Box
1175, Huntsville, Texas 77342-1175 marked &#147;Proxy Information Enclosed, Attention: Corporate
Secretary&#148;) or (ii)&nbsp;by attending and voting in person at the Annual Meeting. Attendance at the
Annual Meeting will not, in itself, constitute revocation of a completed and delivered proxy card.
</DIV>
<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PRINCIPAL HOLDERS OF SECURITIES AND SECURITY OWNERSHIP OF MANAGEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Principal Holders of Securities</I></B>. The following table sets forth the beneficial ownership of
the outstanding shares of Common Stock as of May&nbsp;31, 2006, with respect to each person, other than
our directors and named executive officers, we know to be the beneficial owner of 5% or more of the
outstanding shares of Common Stock. All persons listed have sole disposition and voting power with
respect to the indicated shares except as otherwise indicated in the footnotes below the table.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Common Stock Beneficially Owned</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name and Address of Beneficial Owner</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Percent of Class</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">First Wilshire Securities Management, Inc.<BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1,186,902</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">600 South Lake Street, Suite&nbsp;100<BR>
Pasadena, California 91106<BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>In a Schedule&nbsp;13G filed with the United States Securities and Exchange Commission (the
&#147;SEC&#148;) on April&nbsp;11, 2005, First Wilshire Securities Management, Inc. (&#147;First Wilshire&#148;)
reported sole voting power with respect to 132,039 of the shares, sole dispositive power
with respect to 1,054,863 of the shares and no shares subject to shared voting power or
shared dispositive power.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Security Ownership of Management</I></B>. The following table sets forth the beneficial
ownership of Common Stock as of May&nbsp;31, 2006, by (i)&nbsp;each executive officer whose total annual
salary and bonus exceeded $100,000 in the fiscal year ended January&nbsp;31, 2006 (collectively, the
&#147;Named Executives&#148;); (ii)&nbsp;each director and nominee; and (iii)&nbsp;all directors and executive officers
as a group. All persons listed have sole disposition and voting power with respect to the indicated
shares except as otherwise indicated in the footnotes below the table.
</DIV>


<P align="center" style="font-size: 10pt">3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Common Stock Beneficially Owned</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name of Beneficial Owner</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Percent of Class</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Billy F. Mitcham, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">801,261</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Peter H. Blum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">576,026</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.95</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John F. Schwalbe</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">83,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">R. Dean Lewis</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">35,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paul Guy Rogers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">55,333</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Robert P. Capps</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">35,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. Pugh</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">20,500</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Guy Malden</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5,333</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All directors and executive officers as a group (8
persons)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1,611,453</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">15.5</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Less than 1%</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 25,500 restricted shares, which vest ratably over three years, an aggregate of
99,594 shares owned by Billy F. Mitcham, Sr. (40,000 shares) and Mr.&nbsp;Mitcham Jr.&#146;s children
(59,594 shares), as to which Mr.&nbsp;Mitcham, Jr. has sole voting rights under a Voting
Agreement. Also includes shares underlying Exercisable Options and options that will
become exercisable within 60&nbsp;days of May&nbsp;31, 2006 (collectively, the &#147;Exercisable
Options&#148;), to purchase an aggregate of 376,167 shares of Common Stock.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 8,000 restricted shares that vest one year from the grant date, 4,000
restricted shares that vest three years from grant date, 230,000 shares underlying Exercisable
Options, 22,624 shares
underlying currently exercisable warrants, 6,000 shares owned by Mr.&nbsp;Blum&#146;s spouse&#146;s IRA
and 6,500 shares owned by Mr.&nbsp;Blum&#146;s minor son.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 4,000 restricted shares that vest one year from the
grant date and 77,000 shares
underlying Exercisable Options.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 4,000 restricted shares that vest one year from the
grant date and 31,000 shares
underlying Exercisable Options.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 9,500 restricted shares that vest ratably over three
years and 45,833 shares
underlying Exercisable Options.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 25,000 shares underlying Exercisable Options.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 500 restricted shares that vest ratably over three years from grant date and
20,000 shares underlying Exercisable Options.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 2,000 restricted shares that vest ratably over three years from grant date and
3,333 shares underlying Exercisable Options.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes shares underlying Exercisable Options and warrants to purchase an aggregate of
830,957 shares of Common Stock, as follows: 376,167 shares referred to in footnote (1)
above, and an aggregate of 454,790 shares attributable to Michael A. Pugh (20,000 shares),
Paul Guy Rogers (45,833 shares), Rob Capps, (25,000), Guy Malden (3,333 shares), R. Dean
Lewis (31,000 shares), John F. Schwalbe (77,000 shares) and Peter H. Blum (230,000 shares -
options; and 22,624 shares &#151; warrants).</TD>
</TR>

</TABLE>



<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROPOSAL 1</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>ELECTION OF DIRECTORS</B></DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Five individuals will be elected at the Annual Meeting to serve as directors until the next
annual meeting or until their respective successors are elected and qualified. Shares or proxies
may not be voted for more than five director nominees. All of the director nominees are currently
serving on our Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The persons appointed as proxies in the enclosed proxy card will vote such proxy &#147;FOR&#148; the
persons nominated for election to our Board of Directors, except to the extent authority to vote is
expressly withheld with respect to one or more nominees. If any nominee is unable to serve as a
director for any reason, all shares represented by proxies pursuant to the enclosed proxy card,
absent contrary instructions, will be voted for any substitute nominee designated by our Board of
Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Our Board of Directors recommends a vote &#147;FOR&#148; the election of each of the director nominees
identified below.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Information About Nominees for Director and Executive Officers</I></B>. The following table sets
forth the names and ages, as of May&nbsp;31, 2006, of our current directors, each of whom is a director
nominee, and our executive officers. Our directors are elected annually and serve one-year terms
or until their successors are elected. Our executive officers are elected annually by the Board of
Directors and serve one-year terms or until their death, resignation or removal by the Board of
Directors. There are no family relationships between any of our directors and executive officers.
In addition, there are no arrangements or understandings between any of our executive officers and
any other person pursuant to which any person was selected as an executive officer.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="27%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Age</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Positions Held</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Director Since</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Billy F. Mitcham, Jr.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">58</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director, President and Chief Executive Officer
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1987</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Peter H. Blum
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">49</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Non-Executive Chairman of the Board
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">R. Dean Lewis
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">63</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1995</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John F. Schwalbe
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">62</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1994</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Robert P. Capps
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">52</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2004</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Michael A. Pugh
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">54</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Executive Vice President of Finance and
Chief Financial Officer
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N/A</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Paul Guy Rogers
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">56</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Vice President of Business Development
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N/A</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Guy Malden
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">54</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Vice President of Marine Systems
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N/A</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="112"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Business Experience of Our Directors and Executive Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Billy F. Mitcham, Jr. has served as our President and Chief Executive Officer since the
Company&#146;s inception in 1987. From 1987 until July&nbsp;2004, Mr.&nbsp;Mitcham also served as our Chairman of
the Board. Mr.&nbsp;Mitcham has more than 25&nbsp;years of experience in the geophysical industry. From
1979 to 1987, he served in various management capacities with Mitcham Associates, an unrelated
equipment leasing company. From 1975 to 1979, Mr.&nbsp;Mitcham served in various capacities with
Halliburton Services, primarily in oilfield services.
</DIV>


<P align="center" style="font-size: 10pt">5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Peter H. Blum was elected Non-Executive Chairman of the Board on July&nbsp;8, 2004. Mr.&nbsp;Blum
is Senior Managing Director of Ladenberg Thalmann &#038; Co., Inc., an investment banking firm. Since
November&nbsp;1998, Mr.&nbsp;Blum has been President of Bear Ridge Capital, L.L.C., a private investment
banking firm. From June&nbsp;1998 until March&nbsp;2003,
Mr.&nbsp;Blum served as a Director, and from September
2001 until March&nbsp;2003, as Executive Vice President, of Mallon Resources Corporation, an oil and gas
exploration and production company that merged with Black Hills Corporation on March&nbsp;10, 2003.
Prior to 1998, Mr.&nbsp;Blum was a senior investment banker with various Wall Street firms. Mr.&nbsp;Blum
started his career with Arthur Young &#038; Co. and is a Certified Public Accountant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R.&nbsp;Dean Lewis is the Dean of the Business School at Sam Houston State University and has
served in this capacity since October&nbsp;1995. From 1987 to October&nbsp;1995, Dr.&nbsp;Lewis was the Associate
Dean and Professor of Marketing at Sam Houston State University. Prior to 1987, Dr.&nbsp;Lewis held a
number of executive positions in the banking and finance industries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;John F. Schwalbe has had a professional career in public accounting for more than thirty (30)
years. Experience includes auditing of oil and gas exploration and production enterprises, school
districts and various banking institutions. For the past twenty-five (25)&nbsp;years, Mr.&nbsp;Schwalbe has
been in private practice with primary emphasis in tax planning, consultation and compliance. Mr.
Schwalbe is a Certified Public Accountant and holds a Bachelor of Business Administration degree
from Midwestern University.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Robert P. Capps has been the Executive Vice President and Chief Financial Officer of TeraForce
Technology Corporation (&#147;TeraForce&#148;), a publicly-held provider of defense electronics products,
since July&nbsp;1999. On August&nbsp;2, 2005, TeraForce filed for protection under Chapter&nbsp;11 of the Federal
Bankruptcy Code. On April&nbsp;6, 2006, TeraForce&#146;s Chapter&nbsp;11 Plan of Reorganization was confirmed.
From 1996 to 1999, Mr.&nbsp;Capps was Executive Vice President and Chief Financial Officer of Dynamex
Inc., a NASDAQ-listed supplier of same-day transportation services. Prior to his employment with
Dynamex, Mr.&nbsp;Capps was Executive Vice President and Chief Financial Officer of Hadson Corporation,
a NYSE-listed energy company. Mr.&nbsp;Capps is a Certified Public Accountant and was formerly with
Arthur Young &#038; Co. Mr.&nbsp;Capps holds a Bachelor of
Accountancy degree from the University of
Oklahoma.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Michael A. Pugh is Executive Vice President &#150; Finance and Chief Financial Officer. From March
2004 to November&nbsp;2004, Mr.&nbsp;Pugh was Chief Operating Officer and Chief Financial Officer of
Corporate Alliance, a privately-held marketing company. From May&nbsp;2002 to April&nbsp;2003, Mr.&nbsp;Pugh
served as Chief Financial Officer of Rocky Mountain Energy Corporation, a Houston-based developer
of proven oil and gas reserves in the Rocky Mountains. From March&nbsp;2001 to May&nbsp;2002, Mr.&nbsp;Pugh was
Vice President and Chief Financial Officer at Regent Energy Corporation, a company engaged in the
acquisition and production of crude oil and natural gas reserves. From 1983 to 2000, Mr.&nbsp;Pugh held
positions of increasing responsibility domestically and internationally with Santa Fe Energy (now
Devon Energy). Mr.&nbsp;Pugh began his career with General Crude Oil in 1974 and holds a B.B.A. &#150;
Finance from Texas A&#038;M University.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paul Guy Rogers has served as our Vice President of Business Development since October&nbsp;2001.
From February&nbsp;1993 to September&nbsp;2001, Mr.&nbsp;Rogers served as Senior Sales Representative with Geo
Space LP, a worldwide manufacturer of geophysical equipment, with responsibilities for sales in the
United States and Latin America. Mr.&nbsp;Rogers has 12&nbsp;years of experience in the geophysical
industry.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guy Malden has served as our Vice President of Marine Systems since January&nbsp;2004. Mr.&nbsp;Malden
has 30&nbsp;years experience in the geophysical industry, and has been with Mitcham Industries since
2002. From 1999 to 2002, he served as Vice President of Operations for American International
Exploration Group. From 1993 to 1999, he served in various management capacities with several
seismic equipment manufacturers, most notably Syntron, Inc. From 1975 to 1993, Mr.&nbsp;Malden served in
various field and
</DIV>


<P align="center" style="font-size: 10pt">6
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">management capacities with Geophysical Service Inc./Halliburton Geophysical Services. Mr.
Malden holds a degree in Marine Geology from Long Island University.
</DIV>

<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Determination of Director Independence</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors has determined that each of John F. Schwalbe, R. Dean Lewis, Robert P.
Capps and Peter H. Blum is an independent director, as that term is defined in the listing
standards of The NASDAQ Stock Market, Inc. (the &#147;Listing Standards&#148;). Messrs.&nbsp;Schwalbe, Lewis,
Capps and Blum constitute a majority of the members of our Board of Directors.
</DIV>
<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Attendance at Board and Committee Meetings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fiscal year ended January&nbsp;31, 2006, our Board of Directors held four meetings.
Each individual serving as a director during such period attended all meetings of the Board and all
meetings of the committees on which such individual served, except that one director did not attend
two committee meetings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have a policy to encourage our directors to attend the annual meetings of our shareholders.
All nominees who are currently serving as directors, attended the annual meeting of shareholders
in July&nbsp;2005.
</DIV>
<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Committees of the Board of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the date of this Proxy Statement, our Board of Directors has standing Audit,
Compensation and Nominating Committees. Copies of the charters for these committees may be
obtained without charge by contacting our Secretary by mail at Mitcham Industries, Inc., P.O. Box
1175, Huntsville, Texas 77342-1175, Attention: Secretary, or by telephone (936)&nbsp;291-2277. A copy
of the charter for our Nominating Committee was filed with the SEC as <U>Appendix&nbsp;A</U> to our
2005 proxy statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Audit Committee</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fiscal year ended January&nbsp;31, 2006, the Audit Committee, which was comprised during
such period of Messrs.&nbsp;Schwalbe (Chairman), Lewis, and Capps, held six meetings. Our Board of
Directors has determined that each of Messrs.&nbsp;Schwalbe, Lewis and Capps is an independent director,
as that term is defined in Rule&nbsp;4350 of the Nasdaq Marketplace Rules, and meets the criteria for
independence set forth in Rule&nbsp;10A-3 promulgated under the Exchange Act. In addition, our Board of
Directors has determined that Mr.&nbsp;Schwalbe has the financial experience required by the Nasdaq
Marketplace Rules and is an &#147;audit committee financial expert&#148; as defined by applicable SEC
regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Compensation Committee</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fiscal year ended January&nbsp;31, 2006, the Compensation Committee held two meetings.
The Compensation Committee currently consists of Messrs.&nbsp;Schwalbe, Lewis and Blum (Chairman). The
functions of the Compensation Committee are to: (1)&nbsp;review our general compensation strategy; (2)
recommend the salaries and bonuses of our executive officers; and (3)&nbsp;review and administer our
stock option plans. For more information regarding the Compensation Committee, see &#147;Compensation
Committee Report on Executive Compensation.&#148;
</DIV>

