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Exhibit 10.8  

 
 

PARADIGM GEOTECHNOLOGY B.V.
  2003 STOCK OPTION PLAN    
    

SECTION 1. Purpose; Definitions  

        The purpose of the Plan is to give Paradigm Geotechnology B.V. and its Affiliates (as defined below) a competitive advantage in attracting, retaining and
motivating officers, employees and non-employee directors, and to provide the Company and its Affiliates with a stock plan providing incentives linked to the financial results of the
Company's businesses and increases in shareholder value. 

        For
purposes of the PIan, the following terms are defined as set forth below: 

        An
"Affiliate" of the Company means a Person that (i) is held by the Company or (ii) is part of a group of companies,
including the Company, that forms part of an economic or organizational co-operation. A Person is deemed to be "held" by the Company if the Company holds (directly or indirectly) a
majority interest in and a majority of the voting rights of such Person. 

        "Board" means the Supervisory Board of the Company. 

        "Chairman" means one of the members of the Board who shall chair meetings of the Board. 

        "Common Stock" means the Ordinary Shares, par value one euro cent (€0.01) per share, of the Company. 

        "Company" means Paradigm Geotechnology B.V., a company organized under the laws of The Netherlands. 

        "Competitive Activity" means, unless otherwise approved in writing by the Company or any of its Affiliates, (i) directly or
indirectly, for the Participant's own account or the account of others, owning, managing, operating, controlling or participating in the management, operation or control of or be connected with as a
principal, employee, officer, director, independent contractor, representative, stockholder, financial backer, partner, advisor, manager, consultant or in any other individual or representative
capacity, any business or venture engaged in research and development, manufacture or production of software or provision of outsourcing services for the oil and gas exploration, development and/or
exploitation industry anywhere in the world, or any business or venture which is in competition with the business of the Company or any of its Affiliates or any business the Company or any of its
Affiliates was actively considering entering prior to termination of a Participant's employment, as determined by the Board in its discretion; and/or (ii) the Participant, directly or
indirectly, (a) soliciting, negotiating, encouraging or discussing any employment or consulting relationship, or (b) hiring, retaining or entering into (including agreeing to enter into)
any employment or consulting relationship, involving, in both (a) and (b), any person employed by the Company or any of its Affiliates ("Restricted Employee") during the Participant's
employment with the Company or any of the Company's Affiliates and/or during the twelve months period following the termination of the Participant's employment with the Company or any of the Company's
Affiliates. 

        "Effective Date" has the meaning set forth in Section 12. 

        "Employment" means, unless otherwise defined in an applicable Option Agreement or employment agreement, employment with, or service as a
director of, the Company or any of its Affiliates. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time, and any successor thereto. 

        "Exercise Price" has the meaning set forth in Section 5(a). 

 

        "Fair Market Value" of the Common Stock, unless otherwise provided in the applicable Option Agreement, means, as of any given date, the
mean between the highest and lowest reported sales prices of the Common Stock on any exchange or similar automated trading system on which the shares of Common Stock are listed. If the sales prices
listed in the immediately preceding sentence are not so available, the Fair Market Value of the Common Stock shall be determined by the Board in good faith. In determining the Fair Market Value, the
Board shall assess whether the calculation that it uses represents a reasonable surrogate of fair value; if the Board concludes that such calculation does not represent a reasonable surrogate for fair
value, it shall be entitled, if it deems necessary, to seek an independent appraisal. Upon the occurrence of an Acquisition (as defined below), the Fair Market Value of a share of Common Stock shall
be deemed to be equal to the consideration paid in such Acquisition. 

        "IPO" means the consummation of a registered underwritten public offering of Common Stock after the date hereof. 

        "Non-Employee Director" means a member of the Board who qualifies as a Non-Employee Director (as defined in
Rule 16b-3(b)(3) as promulgated by the SEC under the Exchange Act, or any successor definition adopted by the SEC). 

        "Option Agreement" means an agreement setting forth the terms and conditions of a Stock Option. An Option Agreement may include provisions
included in an employment or consulting agreement. 

        "Participant" has the meaning set forth in Section 4. 

        "Person" means an individual, corporation, partnership, limited liability company, joint venture, trust, unincorporated organization,
government (or any department or agency thereof) or other entity. 

        "Plan" means this 2003 Paradigm Geotechnology B.V. Stock Option Plan, as set forth herein and as hereinafter amended from time to time. 

        "Plan Shares" means Shares of Common Stock issued upon the exercise of a Stock Option. 

        "SEC" means the Securities and Exchange Commission or any successor agency. 

        "Securities Act" means the Securities Act of 1933, as amended from time to time, and any successor thereto. 

        "Stock Option" means an option granted under Section 5. 

        "Shareholders Agreement" has the meaning set forth in Section 11(a). 

        "Supervisory Board" means the Board of Supervisory Directors (Raad van Commissarissen) of
the Company. 

        "Trustee" means the trustee appointed by the Board to hold the respective Stock Options and/or Plan Shares, if so appointed. 

        In
addition, certain other terms used herein have definitions otherwise ascribed to them herein. 

SECTION 2. Powers and Administration  

        This Plan shall be and administered by the Board. 

        Among
other things, the Board shall have the authority, subject to the terms of the Plan, to: 

        (a)   determine,
modify, amend or adjust the terms and conditions of Stock Options that shall be granted under the Plan (including, but not limited to, the tax regime under
which the Stock Options shall be granted, the Exercise Price (subject to Section 5(a)), vesting conditions, restrictions or 

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limitations
and any acceleration of vesting or waiver or forfeiture regarding any Stock Option and the shares of Common Stock relating thereto); 

        (b)   determine
the Participants to whom Stock Options may from time to time be granted and the number and terms of Stock Options to be issued to each Participant (which
specific terms and conditions may be related to the performance of the Participant, the Company or any of its Affiliates); 

        (c)   determine
under what circumstances, if any, a Stock Option may be settled in cash or Common Stock under Sections 5(g); 

        (d)   interpret
the terms and provisions of the Plan and any Stock Option issued under the Plan (and any agreement relating thereto); 

        (e)   adopt,
alter and repeal administrative rules, guidelines and practices governing the Plan as it shall from time to time deem advisable; and 

        (f)    determine
which Stock Options shall be issued pursuant and subject to the provisions of Section 102 ("Section 102" and such options, "102 Stock Options")
of the Israeli Income Tax Ordinance (New Version) 1961, as amended (the "Ordinance") and any regulations, rules, orders or procedures promulgated thereunder and determine whether options shall be
issued under the "income" route or the "capital" route under Section 102. 

        The
Board may act by the vote of at least a majority of its members then in office. The Board members may authorize any one or more of the Board's members or any officer of the Company
to execute and deliver documents on behalf of the Board. 

        To
the extent permitted by applicable law and by the Articles of Association of the Company, the Board shall be entitled to delegate any or all of its authority hereunder to a committee
designated by the Board among its members. 

