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Exhibit 4.3  

           

  

  

  

  

 
 

AMENDED AND RESTATED SHAREHOLDERS' AGREEMENT,    

DATED AS OF 

AUGUST
11, 2006 

          

  

  

BY AND AMONG

PARADIGM GEOTECHNOLOGY B.V.

AND

THE SHAREHOLDERS LISTED

ON THE SIGNATURE PAGES HERETO 

           

   

   

   

   

   

   

   

   

  

 
 

AMENDED AND RESTATED SHAREHOLDERS' AGREEMENT    
    

        AMENDED AND RESTATED SHAREHOLDERS' AGREEMENT, dated as of August 11, 2006 (the "Agreement"), by and among Paradigm Geotechnology B.V., a private limited
liability company organized under the laws of the Netherlands (the "Company"), the shareholders identified in Schedule 1 attached hereto (collectively, the "FPC Shareholders"), the shareholders
identified in Schedule 2 attached hereto (collectively, the "EDS Current Shareholders"), the persons and entities identified in Schedule 3 attached hereto (collectively, the "EDS
Equivalent Shareholders"), the shareholders of the Company identified in Schedule 4 attached hereto (the "Existing Shareholders") and the Company shareholders identified in Schedule 5
attached hereto (the "Other Shareholders," and together with the FPC Shareholders, the EDS Current Shareholders, the EDS Equivalent Shareholders and the Existing Shareholders, the "Shareholders"). 

 
 

RECITALS    
    

        WHEREAS, the Company and the EDS Current Shareholders have entered into an Amended and Restated Share Purchase and Contribution Agreement, dated as of
August 11, 2006, (the "Share Purchase Agreement"), pursuant to which the Company has agreed to acquire (the "Acquisition") all the capital stock of Earth Decision Sciences S.A., a  société
anonyme organized and existing under the laws of France ("EDS"), held by the EDS Current Shareholders.
 

        WHEREAS,
the Company and certain EDS Equivalent Shareholders have entered into Liquidity Agreements, dated as of August 11, 2006, (the "Liquidity Agreements"), pursuant to which
the EDS Equivalent Shareholders may acquire the ordinary shares of the Company (the "Company Ordinary Shares") upon certain liquidity events. 

        WHEREAS,
the Company, the FPC Shareholders and the Existing Shareholders entered into a Shareholders Agreement (the "Original Shareholders Agreement") dated as of August 22, 2005. 

        WHEREAS,
in connection with the Acquisition, the EDS Current Shareholders will become the shareholders of the Company and upon certain liquidity events certain EDS Equivalent
Shareholders will become shareholders of the Company. 

        WHEREAS,
the Company, the FPC Shareholders and the Existing Shareholders desire to amend and restate the Original Shareholders Agreement and provide the EDS Current Shareholders and the
EDS Equivalent Shareholders with certain shareholder rights. 

        WHEREAS,
the parties hereto desire to restrict the sale, assignment, transfer, encumbrance or other disposition of the Company Ordinary Shares which the parties hereto own or may
hereafter acquire, and to provide for certain rights and obligations in respect thereof as hereinafter provided. 

        NOW,
THEREFORE, in consideration of the premises and of the terms and conditions contained herein, the parties hereto agree as follows: 

 
 

ARTICLE 1.    
    
    DEFINITIONS    
    

As
used in this Agreement, the following terms shall have the meanings ascribed to them below: 

        "Accredited
Investor" shall have the meaning set forth in Rule 50 1 (a) of Regulation D promulgated under the Securities Act. 

        "Acquisition"
shall have the meaning ascribed to it in the Recitals hereof. 

        "Affiliate"
of a Person shall mean a Person directly or indirectly controlled by, controlling or under common control with such Person. 

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        "Blocked
Shares" shall have the meaning ascribed to it in Section 2.8 hereof. 

        "Board
of Directors of the Company" means the board of supervisory directors of the Company. 

        "Change
of Control" shall mean (1) the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) other than
the FPC Shareholders and their Affiliates of a majority of the outstanding voting stock of the Company or (2) the sale of or other disposition (other than by way of merger or consolidation) of
all or substantially all of the assets of the Company and its subsidiaries taken as a whole to any Person or group of Persons, other than to a Person (or group of Persons) a majority of the
outstanding voting stock (or other interests) of which are beneficially owned by the FPC Shareholders and their Affiliates. 

        "Claims"
shall mean losses, claims, damages or liabilities, joint or several, actions or proceedings (whether commenced or threatened). 

        "Company"
shall have the meaning ascribed to it in the Introduction hereof. 

        "Company
IPO" shall mean the first to occur of a US Company IPO or an Other Company IPO. 

        "Company
Ordinary Shares" shall have the meaning ascribed to it in the Recitals hereof. 

        "Company
Ordinary Share Equivalent" shall mean all securities, including of other companies, which, directly or indirectly, are exchangeable or convertible for Company Ordinary Shares,
including a security which, upon exercise, can then be, or must then be, exchanged for Company Ordinary Shares. 

        "Competitor"
shall have the meaning ascribed to it in Section 2.1.3 hereof. 

        "Demand
Registration" shall mean the FPC Shareholder Demand Registration and the EDS Shareholder Demand Registration. 

        "Drag-Along
Right" shall have the meaning ascribed to it in Section 2.5.1 hereof. 

        "Drag-Along
Seller" shall have the meaning ascribed to it in Section 2.5.2 hereof. 

        "EDS"
shall have the meaning ascribed to it in the Recitals hereof. 

        "EDS
Current Shareholders" shall have the meaning ascribed to it in the Introduction hereof. 

        "EDS
Equivalent Shareholders" shall have the meaning ascribed to it in the Introduction hereof. 

        "EDS
Founder Shareholder" shall mean each of Jean-Laurent Mallet, Jean-Claude Dulac and Pascal Le Melinaire. 

        "EDS
Shareholder Demand Registration" shall have the meaning ascribed to it in Section 3.1.3 hereof. 

        "EDS
Shareholders" shall mean the EDS Current Shareholders and the EDS Equivalent Shareholders. 

        "Exchange
Act" shall mean the U.S. Securities Exchange Act of 1934, as amended. 

        "First
Offer Shares" shall have the meaning ascribed to it in Section 2.3.2 hereof. 

        "First
Offer Option Period" shall have the meaning ascribed to it in Section 2.3.2 hereof. 

        "Fox
Paine" shall have the meaning ascribed to it in Section 5.1 5 hereof. 

        "FPC
Shareholder Demand Registration" shall have the meaning ascribed to it in Section 3.1.2 hereof. 

        "FPC
Shareholders" shall have the meaning ascribed to it in the Introduction hereof. 

        "Liquidity
Agreements" shall have the meaning ascribed to it in the Recitals hereof. 

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        "Maximum
Sale Number" shall have the meaning ascribed to it in Section 3.1.4 hereof. 

        "NASD"
shall mean the National Association of Securities Dealers, Inc. 

        "Nasdaq"
shall mean The Nasdaq Stock Market, Inc. 

        "New
Securities" shall mean any Company Ordinary Shares and any securities of the Company that are convertible or exercisable into the Company Ordinary Shares;  provided, however, that New Securities shall
not include the Company Ordinary Shares or convertible securities: (a) issued upon the exercise of
any convertible securities, options, rights, warrants or similar securities issued in compliance with Section 5.1 hereof; (b) issued in connection with
payment-in-kind interest; (c) issued in connection with dividends payable in kind, if and when declared; (d) issued in connection with a share split, share
combination or reclassification by the Company of any Company Ordinary Shares; (e) issued pursuant to a reorganization or recapitalization of the Company or any of its subsidiaries;
(f) granted or issued pursuant to the exercise of options or other stock-based incentive awards granted to consultants, advisors, employees, officers or directors of the Company or any of its
subsidiaries pursuant to plans or agreements approved by the Board of Directors of the Company; (g) issued in connection with a merger, consolidation, strategic alliance, acquisition or similar
business combination (including the Company Ordinary Shares issued as a broker's or finder's fee upon the consummation of such a transaction); (h) issued pursuant to a registration statement or
similar filing or a public offering under the applicable securities laws; (i) issued in connection with borrowing or the issuance of debt securities; (j) issued in an offering with
aggregate gross proceeds not to exceed US$3 million; or (k) offered and sold under a registration statement that is effective under the Securities Act. 