<P align="center" style="font-size: 10pt">7
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Nominating Committee</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fiscal year ended January&nbsp;31, 2006, the Nominating Committee held no meetings. The
Nominating Committee currently consists of Messrs.&nbsp;Schwalbe, Lewis and Blum (Chairman).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Nominating Committee will accept for consideration shareholders&#146; nominations for directors
if made in writing by contacting the Secretary at the address appearing on the first page of this
Proxy Statement or via e-mail through our website at <U>www.mitchamindustries.com</U>. The
nominee&#146;s written consent to the nomination and sufficient background information on the candidate
must be included to enable the Committee to make proper assessments as to his or her
qualifications. The Nominating Committee may also conduct its own search for potential candidates
that may include candidates identified directly by a variety of means as deemed appropriate by the
members of the Nominating Committee. Irrespective of how a candidate may be brought to the
Nominating Committee&#146;s attention, at the appropriate time, qualified candidates may be asked to
conduct one or more personal interviews with appropriate members of our Board of Directors. Chosen
candidates are extended an invitation to join the Board of Directors and, if the candidate accepts,
is formally nominated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors has empowered the Nominating Committee to develop and maintain criteria
and procedures for the identification and recruitment of candidates for election to serve as
directors, including consideration of the performance of incumbent directors in determining whether
to nominate them for reelection. The Nominating Committee is directed to make appropriate
recommendations to our Board of Directors with respect to individuals to be included among
management&#146;s nominees, and, as appropriate, to our shareholders with respect to the election of
directors. The Nominating Committee has not specified criteria for persons to be recommended to
our Board of Directors as nominees. The Nominating Committee would consider nominees proposed by
shareholders, but has not specified any guidelines or policies for such consideration.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors has not adopted a set of corporate governance guidelines establishing
general principles with respect to, among other things, director qualifications and responsibility
or term limits for service as a director. In general, it is expected that each director will have
the highest personal and professional ethics, integrity and values and will consistently exercise
sound and objective business judgment. In addition, it is expected that our Board of Directors as
a whole will be made up of individuals with significant senior management and leadership
experience, a long-term and strategic perspective and the ability to advance constructive debate.
</DIV>
<DIV align="left">
<A name="116"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Shareholder Communication with Our Board of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any shareholder who wishes to speak with our Board of Directors or specified individual
directors, may do so by contacting the Secretary at the address appearing on the first page of this
Proxy Statement or via e-mail through our website at <U>www.mitchamindustries.com</U>. Each such
communication shall (i)&nbsp;identify the applicable shareholder(s), (ii)&nbsp;identify the applicable
director(s) and (iii)&nbsp;contain the information necessary to enable such director(s) to contact such
shareholder(s). The Secretary will relay such information to the applicable director(s) and
request that the shareholder be contacted as soon as possible.
</DIV>
<DIV align="left">
<A name="117"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Code of Ethics</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors has adopted a Code of Ethics that applies to all of our employees,
including our Chief Executive Officer, Chief Financial Officer and our Corporate Controller, to
ensure that our business is conducted in a legal and ethical manner. Copies of the Code of Ethics
may be obtained without charge by contacting our Secretary by mail at Mitcham Industries, Inc.,
P.O. Box 1175,
</DIV>

<P align="center" style="font-size: 10pt">8
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Huntsville, Texas 77342-1175, Attention: Secretary, or by telephone (936)&nbsp;291-2277. The Audit
Committee has adopted separate procedures for handling reports of suspected wrongdoing related to
accounting and audit matters.
</DIV>

<DIV align="left">
<A name="118"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Compensation of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Cash Compensation</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Members of our board of directors who are not employees of Mitcham Industries, Inc. receive
the following compensation:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$25,000 per year, plus an additional $50,000 for the Non-Executive Chairman of the
Board;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$5,000 per year for each member of the Audit Committee, plus an additional $3,000
per year for the chairperson of the Audit Committee;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$2,000 per year for each member of the Compensation Committee, plus an additional
$2,000 per year for the chairperson of the Compensation Committee; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reimbursement for their reasonable out-of-pocket expenses incurred in connection
with their attendance at board and committee meetings.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Equity Compensation</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to cash compensation, our non-employee directors are eligible, at the discretion
of our full Board of Directors, to receive discretionary grants of stock options or restricted
stock or any combination thereof under our equity compensation plans. For the fiscal year ending
January&nbsp;31, 2006, each of our non-employee directors except for the Non-Executive Chairman was
awarded options to purchase 25,000 shares of Common Stock. Those option awards for the
non-employee directors vest in full on July&nbsp;20, 2006, the first anniversary of the grant date. Our
Non-Executive Chairman was awarded two separate grants of 50,000 shares each on March&nbsp;24, 2005 and
July&nbsp;20, 2005, each of which vest on the first anniversary of the grant date.
</DIV>
<DIV align="left">
<A name="119"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Compensation Committee Interlocks and Insider Participation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No member of the Compensation Committee is now, or at any time has been, employed by or served
as an officer of Mitcham or any of its subsidiaries or had any substantial business dealings with
Mitcham or any of its subsidiaries. No executive officer of Mitcham is now, or at any time has
been, a member of the compensation committee or board of directors of another entity, one of whose
executive officers has been a member of the Compensation Committee or the Board of Directors.
</DIV>

<P align="center" style="font-size: 10pt">9
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="120"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXECUTIVE COMPENSATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows all compensation earned for services rendered during the fiscal
years ended January&nbsp;31, 2004, 2005 and 2006 by our Chief Executive Officer and each of our other
Named Executives.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Annual</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Compensation</B><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Long-Term Compensation</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fiscal Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Restricted Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Underlying</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name and Principal Position</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>January 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Salary ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Bonus ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Awards ($)</B><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Options (#)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Billy F. Mitcham,
Jr.<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">305,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">265,749</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">253,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
</TR>



<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. Pugh<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Executive Vice President and</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">
Chief Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paul Guy Rogers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">148,527</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Vice President &#150; Business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123,249</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Development</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122,919</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7,500</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Guy Malden<SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145,018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Vice President &#150; Marine</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,499</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Systems</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The amounts shown do not include the value of perquisites and other benefits because
they do not exceed the lesser of 10% of the named executive officer&#146;s total annual salary
and bonus or $50,000.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>As of January&nbsp;31, 2006, the last trading day of the fiscal year ended January&nbsp;31, 2006,
and using the fair market value of the Common Stock as of such date (closing price of
$25.54), the number and value of aggregate restricted stock award holdings were as follows:
18,000 shares ($459,720) by Mr.&nbsp;Mitcham; and 7,500 shares ($191,550) for Mr.&nbsp;Rogers.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Mitcham served as our Chairman of the Board until July&nbsp;8, 2004.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Pugh became an executive officer of the Company on December&nbsp;1, 2004.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Malden became an executive officer of the Company on September&nbsp;1, 2004.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Amounts have been updated from previously disclosed amounts.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">10
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Option Grants in Last Fiscal Year</I></B>. There were no stock option grants made in the fiscal
year ended January&nbsp;31, 2006 to the Named Executives.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Option Exercises and Year-End Option Values</I></B>. The following table provides information as to
options exercised by the Named Executives in the 2006 fiscal year and year-end value of unexercised
options held by the Named Executives.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Aggregate Option Exercises in 2006 Fiscal Year and January&nbsp;31, 2006 Option Values</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->

<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>

    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>

    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>


</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Number of Securities Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Value of Unexercised</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Unexercised Options at</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>In-the-Money Options</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>January 31, 2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>at January 31, 2006(1)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Acquired on</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Realized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Exercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Unexercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Exercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Unexercisable</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Billy F. Mitcham, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">366,167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD align="right">7,674,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD align="right">881,727</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael A. Pugh</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">395,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paul Guy Rogers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,834</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">941,919</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">227,581</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Guy Malden</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64,527</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129,073</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Value is based on the $25.54 per share closing price of Common Stock on January&nbsp;31,
2006, the last trading day of the fiscal year, less the exercise price.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Employment Agreement</I></B>. In January&nbsp;1997, we entered into an employment agreement with
Billy F. Mitcham, Jr., our President and Chief Executive Officer. The term of the agreement, which
was originally for a period of five years, is automatically extended for successive one-year
periods unless either party gives written notice of termination at least 30&nbsp;days prior to the end
of the then-current term. The agreement provides for an annual salary and a bonus at the
discretion of our Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Mitcham&#146;s employment agreement may be terminated prior to the end of any extension period
upon the occurrence of any of the following events:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>his death or disability (as defined in the agreement);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>three months prior notice from Mr.&nbsp;Mitcham of his desire to resign;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>notice from the Company of termination &#147;without cause;&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>notice from the Company of termination &#147;for cause&#148; (as defined below); or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>notice from Mr.&nbsp;Mitcham within 60&nbsp;days following a &#147;Constructive Termination&#148; (as
defined below).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors may terminate Mr.&nbsp;Mitcham&#146;s employment agreement &#147;for cause&#148; before the
end of the then-current term if it determines that he has:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>breached the agreement in any material respect;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>misappropriated a material business opportunity available to us;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>engaged in fraud or dishonesty with respect to our business; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>been convicted of, or indicted for, any felony criminal offense or any crime
punishable by imprisonment.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">11
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Mitcham may terminate his employment within 60&nbsp;days following a &#147;Constructive Termination&#148;
if we materially reduce his duties and responsibilities without his consent or we reduce, or fail
to pay when due, any portion of his salary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If (i)&nbsp;Mr.&nbsp;Mitcham terminates his employment within 60&nbsp;days following a &#147;Constructive
Termination&#148; or (ii)&nbsp;we terminate him &#147;without cause,&#148; then he will be entitled to payments equal
to $450,000, payable ratably over the 24&nbsp;months following his termination of his employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a period of two years after the termination of the agreement, Mr.&nbsp;Mitcham is prohibited
from engaging in any business activities which are competitive with our business and from diverting
any of our customers to a competitor. We have not entered into employment agreements with any of
our other executive officers.
</DIV>
<DIV align="left">
<A name="121"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee establishes, approves and administers executive compensation
policies and practices that govern the compensation paid to all Mitcham officers, and approves the
compensation of all Mitcham officers. The Committee regularly reports to the Board and is
comprised of three independent, non-employee directors. During the fiscal year ended January&nbsp;31,
2006, Mr.&nbsp;Peter Blum chaired the Committee and the other Committee members were Messrs.&nbsp;John
Schwalbe and R. Dean Lewis. The following sets forth the Committee&#146;s policies regarding executive
compensation during fiscal 2006.
</DIV>
<DIV align="left">
<A name="122"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Compensation Philosophy and Objectives</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our executive compensation program is designed to attract, motivate and retain talented
management personnel and to reward management for our successful financial performance and for
increasing shareholder value. Our executive compensation has three components: base salaries,
annual performance bonuses and long-term incentive stock-based awards.
</DIV>
<DIV align="left">
<A name="123"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Executive Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Base Salaries</I></B>. We determine the salary ranges for our executive officers based upon their job
responsibilities and scope, level of expertise and experience required, strategic impact of the
position, overall business performance and individual contributions, as well as competitive
compensation of similarly positioned executives in comparable companies. Although the Company has
no public direct competitors, the Committee compares the compensation of its executive officers
with those of companies involved in (i)&nbsp;the seismic and rental tool sector of the oil service
industry, (ii)&nbsp;companies of comparable size and growth in the oil service sector as a whole, (iii)
companies in the &#147;rental&#148; business outside the oil service sector and (iv)&nbsp;companies in the small
cap area of the exploration and production sector. Our philosophy has been to establish base
salaries in the median range of such salaries at comparable companies, because we consider
long-term stock-based compensation to be more important than annual base salaries in aligning the
executive&#146;s financial rewards with that of the shareholders&#146; financial interests for the long-term.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual salary adjustments are based on many individual factors as well as the macro
environment. The primary factor is the Company&#146;s earnings before interest, taxes, depreciation and
amortization (or EBITDA) with leasing growth, sales growth, and implementation of directives
following
</DIV>

<P align="center" style="font-size: 10pt">12
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">close behind. If significant projects are not yet completed, the Committee may delay
awarding bonuses or raises until those projects are substantially completed. The Committee also
conducts employee peer reviews. The final measure is compensation compared to peers at comparable
companies, as the Committee believes that management retention is one of its primary
responsibilities. In so doing, the Committee considers market conditions and expectations for the
Company and seismic industry as a whole. Based on these factors, we increased the base salaries of
Messrs.&nbsp;Pugh, Rogers and Malden from $155,000, $120,000 and $112,000 to $160,000, $165,000 and
$162,000, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Annual Performance Bonuses</I></B>. Annual bonuses are awarded using a qualitative analysis. In
making our determination of whether to award an annual bonus and the amount of the bonus, we
consider the various factors described above, including our financial performance in relation to
planned expectations as measured by EBITDA and level of responsibility or duties, successful
completion of particular projects or acquisition and implementation of new technical knowledge.
For fiscal 2006, we granted discretionary cash bonus awards of $15,000 and $15,000 to Messrs.
Rogers and Malden, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Long-Term Stock-Based Compensation</I></B>. We believe that a substantial percentage of executive
compensation should be tied to equity-based plans and thereby directly related to improvement in
shareholder value over the long-term. In determining the level of stock-based compensation
(consisting of restricted stock and options), we make a subjective determination based on the same
factors that are used to determine bonuses. In addition, when deciding whether to award restricted
stock versus options, we attempt to balance restricted stock grants with incentive stock options to
give employees a balanced relationship of the risk versus reward inherent in both these vehicles.
We believe that although grants of equity compensation align employees&#146; goals with those of
shareholders, restricted stock also gives employees a certain amount of direct downside risk while
options when granted are one directional. For fiscal 2006, no options
or restricted stock were granted by the Board to our executive
officers.
</DIV>
<DIV align="left">
<A name="124"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Compensation for the Chief Executive Officer</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Mitcham&#146;s performance was reviewed by the Committee at the end of fiscal 2006 and
discussed with the Board in executive session. We then made recommendations to the Board concerning
the annual cash component (base salary and annual bonus) and the long-term component (stock
options) of Mr.&nbsp;Mitcham&#146;s compensation, and the Board approved the recommendations based on the
considerations discussed below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Base Salary</I></B>. Under the employment agreement, Mr.&nbsp;Mitcham is eligible for an annual bonus in
an amount to be determined by the Compensation Committee based upon such factors as the
Compensation Committee deems appropriate. Mr.&nbsp;Mitcham&#146;s base salary is established based on
competitive market rates for a chief executive with his experience and record of accomplishment.
The Committee reviews Mr.&nbsp;Mitcham&#146;s salary annually in comparison with the salaries of chief
executive officers of industry competitors and selected other small market-capitalized companies
during its annual compensation survey and review process. In addition, the Committee reviewed stock
price performance during fiscal 2006. Mr.&nbsp;Mitcham&#146;s salary was increased in fiscal 2006 from
$275,000 to $305,000 based on the results of the competitive review.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Annual Performance Bonus</I></B>. We established aggressive market-based performance targets for
annual bonuses. Based on the factors discussed above, Mr.&nbsp;Mitcham was awarded an annual cash
performance bonus for fiscal 2006 in the amount of $50,000.
</DIV>