        Any
dispute or disagreement that may arise under, or as a result of, or in any way relate to, the interpretation, construction or application of the Plan or a Stock Option (or related
Option Agreement) granted hereunder shall be determined by the Board. Any determination made by the Board pursuant to the provisions of the Plan with respect to the Plan, any Stock Option or Option
Agreement shall be made in the sole discretion of the Board and, with respect to a Stock Option, at the time of the grant of the Stock Option or, unless in contravention of any express term of the
Plan or the Option Agreement, at any time thereafter. All such decisions made by the Board shall be final and binding on all Persons, including the Company and the Participants. 

SECTION 3. Common Stock Subject to Plan  

        The total number of shares of Common Stock reserved and available for grant under the Plan shall be 3,502,427 [increased by 3,000,000 by resolution
dated July 14, 2005]. Shares subject to a Stock Option under the Plan may be authorized and unissued shares or may be treasury shares. 

        If
any Stock Option terminates without being exercised, or if any Stock Option is exercised for or settled in cash, the shares subject to such Stock Options shall again be available for
distribution in connection with Stock Options under the Plan. 

SECTION 4. Participants  

        Officers, employees and non-employee directors of the Company and its Affiliates who are responsible for or contribute to the management, growth and
profitability of the business of the Company and its Affiliates may be selected by the Board as "Participants" eligible to be granted Stock Options under the Plan, provided, however, that 102 Stock
Options may be granted only to employees and directors of the Company or its Affiliates. 

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SECTION 5. Stock Options  

        The Board shall have the authority to grant Stock Options under the Plan. Stock Options shall be evidenced by Option Agreements, which shall include such terms
and provisions as the Board may determine from time to time. Forms of Option Agreements for initial awards of Stock Options under the Plan are attached as Exhibits A and B hereto (the "Form
Agreements"). The Board may determine to include in any Option Agreement terms that are different from, or that are not included in, the Form Agreements, in order to address individual situations, and
provided that making such terms is within the Board's authority under the Plan. The grant of a Stock Option shall occur on the date the Board, by resolution selects an individual to receive a grant of
a Stock Option, determines the number of shares of Common Stock to be subject to such Stock Option to be granted to such individual and specifies the terms and provisions of the Stock Option, or on
such other date as the Board may determine. The Company shall notify a Participant of any grant of a Stock Option, and a written Option Agreement shall be duly executed and delivered by the Company to
the Participant. Subject to
Section 11(a), such Option Agreement shall become effective upon execution by the Company and the Participant. 

        Stock
Options shall be subject to the following terms and conditions, and shall contain such additional terms and conditions as the Board shall deem desirable: 

        (a)   Exercise Price.    Unless otherwise determined by the Board, the price per share of Common Stock purchasable
under a Stock Option shall be the Fair Market Value of a share of Common Stock on the date the Stock Option is granted as determined by the Board and set forth in the Option Agreement (the "Exercise
Price"). 

        (b)   Option Term.    The term of each Stock Option shall be fixed by the Board. Absent any such term being fixed by
the Board, pursuant to an Option Agreement or otherwise, such term shall be 10 years. 

        (c)   Exercisability.    Each Stock Option granted under the Plan shall vest and become exercisable upon such terms
and conditions as the Board may determine upon issuance of such Stock Option. If the Board provides that any Stock Option is exercisable only in installments, the Board may at any time waive such
installment exercise provisions, in whole or in part, based on such factors as the Board may determine. In addition, the Board may at any time accelerate the exercisability of any Stock Option and
may, based on the Board's discretion on a case by case basis, include in any Form Agreement different acceleration provisions. 

        (d)   Method of Exercise.    Subject to the provisions of this Section 5, vested Stock Options may be
exercised, in whole or in part, at any time during the option term by giving written notice of exercise to the Company specifying the number of shares of Common Stock subject to the Stock Option to be
purchased. 

        Such
notice shall be accompanied by payment in full of the Exercise Price per share by certified or bank check, payable in accordance with the instructions of the Company, or such other
instrument as the Company may accept. At the discretion of the Board and upon the Participant having so requested in the notice of exercise, payment, in full or in part, may also be made by sale and
transfer to the Company of fully vested Common Stock already owned by the Participant (for at least six months if acquired upon exercise of a Stock Option) of the same class as the Common Stock
subject to the Stock Option (based on the Fair Market Value of the Common Stock on the date the Stock Option is exercised); any such transaction shall be effected as a sale of shares of Common Stock
by the Participant to the Company with the subsequent application by the Participant of the proceeds of such sale as the payment of the exercise price of the Stock Option. The Board shall not agree,
and any agreement given shall be deemed not to have been given, if the purchase by the Company of the 

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Common
Stock and payment of the purchase price violates the requirements under Netherlands law and the Articles of Association of the Company. 

        In
the discretion of the Board after an IPO, payment for any shares subject to a Stock Option may also be made by delivering a properly executed exercise notice to the Company, together
with a copy of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale proceeds to pay the aggregate Exercise Price, and, if requested by the Company, the amount of
any withholding taxes. To facilitate the foregoing, the Company may enter into agreements for coordinated procedures with one or more brokerage firms. 

        In
addition, at the discretion of the Board, payment of the Exercise Price for any shares subject to a Stock Option may also be made in accordance with such other payment methods as may
be permitted by the Board in its sole discretion. 

        No
shares of Common Stock shall be issued until full payment therefor has been made. Except as otherwise provided in the Shareholders Agreement or the applicable Option Agreement,
subject to a Participant's compliance with Section 11(a) and subject to Section 8, a Participant shall have all of the rights of a stockholder of the Company holding the class or series
of Common Stock that is subject to such Stock Option (including, if applicable, the right to vote the shares and the right to receive dividends and distributions), when the Participant has given
written notice of exercise, has paid in full for such shares, if requested has given the representations referred to in Section 11(c), and the shares of Common Stock have been issued or
transferred by means of a notarial deed executed in front of a Dutch notary. 

        (e)   Nontransferability of Stock Options.    Except as otherwise permitted by the Supervisory Board of the Company,
no Stock Option shall be transferable by the Participant other than by will or by the laws of descent and distribution or as otherwise expressly permitted under the applicable Option Agreement,
including, if so permitted pursuant to a gift to such Participant's spouse, children, grandchildren or other living descendants, whether directly or indirectly or by means of a trust, partnership,
limited liability company or otherwise, and in any event, subject to the restrictions in the Shareholders Agreement and to the provisions hereof (including, without limitation, Section 5(0).
All Stock Options shall be exercisable, subject to the terms of the Plan, during the Participant's lifetime, only by the Participant or any person to whom such Stock Option is transferred pursuant to
the preceding sentence, including such Participant's guardian, legal representative and other transferee. The term "Participant" includes the estate of the Participant or the legal representative of
the Participant named in the Option Agreement and any person to whom an Option is otherwise transferred in accordance with this Section 5(e), by will or the laws of descent and distribution;  provided, however,
 that references herein to Employment of a Participant or termination of Employment of a Participant shall continue to refer to the
Employment or termination of Employment of the applicable grantee of a Stock Option hereunder. For so long as 102 Stock Options or Plan Shares issued upon the exercise thereof ("102 Shares") are held
by the Trustee on behalf of the Participant, all rights of the Participant over the shares are personal and may not be transferred, assigned, pledged or mortgaged, other than by will or pursuant to
the laws of descent and distribution. 