        "New
Securities Notice" shall have the meaning ascribed to it in Section 5.1 hereof. 

        "Notice
of First Offer Election" shall have the meaning ascribed to it in Section 2.3.2 hereof. 

        "Notice
of Preemptive Election" shall have the meaning ascribed to it in Section 5.1 hereof. 

        "Offer
Notice" shall have the meaning ascribed to it in Section 2.3.2 hereof. 

        "Offer
Shares" shall have the meaning ascribed to it in Section 2.4.1. 

        "Ordinary
Shares" shall mean the Company Ordinary Shares and Company Ordinary Share Equivalent. 

        "Original
Shareholders Agreement" shall have the meaning ascribed to it in the Recitals hereof. 

        "Other
Company IPO" shall mean an underwritten initial public offering or public offerings (on a cumulative basis) of Ordinary Shares on an international securities exchange with
aggregate gross proceeds to the Company of at least U.S. $50 million; provided that a "US Company IPO" shall not constitute an "Other Company IPO." 

        "Other
Shareholder" shall have the meaning ascribed to it in the Recitals hereof. 

        "Parent"
shall have the meaning ascribed to it in Section 4.1 hereof. 

        "Parent
IPO" shall have the meaning ascribed to it in Section 4.1 hereof. 

        "Permitted
Transferee" shall have the meaning ascribed to it in Sections 2.3.3 and 2.3.4 hereof. 

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

        "Piggyback
Notice" shall have the meaning ascribed to it in Section 3.1. hereof. 

        "Piggyback
Registration" shall have the meaning ascribed to it in Section 3.1.1 hereof. 

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        "Preemptive
Rights Offer" shall have the meaning ascribed to it in Section 5.1 hereof. 

        "Preemptive
Rights Offeree" shall have the meaning ascribed to it in Section 5.1 hereof. 

        "Preemptive
Rights Waiting Period" shall have the meaning ascribed to it in Section 5.1 hereof. 

        "Proposed
Transferee" means a Person or group as defined in Section 13(d)(3) of the Exchange Act, to whom Ordinary Shares are proposed to be Transferred pursuant to the terms of
Sections 2.3,2.5 or 2.6 of this Agreement. 

        "Qualified
EDS Shareholders" shall have the meaning ascribed to it in Section 4.1 hereof. 

        "Registrable
Securities" shall mean the Ordinary Shares; provided, however, as to any particular Registrable Securities, once issued such
securities shall cease to be Registrable Securities when (i) a registration statement with respect to the sale of such securities (or, in the case of Ordinary Share Equivalents, the related
Company Ordinary Shares) shall have become effective under the Securities Act and, except in the case of a registration statement on Form S-8, such securities shall have been
disposed of in accordance with such registration statement, (ii) such securities shall have been sold pursuant to Rule 144 (or any successor provision), (iii) such securities
shall have been otherwise transferred and new certificates for such securities not bearing a legend restricting further transfer shall have been delivered by the Company, (iv) such securities
(or, in the case of Ordinary Share Equivalents, the related Company Ordinary Shares) shall have become eligible for sale to the public without registration under Rule 144, or (v) such
securities shall have ceased to be outstanding. 

        "Registration
Expenses" shall mean any and all expenses incident to performance of or compliance with Article I11 of this Agreement, including without limitation, (i) all SEC (or
comparable securities regulator) and stock exchange or the NASD registration and filing fees, (ii) all fees and expenses of complying with securities or "blue sky" laws (including reasonable
fees and disbursements of counsel for the underwriters in connection with "blue sky" qualifications of the Registrable Securities), (iii) all printing, messenger and delivery expenses,
(iv) the fees and disbursements of counsel for the Company and of the Company's independent public accountants, including the expenses of any special audits and/or "cold comfort" letters
required by or incident to such performance and compliance, (v) the reasonable fees and disbursements of one counsel retained by the Shareholders (if the FPC Shareholders are among the selling
Shareholders, such counsel to be selected by the FPC Shareholders) as a group in connection with each such registration, (vi) any fees and disbursements of underwriters customarily paid by
issuers or sellers of securities and the reasonable fees and expenses of any special experts retained in connection with the requested registration, including any fee payable to a qualified
independent underwriter within the meaning of the rules of the NASD, but excluding underwriting discounts and commissions and transfer taxes, if any, (vii) internal expenses of the Company
(including, without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties) and (viii) securities acts liability insurance (if the Company elects to obtain such insurance). 

        "Right
of First Offer" shall have the meaning ascribed to it in Section 2.3.2 hereof. 

        "Rule 144"
shall mean Rule 144 under the Securities Act. 

        "S-3
Registration" shall have the meaning ascribed to it in Section 3.1.3 hereof. 

        "Sale
Notice" shall have the meaning ascribed to it in Section 2.4.1 hereof. 

        "SEC"
shall mean the U.S. Securities and Exchange Commission. 

        "Securities
Act" shall mean the U.S. Securities Act of 1933, as amended. 

        "Selling
EDS Shareholder" shall have the meaning ascribed to it in Section 2.3.2 hereof. 

        "Shareholders"
shall have the meaning ascribed to it in the Recitals hereof. 

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        "Share
Purchase Agreement" shall have the meaning ascribed to it in the Recitals hereof. 

        "Tag-Along
Right" shall have the meaning ascribed to it in Section 2.6.3(a) hereof. 

        "Tag-Along
Seller" shall have the meaning ascribed to it in Section 2.6.3(b) hereof. 

        "Tag-Along
Shares" shall have the meaning ascribed to it in Section 2.6.2 hereof. 

        "Third
Party Offer" shall have the meaning ascribed to it in Section 2.3.2 hereof. 

        "Transfer"
shall mean to sell, assign, pledge or encumber or otherwise transfer or convey, directly or indirectly, whether or not for consideration. 

        "Transferee"
shall mean any Person to whom a Transfer is made, regardless of the method of Transfer. 

        "Transferor"
shall mean any Person by whom a Transfer is made, regardless of the method of Transfer. 

        "US
Company IPO" shall mean an underwritten initial public offering or public offerings (on a cumulative basis) of Ordinary Shares pursuant to a registration statement or registration
statements under the Securities Act with aggregate gross proceeds to the Company of at least U.S. $50 million. 

        "Violation"
shall have the meaning ascribed to it in Section 3.3(a) hereof. 

 
 

ARTICLE 2.    
    
    RESTRICTIONS ON TRANSFERS OF STOCK    
    

        2.1   General
Limitation on Transfers. 

        2.1.1 Transfers
Generally. Each Shareholder agrees that, prior to the earlier of the Company IPO or the Parent IPO, no Shareholder shall Transfer any Ordinary Share unless
such Transfer is made in accordance with the provisions of this Section 2. Except as provided herein, no Shareholder shall Transfer any Ordinary Shares, except to a Permitted Transferee,
without the prior written approval of the Board of Directors of the Company, which approval may be granted or withheld by the Board of Directors of the Company, in its sole and absolute discretion. 

        (a)   As
used in this Agreement, Ordinary Shares shall include any shares of Restricted Stock granted to any of the Shareholders; provided,
however, that, to the extent the Transfer thereof is otherwise prohibited or restricted, no rights to Transfer, including pursuant to Section 2.3, shall be granted
hereunder. 