<P align="center" style="font-size: 10pt">13
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Long-Term
Stock-Based Compensation</I></B>. During fiscal 2006, no options or
restricted stock was
granted by the Board to Mr.&nbsp;Mitcham.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="38%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Compensation Committee
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Peter H. Blum (Chairman)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">John F. Schwalbe</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">R. Dean Lewis</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="125"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PERFORMANCE GRAPH</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following graph compares our Common Stock&#146;s cumulative total return for the period
beginning January&nbsp;31, 2001, through January&nbsp;31, 2006, to the cumulative total return on (i)&nbsp;the
S&#038;P&#146;s Smallcap 600 stock index and (ii)&nbsp;an index of peer companies we selected. The cumulative
total return assumes that the value of an investment in our Common Stock and each index was $100 at
January&nbsp;31, 2001, and that all dividends were reinvested.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Comparison of Cumulative Total Returns</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="h36669dh3666902.gif" alt="(PERFORMANCE GRAPH)">
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2001</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mitcham Industries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">79.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">69.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">114.99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">475.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD align="left" valign="top">&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">S&#038;P Smallcap 600</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">103.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">84.21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">124.54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">145.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">173.25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD align="left" valign="top">&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Peer Group Only</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">61.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">90.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">150.38</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The index of peer companies consists of: Compagnie Generale de Geophysique (NYSE: GGY), Dawson
Geophysical Company (NASDAQ: DWSN), Input/Output, Inc. (NYSE: IO), Omni Energy Services Corp.
(NASDAQ: OMNI) and Veritas DGC, Inc. (NYSE: VTS).
</DIV>
<DIV align="left">
<A name="126"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CERTAIN TRANSACTIONS AND RELATIONSHIPS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Voting Agreement</I></B>. Effective September&nbsp;20, 1993, we entered into a Voting Agreement (the
&#147;Voting Agreement&#148;) with Billy F. Mitcham, Jr., Billy F. Mitcham, Sr. and the Mitcham Children&#146;s
Trusts. Under the Voting Agreement, Mr.&nbsp;Mitcham, Jr. has the authority to vote all shares of
Common Stock held by the parties to the agreement, which, as of May&nbsp;31, 2006 includes 325,500
shares owned
</DIV>

<P align="center" style="font-size: 10pt">14
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">directly by Mr.&nbsp;Mitcham Jr. and an additional 99,594 shares owned by the other parties,
representing 3.4% and 1.0%, respectively (for an aggregate of 4.4%), of the shares of Common Stock
outstanding on such date. The Voting Agreement will terminate on the first to occur of (i)&nbsp;the
agreement of the parties, (ii)&nbsp;the transfer by the parties thereto of their shares or (iii)&nbsp;the
expiration of 25&nbsp;years.
</DIV>

<DIV align="left">
<A name="133"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROPOSAL 2<BR>
APPROVAL OF MITCHAM INDUSTRIES, INC. STOCK AWARDS PLAN</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Company&#146;s annual meeting, the shareholders will be asked to approve the Mitcham
Industries, Inc. Stock Awards Plan (the &#147;Plan&#148;). The Plan is a broad-based incentive plan that
provides for granting stock options, stock appreciation rights (&#147;SARs&#148;), restricted stock awards,
performance awards, phantom stock, stock payments, and other stock-based awards to employees,
consultants and non-employee directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan is an amendment and restatement of the Company&#146;s previously approved Amended and
Restated 1998 Stock Awards Plan and also includes the merger of the Company&#146;s 2000 Stock Option
Plan into the Plan. If the Plan is approved, this will be the only continuing incentive stock plan
currently maintained by the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s board of directors unanimously
approved the Plan on May&nbsp;30, 2006, subject to
shareholder approval at the Company&#146;s 2006 annual meeting. The affirmative vote of at least a
majority of the votes present at the 2006 annual meeting is required to approve the Plan. If the
Plan is not approved by the shareholders at the 2006 annual meeting, then the Plan will not become
effective and the 1998 Stock Awards Plan and the 2000 Stock Option Plan will continue as currently
in effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Below is a summary of the terms of the Plan that is qualified in its entirety by reference to
the full text of the Plan which is attached to this document as <U>Appendix&nbsp;A</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Company&#146;s board of directors recommends the shareholders vote FOR the approval of the
Mitcham Industries, Inc. Stock Awards Plan.</B>
</DIV>

<DIV align="left">
<A name="134"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Purpose and Key Features of the Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan is designed to enable the Company and its subsidiaries to provide those individuals
upon whom the responsibilities of the successful administration and management of the Company and
its subsidiaries rest with stock-based incentive and reward opportunities designed to align their
interests with those of the shareholders of the Company, thereby enhancing the profitable growth of
the Company. A further purpose of the Plan is to provide a means for the Company to attract and
retain such individuals in the service of the Company and its subsidiaries.
</DIV>

<DIV align="left">
<A name="135"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Number of Shares Subject to the Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The maximum number of shares of the Company&#146;s common stock that may be issued under the Plan
with respect to awards will be 899,864 shares. This number of shares includes 49,864 shares
remaining available for future grants under the 1998 Plan and the 2000 Plan. Thus, the Plan would
authorize an additional 850,000 shares for delivery with respect to awards. Upon certain corporate
events, such as a stock split, recapitalization, reorganization, spinoff and other similar events,
the number of shares available under the Plan will be adjusted to appropriately reflect that event.
In the discretion of the Committee, all 899,864 shares (subject to adjustment as described above)
may be issued under the Plan pursuant to incentive stock options.
</DIV>

<P align="center" style="font-size: 10pt">15
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Plan, no participant may receive stock-denominated awards with respect to more
than 125,000 shares in any fiscal year of the Company, again subject to adjustment for certain
events described above, and the maximum amount of cash-denominated awards that may be granted to
any participant during any fiscal year of the Company may not exceed $2,000,000 based on the
market value at the time of the grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares of common stock to be delivered under the Plan may be treasury shares or authorized
but unissued shares. To the extent that an award terminates, expires, lapses, is settled in cash,
the shares subject to the award may be used again with respect to new grants under the Plan. Also,
shares tendered or withheld to satisfy the grant or exercise price or tax withholding obligations
of the Company may be used again for grants under the Plan.
</DIV>

<DIV align="left">
<A name="136"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Administration</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, the Plan will be administered by the Compensation Committee of the Board of
Directors of the Company, which is intended to be comprised solely of two or more non-employee
directors (within the meaning of Rule&nbsp;16b-3) who also qualify as &#147;outside directors&#148; (within the
meaning assigned to such term under Section 162(m) of the Internal Revenue Code). The term
&#147;Committee,&#148; as used in the Plan, refers to the Compensation Committee and will include any other
committee of the Board, if appointed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee will have the full authority, subject to the terms of the Plan, to establish
rules and regulations for the proper administration of the Plan, to select the employees and
consultants to whom awards are granted, and to determine the type of awards made and the terms of
the awards. However, the Board will have the authority to administer the Plan with respect to
awards to directors.
</DIV>

<DIV align="left">
<A name="137"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Eligibility</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All employees and consultants of the Company and its subsidiaries and directors of the Company
are eligible to participate in the Plan. The selection of which of the eligible employees and
consultants will receive awards is within the sole discretion of the Committee.
</DIV>

<DIV align="left">
<A name="138"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Term of Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provided the Plan is approved by the Company&#146;s shareholders at the Company&#146;s 2006 annual
meeting, the Plan will become effective as of the date of that approval. No awards may be granted
under the Plan after the 10th anniversary of the date the Plan was approved by the Board. The
Board or the Committee may terminate the Plan earlier at any time with respect to any shares of
common stock for which awards have not theretofore been granted.
</DIV>

<DIV align="left">
<A name="139"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stock Options and SARs</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term of each option and SAR will be as specified by the Committee at the date of grant
(but not more than ten years). The effect of the termination of an optionee&#146;s employment,
consulting relationship, or membership on the Board will be specified in the award agreement that
evidences the option or SAR grant. The exercise price for each option and SAR will be determined
by the Committee and will be no less than the fair market value of the shares on the date that the
option or SAR is granted. The Committee shall also determine the length of service, performance
objectives or other conditions, if any, that must be satisfied before all or part of an option or
SAR may vest and be exercised. The period during which an option or SAR may be exercised shall be
set forth in the award agreement.
</DIV>

<P align="center" style="font-size: 10pt">16
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The status of an option granted to an employee as to whether it is an incentive stock option
or a non-qualified stock option will be designated by the Committee at the time of grant. The
Committee may determine the method by which the option price may be paid upon exercise, including
in cash, check, shares of the Company common stock already owned by the optionee, or by any
combination thereof. The Plan also allows the Committee, in its discretion, to establish procedures
pursuant to which an optionee may affect a cashless exercise of an option through a broker.
</DIV>

<DIV align="left">
<A name="140"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Restricted Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to a Restricted Stock award, shares of the Company&#146;s common stock will be issued in
the name of the employee, consultant or director at the time the award is made, but such shares
will be subject to certain restrictions on the disposition thereof and certain obligations to
forfeit and surrender the shares to the Company, which may be linked to performance criteria or
other specified criteria, including the passage of time, as may be determined in the discretion of
the Committee.
</DIV>

<DIV align="left">
<A name="141"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Performance Awards</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee may grant Performance Awards, which are dollar-denominated awards that may be
paid in cash, Company common stock or any combination thereof, as determined by the Committee in
its discretion. At the time of the grant, the Committee will establish the dollar amount of each
Performance Award, the specified criteria, including the passage of time or performance criteria,
that must be achieved, and the performance period over which the performance or vesting goals will
be measured. Following the end of the performance period, the Committee will determine the amount
payable to the holder of the Performance Award based on the achievement of the vesting goals for
such performance period. Payment of vested awards will be made in cash and/or in shares of common
stock, as determined by the Committee, following the close of the performance period.
</DIV>

<DIV align="left">
<A name="142"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Phantom Stock Awards</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Phantom Stock Awards are awards of rights to receive amounts equal to a specified number of
shares of Company common stock. Such awards may be subject to the fulfillment of conditions, which
may be linked to Performance Criteria or other specified criteria, including the passage of time as
the Committee may specify. Payment of Phantom Stock awards may be made in cash, shares of common
stock or any combination thereof, as determined by the Committee in its discretion, and shall be
paid following the close of the vesting period. Any payment to be made in cash will be based on the
fair market value of a share of common stock on the payment date. A Phantom Stock award may
include DERs in the discretion of the Committee. DERs are dividend equivalent rights to receive an
amount of cash equal to the value of any dividends made on shares of common stock during the period
the Phantom Stock award is outstanding. Payment of DERs may be made subject to the same vesting
terms as the tandem Phantom Stock award or may have different vesting and payment terms, in the
discretion of the Committee.
</DIV>

<DIV align="left">
<A name="143"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stock Payments</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Payments are unrestricted shares of common stock issued to the grantee and may be paid
as part of, or in lieu of all or any portion of, any bonus, deferred compensation or other
compensation of an eligible individual.
</DIV>

<P align="center" style="font-size: 10pt">17
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="144"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Other Stock-Based Award</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An Other Stock-Based Award is an award the value of which is based in whole or in part on a
share of common stock. The Committee may set such vesting and/or performance criteria as it
chooses with respect to such award. Upon vesting, the award may be paid in shares, cash or any
combination thereof, as decided by the Committee.
</DIV>

<DIV align="left">
<A name="145"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Performance-Based Compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to awards that are intended to qualify as &#147;performance-based compensation&#148; under
Section 162(m) of the Internal Revenue Code, the Committee will establish performance goals based
upon the attainment of such target levels of one or more of the Performance Criteria (as described
below) over one or more periods of time, which may be of varying and overlapping durations, as the
Committee may select. A performance goal need not be based upon an increase or positive result
under a Performance Criteria and could, for example, be based upon limiting economic losses or
maintaining the status quo. Which Performance Criteria to be used with respect to any grant, and
the weight to be accorded thereto if more than one criteria is used, will be determined by the
Committee at the time of grant. Following the completion of each specified performance period, the
Committee will certify in writing whether the applicable performance goals have been achieved for
such performance period. In determining the amount earned by a participant, the Committee will
have the right to reduce or eliminate (but not to increase) the amount payable at a given level of
performance to take into account additional factors that the Committee may deem relevant to the
assessment of individual or corporate performance for the performance period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of the Plan, the term &#147;Performance Criteria&#148; means the following business
criteria with respect to the Company, any subsidiary or any division or operating unit: net
earnings (either before or after interest, taxes, depreciation and/or amortization), sales,
revenue, net income (either before or after taxes), operating earnings, cash flow (including, but
not limited to, operating cash flow and free cash flow), cash flow return on capital, return on net
assets, return on shareholders&#146; equity, return on assets, return on capital, shareholder returns,
return on sales, gross or net profit margin, expense, margins, cost reductions, controls or
savings, operating efficiency, working capital, strategic initiatives, economic value added,
earnings per share, earnings per share from operations, price per share of stock, and market share.
Such targets may be expressed in terms of the Company, a subsidiary, division or business unit, as
determined by the Committee. The performance measures shall be subject to adjustment for changes
in accounting standards required by the Financial Accounting Standards Board after the goal is
established, and, to the extent provided for in the award agreement and permitted by Section
162(m), shall be subject to adjustment for specified significant extraordinary items or events. In
this regard, performance goals based on stock price shall be proportionately adjusted for any
changes in the price due to a stock split. Performance measures may be absolute, relative to one
or more other companies, or relative to one or more indexes, and may be contingent upon future
performance of the Company or any subsidiary, division, or department thereof. A performance goal
need not be based upon an increase or positive result under a business criterion and may be based
upon limiting economic losses or maintaining the status quo.
</DIV>

<DIV align="left">
<A name="146"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>New Plan Benefits</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because future awards under the Plan are based on the Company&#146;s performance, amounts payable
under the Plan are not determinable for future years.
</DIV>

<P align="center" style="font-size: 10pt">18
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="147"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Miscellaneous</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee may amend or modify the Plan at any time; provided, however, that shareholder
approval will be obtained for any amendment to the extent necessary and desirable to comply with
any applicable law, regulation or stock exchange rule, or to increase the number of shares
available. In addition, shareholder approval will generally be required for any amendment that
reduces the exercise price of any &#147;underwater&#148; option or SAR.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon a change of control of the Company (as defined in the Plan), the Committee may take such
action with respect to awards as it deems appropriate, including the vesting of awards and cashout
of awards.
</DIV>