        (f)    Termination of Employment.    Except as otherwise provided hereunder or in the applicable Option Agreement,
upon the Participant's death or when the Participant's Employment is terminated for any reason, the Participant: 

        (i)    shall
forfeit all Stock Options that have not previously vested; and 

        (ii)   shall
have three months (provided that in the event such termination results from the death or disability the Participant, twelve months) to exercise the Participant's
vested Stock Options that are vested on the date of the Participant's termination of Employment. 

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        Any
vested Stock Options not exercised within the permissible period of time shall be forfeited by the Participant. Notwithstanding any of the foregoing, the Participant shall not be
permitted to exercise any Stock Option at a time beyond the initial option term. Termination of the Employment of a Participant shall be deemed to occur on the date set forth in a termination notice
from the Company or any of its Affiliates to such Participant, or on any such earlier date on which the Participant notifies the Company or its Affiliate that such Participant is terminating his
Employment. 

        With
respect to 102 Stock Options without a Trustee, if a Participant ceases to be employed by the Company or any Affiliate, the Participant shall extend to the Company or its Affiliate
a security or
guarantee for the payment of tax due at the time of sale of Shares, all in accordance with the provisions of Section 102 and the rules, regulations or orders promulgated thereunder. 

        (g)   Cashing Out of Stock Option.    Upon receipt of written notice of exercise, and unless otherwise specified in
the applicable Option Agreement, the Board may elect to cash out all or any portion of the shares of Common Stock for which a Stock Option is being exercised by paying the Participant an amount, in
cash or Common Stock, equal to the excess of the Fair Market Value of one share of Common Stock over the Exercise Price per share times the number of shares of Common Stock having such Exercise Price
for which the Stock Option is being exercised on the effective date of such cash-out. 

SECTION 6. Non-Competition  

        In the event a Participant engages in a Competitive Activity during the twelve month period following the termination of the Participant's employment with the
Company or any of the Company's Affiliates, (i) any Plan Share held by a Participant may be purchased by the Company for the lesser of the Exercise Price of such Plan Shares (without interest)
and the Fair Market Value of such Plan Shares, and (ii) any Stock Option held by the Participant shall be immediately canceled. Unless otherwise determined by the Board, notwithstanding the
foregoing, the Company shall not exercise its right to repurchase any Plan Share less than six-months after the date such Plan Share was acquired by the Participant. 

SECTION 7. Term, Amendment and Termination  

        This Plan will terminate 10 years after the Effective Date. Stock Options outstanding as of such date shall not be affected or impaired by the termination
of the Plan. 

        The
Board may amend, alter, or discontinue the Plan, prospectively or retroactively, but no amendment, alteration or discontinuation shall be made that would materially impair the rights
of any Participant under a Stock Option theretofore granted without the Participant's consent. 

        The
Board may amend the terms of any Stock Option theretofore granted, prospectively or retroactively, but no such amendment shall be made which would materially impair the rights of any
Participant thereunder without the Participant's prior written consent. 

SECTION 8. 102 Stock Options  

        Stock Options granted pursuant to this Section 8 are intended to constitute 102 Stock Options and, subject to Section 102 of the Ordinance and the
rules and regulations promulgated thereunder, as amended, the general terms and conditions specified in this Plan, except for said provisions of the Plan applying to Stock Options under a different
tax law or regulation, shall apply. 

        The
Board shall determine, subject to applicable law, whether 102 Stock Options shall be issued either under the "income" route or under the "capital" route, in accordance with the
provisions of the Ordinance. 

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        To
the extent required by the Ordinance or the income tax authorities of the State of Israel, the 102 Stock Options shall be issued to a Trustee nominated by the Board and approved by
the tax authorities in accordance with the provisions of the Ordinance, and the 102 Stock Options and the 102 Shares shall be issued in the name of the Trustee, to be held for the benefit of the
Participant, for such period of time as may be required by the Ordinance under the terms of a trust agreement and related instruments as shall be approved by the Board. During such period, the Trustee
shall hold all the rights derived from the Stock Options and Plan Shares held by the Trustee, including bonus shares, and they shall be subject to the same taxation route. Any distribution of
dividends with respect to 102 Shares shall be subject, inter alia, to the provisions of Section 102 and the rules, regulations or orders
promulgated thereunder, as applicable. 

        Notwithstanding
anything to the contrary, unless otherwise agreed upon between the Company and the income tax authorities of the State of Israel in accordance with the Ordinance, no
Stock Options or Plan Shares shall be released, delivered or sold by the Trustee until the end of the applicable minimum holding period required under the Ordinance and the rules and regulations
promulgated thereunder, as amended. If, notwithstanding the foregoing, any such sale or release occurs during the holding period required under Section 102 and the rules and regulations
promulgated thereunder, the sanctions under Section 102 and under any rules or regulation or orders or procedures promulgated thereunder shall apply to and shall be borne by such Participant. 

        Notwithstanding
anything to the contrary, the Trustee shall not release any 102 Shares prior to the full payment of the Participant's tax liabilities arising from 102 Stock Options
granted to him or any 102 Shares. 

        With
regard to 102 Stock Options issued to the Trustee, the provisions of the Plan and the Option Agreement shall be subject to the provisions of Section 102 and the Tax Assessing
Officer's permit, and such provisions and permit shall be deemed an integral part of the Plan and of the Option Agreement. Any provision of Section 102 or such permit which is necessary in
order to receive or to keep any tax benefit pursuant to Section 102 which is not expressly specified in the Plan or the Option Agreement, shall be considered binding upon the Company and the
Participants. 

SECTION 9. Unfunded Status of Plan  

        It is presently intended that the Plan constitute an "unfunded" plan for incentive and deferred compensation. The Board may authorize the creation of trusts or
other arrangements to meet the obligations created under the Plan to deliver Common Stock or make payments; provided,  however, that unless the Board
otherwise determines, the existence of such trusts or other arrangements is consistent with the "unfunded" status of the
Plan. 

SECTION 10. Adjustments  

        Unless otherwise specified in an applicable Option Agreement, upon the occurrence of any of the following described events, a Participant's rights to purchase
shares under the Plan shall be adjusted as hereinafter provided: 

        (a)   If
the Common Stock shall be subdivided or combined into a greater or smaller number of shares or if the Company shall issue any shares as a stock dividend on its
outstanding Common Stock, the number of shares of Common Stock deliverable upon the exercise of Stock Options shall be appropriately increased or decreased proportionately, and appropriate adjustments
shall be made in the Exercise Price to reflect such subdivision, combination or stock dividend; 

        (b)   If
the Company is party to a consolidation, merger or reorganization with another company, or in the event of a sale or other disposition or transfer of a majority of
the Company's assets or shares, or in the event of any other transaction or series of related transactions which results or result 