        2.1.2 Obligations
of Transferees. No Shareholder shall complete a Transfer of Ordinary Shares that would otherwise be permitted pursuant to this Agreement (other than
pursuant to a Drag-Along Right) unless (a) the Transferee (including a Permitted Transferee pursuant to Section 2.3) shall have executed an appropriate document in form and
substance reasonably satisfactory to the Company confirming that (i) the Transferee takes such Ordinary Shares subject to all the terms and conditions of this Agreement to the same extent as
its Transferor was bound by, and entitled to the benefits of, such provisions and (b) such document shall have been delivered to and approved (as described above) by the Company prior to such
Transferee's acquisition of Ordinary Shares, which approval shall not be unreasonably withheld or delayed. 

        2.1.3 Transfers
to Competitors. Notwithstanding anything to the contrary in this Agreement, without the consent of the Board of Directors of the Company, no Shareholder
shall, at any time, directly or indirectly, Transfer any Ordinary Shares to any Competitor or to any subsidiary or Affiliate of such a Competitor (other than Transfers to the Company and its
Affiliates) unless such Transfer is made in connection with the exercise of a Drag-Along Right pursuant to Section 2.5, in 

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which
event such sale may be made only in accordance with Section 2.5, as applicable. For the purposes hereof, a "Competitor" shall mean a Person that competes in a significant manner with a
substantial business of the Company or any subsidiary, or, a Person that has a substantial investment in any such competing entity; provided, however,
that an institutional investor or its Affiliates that hold non-voting debt or less than five percent (5%) of the publicly traded equity securities of any such Competitor as a passive
portfolio investment shall not be a Competitor. For purposes of this provision, the good faith determination of a majority of the entire Board of Directors of the Company that a proposed Transferee is
a Competitor, made within thirty (30) days of written notice to the Board of Directors of the Company of the proposed Transfer, shall in all respects be conclusive. 

        2.2   Compliance
with Securities Laws. No Shareholder shall Transfer any Ordinary Shares unless the Transfer is made in accordance with the terms of this Agreement and the
provisions of applicable securities law, and the Company shall be entitled to request from such Shareholder an opinion of legal counsel to such effect in a form reasonably satisfactory to the Company. 

        2.3   Permitted
Transfers. 

        2.3.1 Permitted
Transfers Generally. The restrictions contained in this Section 2 with respect to Transfers of Ordinary Shares shall not apply to any Transfer by a
Shareholder (a) to a Shareholder's spouse, children (including adopted), grandchildren (including adopted) or other living descendants, or executors, administrators, testamentary trustees or to
a trust or family partnership of which there are no principal (i.e., corpus) beneficiaries or partners other than the grantor or one or more of such Shareholder spouse or described relatives,
executors, administrators, testamentary trustees, or by the laws of descent and distribution and provided that, in the case of a trust, the existing beneficiaries and/or trustee(s) and/or grantor(s)
of such trust have the power to act with respect to the trust's assets without court approval and, in the case of a family partnership, that the partners thereof have the power to act with respect to
the partnership's assets without court approval and the partnership is not permitted to (i) distribute assets to Persons who are not among the relatives listed above or (b) to a legal
representative of such Shareholder in the event such Shareholder becomes mentally incompetent or to such Shareholder's personal representative following the death of such Shareholder; or (c) to
a company or other legal entity that controls, is controlled by, or is under common control with such Shareholder and which such Shareholder and Persons identified in clauses (a) and
(b) own a majority of the outstanding equity interests. Transferees to whom Transfers are permitted pursuant to this Section 2.3 are referred to herein as "Permitted Transferees";  provided, however, that so long as the Company is a private limited liability company (besloten vennootschap met beperkte
aansprakelijkheid) (a "B.V."), "Permitted Transferees" shall be limited to a Shareholder's spouse, registered partner, children (including adopted), grandchildren (including
adopted) or other living descendants in the direct line or in the collateral line to the second degree. The restrictions contained in this Section 2, other than Section 2.2, with respect
to Transfers by Shareholders of Ordinary Shares shall not apply to any Transfer by a Permitted Transferee to another Permitted Transferee of such Shareholder. 

        2.3.2 EDS
Shareholder Transfer. Right of First Offer. 

        (i)    Offer
Notice. If an EDS Shareholder (the "Selling EDS Shareholder") desires to Transfer any Ordinary Shares to any Person other than (i) to a Permitted Transferee
or (ii) as a Tag-Along Seller or Drag-Along Seller, such Selling EDS Shareholder shall, prior to soliciting a bona fide written offer from an independent third-party
(the "Third-Party Offer"), deliver to each of the Company and the FPC Shareholders a written notice (the "Offer Notice") offering to sell such shares of the Ordinary Shares proposed to be sold (the
"First Offer Shares") first to the FPC Shareholders. The Offer Notice shall state (i) that the Selling 

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EDS
Shareholder desires to sell the First Offer Shares, (ii) the purchase price per share and (iii) the material terms and conditions subject to which the First Offer Shares are offered. 

        (ii)   Exercise
of Right of First Offer. 

        (1)   Upon
receipt of the Offer Notice, the FPC Shareholders shall have the option (the "Right of First Offer"), which shall be exercisable by written notice (the "Notice of
First Offer Election") delivered to the Selling EDS Shareholder within 30 days after the date the Offer Notice is delivered to the FPC
Shareholders (the "First Offer Option Period"), to purchase from the Selling EDS Shareholder, at the price and upon the terms specified in the Offer Notice, all, but not less than all, of the First
Offer Shares, and, in the case more than one FPC Shareholder should exercise such option, the pro rata part of the aggregate nominal value of their mutual holdings. 

        (2)   Each
Notice of First Offer Election shall recite that such Notice of First Offer Election constitutes a binding obligation of the FPC Shareholders committing the same to
purchase, upon the same terms and subject to the conditions set forth in the Offer Notice. 

        (3)   The
closing of the purchase of the First Offer Shares subscribed to by the FPC Shareholders pursuant to this Section 2.3.2 shall be held at the principal office
of the Company at 10:00 a.m., local time on the date contemplated in the Offer Notice, which date will not be earlier than the earlier to occur of (x) the thirtieth (30th) day after the
later to expire of the First Offer Option Period and (y) the date that the waiting period under the Hart Scott Rodino Antitrust Improvements Act of 1976, as amended, or any other antitrust or
similar laws, shall have expired or been terminated, if applicable to the FPC Shareholders' purchase of the First Offer Shares. 

        (iii)  Sale
to Third-Party Purchaser. 

        (1)   If
the Offer Notice shall have been duly delivered, and the FPC Shareholders shall not have exercised the Right of First Offer to purchase all of the First Offer Shares,
the Selling EDS Shareholder may solicit Third-Party Offers to purchase all (but not less than all) of the First Offer Shares and, so long as any sale of the First Offer Shares made pursuant to a
Third-Party Offer is (A) upon such terms, and subject to such conditions, as are not materially different from those set forth in the Offer Notice, and at the same price as set forth in the
Offer Notice, (B) consummated within ninety (90) days from the date the Offer Notice is first delivered to the FPC Shareholders, and (C) in accordance with clause (2)
below, such transfer may be consummated without further restriction under this Section 2.3.2, but, while the Company is a B.V., subject to the approval of the Board of Directors of the Company,
and shall be a Permitted Transfer under this Agreement. If the Selling EDS Shareholder shall not have completed the sale of some or all of the First Offer Shares in accordance with the foregoing, the
Selling EDS Shareholder shall not subsequently Transfer the First Offer Shares except in accordance with the requirements of this Section 2.3.2; provided, that if the Selling EDS Shareholder
desires to sell less than all of the First Offer Shares at the price included in the Offer Notice, such Selling EDS Shareholder may offer the FPC Shareholders the right to purchase such number of
First Offer Shares and, if the FPC Shareholders do not accept such offer First Offer Shares within 5 Business Days after receipt of such offer by the FPC Shareholders (and purchase such First Offer
Shares within 15 days of such acceptance), such Selling EDS Shareholder may sell such number of First Offer Shares within 10 Business Days after receipt of such offer by the FPC Shareholders. 