<DIV align="left">
<A name="148"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal Income Tax Aspects of the Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a brief summary of certain of the U.S. federal income tax consequences under
the Plan as normally operated and is not intended to be exhaustive.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a general rule, no federal income tax is imposed on a participant upon the grant of a an
award under the Plan, other than Stock Payment, and the Company is not entitled to a tax deduction
by reason of such grant, other than Stock Payment. A Stock Payment will result in taxable income
to the individual at the time of grant and the Company will be entitled to a corresponding tax
deduction for that year. In general, when a Restricted Stock, Phantom Stock, Performance Award or
Other Stock-Based award becomes vested and is paid, the holder will realize ordinary income in an
amount equal to the cash and/or the fair market value of the shares of common stock received at
that time, and, subject to Section 162(m) of the Internal Revenue Code, the Company will be
entitled to a corresponding deduction. Upon the exercise of a
non-qualified stock option or SAR,
the participant will be treated as receiving compensation taxable as ordinary income in the year of
exercise in an amount equal to the excess of the fair market value of the shares of stock at the
time of exercise over the exercise price paid for such shares, and the Company may claim a
deduction for compensation paid at the same time and in the same amount as compensation is
recognized by the holder, assuming applicable federal income tax reporting requirements are
satisfied. Stock options that are incentive stock options (&#147;ISOs&#148;) under Section&nbsp;422 of the Code
are subject to special federal income tax treatment. In general, no federal income tax is imposed
on exercise of an ISO although the exercise may trigger alternative minimum tax liability to the
optionee, and the Company is not entitled to any deduction for federal income tax purposes in
connection with the grant or exercise of an ISO. However, if the optionee disposes of the shares
acquired upon exercise of an ISO before satisfying certain holding period requirements, the
optionee will be treated, in general, as having received, at the time of disposition, compensation
taxable as ordinary income and in such event, the Company may claim a deduction for compensation
paid at the same time and in the same amount as the compensation treated as being received by the
optionee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, Section&nbsp;162 (m)&nbsp;of the Internal Revenue Code precludes a public corporation from
taking a deduction for annual compensation in excess of $1&nbsp;million paid to its chief executive
officer or any of its four other highest-paid officers unless the compensation qualifies under
Section 162(m) of the Internal Revenue Code as &#147;performance-based&#148;. The Plan has been designed to
provide flexibility with respect to whether awards granted by the Committee will qualify as
performance-based compensation under Section 162(m) of the Internal Revenue Code and, therefore, be
exempt from the deduction limit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon a change of control of the Company, awards granted to certain individuals may be &#147;excess
parachute&#148; payments for purposes of Section&nbsp;280G of the Code and, in such event, the individual
would be subject to an additional 20% excise tax with respect to the &#147;parachute value&#148; of the
awards and the Company would not be entitled to a tax deduction for such &#147;excess&#148; parachute
amounts.
</DIV>

<P align="center" style="font-size: 10pt">19
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan and awards granted under it are intended to comply with new Section&nbsp;409A of the
Internal Revenue Code, concerning deferred compensation. Failure to comply could subject a
participant to an additional 20% tax.
</DIV>

<DIV align="left">
<A name="149"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Inapplicability of ERISA</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based upon current law and published interpretations, the Company does not believe that the
Plan is subject to any of the provisions of the Employee Retirement Income Security Act of 1974, as
amended.
</DIV>
<DIV align="left">
<A name="127"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AUDIT COMMITTEE REPORT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The primary purpose of the Audit Committee is to assist our Board of Directors in the general
oversight of our financial reporting process. The Audit Committee&#146;s purpose is more fully
described in its written charter, a copy of which was filed with the SEC as an appendix to our 2004
proxy statement and will be provided upon request. The current members of the Audit Committee are
Messrs.&nbsp;Schwalbe (Chairman), Lewis and Capps, all of which have been determined by our Board of
Directors to be independent directors for purposes of the Listing Standards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management is responsible for the preparation, presentation and integrity of our financial
statements and the internal controls and procedures relating to the reporting process. Our
independent auditors, Hein &#038; Associates LLP, are responsible for auditing our consolidated
financial statements and expressing an opinion as to the conformity of those financial statements
to generally accepted accounting principles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with its oversight function, the Audit Committee has:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reviewed and discussed our audited financial statements as of and for the year ended
January&nbsp;31, 2006, with our management;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>discussed with Hein &#038; Associates LLP the matters required to be discussed by
Statement on Auditing Standards No.&nbsp;61 (Communication with Audit Committees);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>considered whether and determined that the provision by Hein &#038; Associates LLP of
certain non-audit services during the year ended January&nbsp;31, 2006 was compatible with
maintaining the accountants&#146; independence (See &#147;Fees and Expenses of Hein &#038; Associates
LLP&#148; below); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>received the written disclosures and the letter from Hein &#038; Associates LLP required
by Independence Standards Board Standard No.&nbsp;1 (Independence Discussions with Audit
Committee), and has discussed with the accountants of Hein &#038; Associates LLP the
accountants&#146; independence.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing actions, it is not the duty of the committee to plan or conduct
audits or to determine that the Company&#146;s financial statements are complete and accurate and in
accordance with generally accepted accounting principles. Management is responsible for the
Company&#146;s financial reporting process including its system of internal controls, and for the
preparation of consolidated financial statements in accordance with accounting principles generally
accepted in the United States. The independent auditors are responsible for expressing an opinion
on those financial statements. Committee members are not employees of the Company or accountants or
auditors by profession or experts in the fields of accounting or auditing. Therefore, the committee
has relied, without independent verification, on management&#146;s representation that the financial
statements have been
</DIV>

<P align="center" style="font-size: 10pt">20
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">prepared with integrity and objectivity and in conformity with accounting principles generally
accepted in the United States and on the representations of the independent auditors included in
their report on the Company&#146;s financial statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The committee meets regularly with management and the independent auditors, including private
discussions with the independent auditors and receives the communications described above. The
committee has also established procedures for (a)&nbsp;the receipt, retention and treatment of
complaints received by the Company regarding accounting, internal accounting controls or auditing
matters, and (b)&nbsp;the confidential, anonymous submission by the Company&#146;s employees of concerns
regarding questionable accounting or auditing matters. However, this oversight does not provide us
with an independent basis to determine that management has maintained appropriate accounting and
financial reporting principles or policies, or appropriate internal controls and procedures
designed to assure compliance with accounting standards and applicable laws and regulations.
Furthermore, our considerations and discussions with management and the independent auditors do not
assure that the Company&#146;s financial statements are presented in accordance with generally accepted
accounting principles or that the audit of the Company&#146;s financial statements has been carried out
in accordance with generally accepted auditing standards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information contained in this report shall not be deemed to be &#147;soliciting material&#148; or to
be &#147;filed&#148; with the Securities and Exchange Commission, nor shall such information be incorporated
by reference into any future filings with the Securities and Exchange Commission, or subject to the
liabilities of Section&nbsp;18 of the Exchange Act, except to the extent that the Company specifically
incorporates it by reference into a document filed under the Securities Act of 1933, as amended, or
the Exchange Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on the reviews and discussions referred to above, the Audit Committee recommended to our
Board of Directors that our audited financial statements be included in our Annual Report on Form
10-K for the year ended January&nbsp;31, 2006.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="38%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Audit Committee
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">John F. Schwalbe (Chairman)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">R. Dean Lewis</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Robert Capps</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">21
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="128"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROPOSAL 3<BR>
RATIFICATION OF THE SELECTION OF INDEPENDENT AUDITORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with the recommendation of the Audit Committee, our Board of Directors will
select an independent auditor to audit our books, records and accounts for the fiscal year ending
January&nbsp;31, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One or more representatives of Hein &#038; Associates LLP are expected to be present at the Annual
Meeting and will have the opportunity to make a statement if they desire to do so. The
representatives of Hein &#038; Associates LLP are expected to be available to respond to appropriate
questions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Our Board of Directors recommends a vote &#147;FOR&#148; the ratification of the selection of an
independent auditor for the fiscal year ending January&nbsp;31, 2007.</B>
</DIV>
<DIV align="left">
<A name="129"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FEES AND EXPENSES OF HEIN &#038; ASSOCIATES LLP</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the amount of audit fees, audit-related fees and tax fees
billed or expected to be billed by Hein &#038; Associates LLP, our independent auditor, for the fiscal
years ended January&nbsp;31, 2006 and January&nbsp;31, 2005:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit fees<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">227,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">219,501</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit-related fees<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax fees<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,418</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All other fees<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">321,588</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">291,919</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes the annual consolidated financial statement audit, review of quarterly reports
on Form 10-Q and other services associated with the audit.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>During the indicated periods, our independent auditors did not provide us with any
information technology services relating to financial information systems design and
implementation.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes fees and expenses for services primarily related to tax compliance, tax advice
and tax planning for certain acquisitions.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes fees related to acquisitions and SEC matters.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee has pre-approved all audit services and permitted non-audit services
provided by the independent auditors, and the compensation, fees and terms for such services, for
the fiscal year ending January&nbsp;31, 2006. The Committee also has approved a policy that requires
Audit Committee pre-approval of the compensation and terms of service for audit services and any
permitted non-audit services based on ranges of fees, and any changes in terms, conditions and fees
resulting from changes in audit scope or other matters. Any proposed audit or non-audit services
exceeding the pre-approved fee ranges require additional pre-approval by the Audit Committee or its
Chairman.
</DIV>

<P align="center" style="font-size: 10pt">22
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="130"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ANNUAL REPORT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Annual Report covering the fiscal year ended January&nbsp;31, 2006, accompanies this Proxy
Statement. Except for the financial statements included in the Annual Report that are specifically
incorporated by reference herein, the Annual Report is not incorporated in this Proxy Statement and
is not to be deemed part of this proxy soliciting material. Additional copies of the Annual Report
are available upon request.
</DIV>
<DIV align="left">
<A name="131"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>OTHER MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Section&nbsp;</I></B><B><I>16(a)</I></B><B><I> Beneficial Ownership Compliance</I></B>. Section 16(a) of the Exchange Act requires our
directors, executive officers and persons who own more than 10% of our outstanding Common Stock to
file initial reports of ownership and changes in ownership of Common Stock with the SEC. Reporting
persons are required by SEC regulations to furnish us with copies of all Section 16(a) forms they
file. Based solely on our review of the copies of reports we received, we believe that all filings
required to be made under Section 16(a) were timely made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Other Matters</I></B>. As of the date hereof, the Board of Directors knows of no other business to be
presented at the Annual Meeting. If any other matter properly comes before the meeting, however,
it is intended that the persons named in the accompanying proxy will vote such proxy in accordance
with the discretion and instructions of our Board of Directors.
</DIV>
<DIV align="left">
<A name="132"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUBMISSION OF SHAREHOLDER PROPOSALS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders wishing to submit proposals for consideration by our Board of Directors at our
2007 Annual Meeting of Shareholders should submit them to us in writing (marked &#147;Shareholder
Proposal, Attention: Corporate Secretary&#148;) no later than
April&nbsp;26, 2007, so that we
may consider the proposal for inclusion in our proxy statement and form of proxy for that meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A shareholder who wishes to make a proposal at the 2007 Annual Meeting of Shareholders without
complying with the requirements of Rule&nbsp;14a-8 (and therefore without including the proposal in our
proxy materials) must notify us of the proposal by February&nbsp;9, 2007. If a shareholder
fails to give timely notice of a potential proposal, then the persons named as proxies in the proxy
cards solicited by our Board of Directors for that meeting will be entitled to vote the proxy cards
held by them regarding that proposal, if properly raised at the meeting, in their discretion or as
directed by our management.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="38%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By Order of the Board of Directors,</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><IMG src="h36669dh3666901.gif" alt="-s- Billy F. Mitcham, Jr."></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Billy F. Mitcham, Jr.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>President and Chief Executive Officer</I></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">June&nbsp;9, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">23
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="133"></A>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Appendix&nbsp;A</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MITCHAM INDUSTRIES, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>STOCK AWARDS PLAN</B></DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 1. Purpose of the Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Mitcham Industries, Inc. Stock Awards Plan (the &#147;Plan&#148;) is intended to promote the
interests of Mitcham Industries, Inc., a Texas corporation (the &#147;Company&#148;), by encouraging
Employees, Consultants and Directors to acquire or increase their equity interest in the Company
and to provide a means whereby they may develop a sense of proprietorship and personal involvement
in the development and financial success of the Company, and to encourage them to remain with and
devote their best efforts to the business of the Company, thereby advancing the interests of the
Company and its stockholders. The Plan is also contemplated to enhance the ability of the Company
and its Subsidiaries to attract and retain the services of individuals who are essential for the
growth and profitability of the Company. The Plan is an amendment and restatement of the Prior
Plan. In addition, the Mitcham Industries, Inc. 2000 Stock Option Plan (the &#147;2000 Plan&#148;) is hereby
merged into the Plan. All awards outstanding under the Prior Plan and the 2000 Stock Plan shall
continue without interruption or change under this Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 2. Definitions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used in the Plan, the following terms shall have the meanings set forth below:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Award&#148; shall mean an Option, Restricted Stock, Performance Award, Phantom Share, Stock
Payment, SAR, or Other Stock-Based Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Award Agreement&#148; shall mean any written or electronic agreement, contract, instrument or
document evidencing any Award, which may, but need not, be executed or acknowledged by a
Participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Board&#148; shall mean the Board of Directors of the Company, as constituted from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Change of Control&#148; shall mean, with respect to an Award that is subject to Section&nbsp;409A of
the Code, a &#147;change of control event,&#148; as defined in Section&nbsp;409A of the Code and the regulations
thereunder. With respect to an Award that is not subject to Section&nbsp;409A, Change of Control shall
mean the occurrence of any of the following events:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company is not the surviving entity in any merger, consolidation or other
reorganization with (or survives only as a subsidiary of) an entity other than a previously
wholly-owned subsidiary of the Company,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Company sells, leases or exchanges all or substantially all of its assets to
any other person or entity (other than a wholly-owned subsidiary of the Company),
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Company is dissolved and liquidated,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any person or entity, including a &#147;group&#148; as contemplated by Section&nbsp;13(d)(3) of
the 1934 Act, acquires the beneficial ownership, directly or indirectly, of securities of
the Company representing 35% or more of the combined voting power of the then outstanding
securities entitled to vote generally in the election of directors, or
</DIV>