7

 

in
a change of the composition of the Supervisory Board such that a majority of the members of the Supervisory Board are persons who were not members of the Supervisory Board prior to such transaction
or series of related transactions and were not nominated by Paradigm Geotechnology Holdings B.V. (each, an "Acquisition"), the Board or the board of directors of any entity assuming the obligations of
the Company hereunder (the "Successor Board"), shall in its absolute discretion, as to outstanding Stock Options, be authorized to take any, or any combination, of the following actions:
(i) make an appropriate provision for the continuation of such Stock Options by substituting on an equitable basis for the shares or other property then subject to such Stock Options either
(a) the consideration payable with respect to such shares or other property in connection with the Acquisition, (b) shares of stock of the surviving or successor company, or the parent
entity of the surviving or successor company, or (c) such other securities or property as the Successor Board deems appropriate, the fair market value of which shall not materially exceed the
fair market value of the shares or other property subject to such Stock Options immediately preceding the Acquisition; (ii) upon written notice to the Participants, provide that all vested
Stock Options must be exercised, within a specified number of days of the date of such notice, at the end of which period the vested Stock Options shall terminate; (iii) terminate all Stock
Options in exchange for a cash or other payment equal to the excess, if any, of the Fair Market Value of the Common Stock subject to such Stock Options over the exercise price thereof; or
(iv) take any other action with respect to the outstanding Stock Options which would have a substantially similar economic effect as any of the foregoing; and 

        (c)   The
Board shall determine the specific adjustments to be made under this paragraph 10, and its determination shall be conclusive. 

        (d)   In
the event of the proposed dissolution or liquidation of the Company, each Stock Option will terminate immediately prior to the consummation of such proposed action or
at such other time and subject to such other conditions as shall be determined by the Board and in accordance with any other provision of the Plan. 

        (e)   Except
as expressly provided herein, no issuance by the Company of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price of shares subject to Stock Options. No adjustments shall be made for dividends paid in cash or in property other than
securities of the Company. 

SECTION 11. General Provisions  

        (a)   Shareholders Agreement.    Notwithstanding anything in the Plan to the contrary, unless the Board determines
otherwise, it shall be a condition to receiving any Stock Option under the Plan or transferring any Stock Option in accordance with Section 5(e) or any other transfer permitted under the terms
of a Option Agreement or otherwise, that a Participant (or transferee in the case of such transfer) shall become a party to the Shareholders Agreement among the Company and certain shareholders of the
Company, as shall be in effect from time to time (the "Shareholders Agreement"). 

        (b)   Stock Options and Certificates.    Plan Shares shall be governed by the Shareholders Agreement and shall be
evidenced in such manner as the Board may deem appropriate, including book entry registration or issuance of one or more stock certificates. If the Articles of Association of the Company provide for
the issuance of certificates, any certificate issued in respect of Plan Shares shall be registered in the name of such Participant or in the name of the Trustee on behalf of the Participant, as the
case may be, and shall bear appropriate legends referring to the terms, conditions, and restrictions applicable to such Stock Option, substantially in the following form: 

"The
transferability of this certificate and the shares of stock represented hereby are subject to the terms, conditions and restrictions (including forfeiture) of the Paradigm Geotechnology B.V.
Stock Option Plan and an Option Agreement, as the case may be, between the issuer and the registered holder hereof, as well as the Shareholders Agreement relating to Paradigm 

8

 

Geotechnology
B.V. Copies of such Plan and Agreements are on file at the offices of Paradigm Geotechnology B.V. at Telestone—Teleport, Naritaweg 165, 1043 BW, Amsterdam, The
Netherlands." 

"The
securities represented by this certificate have not been registered under the securities laws of any jurisdiction, and may not be sold or otherwise disposed of except in accordance with any
applicable securities laws." 

Such
Plan Shares may bear other legends to the extent the Board determines it to be necessary or appropriate, including any required by the Shareholders Agreement or pursuant to any applicable Option
Agreement. If and when all restrictions expire without a prior forfeiture of the Plan Shares theretofore subject to such restrictions, upon surrender of legended certificates representing such shares
new certificates for such shares shall be delivered to the Participant without the first legend listed above. 

        (c)   Representations and Warranties.    The Board may require each person purchasing or receiving Plan Shares to
(i) represent to and agree with the Company in writing that such person is acquiring the shares without a view to the distribution thereof and (ii) make any other representations and
warranties that the Board deems appropriate. 

        (d)   Additional Compensation.    Nothing contained in the Plan shall prevent the Company or any of its Affiliates
from adopting other or additional compensation arrangements for its employees. 

        (e)   No Right of Employment.    Adoption of the Plan or grant of any Stock Option shall not confer upon any employee
any right to continued Employment, nor shall it interfere in any way with the right of the Company or any of its Affiliate to terminate the Employment of any eligible Participant at any time. 

        (f)    Withholding Taxes.    All tax consequences, under any existing or future applicable law, that may arise from
the grant of a Stock Option, from the exercise thereof, from the sale of Plan Shares by a Participant or from any other act of the Company or the Participant in connection with any of the foregoing,
shall be borne solely by such Participant, and the Participant shall indemnify the Company and each Affiliate, and hold them harmless, against and from any liability for any such tax or any penalty,
interest or indexation thereon or thereof. No later than the date as of which an amount first becomes includible in the gross income of a Participant for income tax purposes with respect to any Stock
Option under the Plan, such Participant shall pay to the Company or, if appropriate, any of its Affiliates, or make arrangements satisfactory to the Board regarding the payment of, any national, state
or local taxes of any kind required by the laws of any jurisdiction to be withheld with respect to such amount. If approved by the Board, withholding obligations may be settled with Common Stock,
including Common Stock that is part of the Stock Option that gives rise to the withholding requirement. The obligations of the Company under the Plan shall be conditional on such payment or
arrangements, and the Company and its Affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise due to the Participant. The Board may
establish such procedures as it deems appropriate, including making irrevocable elections, for the settlement of withholding obligations with Common Stock. 

        (g)   Beneficiaries.    The Board shall establish such procedures as it deems appropriate for a Participant to
designate a beneficiary to whom any amounts payable in the event of the Participant's death are to be paid or by whom any rights of the Participant, after the Participant's death, may be exercised. 

        (h)   Governing Law.    The Plan and all Stock Options made and actions taken thereunder shall be governed by and
construed and enforced in accordance with the laws of The Netherlands without regard to the principles of conflicts of law thereof. 

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        (i)    Compliance with Laws.    if any law or any regulation of any commission or agency having jurisdiction shall
require the Company or a Participant seeking to exercise Stock Options to take any action with respect to the Plan Shares to be issued upon the exercise of Stock Options then the date upon which the
Company shall issue or cause to be issued the certificate or certificates for the Plan Shares shall be postponed until full compliance has been made with all such requirements of law or regulation;  provided, that the Company shall use its reasonable efforts to take all necessary action to comply with such requirements of law or regulation.
Moreover, in the event that the Company shall determine that, in compliance with the Securities Act or other applicable statutes or regulations, it is necessary to register any of the Plan Shares with
respect to which an exercise of a Stock Option has been made, or to qualify any such Plan Shares for exemption from any of the requirements of the Securities Act or any other applicable statute or
regulation, no Stock Options may be exercised and no Plan Shares shall be issued to the exercising Participant until the required action has been completed;  provided, that the Company shall use its
reasonable efforts to take all necessary action to comply with such requirements of law or regulation.
Notwithstanding anything to the contrary contained herein, neither the members of the Board nor the members of any committee appointed hereunder owes a fiduciary duty to any Participant in his or her
capacity as such. To the extent any provision herein conflicts with the conditions of any relevant tax law or regulation which are relied upon for tax relief in respect of a particular Stock Option or
Plan Share granted to a Participant, the provisions of such law or regulation shall prevail over those of this Plan, and the Board is empowered hereunder to interpret and enforce the said prevailing
provisions. 