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        (2)   All
First Offer Shares transferred by the Selling EDS Shareholder in accordance with clause (1) above shall remain, and the third-party purchaser shall agree and
be permitted to take and hold such First Offer Shares, subject to all of the obligations and restrictions imposed upon, and rights granted to, the Selling EDS Shareholder by this Agreement. No
transfer of First Offer Shares to which the preceding sentence applies shall be effective unless and until the third-party purchaser shall have executed and delivered to the Company appropriate
instruments or other supporting documents to the foregoing effect. 

        (iv)  Termination
of Right of First Offer. The Right of First Offer shall expire upon the consummation of the earlier of the Company IPO or the Parent IPO. 

        (b)   After
the third anniversary of the closing of the Acquisition, the EDS Shareholders shall be free to Transfer Ordinary Shares to any Person, in whole or in part at any
time; provided, however, that such Transfer shall be subject to Section 2.1.3, Section 2.2, 2.3.2(a) and, if applicable,
Section 2.7, and, while the Company is a B.V., Section 2.1.1 hereof. 

        2.4   Other
Transfer Restrictions. The restrictions contained in this Agreement shall be in addition to and not in lieu or limitation of any restrictions on the ownership or
Transfer of Ordinary Shares (including with respect to any Restricted Stock) contained in any stock subscription agreement or employment agreement or consulting agreement or any analogous provision of
any employment, consulting, compensation or benefit agreement or arrangement or other agreement between the Company or any of its Affiliates and any Shareholder; provided,
however, that, upon the termination of any such employment or consulting agreement or other such agreement or arrangement or lapsing of such restrictions, the restrictions and
provisions contained herein shall continue in full force and effect pursuant to this Agreement. In addition to the restrictions on transfer set forth in this Agreement, and without limiting any such
restrictions, any Transfer of Ordinary Shares issued to officers, directors, employees, consultants or other service providers of the Company or any of its subsidiaries or affiliates, or that were
issued upon an exercise of an option or options granted to officers, directors, employees, consultants or other service providers of the Company or any of its subsidiaries or affiliates, other than
Transfers to Permitted Transferees in accordance with Section 2.6, shall be subject to the prior written approval of the Board of Directors of the Company acting in its sole discretion; the
foregoing restriction shall remain in effect regardless of whether the person holding such shares continues to serve as an officer, director, employee, consultant or service provider of the Company or
any of its subsidiaries or affiliates. 

        2.5   Drag-Along
Right. 

        2.5.1 Exercise.
If, prior to the earlier of the Company IPO or the Parent IPO, the FPC Shareholders propose to make a sale, in a transaction or series of related
transactions, directly or indirectly, of at least 50% of the Ordinary Shares of the Company they hold (including through sales of holdings of Affiliates) to a Proposed Transferee, including pursuant
to a stock sale, merger, business combination, recapitalization, consolidation, reorganization, restructuring or similar transaction, the FPC Shareholders shall have the right (a
"Drag-Along Right"), exercisable upon 15 days' prior written notice to the other Shareholders, to require the other Shareholders to sell such number of
Ordinary Shares equal to (a) the total number of Ordinary Shares owned by such Shareholders, multiplied by (b) a fraction (i) the numerator of which is the number of Ordinary
Shares the FPC Shareholders propose to sell to the Proposed Transferee and (ii) the denominator of which is the total number of Ordinary Shares held by the FPC Shareholders, to the Proposed
Transferee on the same terms and conditions and at the same price as the FPC Shareholders would receive in connection with such transaction. 

8

  

        2.5.2 Sale
Agreement. Each Shareholder selling Ordinary Shares pursuant to a transaction contemplated by this Section 2.5 (a "Drag-Along Seller") agrees
to cooperate in consummating such a sale, including, without limitation, by becoming a party to the sales agreement and all other appropriate related agreements, delivering, at the consummation of
such sale, stock certificates and other instruments for such Ordinary Shares duly endorsed for transfer, free and clear of all liens and encumbrances, and voting or consenting in favor of such
transaction (to the extent a vote or consent is required) and taking any other necessary or appropriate action in furtherance thereof, including the execution and delivery of any other appropriate
agreements, certificates, instruments and other documents. In addition, the EDS Equivalent Shareholders agree to exchange their Company Ordinary Share Equivalent for the Company Ordinary Shares within
fifteen (15) days after the mailing of the written notice as described in Section 2.5.1 hereof from the FPC shareholders. The foregoing notwithstanding, in connection with such sale, a
Drag-Along Seller, as such, shall not be required to make any representations and warranties with respect to the Company or the Company's business or with respect to any other seller. In
addition, each Drag-Along Seller shall be severally responsible for its proportionate share of the third-party expenses of sale incurred in connection with such sale. Such monetary
obligations and liabilities shall include (to the extent such obligations are incurred) monetary obligations and liabilities for indemnification (including for (a) breaches of representations
and warranties made in connection with such sale by the Company or any other seller with respect to the Company or the Company's business and (b) breaches of covenants in effect prior to
closing), and shall also include amounts paid into escrow or subject to holdbacks, and amounts subject to post-closing purchase price adjustments, provided all such obligations are equally
applicable on a several and not joint basis to each Drag-Along Seller based on the consideration received by such Drag-Along Seller. The foregoing notwithstanding,
(a) without the written consent of a Drag-Along Seller, the amount of such obligations and liabilities for which such Drag-Along Seller shall be responsible shall not
exceed the net, after-tax, cash proceeds received by such Drag-Along Seller in such sale, (b) a Drag-Along Seller shall not be obligated to enter into any
non-compete or other post-closing covenant that restricts its activities in any way and (c) a Drag-Along Seller shall not be responsible for the fraud of any
other seller or any indemnification obligations and liabilities for breaches of representations and warranties made by any other seller with respect to such other seller's (i) ownership of and
title to shares of capital stock of the Company, (ii) organization, (iii) authority and (iv) conflicts and consents. 

        2.5.3 No
Liability. Notwithstanding any other provision contained in this Section 2.5, there shall be no liability on the part of the Company or the FPC Shareholders
in the event that the sale pursuant to this Section 2.5 is not consummated for any reason whatsoever. The decision whether to effect a Transfer pursuant to this Section 2.5 shall be in
the sole and absolute discretion of the FPC Shareholders. 

        2.6   Tag-Along
Rights. 

        2.6.1 Sale
Notice. If the FPC Shareholders propose to sell more than 10% of the Ordinary Shares owned by them in any transaction or series of related transactions (including
through sales of holdings of Affiliates), other than (a) to an Affiliate of the FPC Shareholders, (b) pursuant to the exercise of a Drag-Along Right pursuant to
Section 2.5 of this Agreement, (c) pursuant to an FPC Demand Registration, or (d) following the earlier of the Company IPO or the Parent IPO, sales effected through open market or
non-directed broker's transactions pursuant to Rule 144, then the FPC Shareholders shall first give written notice (the "Sale Notice") to the Company and to each of the EDS
Shareholders, stating that the FPC Shareholders desire to make such sale, referring to Section 2.6 of this Agreement, specifying the number of shares of Ordinary Shares proposed to be sold by
the FPC Shareholders pursuant to the offer (the "Offer Shares"), and specifying the price, the form of consideration and the material terms pursuant to which such sale 

9

 

is
proposed to be made. Notwithstanding anything in this Agreement to the contrary, in the event that the managing underwriter advises that the inclusion of any Ordinary Shares of an employee,
consultant, former employee or former consultant to the Company in a registration or an offering would negatively impact the execution of the offering of the Ordinary Shares by the Company and the FPC
Shareholders, including through any negative impact on the expected trading price of the Ordinary Shares, then the Board of Directors, in its sole discretion, can determine to exclude any or all of
the Ordinary Shares of such employee, consultant, former employee or former consultant from such offering or registration. 