<P align="center" style="font-size: 10pt">A-1
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a change in the composition of the Board, as a result of which fewer than a
majority of the directors are Incumbent Directors. &#147;Incumbent Directors&#148; shall mean
directors
who either (A)&nbsp;are directors of the Company as of the date the Plan was adopted, or
(B)&nbsp;are elected, or nominated for election, thereafter to the Board with the affirmative
votes of at least a majority of the Incumbent Directors at the time of such election or
nomination, but &#147;Incumbent Director&#148; shall not include an individual whose election or
nomination is in connection with (i)&nbsp;an actual or threatened election contest (as such terms
are used in Rule&nbsp;14a-11 of Regulation&nbsp;14A promulgated under the Securities Exchange Act of
1934) or an actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board or (ii)&nbsp;a plan or agreement to replace a majority of the then
Incumbent Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Code&#148; shall mean the Internal Revenue Code of 1986, as amended from time to time, and the
rules and regulations thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Committee&#148; shall mean the administrator of the Plan in accordance with Section&nbsp;3, and shall
include reference to the Compensation Committee of the Board (or any other committee of the Board
designated, from time to time, by the Board to act as the Committee under the Plan), the Board or
subcommittee, as applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Consultant&#148; shall mean any individual who is not an Employee or a member of the Board and who
provides consulting, advisory or other similar services to the Company or a Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Director&#148; shall mean any member of the Board who is not an Employee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Employee&#148; shall mean any employee of the Company, a Subsidiary or a parent corporation of the
Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Exchange Act&#148; shall mean the Securities Exchange Act of 1934, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Fair Market Value&#148; shall mean, as of any applicable date, the closing sales price (or the
closing bid if no sales were reported) for a Share on the national securities exchange or market
system which constitutes the principal trading market for the Shares for the applicable date as
reported in The Wall Street Journal or such reporting service approved by the Committee; provided,
however, that if Shares shall not have been quoted or traded on such applicable date, Fair Market
Value shall be determined based on the next preceding date on which they were quoted or traded, or,
if deemed appropriate by the Committee, in such other manner as it may determine to be appropriate.
In the event the Shares are not publicly traded at the time a determination of Fair Market Value
is required to be made hereunder, the determination of Fair Market Value shall be made in good
faith by the Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Incentive Stock Option&#148; or &#147;ISO&#148; shall mean an option granted under Section 6(a) of the Plan
that is intended to qualify as an &#147;incentive stock option&#148; under Section&nbsp;422 of the Code or any
successor provision thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Non-Qualified Stock Option&#148; or &#147;NQO&#148; shall mean an option granted under Section 6(a) of the
Plan that is not intended to be an Incentive Stock Option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Option&#148; shall mean an Incentive Stock Option or a Non-Qualified Stock Option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Other Stock-Based Award&#148; shall mean an Award granted under Section 6(g) of the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Participant&#148; shall mean any Employee, Consultant or Director granted an Award under the Plan.
</DIV>

<P align="center" style="font-size: 10pt">A-2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Performance Award&#148; shall mean any right granted under Section 6(c) of the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Performance Criteria&#148; shall mean the following business criteria with respect to the Company,
any Subsidiary or any division, operating unit or product line: net earnings (either before or
after interest, taxes, depreciation and/or amortization), sales, revenue, net income (either before
or after taxes), operating earnings, cash flow (including, but not limited to, operating cash flow
and free cash flow), cash flow return on capital, return on net assets, return on stockholders&#146;
equity, return on assets, return on capital, stockholder returns, return on sales, gross or net
profit margin, expense margins, cost reductions, controls or savings, operating efficiency, working
capital, strategic initiatives, economic value added, earnings per share, earnings per share from
operations, price per share of stock, and market share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Person&#148; shall mean individual, corporation, partnership, limited liability company,
association, joint-stock company, trust, unincorporated organization, government or political
subdivision thereof or other entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Phantom Shares&#148; shall mean an Award of the right to receive Shares, cash equal to the Fair
Market Value of such Shares or any combination thereof, in the Committee&#146;s discretion, which is
granted pursuant to Section 6(d) of the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Prior Plan&#148; shall mean the Amended and Restated 1998 Stock Awards Plan of Mitcham Industries,
Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Restricted Period&#148; shall mean the period established by the Committee with respect to an
Award during which the Award either remains subject to forfeiture or is not exercisable by the
Participant, as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Restricted Stock&#148; shall mean any Share, prior to the lapse of restrictions thereon, granted
under Section 6(b) of the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Rule&nbsp;16b-3&#148; shall mean Rule&nbsp;16b-3 promulgated by the SEC under the Exchange Act, or any
successor rule or regulation thereto as in effect from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;SAR&#148; shall mean a stock appreciation right granted under Section 6(e) of the Plan that
entitles the holder to receive the excess of the Fair Market Value of a Share on the relevant date
over the exercise price of such SAR, with the excess paid in cash and/or in Shares in the
discretion of the Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;SEC&#148; shall mean the Securities and Exchange Commission or any successor thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Shares&#148; or &#147;Common Shares&#148; or &#147;Common Stock&#148; shall mean the common stock of the Company,
$0.01 par value, and such other securities or property as may become the subject of Awards under
the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Stock Payment&#148; means a payment in the form of Shares as part of or in lieu of any cash bonus,
deferred compensation or other compensation arrangement, granted pursuant to Section 6(f) of the
Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Subsidiary&#148; shall mean any entity (whether a corporation, partnership, joint venture, limited
liability company or other entity) in which the Company owns a majority of the voting power of the
entity directly or indirectly, except with respect to the grant of an ISO the term Subsidiary shall
mean any &#147;subsidiary corporation&#148; of the Company as defined in Section&nbsp;424 of the Code.
</DIV>

<P align="center" style="font-size: 10pt">A-3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">SECTION 3. Administration.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The Committee. The Plan shall be administered by the Compensation Committee of the Board
(or any other committee of the Board designated, from time to time, by the Board to act as the
Committee under the Plan). Notwithstanding the foregoing, Awards made to Directors shall be
administered by the Board. The term &#147;Committee&#148; as used herein shall refer to the
Compensation Committee (or other Board committee), the Board, or the subcommittee (as defined in
paragraph (c)&nbsp;of this Section&nbsp;3), as applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Committee Powers. A majority of the Committee shall constitute a quorum, and the acts of
the members of the Committee who are present at any meeting thereof at which a quorum is present,
or acts unanimously approved by the members of the Committee in writing, shall be the acts of the
Committee. Subject to the terms of the Plan and applicable law, and in addition to other express
powers and authorizations conferred on the Committee by the Plan, the Committee shall have full
power and authority to: (i)&nbsp;designate Participants; (ii)&nbsp;determine the type or types of Awards to
be granted to a Participant; (iii)&nbsp;determine the number of Shares to be covered by, or with respect
to which payments, rights, or other matters are to be calculated in connection with, Awards; (iv)
determine the terms and conditions of any Award; (v)&nbsp;determine whether, to what extent, and under
what circumstances Awards may be settled or exercised in cash, Shares, other securities, other
Awards or other property, or canceled, forfeited, or suspended and the method or methods by which
Awards may be settled, exercised, canceled, forfeited, or suspended; (vi)&nbsp;interpret and administer
the Plan and any instrument or agreement relating to an Award made under the Plan; (vii)&nbsp;establish,
amend, suspend, or waive such rules and regulations and appoint such agents as it shall deem
appropriate for the proper administration of the Plan; and (viii)&nbsp;make any other determination and
take any other action that the Committee deems necessary or desirable for the administration of the
Plan. Unless otherwise expressly provided in the Plan, all designations, determinations,
interpretations, and other decisions under or with respect to the Plan or any Award shall be within
the sole discretion of the Committee, may be made at any time and shall be final, conclusive, and
binding upon all Persons, including the Company, any Subsidiary, any Participant, any holder or
beneficiary of any Award, any stockholder and any other Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Delegation to a Subcommittee. The Committee may, subject to any applicable law,
regulatory, securities exchange or other similar restrictions, delegate to one or more members of
the Board or officers of the Company (the &#147;subcommittee&#148;), the authority to administer the Plan as
to Awards to Employees and Consultants who are not subject to Section 16(b) of the Exchange Act.
The Committee may impose such limitations and restrictions, in addition to any required
restrictions/limitations, as the Committee may determine in its sole discretion. Any grant made
pursuant to such a delegation shall be subject to all of the provisions of the Plan concerning this
type of Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 4. Shares Available for Awards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 Shares Available. Subject to adjustment as provided below, the number of Shares that may
be issued with respect to Awards granted under the Plan shall be 899,864, which shall include any
Shares remaining available for Awards under the Prior Plan and the 2000 Plan on the date this
amendment and restatement of the Plan becomes effective. If an Award granted after the Plan&#146;s
effective date is forfeited or otherwise lapses, expires, terminates or is canceled without the
actual delivery of Shares (Restricted Stock awards shall not be considered &#147;delivered Shares&#148; for
this purpose) or is settled in cash, then the Shares covered by such Award, to the extent of such
forfeiture, expiration, lapse, termination or cancellation, shall again be Shares that may be
issued with respect to Awards granted under the Plan. Shares tendered to or withheld by the
Company to satisfy any tax withholding or exercise price obligations with respect to an Award
granted after the Plan&#146;s effective date shall be available for issuance under future Awards,
subject to the overall limitation provided in the first sentence above. In the
</DIV>

<P align="center" style="font-size: 10pt">A-4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">discretion of the
Committee, all 899,864 Shares (as adjusted, if applicable) may be issued under the Plan pursuant to
ISOs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Sources of Shares Deliverable Under Awards. Any Shares delivered pursuant to an Award may
consist, in whole or in part, of authorized and unissued Shares or of treasury Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 Adjustments. In the event of a stock dividend or stock split with respect to Shares, the
number of Shares with respect to which Awards may be granted, the number of Shares subject to
outstanding Awards, the grant or exercise price with respect to outstanding Awards and the
individual annual grant limits with respect to Awards (other than dollar denominated Awards)
automatically shall be proportionately adjusted, without action by the Committee; provided,
however, such automatic adjustment shall be evidenced by written addendums to the Plan and Award
Agreements prepared by the Company and, with respect to Options, shall be in accordance with the
Treasury Regulations concerning Incentive Stock Options. Further, in the event that the Committee
determines that any distribution (whether in the form of cash, Shares, other securities, or other
property), recapitalization, reorganization, merger, spin-off, combination, repurchase, or exchange
of Shares or other securities of the Company, or other similar corporate transaction or event
affects the Shares such that an adjustment is determined by the Committee to be appropriate in
order to prevent dilution or enlargement of the benefits or potential benefits intended to be made
available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust
any or all of (i)&nbsp;the number and type of Shares (or other securities or property) with respect to
which Awards may be granted, (ii)&nbsp;the number and type of Shares (or other securities or property)
subject to outstanding Awards, and (iii)&nbsp;the grant or exercise price with respect to any Award or,
if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award;
provided that the number of Shares subject to any Award denominated in Shares shall always be a
whole number.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 Individual Participant Limits. Subject to adjustment pursuant to the above paragraph (c),
the maximum aggregate number of Shares that may be subject to Share-denominated Awards granted
under the Plan to any individual during any fiscal year of the Company shall not exceed 125,000.
The method of counting such Shares shall conform to any requirements applicable to
performance-based compensation under Section 162(m) of the Code or the rules and regulations
promulgated thereunder. The maximum amount of dollar-denominated Awards that may be granted to any
individual during any fiscal year of the Company shall not exceed $2,000,000 as valued on the date
of the grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 5. Eligibility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any Employee, Consultant or Director shall be eligible to be designated a Participant by the
Committee. No individual shall have any right to be granted an Award pursuant to this Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 6. Awards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Options. Subject to the provisions of the Plan, the Committee shall have the authority to
determine Participants to whom Options shall be granted, the number of Shares to be covered by each
Option, the purchase price therefor and the conditions and limitations applicable to the exercise
of the Option, including the following terms and conditions and such additional terms and
conditions, as the Committee shall determine, that are not inconsistent with the provisions of the
Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1 <U>Exercise Price</U>. The purchase price per Share purchasable under an Option shall
be determined by the Committee at the time the Option is granted, but shall not be less than the
Fair Market Value per Share on the effective date of such grant.
</DIV>


<P align="center" style="font-size: 10pt">A-5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2 <U>Time and Method of Exercise</U>. The Committee shall determine and provide in the
Award Agreement or by action subsequent to the grant the time or times at which an Option may be
exercised in whole or in part, and the method or methods by which, and the form or forms (which may
include, without limitation, cash, check acceptable to the Company, Shares already-owned for more
than six months (unless such holding requirement is waived by the Committee), Shares issuable upon
Option exercise, a &#147;cashless-broker&#148; exercise (through procedures approved by the Committee), other
securities or other property, a note, or any combination thereof, having a Fair Market Value on the
exercise date equal to the relevant exercise price) in which payment of the exercise price and tax
withholding obligation with respect thereto may be made or deemed to have been made. The Committee
shall also determine the performance or other conditions, if any, that must be satisfied before all
or part of an Option may vest and be exercised. No portion of an Option which is unexercisable at
termination of the Participant&#146;s employment or service, as applicable, shall thereafter become
exercisable, except as may be otherwise provided by the Committee either in the Award Agreement or
by action following the grant of the Option.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3 <U>Incentive Stock Options</U>. An Incentive Stock Option may be granted only to an
individual who is an Employee of the Company or any parent or subsidiary corporation (as defined in
Section&nbsp;424 of the Code) at the time the Option is granted and must be granted within 10&nbsp;years from
the date the Plan was approved by the Board or the shareholders, whichever is earlier. To the
extent that the aggregate Fair Market Value (determined at the time the respective Incentive Stock
Option is granted) of Common Stock with respect to which Incentive Stock Options are exercisable
for the first time by an individual during any calendar year under all incentive stock option plans
of the Company and its parent and subsidiary corporations exceeds $100,000, such Incentive Stock
Options shall be treated as a Non-Qualified Stock Option. The Committee shall determine, in
accordance with applicable provisions of the Code, Treasury Regulations and other administrative
pronouncements, which of a Participant&#146;s Incentive Stock Options will not constitute Incentive
Stock Options because of such limitation and shall notify the Participant of such determination as
soon as practicable after such determination. No Incentive Stock Option shall be granted to an
individual if, at the time the Option is granted, such individual owns stock possessing more than
10% of the total combined voting power of all classes of stock of the Company or of its parent or
subsidiary corporation, within the meaning of section 422(b)(6) of the Code, unless (i)&nbsp;at the time
such Option is granted the option price is at least 110% of the Fair Market Value of the Common
Stock subject to the Option and (ii)&nbsp;such Option by its terms is not exercisable after the
expiration of five years from the date of grant. An Incentive Stock Option shall not be
transferable otherwise than by will or the laws of descent and distribution, and shall be
exercisable during the Participant&#146;s lifetime only by such Participant or the Participant&#146;s
guardian or legal representative. The terms of any Incentive Stock Option granted under the Plan
shall comply in all respects with the provisions of Section&nbsp;422 of the Code, or any successor
provision, and any regulations promulgated thereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 Restricted Stock. Subject to the provisions of the Plan, the Committee shall have the
authority to determine the Participants to whom Restricted Stock shall be granted, the number of
Shares of Restricted Stock to be granted to each such Participant, the duration of the Restricted
Period during which, and the conditions, including the Performance Criteria or other specified
criteria, including the passage of time, if any, under which the Restricted Stock may vest or be
forfeited to the Company, and the other terms and conditions of such Awards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.1 <U>Dividends</U>. Dividends paid on Restricted Stock may be paid directly to the
Participant, may be subject to risk of forfeiture and/or transfer restrictions during any period
established by the Committee or sequestered and held in a bookkeeping cash account (with or without
interest) or reinvested on an immediate or deferred basis in additional shares of Common Stock,
which credit or shares may be subject to the same restrictions as the underlying Award or such
other restrictions, all as determined by the Committee in its discretion, as provided in the Award
Agreement. If the Award Agreement does not provided for the treatment of dividends, such dividends
shall be held by the
</DIV>