SECTION 12. Effective Date of Plan  

        This Plan shall be effective as of the date it is approved by the holders of a majority of the outstanding shares of Common Stock (the "Effective Date"). 

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Exhibit 10.9  

 
 

LICENCE AGREEMENT FOR THE UTILIZATION OF DSI PATENTS    
    

BETWEEN:  

        TOTAL SA, a Société Anonyme (public
limited company) under French law, whose registered office is located at 2, Place de la Coupole, La Défense 6, 92400 COURBEVOIE, represented by Mr. Thibaut HUYGHUES-DESPOINTES,
Director of Research, Exploration and Production, hereinafter referred to as "TOTAL" 

        La COMPAGNIE GENERALE DE GEOPHYSIQUE, a Société Anonyme
(public limited company), whose registered office is located at 1, rue Léon MIGAUX 91341 MASSY CEDEX, represented by Michel MANIN, Director of Technology Development, hereinafter
referred to as "CGG" 

        Mr. Jean Laurent MALLET, domiciled at 8, Rue de la Croix Gagnée, 54500 Nancy, hereinafter referred to as "the
INVENTOR" 

        TOTAL,
CGG and the INVENTOR being referred to as the "Co-owners", 

on
the one hand 

AND  

        EARTH DECISION SCIENCES, a Société
Anonyme (public limited company), whose registered office is located at Technopole Nancy-Brabois, 22 allée de la forêt de reine, 54500, VANDOEUVRE
LES NANCY, registered in the Companies Register at NANCY under number B 410 087159 and represented by its President and Chief Executive Officer, Mr. Jean Claude DULAC, hereinafter referred to
as "EDS". 

on
the other hand 

        TOTAL,
CGG, the INVENTOR and EDS being referred to individually as "the Party" or collectively as "the Parties". 

        WHEREAS:

        CGG,
ELF EXPLORATION PRODUCTION and TOTAL EXPLORATION PRODUCTION have participated since 1988 in a research project named "GOCAD" which was initiated by the INVENTOR. 

        On
20/09/1989 the INVENTOR filed a French patent application No. 89 12341, concerning the method called "DSI" (or "Discrete Smooth Interpolation"), developed by him and entitled
"A Technique to obtain modelling of a surface by a grid using measurement points and definition of a roughness index and a global index of violation of geometrical data", allowing the construction,
editing, viewing and use of three-dimensional objects, such as geological formations or living bodies. This technique is used by the GOCAD Software Package, owned by the  Association Scientifique pour la Géologie et ses
Applications (ASGA) an association governed by the 1901 Law. 

        The
INVENTOR transferred the patent application on 17 September, 1990 under agreement No. Elf 8156 in the following proportional shares: half to ASGA and 1/6 each to CGG,
ELF EXPLORATION PRODUCTION and TOTAL EXPLORATION PRODUCTION. In September 1990, ASGA, CGG, ELF EXPLORATION PRODUCTION and TOTAL EXPLORATION PRODUCTION extended the patent application to foreign
countries in their names. 

1

 

        GOCAD's
initial project phase confirmed the validity of the method covered by the DSI patents and a second research and development phase was carried out from 1989 to the start of 1998,
with the primary objective of developing the GOCAD software. A number of additional partners participated in this phase within an organisation called the "GOCAD Consortium". At the end of this second
phase, the GOCAD Consortium decided to authorise the commencement of the marketing phase of the GOCAD project (Phase III) and T-SURF was entrusted with responsibility for this
marketing activity. 

        To
this end, ASGA transferred to T-SURF its proprietary rights to exploit the GOCAD Software Package. In addition, ASGA, CGG, ELF EXPLORATION PRODUCTION and TOTAL EXPLORATION
PRODUCTION granted a licence for the utilization of the DSI Patents to T-SURF to carry out the marketing. This grant was in the form of a licence agreement entitled "Agreement for the
utilization of DSI Patents", ref. EEP No. 11564, effective 1 April, 1998, which was amended by codicil No. 1, ref. EEP 11564A1, effective 1 January, 1999. 

        In
addition, ASGA, CGG, ELF EXPLORATION PRODUCTION and TOTAL EXPLORATION PRODUCTION have signed a co-ownership agreement for the DSI Patents, entitled "Patent Ownership
Agreement", ref. EEP 11638, effective 1 January 1998, which was amended by codicil No. 1, ref. EEP 11638A1. ASGA did not wish to take part in the exploitation phase of the DSI Patents
and on 24 July 1998, with the consent of CGG, ELF EXPLORATION PRODUCTION and TOTAL EXPLORATION PRODUCTION transferred its 50% share of the DSI Patents to the INVENTOR. The transfer was recorded
in the National Patents Register. 

        TSURF
has changed its name and is now known as EARTH DECISION SCIENCES. In addition, ELF EXPLORATION PRODUCTION and TOTAL EXPLORATION PRODUCTION have merged to become TOTAL, which has
inherited the rights and obligations of ELF EXPLORATION PRODUCTION and TOTAL EXPLORATION PRODUCTION under the above-mentioned agreements (therefore, now holding 1/3 of the DSI Patents). 

        TOTAL,
CGG and the INVENTOR wish to increase marketing activities for the GOCAD Software Program and the DSI Patents in general and have agreed with EDS to sign a new licence agreement
for the DSI Patents, which constitutes the objective of this present agreement document. 

THE PARTIES AGREE TO THE FOLLOWING:  

Article 1. DEFINITIONS  

        In this Agreement, when the following words and phrases are used with the first letter capitalised, they shall have the following meanings: 

	•
	"Affiliate"
means any company in which a Party holds or might hold, either directly or indirectly, at least 50% of the share capital or voting rights at general meetings.

	•
	"DSI
Patents" or "Patents": means the collection of patents and patent applications, both French and foreign, resulting from French application No. 89 12 341 and
which are listed in the attached Appendix 1.

	•
	"Agreement"
means this Agreement and its appendices.

	•
	"GOCAD
Software Program" means the software which performs subsoil modelling and which is currently named GOCAD (including source code, object code and the accompanying
documentation), marketed by EDS under a licence granted by ASGA in 1998 and which contains an implementation of the Patents, in addition to any software program used in conjunction with GOCAD and
which itself contains an implementation of the Patents.

	•
	"Maintenance"
means maintenance to correct, adapt or enhance the GOCAD Software Program, carried out by EDS within the framework of its marketing activity. 

2

 

	•
	"Operation"
means an investment operation, which is scheduled to be carried out in October 2003, resulting in the entry of a group of investors into EDS share
capital.

	•
	"Improvements"
means any patentable improvement made by a Party to the method protected by the DSI Patents, which depends on the DSI Patents, i.e. which cannot be exploited
or utilized without causing an infringement of one of its claims. 