        2.6.2 Tag-Along
Election. Within seven (7) days of the date of receipt of the Sale Notice, each EDS Shareholder shall deliver to the FPC Shareholders and
to the Company a written notice stating whether the EDS Shareholder elects to sell a pro rata portion of its Ordinary Shares (equal to (A) the total number of shares of Ordinary Shares owned by
such EDS Shareholder multiplied by (B) a fraction, (i) the numerator of which is the number of Offer Shares and (ii) the denominator of which is the total number of shares of
Ordinary Shares held by the FPC Shareholders) to such Proposed Transferee on the same terms and conditions as the FPC Shareholders (with respect to each EDS Shareholder, its "Tag-Along
Shares"). An election pursuant to the first sentence of this Section 2.6.2 shall constitute an irrevocable commitment by the EDS Shareholder making such election to sell such Ordinary Shares to
the Proposed Transferee if the sale of Offer Shares to the Proposed Transferee occurs on the terms contemplated hereby. To exercise such tag-along election, the EDS Equivalent Shareholders
shall exchange the Company Ordinary Share Equivalent held by them for the Company Ordinary Shares prior to the sale. 

        2.6.3 Seller's
Rights to Transfer. 

        (a)   Third
Party Sale; Tag-Along Buyer. A sale to a Proposed Transferee pursuant to Section 2.6 shall only be consummated if the Proposed Transferee shall
purchase, within 180 days of the date of the Sale Notice, concurrently with and on the same terms and conditions and at the same price as the Offer Shares, all of each Offeree Shareholder's
Tag-Along Shares with respect to such sale, in accordance with their elections pursuant to Section 2.6.2 (the "Tag-Along Right"). 

        (b)   Sale
Agreement. Each EDS Shareholder electing to sell Tag-Along Shares (a "Tag-Along Seller") agrees to cooperate in consummating such a sale,
including, without limitation, by becoming a party to the sales agreement and all other appropriate related agreements, delivering at the consummation of such sale, stock certificates and other
instruments for such Ordinary Shares duly endorsed for transfer, free and clear of all liens and encumbrances, and voting or consenting in favor of such transaction (to the extent a vote or consent is
required) and taking any other necessary or appropriate action in furtherance thereof, including the execution and delivery of any other appropriate agreements, certificates, instruments and other
documents. In addition, each Tag-Along Seller shall be severally responsible for its proportionate share of the expenses of sale incurred by the sellers in connection with such sale and
the obligations and liabilities incurred by the sellers in connection with such sale. Such obligations and liabilities shall include (to the extent such obligations are incurred) obligations and
liabilities for indemnification (including for (x) breaches of representations and warranties made in connection with such sale by the Company or any other seller with respect to the Company or
the Company's business, (y) breaches of covenants and (z) other matters), and shall also include amounts paid into escrow or subject to holdbacks, and amounts subject to
post-closing purchase price adjustments. The foregoing notwithstanding, (1) without the written consent of a Tag-Along Seller, the amount of such obligations and
liabilities for which such Tag-Along Seller shall be responsible shall not exceed the gross proceeds received by such Tag-Along Seller in such sale, 

10

 

and
(2) a Tag-Along Seller shall not be responsible for the fraud of any other seller or for any indemnification obligations and liabilities for breaches of representations and
warranties made by any other seller with respect to such other seller's (A) ownership of and title to shares of capital stock of the Company, (B) organization, (C) authority and
(D) conflicts and consents. 

        (c)   No
Liability. Notwithstanding any other provision contained in this Section 2.6.3, there shall be no liability on the part of the Company or the FPC Shareholders
in the event that the sale pursuant to this Section 2.6.3 is not consummated for any reason whatsoever. The decision whether to effect a Transfer pursuant to this Section 2.6.3 shall be
in the sole and absolute discretion of the FPC Shareholders. 

        2.7   Additional
Provisions Relating to Restrictions on Transfers. 

        2.7.1 Legends.
Each of the Shareholders hereby agrees that each outstanding certificate representing Ordinary Shares held or owned by such Shareholder or its Transferee, if
any, in any case, subject to the provisions of this Agreement and issued prior to the date when the applicable restrictions are terminated pursuant to Section 2.7.3, shall bear endorsements
reading substantially as follows: 

        (a)   The
securities represented by this certificate have not been registered under the Securities Act of 1933, as amended, or under the securities laws of any state and may
not be transferred, sold or
otherwise disposed of except pursuant to an effective registration statement or pursuant to an exemption from registration under said Act and applicable state securities laws. 

        (b)   The
securities represented by this certificate are subject to the terms and conditions set forth in a Shareholders' Agreement, dated as of August     ,
2006, as amended from time to time, copies of which may be obtained from the issuer or from the holder of this security. No transfer of such securities will be made on the books of the issuer unless
accompanied by evidence of compliance with the terms of such agreement. 

        Each
outstanding certificate representing Ordinary Shares shall also bear any legend required by the terms of any subscription agreement, the employment agreements or as the Company may
otherwise deem appropriate. 

        2.7.2 Copy
of Agreement. A copy of this Agreement shall be filed with the corporate secretary of the Company and kept with the records of the Company and shall be made
available for inspection by any Shareholder of the Company at the principal executive offices of the Company. 

        2.7.3 Termination
of Restrictions. The restriction referred to in the endorsement required pursuant to Section 2.7.l(a) shall cease and terminate as to any particular
Ordinary Shares when, in the reasonable opinion of counsel for the Company, such restriction is no longer required in order to assure compliance with the Securities Act. The Company or the Company's
counsel, acting reasonably, at their election, may request from any Shareholder a certificate or an opinion of such Shareholder's counsel with respect to any relevant matters in connection with the
removal of the endorsement set forth in Section 2.7.l(a) from such Shareholder's stock certificates, any such certificate or opinion of counsel to be reasonably satisfactory to the Company and
its counsel. The restrictions referred to in Section 2.7.l(b) shall cease and terminate as to any particular Ordinary Shares when, in the reasonable opinion of counsel for the Company, the
provisions of this Agreement are no longer applicable to such shares or this Agreement shall have terminated in accordance with its terms. Any other restrictions referred to in any other legends
required pursuant to Section 2.7.1 shall cease and terminate when, in the reasonable opinion of counsel for the Company, such restrictions are no longer applicable. Whenever such restrictions
shall cease and terminate as to any Ordinary Shares, the Shareholder holding such shares shall be entitled to receive from the Company, without expense (other than applicable transfer taxes, if any,
if such 

11

 

unlegended
shares are being delivered and transferred to any Person other than the registered holder thereof), new certificates for a like number of Ordinary Shares not bearing the relevant legend(s)
set forth or referred to in Section 2.7.1. 

        2.8   Medium
Term Liquidity. After the third anniversary of the closing of the Acquisition, the Company will repurchase any Blocked Shares if (a) the Company is still a
B.V., (b) an EDS Shareholder proposes to Transfer Company Ordinary Shares (the "Blocked Shares"), and (c) the Board of Directors of the Company refuses to approve such Transfer pursuant
to Section 2.1.1. The Company will repurchase any such Blocked Shares within 30 days of such refusal at the Repurchase FMV (as defined in the Share Purchase Agreement) failing which the
Blocked Shares shall be repurchased by the FPC Shareholders within a further 30 days. 