<P align="center" style="font-size: 10pt">A-6
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Company without interest until such time as the Share becomes vested or
forfeited, as the case may be, and then be similarly paid to the Participant or forfeited.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.2 <U>Registration</U>. Any Restricted Stock may be evidenced in such manner as the
Committee shall deem appropriate, including, without limitation, book-entry registration or
issuance of a stock certificate or certificates. In the event any stock certificate is issued in
respect of Restricted Stock
granted under the Plan, such certificate shall be registered in the name of the Participant
and shall bear an appropriate legend referring to the terms, conditions, and restrictions
applicable to such Restricted Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.3 <U>Forfeiture and Restrictions Lapse</U>. Except as otherwise determined by the
Committee or the terms of the Award Agreement, upon a Participant&#146;s termination of employment or
service (as determined under criteria established by the Committee) for any reason during the
applicable Restricted Period, all Restricted Stock shall be forfeited by the Participant and
re-acquired by the Company. The Committee may, in its discretion, waive in whole or in part any or
all remaining restrictions with respect to such Participant&#146;s Restricted Stock; provided, however,
if the Award is intended to qualify as performance based compensation under Section 162(m) of the
Code, such waiver may be only in compliance with the requirements of Section 162(m) of the Code.
Unrestricted Shares, evidenced in such manner as the Committee shall deem appropriate, shall be
issued to the holder of Restricted Stock promptly after the applicable restrictions have lapsed or
otherwise been satisfied.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.4 <U>Restrictions</U>. Restricted Stock shall be subject to such restrictions on
transferability and other restrictions as the Committee may impose (including, without limitation,
restrictions on the right to vote Restricted Stock or the right to receive dividends on the
Restricted Stock). These restrictions may lapse separately or in combination at such times,
pursuant to such circumstances, in such installments, or otherwise, as the Committee determines at
the time of the grant of the Award or thereafter. During the Restricted Period, Restricted Stock
will be subject to such limitations on transfer as necessary to comply with Section&nbsp;83 of the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 Performance Awards. The Committee shall have the authority to determine the Participants
who shall receive Performance Awards, which shall be denominated as a cash amount at the time of
grant and confer on the Participant the right to receive all or part of such Award upon the
achievement of such performance goals (based on the Performance Criteria or any other specified
criteria) during such performance periods as the Committee shall establish with respect to the
Award. The Committee, in its discretion, may determine whether an Award is to qualify as
performance-based compensation as described in Section 162(m) (4) (C)&nbsp;of the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.1 <U>Terms and Conditions</U>. Subject to the terms of the Plan and any applicable Award
Agreement, the Committee shall determine the performance goals to be achieved during any
performance period, the Performance Criteria or other criteria upon which the performance goals are
to be based, the length of any performance period and the amount of any Performance Award.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.2 <U>Payment of Performance Awards</U>. To the extent then earned, Performance Awards
shall be paid (in cash and/or in Shares, in the sole discretion of the Committee) in a lump sum
following the close of the performance period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.3 <U>Forfeiture and Restrictions Lapse</U>. Except as otherwise determined by the
Committee or the terms of the Award Agreement that granted the Performance Award, upon a
Participant&#146;s termination of employment or service, as applicable (as determined under criteria
established by the Committee) for any reason during the applicable Restricted Period, all
Performance Awards shall be forfeited by the Participant and re-acquired by the Company. The
Committee may, in its discretion, waive in whole or in part any or all remaining restrictions with
respect to such Participant&#146;s
</DIV>




<P align="center" style="font-size: 10pt">A-7
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Performance Award; provided, however, if the Award is intended to
qualify as performance based compensation under Section 162(m) of the Code, such waiver may be only
in compliance with the requirements of Section 162(m) of the Code. Unrestricted Shares, evidenced
in such manner as the Committee shall deem appropriate, shall be issued to the holder of
Performance Awards promptly after the applicable restrictions have lapsed or otherwise been
satisfied.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 Phantom Shares. The Committee shall have the authority to grant Awards of Phantom Shares
to Participants upon such terms and conditions as the Committee may determine.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.1 <U>Terms and Conditions</U>. Each Phantom Share Award shall constitute an agreement by
the Company to issue or transfer a specified number of Shares or pay an amount of cash equal to the
Fair Market Value of a specified number of Shares, or a combination thereof to the Participant in
the future, subject to the fulfillment during the Restricted Period of such conditions, including
those linked to the Performance Criteria or other specified criteria, including the passage of
time, if any, as the Committee may specify at the date of grant. During the Restricted Period, the
Participant shall not have any right to transfer any rights under the subject Award, shall not have
any rights of ownership in the Phantom Shares and shall not have any right to vote such shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.2 <U>Dividend Equivalents</U>. Any Phantom Share award may provide, in the discretion of
the Committee, that any or all dividends or other distributions paid on Shares during the
Restricted Period be credited in a cash bookkeeping account (with or without interest) or that
equivalent additional Phantom Shares be awarded, which account or Phantom Shares may be subject to
the same restrictions as the underlying Award or such other restrictions as the Committee may
determine.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.3 <U>Forfeiture and Restrictions Lapse</U>. Except as otherwise determined by the
Committee or set forth in the Award Agreement, upon a Participant&#146;s termination of employment or
service (as determined under criteria established by the Committee) for any reason during the
applicable Restricted Period, all Phantom Shares shall be forfeited by the Participant. The
Committee may, in its discretion, waive in whole or in part any or all remaining restrictions with
respect to such Participant&#146;s Phantom Shares; provided, however, if the Award is intended to
qualify as performance based compensation under Section 162(m) of the Code, such waiver may be only
in compliance with the requirements of Section 162(m) of the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.4 <U>Payment of Phantom Shares.</U> To the extent then vested, Phantom Shares shall be
paid (in cash and/or in Shares, in the sole discretion of the Committee) in a lump sum following
the close of the Restricted Period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 SARs. The Committee shall have the authority to determine Participants to whom SARs shall
be granted, the number of Shares to be covered by each SAR, the exercise price and the conditions
and limitations applicable to the exercise of the SAR, including the following terms and conditions
and such additional terms and conditions, as the Committee shall determine, that are not
inconsistent with the provisions of the Plan. A SAR may be granted (a)&nbsp;in connection and
simultaneously with the grant of an Option, (b)&nbsp;with respect to a previously granted Option, or (c)
independent of an Option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.1 <U>Exercise Price</U>. The exercise price per SAR shall be determined by the Committee
at the time the SAR is granted, but shall not be less than the Fair Market Value per Share on the
effective date of such grant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.2 <U>Time of Exercise</U>. The Committee shall determine and provide in the Award
Agreement the time or times at which a SAR may be exercised in whole or in part.
</DIV>



<P align="center" style="font-size: 10pt">A-8
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.3 <U>Method of Payment</U>. The Committee shall determine, in its discretion, whether
the SAR shall be paid in cash, shares of Common Stock or a combination of the two.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 Stock Payments. Stock Payments may be made to such Participants in such number of Shares
as determined to be appropriate by the Committee, and may be in lieu of, or in addition to, any
cash compensation otherwise payable to such Participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 Other Stock-Based Awards. The Committee may grant to Participants an Other Stock-Based
Award, which shall consist of a right denominated or payable in, valued in whole or in part by
reference to, or otherwise based on or related to, Shares as is deemed by the Committee to be
consistent with the purposes of the Plan. Subject to the terms of the Plan, the Committee shall
determine the terms and conditions, including performance objectives, if any, of any such Other
Stock-Based Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 General.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8.1 <U>Awards May Be Granted Separately or Together</U>. Awards may, in the discretion of
the Committee, be granted either alone or in addition to, in tandem with, any other Award granted
under the Plan or any award granted under any other plan of the Company or any Subsidiary. Awards
granted in addition to or in tandem with other Awards or awards granted under any other plan of the
Company or any Subsidiary may be granted either at the same time as or at a different time from the
grant of such other Awards or awards.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8.2 <U>Limits on Transfer of Awards</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8.2.1 Except as provided in paragraph (C)&nbsp;below, each Award, and each right under any Award,
shall be exercisable only by the Participant during the Participant&#146;s lifetime, or if permissible
under applicable law, by the Participant&#146;s guardian or legal representative as determined by the
Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8.2.2 Except as provided in paragraph (C)&nbsp;below, no Award and no right under any such Award
may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a
Participant, and any such purported prohibited assignment, alienation, pledge, attachment, sale,
transfer or encumbrance shall be void and unenforceable against the Company or any Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8.2.3 To the extent specifically approved in writing by the Committee, an Award (other than
an ISO) may be transferred to immediate family members or related family trusts, limited
partnerships or similar entities or other Persons on such terms and conditions as the Committee may
establish or approve. In addition, an Award may be transferred by will or by the laws of descent
and distribution or pursuant to a qualified domestic relations order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8.3 <U>Terms of Awards</U>. The term of each Award shall be for such period as may be
determined by the Committee; provided, that in no event shall the term of any Award exceed a period
of 10&nbsp;years from the date of its grant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8.4 <U>Share Certificate</U>. All certificates for Shares or other securities of the
Company or any Subsidiary delivered under the Plan pursuant to any Award or the exercise thereof
shall be subject to such stop transfer orders and other restrictions as the Committee may deem
advisable under the Plan or the rules, regulations, and other requirements of the SEC, any stock
exchange upon which such Shares or other securities are then listed, and any applicable federal or
state laws, and the Committee may cause a legend or legends to be put on any such certificates to
make appropriate reference to such restrictions.
</DIV>



<P align="center" style="font-size: 10pt">A-9
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8.5 <U>Consideration for Grants</U>. Awards may be granted for no cash consideration or
for such consideration as the Committee determines including, without limitation, such minimal cash
consideration as may be required by applicable law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8.6 <U>Delivery of Shares or other Securities and Payment by Participant of
Consideration</U>. No Shares or other securities shall be delivered pursuant to any Award until
payment in full of any amount required to be paid pursuant to the Plan or the applicable Award
Agreement (including, without limitation, any exercise price or tax withholding) is received by the
Company. Such
payment may be made by such method or methods and in such form or forms as the Committee shall
determine, including, without limitation, cash, Shares, other securities, other Awards or other
property, withholding of Shares, cashless exercise with simultaneous sale, or any combination
thereof, provided that the combined value, as determined by the Committee, of all cash and cash
equivalents and the Fair Market Value of any such Shares or other property so tendered to the
Company, as of the date of such tender, is at least equal to the full amount required to be paid
pursuant to the plan or the applicable Award Agreement to the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <U>Performance Based Compensation</U>. The Committee shall determine which Awards are
intended by the Committee to qualify as &#147;performance-based compensation&#148; as described in Section
162(m)(4)(C) of the Code. The Committee shall establish performance goals applicable to those
Awards based upon the attainment of such target levels of one or more of the Performance Criteria,
over one or more periods of time, which may be of varying and overlapping durations, as the
Committee may select. The Performance Criteria shall be subject to adjustment for changes in
accounting standards required by the Financial Accounting Standards Board after the goal is
established, and, to the extent provided for in the Award Agreement, shall be subject to adjustment
for specified significant extraordinary items or events. In this regard, performance goals based
on stock price shall be proportionately adjusted for any changes in the price due to a stock split.
Performance Criteria may be absolute, relative to one or more other companies, or relative to one
or more indexes, and may be contingent upon future performance of the Company or any Subsidiary,
division, unit or product line thereof. A performance goal need not be based upon an increase or
positive result under a Performance Criteria and could, for example, be based upon limiting
economic losses or maintaining the status quo. Which Performance Criteria to be used with respect
to any grant, and the weight to be accorded thereto if more than one factor is used, shall be
determined by the Committee, in its sole discretion, at the time of grant. To the extent necessary
to comply with the qualified performance-based compensation requirements of Section&nbsp;162(m)(4)(C) of
the Code, following the completion of each specified performance period, the Committee shall
certify in writing whether the applicable performance goals have been achieved for such performance
period. In determining the amount earned by a Participant, the Committee shall have the right to
reduce or eliminate (but not to increase) the amount payable at a given level of performance to
take into account additional factors that the Committee may deem relevant to the assessment of
individual or corporate performance for the performance period. Notwithstanding any other
provision of the Plan, any Award which is intended to constitute qualified performance-based
compensation shall be subject to any additional limitations set forth in Section 162(m) of the Code
(including any amendment to Section 162(m) of the Code) or any regulations or rulings issued
thereunder that are requirements for qualification as qualified performance-based compensation as
described in Section&nbsp;162(m)(4)(C) of the Code, and the Plan shall be deemed amended to the extent
necessary to conform to such requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 7. Amendment and Termination.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except to the extent prohibited by applicable law and unless otherwise expressly provided in
an Award Agreement or in the Plan:
</DIV>

<P align="center" style="font-size: 10pt">A-10
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 Amendments to the Plan. The Board or the Committee may amend, alter, suspend,
discontinue, or terminate the Plan without the consent of any stockholder, Participant, other
holder or beneficiary of an Award, or other Person; provided, however, notwithstanding any other
provision of the Plan or any Award Agreement, without the approval of the stockholders of the
Company, except as provided in Section 4(c) of the Plan, (a)&nbsp;no such amendment, alteration,
suspension, discontinuation, or termination shall be made that would increase the total number of
Shares that may be issued under the Plan, and (b)&nbsp;the exercise price of any outstanding Option or
SAR that is greater than the then Fair Market Value of a Share may not be decreased. In all
events, shareholder approval shall be obtained when required by the rules of the Nasdaq Stock
Market or such other national exchange or market on which the Shares are primarily traded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 Amendments to Awards. Subject to Paragraph (1)&nbsp;above and Section&nbsp;3(b), the Committee may
waive any conditions or rights under, amend any terms of, or alter any Award theretofore granted,
provided no change in any Award shall adversely affect the rights of a Participant under the Award
without the consent of such Participant. Notwithstanding the foregoing, with respect to any Award
intended to qualify as performance-based compensation under Section 162(m) of the Code, no
adjustment other than an acceleration of vesting or payment upon the Participant&#146;s death,
disability or change of control of the Company, shall be authorized to the extent such adjustment
would cause the Award to fail to so qualify.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 8. General Provisions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 No Rights to Awards. No Participant or other Person shall have any claim to be granted
any Award, there is no obligation for uniformity of treatment of Participants, or holders or
beneficiaries of Awards and the terms and conditions of Awards need not be the same with respect to
each recipient.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 Tax Withholding. The Company or any Subsidiary is authorized to withhold from any Award,
from any payment due or transfer made under any Award or from any compensation or other amount
owing to a Participant the amount (in cash, Shares, or other property) of any applicable taxes
required to be withheld by the Company or Subsidiary in respect of the Award, its exercise, the
lapse of restrictions thereon, or any payment or transfer under the Award and to take such other
action as may be necessary in the opinion of the Company to satisfy all of its obligations for the
payment of such taxes. In addition, the Committee may provide that the Participant may direct the
Company to satisfy the Company&#146;s tax withholding obligations through the withholding of Shares
otherwise to be acquired upon the exercise or payment of such Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 No Right to Employment or Retention. The grant of an Award shall not be construed as
giving a Participant the right to be retained in the employ of the Company or any Subsidiary or
under any other service contract with the Company or any Subsidiary, or to remain on the Board.
Further, the Company or a Subsidiary may at any time dismiss a Participant from employment or
terminate any contractual agreement or relationship with any Consultant, free from any liability or
any claim under the Plan, with or without cause, unless otherwise expressly provided in the Plan,
in any Award Agreement or any other agreement or contract between the Company or a Subsidiary and
the affected Participant. If a Participant&#146;s employer ceases to be a Subsidiary, such Participant
shall be deemed to have terminated employment for purposes of the Plan, unless specifically
provided otherwise in the Award Agreement. A Participant shall not be considered to have a
termination of employment or service in the case of any approved leave of absence; provided,
however, that for purposes of ISOs such leave is not for a period of more than three months, unless
reemployment upon expiration of the leave is guaranteed by contract or statute. Transfers between
the Company and Subsidiaries or between the status of Employee, Director or Consultant shall not be
a termination of employment or service except with respect to Awards subject to
</DIV>