Article 2. PURPOSE OF THE AGREEMENT  

        The purpose of this Agreement is to define the terms and conditions under which the Co-owners grant a licence for the utilization of the DSI Patents
to EDS. 

Article 3. NATURE AND SCOPE OF THE LICENCE  

	3.1
	Under
the terms of this Agreement, the Co-owners grant to EDS, who accepts, a licence for the utilization of the DSI Patents (hereinafter "Licence"), allowing EDS
primarily to carry out marketing and Maintenance of the GOCAD Software Program.

	3.2
	The
Licence is granted irrevocably, provided that EDS achieves an annual turnover figure (excluding tax) of over 500,000 euros (five hundred thousand euros).

	3.3
	The
Licence is granted exclusively, with the exception of any non-exclusive rights existing at this Agreement's signing date which relate to the GOCAD Software Program as
it existed in 1998 before the start of phase III mentioned in the preamble. It is stated that in this context, no rights to the Patents have been granted by the Co-owners and that the
Co-owners have renounced and if necessary will renounce any commercial exploitation of the Patents either by themselves or by third parties. The exclusive nature of the agreement is
conditional on EDS distributing to the Co-ownership group a minimum amount of 75,000 euros (seventy-five thousand euros) in royalties per annum. Exclusive rights will be
automatically cancelled in the event of EDS's non-compliance with this obligation.

	3.4
	The
Licence is granted with no area or geographical limitations.

	3.5
	The
Licence includes the right for EDS to freely grant utilization sub-licences to its clients, primarily to allow them to use the GOCAD Software Program. Likewise, it
includes the right for EDS to freely grant marketing sub-licences to its Affiliates or third parties, subject to informing the Co-owners of any such licences and their terms
and to guarantee to the Co-owners that the sub-licensees will respect the commitments made by EDS in respect of this Agreement. In addition, in the sub-license
agreement, each sub-licensee must commit to respect obligations identical to those made by EDS under this Agreement and EDS commits to provide a copy of this agreement to the
Co-owners at their request. Moreover, any grant of a sub-licence of an exclusive nature, relating to the rights granted by the Co-owners under the terms of the
present Agreement will require the prior consent of the Co-owners. 

Article 4. FINANCIAL TERMS  

        The Licence will be subject to royalties to be allocated to the Co-owners as follows: 

4.1   Royalties allocated to TOTAL and CGG  

	4.1.1
	Royalties
from marketing the GOCAD Software Program Royalties will be equal to 0.75% of the annual turnover (excluding taxes) achieved by EDS and its sub-licensees, from
marketing of the GOCAD Software Program (in relation to sale, rental and leasing of user sub-licences as well as for Maintenance), and will be shared between TOTAL and CGG as follows:

	•
	For
TOTAL: 0.5% (zero point five per cent), 

3

 

	•
	For
CGG: 0.25% (zero point twenty five per cent).

	

	It
is stated that the right to receive royalties commences from delivery of the GOCAD Software Program by EDS to the users.

	4.1.2
	Royalties
on any use of the DSI Patents, outside of marketing of the GOCAD Software Program

	

	In
the event that EDS itself, (or one of its Affiliates) utilises the DSI Patents outside of the GOCAD Software Program, royalties will be equal to 0.75% of annual
turnover (excluding taxes) relating to this utilization and will be shared between TOTAL and CGG as follows:

	•
	For
TOTAL: 0.5% (zero point five per cent),

	•
	For
CGG: 0.25% (zero point twenty five per cent).

	

	It
is stated that any marketing by EDS (or by one of its Affiliates) of software which uses all or part of the functions of the GOCAD Software Program, but which does not
contain an implementation of the Patents is not subject to royalties.

	

	In
the event that EDS (or one of its Affiliates) grants a sub-licence to utilize the DSI Patents to a third party outside of the GOCAD Software Program,
without specific services or delivery of a software component by EDS, in return for the payment of a remuneration in the form of royalties or any other form of payment, royalties will be equal to
22.50% of the amount of royalties received and will be shared between TOTAL and CGG as follows:

	•
	For
TOTAL: 15% (fifteen per cent),

	•
	For
CGG: 7.5% (seven and a half per cent).

	

	In
any event, the amount of royalties paid to TOTAL and CGG under the provisions of article 4.1.2 will be subject to an annual ceiling figure of 100,000 euros. 

4.2   Royalties allocated to the INVENTOR  

	4.2.1
	Variable
Royalties

	

	The
INVENTOR will be entitled to receive variable royalties equal to 1% of the amount:

	(i)
	of
the annual turnover (excluding taxes) achieved by EDS and its sub-licensees, for utilization of the GOCAD Software Program (in relation to sale, rental and leasing of
user sub-licences as well as for Maintenance) and

	(ii)
	in
the event that EDS itself (or one of its Affiliates) utilizes the DSI Patents outside of the GOCAD Software Program, of the annual turnover (excluding taxes) relating to that
utilization. It is stated that any marketing by EDS (or by one of its Affiliates) of software which uses all or part of the functions of the GOCAD Software Program, but which does not contain an
implementation of the Patents is not subject to royalties.

	

	In
addition, in the event that EDS (or one of its Affiliates) grants a sub-licence to utilize the DSI Patents to a third party, outside of the GOCAD Software
Program, without specific services or delivery of a software component by EDS, in return for the payment of a remuneration in the form of royalties or any other form of payment, the INVENTOR will be
entitled to receive royalties equal to 27.50% of the amount of remuneration received. 

4

 
	4.2.2
	Fixed
Royalties

	

	In
addition to the variable royalties stated in 4.2.1 above, the INVENTOR will receive on 31 December each year, with the first payment being due on 31
December 2004, an annual fixed royalty ("AFR") amount calculated as follows:

	

	AFR =
150,000 euros—SVR (AFR being limited to 50,000 euros and deemed nil where SVR is over 150,000 euros.)

	

	Where
SVR is the Sum of all Variable Royalties due during the current calendar year in accordance with 4.2.1 above.

	4.2.3
	Special
Provisions

	

	In
any event, the amount of variable royalties paid to the INVENTOR in respect of this article 4.2, except for the share which corresponds to (i) of this
article, will be subject to an annual ceiling amount of 100,000 euros.

	

	In
consideration for the level of royalties granted to him, the INVENTOR expressly commits not to claim payment of the amounts due to him under the present agreement until
EDS shows an operating profit; the payment being limited by the amount of actual profit.

	4.3
	The
amounts and distribution of royalties stated in 4.1 and 4.2 above will apply from 1 January, 2004. Royalties originating and due prior to 1 January, 2004 will be calculated by
applying the terms of article 4 of the "Licence Agreement for utilization of the DSI Patents", ref. EEP No. 11564 which remain applicable, primarily in respect of any royalties which may
not have already been paid by EDS, and royalties due for 2003 (stating that for 2003, the share distribution will be 0.75% for the INVENTOR, 0.66% for TOTAL and 0.33% for CGG from the fact that the
threshold turnover figure of 2.4 MF has already been reached).