 
 

ARTICLE 3.    
    
    REGISTRATION RIGHTS    
    

        3.1   Piggyback,
Demand and S-3 Registrations. 

        3.1.1 Piggyback
Registrations. If (I) (a) the Company proposes to undertake the US Company IPO or any Other Company IPO and (b) the FPC Shareholders propose to
sell Registrable Securities in US Company IPO or Other Company IPO, or (2) at any time after a US Company IPO (a) either (i) the Company proposes to register for sale by the
Company under the Securities Act any of its Ordinary Shares (other than a registration on Form S-4 or Form S-8, or any successor or similar forms), or any
Ordinary Shares pursuant to a FPC Shareholder Demand Registration under Section 3.1.2, in a manner that would permit registration of Registrable Securities for sale to the public under the
Securities Act and (ii) the FPC Shareholders proposes to sell Registrable Securities in such registered sale, or (b) the Company proposes to register for sale by the FPC Shareholders to
the public under the Securities Act any Ordinary Shares, or (3) at any time after an Other Company IPO either (a) the Company proposes to arrange for listing on the international
securities exchange on which the Ordinary Shares are then listed in connection with an offering of Ordinary Shares by the Company for cash, or arranges for the listing of any Ordinary Shares pursuant
to a FPC Shareholder Demand Registration under Section 3.1.2, in a manner that would permit registration of Registrable Securities for sale to the public and (ii) the FPC Shareholders
proposes to sell Registrable Securities in such sale, or (b) the Company proposes to arrange for listing on the international securities exchange on which the Ordinary Shares are then listed
Ordinary Shares for sale by the FPC Shareholders to the public, the Company will each such time promptly give written notice to all the EDS Shareholders who beneficially own any Registrable Securities
of its intention to do so, of the registration form of the SEC that has been selected by the Company (if such offering is to be registered with the SEC) and of such holders' rights under this
Section 3.1.1 (the "Piggyback Notice"). Subject to Section 3.1.6, the Company will include, and cause the underwriter or underwriters, if applicable, to include, in the proposed
offering, on the same terms and conditions as the Ordinary Shares proposed to be sold by the Company, all Registrable Securities that the Company has been requested in writing, within fifteen
(15) calendar days after the Piggyback Notice is given, to register by the Shareholders thereof (each such registration pursuant to this Section 3.1.1, a "Piggyback Registration") so
long as such Shareholders provide reasonable and customary assistance in connection with such proposed offering, including by answering customary questionnaires and providing other information and
assistance that the Company determines is necessary in connection with such offering; provided, however, that (i) if, at any time after giving a
Piggyback Notice and, if the offering is to be registered with the SEC, prior to the effective date of the registration statement filed in connection with such registration, the Company shall
determine for any reason not to register (if the offering is to be registered with the SEC), or otherwise arrange for the listing (if the offering is not to be registered with the SEC), such Ordinary
Shares (or, in 

12

 

the
case of a FPC Shareholder Demand Registration (as defined below), the FPC Shareholders so determine), the Company may, at its election (or, in the case of a FPC Shareholder Demand Registration
where the FPC Shareholders so determine, the Company shall), give written notice of such determination to all the EDS Shareholders who beneficially own any Registrable Securities and, thereupon, shall
be relieved of its obligation to register any Registrable Securities in connection with such abandoned registration (in the case of an offering that was intended to be registered with the SEC) or
arrange for the listing of any Registrable Securities in connection with such abandoned listing (in the case of an offering that was not intended to be registered with the SEC), and (ii) in
case of a determination by the Company to delay registration of its Ordinary Shares (in the case of an offering that was intended to be registered with the SEC) or to delay the additional listing (in
the case of an offering that was not intended to be registered with the SEC) (or, in either case, in the case of a FPC Shareholder Demand Registration, the FPC Shareholders so determine), the Company
shall be permitted to (or, in the case of a FPC Shareholder Demand Registration where the FPC Shareholders so determine, the Company shall) delay the registration or listing of such Registrable
Securities for the same period as the delay in registering or listing such other Ordinary Shares (provided that clauses
(i) and (ii) shall not relieve the Company of its obligations under Section 3.1.2). In the case of any registration or listing of Registrable Securities in an underwritten
offering pursuant to this Section 3.1.1, all EDS Shareholders proposing to distribute their securities pursuant to this Section 3.1.1 shall, at the request of the Company (or, in the
case of a FPC Shareholder Demand Registration, the FPC Shareholders), enter into an agreement in customary form with the underwriter or underwriters selected by the Company. In connection with any
Piggyback Registration, the EDS Shareholders designate the following as "Shareholders Representative" with all power and authority to negotiate and execute such documents and take such other actions
as they deem appropriate in connection with such Piggy-Back Registration, including retaining counsel (which can be Fried Frank), in connection with such Piggyback Registration, at the
expense of such EDS Shareholders: the EDS Shareholders other than the Financial Institution Shareholders designate Pascal Le Melinaire and the Financial Institution Shareholders designate FCPR
Galiléo III. For purposes of this section, the term "Financial Institution Shareholders shall mean FCPR Galiléo III, Rothschild & Cie Gestion and Matignon
Technologies. 

        3.1.2 FPC
Shareholder Demand Registrations. The Company, upon the reasonable request of the FPC Shareholders, from time to time, shall use its reasonable best efforts to
register under the Securities Act or arrange for listing on any international securities exchange, in either case, any reasonable portion of Registrable Securities held by the FPC Shareholders
(including, at the election of such the FPC Shareholders, in an underwritten offering) and bear all expenses in connection with such offering in a manner consistent with Section 3.1.3 below and
shall enter into such other agreements in furtherance thereof (each such registration or listing pursuant to this Section 3.1.2, a "FPC Shareholder Demand Registration"), and the Company shall
provide customary indemnifications in such instances (in a manner consistent with the indemnification provisions of this Article III) to the FPC Shareholders and any such underwriters. The FPC
Shareholders shall have the right to initiate (i) an unlimited number of FPC Shareholder Demand Registrations so long as the FPC Shareholders hold at least 50% of the total voting power of the
Company and (ii) up to five (5) FPC Shareholder Demand Registrations after the FPC Shareholders cease to hold at least 50% of the total voting power of the Company. A registration shall
not count as a FPC Shareholder Demand Registration unless and until the registration statement relating thereto has been declared effective by the SEC and not withdrawn. If any FPC Shareholder Demand
Registration requested by the FPC Shareholders is in the form of an underwritten offering, the FPC Shareholders shall designate the underwriter or underwriters to be utilized in connection with such
offering. 

13

 

        3.1.3 EDS
Shareholder Demand Registration. Commencing on the date that is twelve (12) months after the Company IPO, the EDS Shareholders, acting collectively as a
group, holding an aggregate number of Registrable Securities at least equal to or greater than thirty percent (30%) of the number of Registrable Securities then held by all the EDS Shareholders shall
be entitled to make a demand of the Company to consummate a demand registration (if there has previously been a US Company IPO) or listing (if there has been an Other Company IPO) of all or part of
the Registrable Securities then held by the EDS Shareholders (the "EDS Shareholder Demand Registration"); provided, however, that not more than two
(2) EDS Shareholder Demand Registration may be made pursuant to the rights granted by this Section 3.1.3; provided, further, however, that no more than one EDS Shareholder Demand
Registrations may be demanded within twelve (12) months; and provided further, that, such limitation will not apply in the circumstances more fully described in Section 3.1.4 below. 