<P align="center" style="font-size: 10pt">A-11
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Section&nbsp;409A of the
Code, to the extent provided otherwise by Section&nbsp;409A and the regulations thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 Corporate Transactions and Change of Control. In the event of any distribution (whether
in the form of cash, Shares, other securities, or other property), recapitalization,
reorganization, merger, spin-off, combination, repurchase, or exchange of Shares or other
securities of the Company, or other similar corporate transaction or event or any unusual or
nonrecurring transactions or events affecting the Company, any affiliate of the Company, or the
financial statements of the Company or any affiliate, or of changes in applicable laws, regulations
or accounting principles, and whenever the Committee determines that action is appropriate in order
to prevent the dilution or enlargement of the benefits or potential benefits intended to be made
available under the Plan or with respect to any Award under the Plan, to facilitate such
transactions or events or to give effect to such changes in laws, regulations or principles, the
Committee, in its sole discretion and on such terms and conditions as it deems appropriate, either
by
amendment of the terms of any outstanding Awards or by action taken prior to the occurrence of
such transaction or event and either automatically or upon the Participant&#146;s request, is hereby
authorized to take any one or more of the following actions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.1 To provide for either (A)&nbsp;termination of any such Award in exchange for an amount
of cash, if any, equal to the amount that would have been attained upon the exercise of such
Award or realization of the Participant&#146;s rights (and, for the avoidance of doubt, if as of
the date of the occurrence of the transaction or event described in this Section 8(d) the
Committee determines in good faith that no amount would have been attained upon the exercise
of such Award or realization of the Participant&#146;s rights, then such Award may be terminated
by the Company without payment) or (B)&nbsp;the replacement of such Award with other rights or
property selected by the Committee in its sole discretion;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.2 To provide that such Award be assumed by the successor or survivor corporation,
or a parent or subsidiary thereof, or shall be substituted for by similar options, rights or
awards covering the stock of the successor or survivor corporation, or a parent or
subsidiary thereof, with appropriate adjustments as to the number and kind of shares and
prices; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.3 To make adjustments in the number and type of shares of common Stock (or other
securities or property) subject to outstanding Awards, and in the number and kind of
outstanding Awards and/or in the terms and conditions of (including the grant or exercise
price), and the criteria included in, outstanding Awards and Awards which may be granted in
the future;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.4 To provide that such Award shall be exercisable or payable or fully vested with
respect to all or part of the Shares covered thereby, notwithstanding anything to the
contrary in the Plan or the applicable Award Agreement; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.5 To provide that the Award cannot vest, be exercised or become payable after such
event.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision of this Plan to the contrary, unless specifically provided
otherwise in an Award Agreement, in the event of a Change of Control all outstanding Awards
automatically shall become fully vested on such Change of Control (or such earlier time as may be
established by the Committee), all restrictions, if any, with respect to such Awards shall lapse,
including, without limitation, any service, longevity or other employment requirements, and all
Performance Criteria, if any, with respect to such Awards shall be deemed to have been met in full
to the maximum extent without regard to any proration provisions in such Award or Award Agreement.
</DIV>

<P align="center" style="font-size: 10pt">A-12
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to, or in lieu of, any other provision of the Plan, the Committee may provide that
all Awards not exercised upon or prior to a Change of Control shall (x)&nbsp;terminate on such Change of
Control, (y)&nbsp;be assumed by the successor (or a parent thereof) in any merger or other corporate
transaction, or (z)&nbsp;be surrendered in exchange for substantially economically equivalent substitute
Awards (with the substantially same material terms as the surrendered Award, including 100%
vesting) from the successor (or a parent thereof).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 Governing Law. The validity, construction, and effect of the Plan and any rules and
regulations relating to the Plan shall be determined in accordance with the laws of the State of
Texas and applicable federal law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 Severability. If any provision of the Plan or any Award is or becomes or is deemed to be
invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would
disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision
shall be construed
or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed
amended without, in the determination of the Committee, materially altering the intent of the Plan
or the Award, such provision shall be stricken as to such jurisdiction, Person or Award and the
remainder of the Plan and any such Award shall remain in full force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 Other Laws. The Committee may refuse to issue or transfer any Shares or other
consideration under an Award, permit the exercise of an Award and/or the satisfaction of its tax
withholding obligation in the manner elected by the Participant, holder or beneficiary if, acting
in its sole discretion, it determines that the issuance of transfer or such Shares or such other
consideration, the manner of exercise or satisfaction of the tax withholding obligation might
violate any applicable law or regulation, including without limitation, the Sarbanes-Oxley Act, or
entitle the Company to recover the same under Section 16(b) of the Exchange Act, and any payment
tendered to the Company by a Participant, other holder or beneficiary in connection with the
exercise of such Award shall be promptly refunded or refused, as the case may be, to the relevant
Participant, holder or beneficiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 No Trust or Fund Created. Neither the Plan nor the Award shall create or be construed to
create a trust or separate fund of any kind or a fiduciary relationship between the Company or any
Subsidiary and a Participant or any other Person. To the extent that any Person acquires a right
to receive payments from the Company or any Subsidiary pursuant to an Award, such right shall be no
greater than the right of any general unsecured creditor of the Company or any Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the
Plan or any Award, and the Committee shall determine whether cash, other securities, or other
property shall be paid or transferred in lieu of any fractional Shares or whether such fractional
Shares or any rights thereto shall be cancelled, terminated, or otherwise eliminated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10 Headings. Headings are given to the Section and subsections of the Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the plan or any provision thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 9. Amendment and Restatement of Prior Plan/Merger of 2000 Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan is an amendment and restatement of the Prior Plan, which is hereby renamed the
Mitcham Industries, Inc. Stock Awards Plan (the &#147;Plan&#148;). In addition, the 2000 Plan is hereby
merged into the Plan. Nothing in this Plan shall change or modify the terms or rights under any
Award granted under the Prior Plan or the 2000 Plan.
</DIV>

<P align="center" style="font-size: 10pt">A-13
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 10. Term of the Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This amendment and restatement of the Prior Plan and the merger of the 2000 Plan into the Plan
shall not become effective until the date the Plan is approved by the stockholders of the Company.
If it is not approved by the stockholders, the Plan shall be null and void for all purposes. No
Award shall be granted with respect to newly authorized shares under this Plan prior to its
approval by the stockholders of the Company and no Awards shall be granted after the 10th
anniversary of the date this amendment and restatement of the Prior Plan was adopted by the Board.
However, unless otherwise expressly provided in the Plan, the Prior Plan, the 2000 Plan or an
applicable award agreement, any Award granted prior to such termination of the Plan, and the
authority of the Board or the Committee to amend, alter, adjust, suspend, discontinue, or terminate
any such Award or to waive any conditions or rights under such Award, shall extend beyond such
termination date.
</DIV>