	4.4
	In
consideration for the new proportional share arrangements for the royalties which are applicable from 1 January 2004 in favour of the INVENTOR as compared to his ownership
share in the DSI Patents, the INVENTOR commits to pursue and where possible increase his efforts in all areas covered by the DSI Patents and in particular concerning his involvement in the GOCAD
Consortium, implementation and optimisation of applications linked to the GOCAD Software Program and potential improvement to the methods covered by the DSI Patents. In the event of default, the
previous royalty shares as stated in article 4.3 will be restored. If a dispute arises between the Co-owners about the amounts due to be paid to them, the Co-owners
expressly renounce the right to hold EDS responsible and accountable for the distribution of royalties between them, provided that EDS has transferred the total amount of royalties due to the group of
Co-owners. 

4.5   Accounting  

	

	EDS
will prepare an annual statement containing all information required for the calculation of the royalties and will send it to the Co-owners, at the latest
within sixty days of the last day of the past calendar year. The Co-owners may proceed to have this statement verified once a year by an expert of their choice and at their own expense.

	

	On
receipt of the annual statement, each Co-owner will send an invoice to EDS for the royalties due, which will be paid by EDS within the 60 days. Each
Co-owner may, however, adopt other payment methods for his royalties share in agreement with EDS. 

5

 

Article 5. MAINTENANCE OF THE DSI PATENTS & GUARANTEES  

	5.1
	The
Co-owners commit to maintain the DSI Patents in force. However, they may agree to abandon certain DSI Patents titles before their expiry. In this case, they must
inform EDS with three months notice, to allow EDS the opportunity to stand in for the Co-owners and maintain those titles the Co-owners have decided to abandon, being
understood that the expenses incurred by EDS will be deducted from the royalties amounts prescribed in article 4 of this Agreement, for each country where titles have been abandoned.

	5.2
	EDS
states that they have a perfect knowledge of the DSI Patents and the method contained in them. Consequently, the Co-owners offer no guarantee in respect of the good
working of the said method and as for potential rights of third parties, whilst stating, however, that to the best of their knowledge, the DSI Patents do not infringe the intellectual property rights
owned by third parties.

	5.3
	EDS
commits to exploit the DSI Patents to the best advantage, and consequently to carry out its best efforts to market and provide Maintenance of the GOCAD Software Program and
exploit the DSI Patents beyond this domain. EDS will carry out marketing and utilization of the GOCAD Software Program under its sole liability and takes responsibility for all associated hazards,
risks and perils. In this respect, EDS renounces any action or legal recourse against the Co-owners and commits to obtain from its insurers a guarantee of non-recourse against
the Co-owners. Consequently, EDS will obtain the necessary third party insurance to cover the risks incurred in respect of activities linked to performance of this Agreement. 

Article 6. INFRINGEMENT  

	6.1
	In
the event of a third party infringement of the DSI Patents, the Parties will act collectively to adopt a common position to put an end to the said infringement. In the event that
the Co-owners decide not to take legal action, the Co-owners will authorise EDS, provided that the Licence is still exclusive, to commence any legal action for the enforcement
of the intellectual property rights attached to the DSI Patents at EDS's own risk and expense, but to EDS's sole advantage. In consideration of what has been stated previously, the Parties will
register this Agreement with the Institut National de la Propriété Intellectuelle (National Institute of Intellectual
Property) and with the national registers of the country where the first action is taken. It is understood that, irrespective of the result of the legal action undertaken by EDS, in accordance with
article 6.1 of this agreement, EDS is forbidden to prejudice the Licence and especially the obligations stated in article 4. 

6

 
	6.2
	In
the event that EDS is threatened with an infringement action in the performance of this Agreement, EDS will immediately advise the Co-owners and the Parties will act
collectively to establish the line of conduct to be adopted. In addition, if the infringement action is effectively exercised against EDS, in relation to the method covered by the DSI Patents, the
Co-owners will support EDS with technical and legal assistance, as far as they are able, to provide a defence. In the event of a judgement against EDS, EDS may not claim any indemnity from
the Co-owners. The Co-owners will, however, during the three years following the date of signature of this Agreement, allow EDS to deduct from the royalties due under this
Agreement, a sum of money corresponding to the expenses spent by EDS for its defence, limited to half of the royalties due under the current Agreement. It is specified that, irrespective of the
eventual consequences of such an adverse judgement on the Patents, the financial terms of the Licence and in particular, the obligations to pay the royalties specified in article 4, will not be
prejudiced. In addition, if it were established that a third party had filed a valid patent, prior to the DSI Patents in a given territory, and this fact were to oblige EDS to sign a patent licence
with the third party in order to continue to market the products concerned in that territory; in that event, the products EDS sells in that territory would no longer be included in the basis of
calculation for royalties due to the Co-owners. 

Article 7. IMPROVEMENTS  

	7.1
	Each
Party owns the Improvements it creates and may utilize them freely.

	7.2
	Each
Party commits to communicate to the other Parties, any Improvements that it has made and to inform them of any patent application request (date, number and title of the
application request).

	7.3
	If
the Improvement has been made by a Co-owner, the latter will grant a non-exclusive licence to EDS, with no modification to the Licence terms. 

Article 8. EFFECTIVE DATE AND DURATION  

        Notwithstanding its signature date, this Agreement takes effect on the date on which the Operation is effective. It will be terminated in accordance with the law
in the event that the Operation does not occur on 31 December 2003. In that case, the terms of licence agreement ref. EEP No. 11564 will be reapplied from the signature date of this
agreement. 

        This
agreement is made for the remaining protection term of the last of the DSI Patents in force, that is until 2012, and may be extended by codicil for the term of the patents arising
from Improvements. 

Article 9. TERMINATION  

	9.1
	This
Agreement will be lawfully terminated without indemnity in the event of EDS ceasing to trade. 

7

 
	9.2
	Likewise,
this Agreement will be lawfully terminated without indemnity by a Party in the event of non-execution by another Party of one or more major obligations contained
in the various clauses. Termination will only become effective three months after the plaintiff has sent a letter by recorded delivery with acknowledgement of receipt, setting out the grounds for the
complaint and giving formal notice to remedy the conditions which have not been fulfilled, unless within that time, the defaulting Party meets the obligations or provides proof of a difficulty arising
from an Act of God. The exercise of the termination facility does not dispense the defaulting party from fulfilling the contracted obligations until the effective date of the termination and this,
without prejudice to the damages which could possibly be claimed in respect of harm suffered by the plaintiff as a result of early termination of this Agreement.

	9.3
	Likewise,
the Co-owners may rightfully terminate this Agreement with three months notice and with no indemnity and therefore revoke the utilization licence in the event
that EDS fails to achieve the minimum turnover amount specified in article 3.2.

	9.4
	In
the event that the Agreement is terminated, the users of the GOCAD Software Program will retain the benefit of a sub-licence to use the DSI Patents. 

Article 10. INFORMATION AND CONFIDENTIALITY  

	10.1
	EDS
commits to hold an annual information meeting with the Co-owners during which all technical, sales, contractual, legal and intellectual property information about the
DSI Patents and their utilization by EDS will be provided and discussed. In particular, actions and sales results related to the GOCAD Software Program (sales, royalties, products, clients,
subsidiaries, sub-licensees etc.) and all elements related to the DSI Patents (Improvements, infringements etc.).