        3.1.4 S-3
Registration. Notwithstanding anything contained in this Section 3.1, at such time as the Company shall have qualified for the use of
Form S-3, or any similar form or forms promulgated by the SEC, the Shareholders shall each have the right to request an unlimited number of registrations of
Form S-3 (each a 3-3 Registration"). Any such request shall be in writing, shall specify the Registrable Securities intended to be sold or disposed of by the
Shareholders thereof, shall state the intended method of disposition of such Registrable Securities by the Shareholder(s) requesting such registration and shall relate to Registrable Securities having
proposed gross cash offering proceeds (prior to deduction of underwriters commissions and expenses, if any) of Two Million Dollars ($2,000,000) or more for all Registrable Securities to be included,
on the basis of a reasonable (in light of the current market price) proposed per share offering price. The Company shall be obligated to effect such registration or registrations on
Form S-3 as soon as practicable after receipt of such request; provided, however, that the Company shall not be obligated to effect
the filing of a registration pursuant to this Section 3.1.4 (i) during the period starting with the date ninety (90) days prior to the Company's estimated date of filing of, and
ending on a date one hundred eighty (180) days following the effective date of, a registration statement pertaining to a public offering of the Ordinary Shares for the account of the Company,
provided that the Company is actively employing in good faith all reasonable efforts to cause such registration statement to become effective and that, in the good faith judgment of the Company's
underwriter for an underwritten offering or of the Board of Directors of the Company for any other offering, an offering pursuant to such a registration statement would interfere in any material
respect with the successful marketing (including pricing) of the Ordinary Shares to be included in the Company's proposed registration statement, or (ii) if the Board of Directors of the
Company shall determine in good faith that such filing will interfere in any material respect with a pending or contemplated financing, merger, sale of assets, recapitalization or other similar
corporate action of the Company. In the event the Company's obligations are abated pursuant to the foregoing proviso, the Company shall file such registration statement as promptly as practicable
following (x) one hundred eighty (180) days after the effective date of the registration statement with respect to the offering referred to in clause (i) above, or (y) the
date on which the transactions referred to in clause (ii) above shall have been completed or abandoned (as the case may be), but not later than one hundred twenty (120) days after the
initial registration request notice was given; provided further, however, that the Company shall not be obligated to file and cause to become effective (a) more than two
(2) S-3 Registration in any one twelve (12) month period or (b) any S-3 Registration within six (6) months after the effective date of any previous
registration statement filed under Section 3.1.1. No registration pursuant to this Section 3.1.4 shall count as a Demand Registration pursuant to Sections 3.1.2 or 3.1.3 hereof. 

        3.1.5 Expenses.
The Company shall pay all Registration Expenses in connection with each registration or listing of Registrable Securities requested pursuant to this
Section 3.1; provided, however, that each Shareholder shall pay all underwriting discounts and commissions and transfer taxes, if any, relating
to the sale or disposition of such Shareholder's Registrable Securities pursuant to a registration statement or listing effected pursuant to this Section 3.1. 

14

  

        3.1.6 Priority
in Piggyback, Demand and S-3 Registrations. If the managing underwriter for a registration or listing pursuant to this Section 3.1 shall
advise the Company in writing that, in its opinion, the number of securities requested to be included in such registration exceeds the number (the "Maximum Sale Number") that can be sold in an orderly
manner in such offering within a price range acceptable to the Company (or, in the case of a FPC Shareholder Demand Registration, to the FPC Shareholders), the Company shall include in such offering
(a) first, all the Ordinary Shares the Company proposes to register for its own sale, and (b) second, to the extent that the Ordinary Shares the Company proposes to register are less
than the Maximum Sale Number, all Registrable Securities requested to be included by all Shareholders; provided, however, that if the number of such
Registrable Securities exceeds (x) the Maximum Sale Number less (y) the number of Ordinary Shares included pursuant to clause (a) hereof, then the number of such Registrable
Securities included in such registration or listing shall be allocated pro rata among all requesting Shareholders, on the basis of the relative number of shares of such Registrable Securities each
such Shareholder then holds. If there is any reduction or exclusion of Registrable Securities pursuant to this Section 3.1.5 in connection with a Demand Registration, such registration or
listing shall not be deemed to be a Demand Registration for purposes of determining the maximum number of Demand Registrations the Company is obligated to effect pursuant to Sections 3.1.2 or 3.1.3
hereof. 

        3.1.7 Underwriting
Requirements. In connection with any offering involving any underwriting of Ordinary Shares in a Piggyback Registration, the Company shall not be required
to include any Shareholder's Registrable Securities in such underwriting unless such Shareholder accepts the terms of the underwriting as agreed upon between the Company and the underwriters as to the
quantity, and terms and conditions of inclusion of, such securities as set forth in Section 3.1.1 hereof, and such Shareholders agrees to sell such Shareholder's securities on the basis
provided therein and completes and/or executes all questionnaires, indemnities, lock-ups, underwriting agreements and other documents (including powers of attorney and custody
arrangements) required generally of all selling Shareholders, in each case in customary form and substance, which are requested to be executed in connection therewith. Notwithstanding anything in this
Agreement to the contrary, in the event that (i) the managing underwriter advises and (ii) the Board of Directors of the Company determines in its sole discretion that the inclusion of
any Ordinary Shares of an employee, consultant, former employee or former consultant to the Company or any of its subsidiaries in an offering would negatively impact the execution of the offering of
the Ordinary Shares by the Company and the FPC Shareholders, the number of the Ordinary Shares included in such offering can be excluded from such registration to the extent determined appropriate by
the Board of Directors of the Company, in its sole discretion. 

        3.2   Registration
Procedures. If and whenever the Company is required to use its reasonable best efforts to effect or cause the registration of any Registrable Securities
under the Securities Act as provided in this Article III, the Company will, as soon as practicable: 

        (a)   prepare
and file with the SEC the requisite registration statement with respect to such Registrable Securities and use its reasonable best efforts to cause such
registration statement to become and remain effective in order to permit the sale of the Registrable Securities by the Shareholders in accordance with the intended method or methods of distribution
thereof described in such Registration Statement; 

        (b)   prepare
and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep
such registration statement effective during such period; 

        (c)   comply
with the provisions of the Securities Act with respect to the sale or other disposition of all securities covered by such registration statement during such
period; 

15

 

        (d)   furnish
to each Shareholder of such Registrable Securities and each underwriter such number of copies of such registration statement and of each amendment and supplement
thereto (in each case including all exhibits), such number of copies of the prospectus included in such registration statement (including each preliminary prospectus and summary prospectus), and each
issuer free writing prospectus utilized in connection therewith, in conformity with the requirements of the Securities Act, and such other documents as such seller may reasonably request; 

        (e)   promptly
notify in writing each Shareholder that holds Registrable Securities covered by such registration statement, (i) when such registration statement or any
post-effective amendment or supplement thereto becomes effective, (ii) of the issuance by the SEC or any state securities authority of any stop order, injunction or other order or
requirement suspending the effectiveness of such registration statement (and take all reasonable action to prevent the entry of such stop order or to remove it if entered, or the initiation of any
proceedings for that purpose), or (iii) of the happening of any event as a result of which the registration statement, as then in effect, the prospectus related thereto or any document included
therein by reference includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the
light of the circumstances under which they were made and promptly file such amendments and supplements which may be required on account of such event and use its reasonable best efforts to cause each
such amendment and supplement to become effective; 

        (f)    promptly
furnish counsel for each underwriter, if any, and for the selling Shareholders of Registrable Securities copies of any written request by the SEC or any state
securities authority for amendments or supplements to a registration statement and prospectus or for additional information; 

        (g)   use
reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of a registration statement at the earliest possible time; 

        (h)   use
its best efforts to cause all such Registrable Securities covered by such registration statement to be listed on the principal securities exchange, or authorized for
quotation on Nasdaq, on which similar equity securities issued by the Company are then listed or authorized for quotation, or eligible for listing or quotation, if the listing or authorization for
quotation of such securities is then permitted under the rules of such exchange or the NASD; 