<P align="center" style="font-size: 10pt">A-14
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MITCHAM INDUSTRIES, INC.<BR>
PROXY SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS<BR>
FOR THE ANNUAL MEETING OF SHAREHOLDERS TO BE HELD JULY 27, 2006</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><B>P</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD colspan="8"  valign="top" align="left">The proxies appointed on the following page are directed to vote as specified below, and in their discretion, on
all other matters coming before the meeting. If no instructions are given, the proxy will vote &#147;FOR&#148; all
director nominees listed below and &#147;FOR&#148; the ratification of the selection of independent auditors. This proxy
is solicited by the Board of Directors of Mitcham Industries, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><B>R</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">ELECTION OF DIRECTORS &#151; Billy F. Mitcham, Jr., R. Dean Lewis, John F. Schwalbe, Robert P. Capps and Peter H. Blum.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><B>O</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">Vote <B>FOR </B>all nominees listed above, except vote withheld from (to
withhold authority to vote for any individual nominee, write in the names
on the line below:)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>X</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left"><B>&nbsp;</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">Vote <B>WITHHELD </B>from all nominees</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><B>Y</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">ADOPTION OF THE MITCHAM INDUSTRIES, INC. STOCK AWARDS PLAN</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FOR
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">AGAINST
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ABSTAIN</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">RATIFICATION OF SELECTION OF INDEPENDENT AUDITORS</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FOR
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">AGAINST
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ABSTAIN</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I plan to attend the meeting.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PLEASE SIGN, DATE AND RETURN THE FOLLOWING PROXY CARD<BR>
PROMPTLY, USING THE ENCLOSED ENVELOPE.</B>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MITCHAM INDUSTRIES, INC.<BR>
Proxy Solicited On Behalf Of The Board Of Directors<BR>
For The Annual Meeting of Shareholders To Be Held July&nbsp;27, 2006</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The undersigned hereby appoints Billy F. Mitcham, Jr. and Peter H. Blum, and each of them, as
attorneys and proxies of the undersigned, with power of substitution, to represent the undersigned
at the Annual Meeting of Shareholders of Mitcham Industries, Inc. to be held July&nbsp;27, 2006, and at
any adjournment or postponement thereof, and to vote all shares of common stock which the
undersigned is entitled to vote on all matters coming before said meeting.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="59%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2006</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Signature</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Signature if held jointly</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">THIS PROXY MUST BE SIGNED EXACTLY AS THE
SHAREHOLDER&#146;S NAME APPEARS HEREON. Executors,
administrators, trustees, etc., should give
full title as such. If the shareholder is a
corporation, please sign full corporate name
by duly authorized officer. If shareholder is
a partnership, please sign partnership name by
authorized person.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>h36669dh3666901.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 h36669dh3666901.gif
M1TE&.#EA;``D`,0``+^_OV]O;U]?7T]/3S\_/R\O+Q\?'P\/#P```,_/SY^?
MGZ^OKW]_?]_?WX^/C^_O[____P``````````````````````````````````
M`````````````````````````"'Y!```````+`````!L`"0```7_("2.9&F>
MJ+@P:0L!C2O/=&V+PW*+#;&F#0=#$`@X'`_4PI#<.1LQ5T/`0B6:)D4`TM"9
M'H`%5O1P+&"DA]CI3`QD@$'UM-B>&`FN`B60_41];#L*`F-C(@D,<UEV)@%Y
M8"A[,PT!E8>"+F4!6`T*42,)=9@BBB@,.@F3)@`.-0D&>9DTE6\C"[8D#@F%
M*`0`*`-):BD!P#,/?;FS+6$.H`P&#0"J"PJH`[(FJ*<Z02V++0\,3>'(QRG'
M"PNJ9$/KN:@$`8H*`-<,`04,`/T`2=/H0;#F`HF,<5C8S4C@J1^I$6@L/1`&
MX9J#`"MDD=N%P@&Z$GBF_+/VZ82"558X_Y4@T")(@X<FVBG<5:;?KWLB%*AQ
M=4*()%?K2JRPARY12YTFUICH\E%&`W+D`!EY44#5)')A3C4=X1'",Q<K=/`\
M,3'%6*[::!4J"4&``%G9'DQ"`J"14)0D3GI-VTS!Q1,`S)%@"1'IC4\Z-Q48
M4>#!E"1(*@D5$5B2&$MY/?(4!:%,JB-H>!A,0=@K*!<)"`P1,*`(@P&1HSRJ
M^&!<YT`\!L1PH^09`[]D"`2IHK=M'@%[!A0@D&?!V5,/VM%XT*B2$72!?/XN
M\Y(!*)$#A<DM(:2.`"^M//$\\J)0&88,"A0`BO<4QQI1.^=+RS$`$YH&J30"
M`4FX$9T!R[1"1/\L.6TQP#$"Q%`7!`ELH0`!`[P1P'DT5'5#(T.D]51%TCC'
MG5=>X"!A`5TPP!Q75%P8A1"5P`7,*%,DX`!KO;QS4#ZGS4#<?"3PU@`"\%VR
MUP@/'!##$C66D,`!=30&B$X1<F&E'!4)(X!\>XQC3S(P>=76#BPT>589(ABP
MP%.\B-#5"`(`HT`LF.5%X``$XO"/;A2^\4`!8FTAWXM>J=&$B4M5@1M^$,3W
M'6;11"I=*R0XUV5@*/'"D@`'%#C`'GAP(5P/?>PX189>]%<D/YW,4=HK`3B)
MR&\CX&E$$L"%X@H]J,S1"BYU$=B*7K\,Q,1)A;!V1`'9=/;5FTNMT%W2IDYL
M6,]7MT!PP"2!=?+6>52B,MP>"\Q345#&.)##"O/=@RLWA'8V&V<I*#!?%(X)
M$IHX=GEUT0,&N-)`:Z!0DX58NQWS$GDYQ?!-"\_(A8>`S)CU1<;3;9:B)'PM
MPW$)"GP\,BT<X=2"CB4H?#)(6[TL3G9\F63"<R^S*3,MB04%ELE=["ST#0A!
M,)L,(I\Y]-(S"#/%='P%S?346F%*@\F14JTUR<[5#`[)7F\]="6EVK`(=6*+
=/4^0,YPU6MI3"\#$$\?<!_?4P@D2@%_U.1$"`#L_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>h36669dh3666902.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 h36669dh3666902.gif
M1TE&.#EAHP'M`.9_`(^/C_[^X^\/A;6R(*P-830CBV8S33`P,'<'0GM[#$]*
M0ZA&>E)1".G8KM72*=3232`@(=K7D-P<??O$X;*O2!8#>%%"F_GX4I.,2?-+
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M'CXB,?%!;3T]!NKH2<2_P>GI4/6]4$!`0,#`P("`@/_______R'Y!`$``'\`
M+`````"C`>T```?_@'^"@X2%AH>(B8J+C(V.CY"1DI.4E9:7F)F:FYR-0'P\
M?T`W?S=`A*.EIYVLK:ZOL+&RL[2UFGV@.#H]?STZ.(*ZO+[`ML;'R,G*R\S-
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MW.Z]O?M".PK$XD.RFD'KV/AM8\G]O?_3+'@P7Q(VV!"*#OL!E"`?>T!PP!X0
M1BCAA!16:.&%&&:HX88<=NCAAR"&*.*())9HXHDH2G@`!RE>>``?!?:QRPTK
M\:%>,8(L]]^.FGG`@BS3D=*3(#QEYU.._?&HY/]@+ZPF7FM+1OE::K,D:8B.
M4F;YUFQ5`J?EEX[U1HN5A6`)YIE9&3>FEVBV"1=T6K'IYIQG@1<GE'3F^55\
M1\FIYY]5!=@GGH`6VE1\3G9)J*&,$N6C,63RU^BD0Q60J*)314KIIK`<X=N@
MF7(JJDM<0NKGJ*@:\X,2R&B*9*JP&I/"<<?X@XM]U[2$ZWV2QNIK+'"V"D0/
MU?SQBP[_3'/L/Z_^ZFPK*0C8ZJWZV9JC-M8:V^"#+7;K[;?@ABONN.26.R*+
MYE)X0!\BV7"#@>[:L%.\/,3;Z[/X9B)H,O[PP,.[_L!(BDTV!.SNO?DF3(FE
MRKAZC<,*/_MHPZ=&;/'_(@Q3O.C%'!_B*3,.F]FQLZ5J'.K(*`^R:C,A0YSR
MIK.R7/'+$0<+\LPT)QRM,RWGS/$.+[C4L\\6LV""T#@3_6O&,F^LM+,3\YST
MTZD60!O23E,-JY@O#:WUKR7S7)`W!>6*U*Y*B?QUGA]$-]>_!=J@`Q#(YF>L
M+LP^O+:O,;_=AWGO%IPLMO_HL&VZB">N^.*,-\YX!8Y;>(`.-,8+A+WUOINY
MO.SMG>H*TLZ%0Q_4"2XP-0!3<W#GGHL*]$Q>M[ZIT;!/+?N?3=:>]>V`1AU3
M[+P;:C5-P`?_)]>ZGVQ\H6'_;OOR8+8M5/'0N]DW\<]7+Z4/04^?O?9+@CX4
M__7@:_GZ^-^7_Q_MZ.^N?I2YMZ_\^UKR513Y]/,X/%'V^?MW>GT(Q4[^-SH!
M-BM_4D+>^&PU#?,`PVX.S)O:$+@;"X3F?CSP1;4&%Q!L2(,@(`FA"$=(PA*:
M\(0H3"%".*#"CB3A%/M(CXT&%T%N\(%`^,BA#G?(PQ[Z\(=`#.(W3D`&(=;#
M!GV(!@\(&,#T+!$8!408!?_C`_DL!7]3[,Z^C(+%+#+G?%=,GQ=S8X(?,:6+
M8Q1._,+HOC0*QWY-0:,;8_."JYU1C'/DC`+9.+\\#L>"3Y&C'SECLSCB<9".
MN9XAVXA(0EHQD(=LI%ZVZ!1!2G(P8(0D(R_IF#):Q?^2G,S+&@-9#?_Q8W6I
M.QWK0LD9.*[%7;X(Q;O>)0AZV6N5K-1,':\2L(.,)%L;Q`8/;E@P(QKSF,A,
MIC*720\RG("9]K!!#X!Q"AC5[5K+\F`?0-C";GKSF^`,IS@YP@$YC-,C2=C"
MWQ#$"UZ9QR!FDV(N"5/(M41RGF*Q$U9`B<^S\"DK_.QG6"CYR7L*%"O_!*A!
M#VH5W_%RH0R%RB@?NLF(@H5*7PFH1:O2/(KV<:-HV>,^(0K2HJ@)+!HMZ5+J
MJ="*JA0J^D0I25\ZDX3*U*4T90I!O9+2G-+$IB@M92I1:;K5'="G6'%H1F%I
M2UK^H:F<.RI2K3+1C&HCF-?_ZJ`@NH%#:'KUJV`-JUC1\89GCO4>TGS@W:Z9
MC6P*8B`%.:=<YTK7NMH5(BR\*TC2^3>T^>.=T^`5+J?JE)6EI:>$=<9)T8+8
MQ"Z#I6%IK&.3L3.U2':RQL@D8V>*V5KL5"R7[2PMF'98SHHV%DH]2VA/"PO2
M,B,#`H@M:S[*6IA\["6PE:UE3%M;5G34%E.@0@ZP`(,,:"&V`I@M5US66U88
MMA93F$`.JI`!&&`A!U28@B!RF]S=XK2YM5!D*ZPP@2Q<H;H9P&X):L5;\&("
MLIB8``IR8-STHF`"3:.M>RD;.DN40+CHO4(6)F`%YWUWOZ_0["/^.]SB5B$'
M!$:?_RRMHQU1&*E,S$6P)3Y[B.A.M[K7G8!VSXB#+:3D/.NYD3PU;`S7#H*\
MYC7N=:FPWED(80-^R<9!\)/5!$F5Q;;PG7S/6]P<W#<9%UA"`$0SC0,E"*O:
M<E#DIDSE*EMYR@3(,@$,$"$.J``!!)!`!M*P`"XH('(,&,`2EC``;QU`QS.J
MD8H'"V16<+<*Q'7#&B!<8&<4X0D@&`((UKP$).Q6@$/:B86OL^(Z6R*Z\Z7N
M<6.;!>W^%AD!:`((2#`"001`"*!6;EDR[%Y(?[BXUQWP>KF+W^<J`PE,(`$(
MF&!H3"W7T8P@KW")G('TJCH1)9B`L`LL7F.,0-`;6#*H;O^-:T'H.@>\3B^$
M\5L)[B7CSX$N`K_:&]$)[!J]TA8V*RI;BTQONM/+6.T\A9T#^@88NQ&.A8)?
M`6M9TUIJ!\YC=(>-"':[N[A7@'>?C\&^6!P;!,F>"[?5EP/D3B#861AN?0-.
MA7B[I*J<P/80M"T3=;_/"E5`+@P>?-\1!R6UF3`WI[V7[RQ:@0I7*"ZKF;*_
M3=1[UK5FN7[UC8(J:"&]U)9NNTT^E!VLX%.9.'C"N;CPO4VAYT6FME6`AIA,
M:)SC=VSY\IY>!>MFH<99^<`+#E.!"TY"Y>C6Y,[5QW6O@QVAJ2E`M,;>WT?<
M_-X%U?K:2I"%KF/AZV#YP0I>8`'_$YA]!^&)A-*5/5*]>Z4$O<X`"C;#=RQH
MX>]OQXH/3*"$%ZS@")>2Q-4C"X0D7#6>IQ?LCR\QA1PT(`N3)\H$D)L#QU1^
MY"C(_%40OX("*,$$=JP$VAD[K+;BS6YNI;,E9M^%,&1@$<$6MO2G+^SYMOOZ
MV&\W=2//?>[+O/N1AP%R?R[MBA/]++>O`@K.CY4/F,`"GJ?5)>Z><]7JF'!V
MTVJ4N94B`X1A"5U0!W4`!@2H909(``B0@`JX@`FH`B+P@!`8@1!8(@:`7`2P
M!P?P@`F897&0`6.0!FG`!5QP92'"!0LP!A)``"I`!R1X(AUP`G`P`RX``2B"
M`0_@``GP_P4M^"UO-@U0-2^:<TNK9PEHT`5KI@>`-@`8L`5P8`$I$"`_$'S*
M0%["QGZ$$%W?AEXD]W!"(5W&I7Y6>!4_P`(O\`(L8':8,'IW$3"E4%0#,U2D
MH'R58`4;4(=,(`A(<&,7``(/$`)GP`)*`'].R`)'\`.A-Q00=VJ]UF[FIPQ>
MB'MA:!4^X`&=!QZ'&`D!,`1_,'QZX7&,(`1-(&M#T`3:]@-CR`(6((@K0(CR
MMQ14V&Y8@%[7-6VO\(A70`4#!Q9','B_AX:8,`1+L(=X)QB>^`A%T`2"1@)-
M(`2%\`-'P`(K((@6P`(L8(I/@870UFL.9F1<.`FVB(MGX7Y*4/\`G\<)-T8"
M+;!F%P`9Q2@)`<`$@G8!&R`$]3<(.^",+)`"@J@$1O,#OK@4B4A=,L>((B8(
M#1=;MTADMYB+>^(I+Z`$'B"%E7",\?@$3)")A(9U@]&.E8`$(_`$>_@$(U"/
MAN`#/^`C^E@`@^@!40@5KRAQ,#!I`J`%"XD6'X"*9MB*PO>1>SB*&FD:')D)
M>M@"0W"1C_`!/U!&@4AX3UB(3O(!'%!W07&0`E![8C&)*2!W'G")=J>'FS:/
MPQ&4&1>*FT:*DV"*U)B*A,<!AR&5,X$"D1=[7B%XA&=XEP"*LB:/(\!XQ"&6
MK5`$\`@"\LB,E4!U%1!_<[)YG?=Y7,G_"(`):"!@D3_I''X)"P'PD8*Y`2,I
M"3M@`0+B*7*7>#N2*+SWD,!'"9>Y`1=`E,NH))4Y"QZIFI&YEY5`EY;X'H;A
M`>X'?RN@DXZ0AQL@:R0PCR2Y(Z]I#%Y9E)/I"!_0>Q#9F+%Q!&3GF1+YB<@H
MF"+)EUIRG-=&ELJXG(S@?@\9D;M1FA;`EAB'".\(DH'&!.#Y)=S)#.\X!"TP
MF(,P!-J)")M7AJ=I&G0YC;3R`4H`G;&YA\I(F(`2GR[AD8!V`<"HB8^P`Y3X
M`G89)CC)F(]PCIFYF9.BH#&!!.FX!"TPG/3H"!(ZCBOPCVHACB]PFXB`!.LH
M"(!9D48Y*AX*_Q-%0&CX.0*R2:+%:0@.V9MI,8GC&"W5:0@;L`0DT).MZ2M2
M<4.!I2OPI'IZ`QNI::#$N0B@&5-7@96FJ:*$\&D;(&@A*@,_FBI242!SPU;*
M<GR-=AI7^I4EB@C-V:);Z13F>8:)D(?(B*4CH&U-0&AIYRQ/&CC`A']O=3@[
MN*@1\@4,D``#H`9Y0`$:<&84$@,S4`%FT`&,*B$O.'8R6"$*H`$4\``7X``#
MD``,8`>=VJJ+^F:U]"Z70TN;LSEO2AQQZJ.%L)^_=Z3*,(:\>01B4`A"P`2R
M>0$6B:!$(Q5PB#IN>*O=<9D@.:)9*@B;!W_]F0PL&BU.4@0\NH?(NO^,9^HS
M-RH7C[F:HTB8)VJ&8-H*1*J5M)&:>3D$\YB?GE.N>G&N@;:,ZYJBKN"EO\<&
M-S8$?FJOP8.OCJ&OHR@%*>!YHFD)I6D&?1`!TSJ<?TI!"+L9^DJI'<"ECS"&
M9:`!&#``F<D$RII%&7L:Y^H`%!`"#9`H36`(0A`!(3``#A"N)SM'*9L;CWD'
M^\H$2Z"9P<F'Z3JN.MMTVT,#->``2S`'&-`&>."KDK2SQ-$`A!8!$46UPU$$
M&X`!3_">H:2US;99CC>VPB&V9AM92)NV[+BV;.L8:/NV+54(431`4-1$<C@3
MR,(4>[L4?6L4?TL4W9!UA,`#:I4--02M,;'_!TW!N$SAN$L!N?>##4Q7"#RF
M(-D"5WKE$!"PN9SKN0W1N:"[$*([N@B1!'M@N@EA>H5@N#0T0S9T5K([N[1;
MN[9+NX<013CP1`!D0'+[N\`;O,([O,3[4DOT5\"P1`)$:ID@5(*CO.EA5#P3
M0'!X`Q/D"CC@+M"K2H';#-E[`]"+`\!0#3CB#.\RO@<COJ70!T>"%;Q`'M\0
M6+U`N<Z0.3T0+]9[#3@`!)?S$O8+53V0OR^QOY<36+,D+SK`NBY!P$CT,-\0
M52]!.@43+^`0P!"<%3Q0-KDR.+\#3]X@OT_5O2#CP?N!`PK\$G(36/CQ+O3K
M$BF\P==0$+P`$S1B_QXPW`?J5+Y8,3JSQ,(<_!+3U%;2<`TW0!XQ$<1M6C?^
M,#<O4<36PKYUHTY[P+R6X,0ZYBZRFC?-4'H\0#?7@,72U`M@D;JDTP,!/#K%
MT,+,``0YC"MH+$W7VPELW%=3B@NCDP1QZ`QP;"/_(UAJO`Q[C,8T8L%]<,',
M$%=+A`N#S,(S7+R._,B0',F2/,F47,F6?,F8G,G`BR"JV\F>3$*&##Y[0`.D
M7,JF?,JHG,JJO,JLW,JN_,JP',NR/,NT7,NVC,JP2C][X`>\W,N^_,O`',S"
M/,S$7,S&?,S(G,S*O,S,W,S.#,R2JSZ[#,QBX`/![`12X`=&$`1^X`1.$/\$
M0>`$1```09#-3L#+Y^P'6\#+Z^P'-0`%Z`P%`.`'4``%-7#/\.P$-1`$1!#,
M7B!]5@#,]UP#W1P$\'S/04`#O$P$[]S-YSS."HW.P)S.Q&P$-1`%-6`$O1S1
MO%S/O(S1&>W+'*W,`7#-]SS/Q4P#05`#_8S,T5P^T^S+8O`"H"'0W`P`4>#.
M?D#*?@``_3S/!*W3-!`%V0P!\'P`$5T#-'``4$#*09W3!&T$(]W+5#D!O\S3
M4D`$!@W4O!S4_`P`INS3/MW5-"`%V2P%`,#28%W/'BW0Z'S.HVS/4IW470W1
M-+`'1I#74BT%99W-PKP!+1#,04W0WNP'$.T'?&W_V/,\SD8@!5+MTPJMT%+`
MTKS\TJ+L!^^7BA90`).AV=/HSOR,T4*MT$%=V0/M!U%@!#D-SE*0T&0M!5'@
MU%T-VOS,RU[`?3+Y?1G@!5H=!?,<!0=`!$2`T4&`TEM0`_K<U03-T^[\SD%@
M!#Z-T8R]!3DMV-U<S\F=S;$=T7NPSTK+V$I=RE'`T%#`S;P\`A>0WNDM`TL@
MF.I-`LU]T4Z`W6IM!.U,RA;M!#0``-#-T`1-T%O`T)6-0#'=RX:!&`)MSVD]
MVCK=TP*NT]V]R_N<T$E=REN@M%V=U]I<VKY<U5>-S@`@!5`0W!SN!]Q<W,*]
MX"*NW.[,TQ=]S]MLWA:MU=&S/=@$[=L4/ML,#=(6;<K_W>#`G*0BZM;*K=0\
M'M1&D,X4[N(__N-^8-G:4^`&O@+6?0`6S>#;7`-<[<YFW<V3_<W,'=[J/-3W
M?,X\'LQPV6LE\,NJ?<]:70-;D-R^G-;\#,Y$H+2E?<\ZO=);T-H)C<_6'>/0
M/=0`<.%T;>)^3@1;H-JQW>1_K=XE[<NEK=H&G>AYOM(YOM)F'02[?``UX-=0
M7CU2_LRD7NJF?NJHGNJJ3LP<'NK0,^JK'NNR/NNT7NO*3.,#GC\]X*J\WNOB
&<A>!```[
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