	10.2
	Each
Party commits, for the term of the Agreement and the subsequent five years, both for itself and on behalf of its own staff, to regard the information provided to them by the
other Parties in the context of this Agreement as strictly confidential and commits not to use this information for other purposes and not to disclose it to a third party. In the event of a patent
application request relating to an Improvement, the confidentiality period will be limited to the period until the said application request is made public. This commitment will not apply to the
following information:

	a)
	that
which is in the public domain at the time of its communication or which enters the public domain subsequently through no connection with the Party;

	b)
	that
which is communicated to the Party by a third party and is not considered secret;

	c)
	that
which the Party can prove was in its possession prior to the signing of this Agreement 

Article 11. FORCE MAJEURE  

        The force majeure (exoneration) clause of the International Chamber of Commerce (CCI Publication No. 421) is an integral part of this Agreement. 

Article 12. CORRESPONDENCE  

        All correspondence relating to the performance of this Agreement shall be addressed as follows: 

	•
	For
the INVENTOR

For the attention of Mr. Jean Laurent MALLET, 8, Rue de la Croix Gagnée, 54500 Nancy

	•
	For
TOTAL

For the attention of Mr. J VAILLANT, Technology Contracts Manager, Avenue Larribau, Pau, France 

8

 

	•
	For
CGG

For the attention of Mr. Michel MANIN, Technology Development Director, 1, rue Léon Migaux, 91241 Massy Cedex

	•
	For
EDS

For the attention of Mr. Jean Claude DULAC, CEO, 11011 Richmond avenue, Suite 340, Houston, Texas, USA 

Article 13. TRANSFER  

	13.1
	The
utilization licence for the DSI Patents may not be transferred by EDS to a third party without the written agreement of the Co-owners, except for transfer to one of
its Affiliates, subject to informing the Co-owners previously by registered letter with acknowledgement of receipt.

	13.2
	Each
Co-owner shall have the right to either totally or partially substitute one its Affiliates to hold the rights and obligations of this Agreement subject to the
Affiliate respecting the terms of the Agreement. 

Article 14. SPECIFIC RIGHTS GRANTED TO EDS  

	14.1
	TOTAL
and CGG commit to transfer their rights to the Patents to the other Co-owners and, in second ranking, to EDS in the event that control of their companies changes.
In this event, the transfer price for the Patents will be agreed between the concerned Parties and failing this, by a statement from an expert appointed either jointly by the concerned Parties or by
court order issued by the President of the Paris Tribunal de Grande Instance, before whom the matter has been brought by one of the Parties.

	14.2
	The
Co-owners grant to EDS a secondary rank pre-emptive right over any transfer of the Patents or any transfer of their share in the Patents to a third party.
Consequently, any transfer of a share in the DSI Patents will be subject to a pre-emptive right, provided that the Co-owners have not exercised the pre-emptive
right they have pursuant to the provisions of the Intellectual Property Code. The pre-emptive right may be activated by sending a registered letter with acknowledgement of receipt before
the end of the third month after EDS has received the notice by registered letter with acknowledgement of receipt which sets out all the terms of the subordinated transfer.

	14.3
	In
his capacity as a Co-owner of the Patents, Mr. MALLET commits to obtain from his heirs a commitment to transfer their rights to EDS in event of decease. In
consideration for this commitment, Mr. MALLET's heirs will receive royalties equal to those paid to Mr. MALLET. In addition EDS and Mr. MALLET will sign a separate agreement in a
separate deed in favour of the latter. 

Article 15. DISPUTE RESOLUTION  

        The Parties will attempt to reach an amicable resolution to any disputes arising from the interpretation or performance of this Agreement. 

        In
the event of a prolonged disagreement, the Parties will agree to submit the said disputes to the Paris Tribunal de Grande Instance, this Agreement being governed by French law. 

Article 16. MISCELLANEOUS  

	16.1
	The
granting of a licence to utilize the DSI Patents, subject of this Agreement, does not establish any solidarity between the Parties.

	16.2
	Under
pain of being declared null and void, any adjustment or modification to this Agreement will require a codicil signed by the Parties. 

9

 
	16.3
	This
Agreement cancels and replaces Licence Agreement ref. 11564 and its codicil No. 1 ref. 11564 A1 

        Executed
as 4 signed originals 

	
For EDS	
 	

For the INVENTOR
	

Signature	
 	

Signature
	

/s/ Mr. Jean Claude DULAC

President	
 	

/s/ Mr. Jean Laurent MALLET
	
For CGG	
 	

For TOTAL
	

Signature	
 	

Signature
	

/s/ Mr. Michel MANIN

Technology Development Director	
 	

/s/ Thibaut HUYGHUES-DESPOINTES

Director of Research, Exploration and Production
	

Date: 3 November 2003	
 	

Date: 13/11/03

10

 
 
 

APPENDIX 1: DSI PATENTS    
    

FILE NO.: DPI 5921.01  

        TITLE: METHOD FOR MODELLING OF A SURFACE AND DEVICE FOR IMPLEMENTING SAME 

	COUNTRY
 
	 	FILING Date/No.
	 	PUBLICATION Date/No.
	 	Date GRANTED/No.
	 	EXPIRY Date

	
 	
 	

 	
 	

 	
 	

 	
 	

 
	

FRANCE	
 	

20-SEP-89 89 12341	
 	

22-MAR-91 2.652.180	
 	

27-DEC-91 89 12341	
 	

20-SEP-2009
	

France (European procedure)	
 	

19-SEP-90 90914214.3	
 	

04-SEP-91 0 444 183	
 	

25-OCT-95 0 444 183	
 	

19-SEP-2010
	

GERMANY	
 	

19-SEP-90 90914214.3	
 	

04-SEP-91 0 444 183	
 	

25-OCT-95 0 444 183	
 	

19-SEP-2010
	

CANADA	
 	

19-SEP-90 2.042.067	
 	

 	
 	

 	
 	

19-SEP-2010
	

UNITED STATES	
 	

19-SEP-90 689.044	
 	

 	
 	

07-NOV-95 5 465 323	
 	

07-NOV-2012
	

ITALY	
 	

19-SEP-90 90914214.3	
 	

04-SEP-91 0 444 183	
 	

25-OCT-95 0 444 183	
 	

19-SEP-2010
	

JAPAN	
 	

19-SEP-90 2-513303/90	
 	

 	
 	

 	
 	

19-SEP-2010
	

NORWAY	
 	

19-SEP-90 91.1911	
 	

24-JUN-96 179.427	
 	

02-OCT-96 179.427	
 	

19-SEP-2010
	

NETHERLANDS	
 	

19-SEP-90 90914214.3	
 	

04-SEP-91 0 444 183	
 	

25-OCT-95 0 444 183	
 	

19-SEP-2010
	

UNITED KINGDOM	
 	

19-SEP-90 90914214.3	
 	

04-SEP-91 0 444 183	
 	

25-OCT-95 0 444 183	
 	

19-SEP-2010

        There are initials on each page. 

11

QuickLinks

LICENCE AGREEMENT FOR THE UTILIZATION OF DSI PATENTS

APPENDIX 1: DSI PATENTS

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