        (i)    enter
into an underwriting agreement with the underwriter of such offering in the form customary for such underwriter for similar offerings, including such
representations and warranties by the Company, provisions regarding the delivery of opinions of counsel for the Company and accountants' letters, provisions regarding indemnification and contribution,
and such other terms and conditions as are at the time customarily contained in such underwriter's underwriting agreements for similar offerings (the Shareholders of Registrable Securities which are
to be distributed by such underwriter(s) may, at their option, require that any or all of the representations and warranties by, and the other agreements on the part of, the Company to and for the
benefit of such underwriter(s) shall also be made to and for the benefit of such Shareholders of Registrable Securities); 

        (j)    make
available for inspection by representatives of the selling Shareholders who hold Registrable Securities and any underwriters participating in any disposition
pursuant hereto and any counsel or accountant retained by such Shareholders or underwriters, all relevant financial and other records, pertinent corporate documents and properties of the Company and
cause the respective officers, directors and employees of the Company to supply all information reasonably requested by any such representative, underwriter, counsel or 

16

 

accountant
in connection with a registration pursuant hereto; provided, however, that, with respect to records, documents or information which the
Company determines, in good faith, to be confidential and as to which the Company notifies such representatives, underwriters, counsel or accountants in writing of such confidentiality, such
representatives, underwriters, counsel or accountants shall not disclose such records, documents or information unless (i) the release of such records, documents or information is ordered
pursuant to a subpoena or other order from a court of competent jurisdiction, (ii) such records, documents or information have previously been generally made available to the public, or
(iii) the disclosure of such records, documents or information is necessary, in the written opinion of outside legal counsel, to avoid or correct a material misstatement or omission in the
registration statement and then only after reasonable request has been made to the Company to make such disclosure and the Company has denied such request. Each selling Shareholder of such Registrable
Securities agrees that information obtained by it as a result of such inspections shall be deemed confidential and shall not be used by it as the basis for any market transactions in the securities of
the Company or its Affiliates (or for such Shareholder's business purposes or for any reason other than in connection with a registration hereunder) unless and until such information is made generally
available (other than by such Shareholder or where such Shareholder knows that such information became publicly available as a result of a breach of any confidentiality arrangement) to the public.
Each selling Shareholder of such Registrable Securities further agrees that it will, upon learning that disclosure of such records is sought, give notice to the Company and allow the Company, at its
expense, to undertake appropriate action to prevent disclosure of the records deemed confidential; 

        (k)   permit
any beneficial owner of Registrable Securities who, in the sole judgment, exercised in good faith, of such holder, might be deemed to be a controlling person of
the Company, to participate in the preparation of such registration or comparable statement and to require the insertion therein of material, furnished to the Company in writing, that in the judgment
of such holder, as aforesaid, should be included; 

        (l)    make
reasonably available its employees and personnel and otherwise provide reasonable assistance to the underwriters (taking into account the needs of the Company's
businesses and the requirements of the marketing process) in the marketing of Registrable Securities in any underwritten offering. The Company may require each selling Shareholder of Registrable
Securities as to which any registration is being effected to furnish the Company such information regarding such selling Shareholder and the distribution of such securities as the Company may from
time to time reasonably request in writing; and 

        (m)  take
all reasonable action to ensure that any issuer free writing prospectus utilized in connection with any registration complies in all material respects with the
Securities Act, is filed in accordance
with the Securities Act to the extent required thereby, is retained in accordance with the Securities Act to the extent required thereby and, when taken together with the related prospectus,
prospectus supplement and related documents, will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. 

        The
Company shall not be required to register or qualify any Registrable Securities covered by such registration statement under any state securities, or "blue sky," laws of such
jurisdictions other than as it deems necessary in connection with the chosen method of distribution or to take any other actions or do any other things other than those it deems necessary or advisable
to consummate such distribution, and the Company shall not for any such purpose be required to qualify generally to do business as a foreign corporation in any jurisdiction wherein it would not
otherwise be obligated to be so qualified, to subject itself to taxation in any such jurisdiction or to consent to general service of process in any such jurisdiction. 

17

 

        Each
beneficial owner of Registrable Securities agrees that upon receipt of any notice from the Company of the happening of any event of the kind described in subclauses (ii) and
(iii) of clause (e) of this Section 3.2, such beneficial owner will forthwith discontinue disposition of Registrable Securities pursuant to the registration statement covering
such Registrable Securities until such beneficial owner's receipt of the copies of the supplemented or amended prospectus contemplated by clause (e) of this Section 3.2, and, if so
directed by the Company, such beneficial owner will deliver to the Company (at the Company's expense) all copies, other than permanent file copies then in such beneficial owner's possession, of the
prospectus covering such Registrable Securities that was in effect prior to such amendment or supplement. 

        If
and whenever the Company is required to use its reasonable best efforts to cause a listing of Registrable Shares (in an offering that is not intended to be registered under the
Securities Act) as provided in this Article III, the Company will, as soon as practicable, take similar appropriate steps in connection to such listing as those described in this
Section 3.2. 

        3.3   Indemnification.

        (a)   In
the event of any registration of any Registrable Securities pursuant to this Article III, the Company will, and hereby does, indemnify and old harmless, to the
fullest extent permitted by law, the seller of any Registrable Securities covered by such registration statement or included in such listing, its directors, officers, fiduciaries, employees and
shareholders, members or general and limited partners (and the directors, officers, fiduciaries, employees and shareholders, members or general and limited partners thereof), each other Person who
participates as an underwriter or a qualified independent underwriter, if any, in the offering or sale of such securities, each director, officer, fiduciary, employee and shareholder or general and
limited partner of such underwriter or qualified independent underwriter, and each other Person (including any such Person's directors, officers, fiduciaries, employees and shareholders, members or
general and limited partners), if any, who controls such seller or any such underwriter or qualified independent underwriter, within the meaning of the Securities Act, against any and all Claims in
respect thereof and expenses (including reasonable fees and expenses of counsel and any amounts paid in any settlement effected with the Company's consent, which consent shall not be unreasonably
withheld or delayed) to which each such indemnified party may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such Claims or expenses arise out of or are based upon
any of the following actual or alleged statements, omissions or violations (each, a "Violation"): (i) any untrue statement or alleged untrue statement of a material fact contained in any
registration statement under which such securities were registered pursuant to this Agreement under the Securities Act or the omission or alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, (ii) any untrue statement or alleged untrue statement of
a material fact contained in any preliminary, final or summary prospectus or any amendment or supplement thereto, together with the documents incorporated by reference therein, or any issuer free
writing prospectus utilized in connection therewith, or the omission or alleged omission to state therein a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading, or (iii) any violation by the Company of any federal, state or common law rule or regulation applicable to the
Company and relating to action required of or inaction by the Company in connection with any such registration, and the Company will reimburse any such indemnified party for any legal or other
expenses reasonably incurred by such indemnified party in connection with investigating or defending any such Claim as such expenses are incurred; provided,
however, that the Company shall not be liable to any such indemnified party in any such case to the extent such 

18

 

Claim
or expense arises out of or is based upon any Violation which occurs in reliance upon and in conformity with written information furnished to the Company or its representatives by or on behalf
of such indemnified party expressly stating that such information is for use therein. 

        (b)   Each
holder of Registrable Securities that are included in the securities as to which any Demand Registration, Piggyback Registration or S-3 Registration is
being effected (and, if the Company requires as a condition to including any Registrable Securities in any registration statement filed in connection with any Demand Registration, Piggyback
Registration or S-3 Registration, any underwriter and qualified independent underwriter, if any) shall, severally and not jointly, indemnify and hold harmless (in the same manner and to
the same extent as set forth in paragraph (a) of this Section 3.3), to the extent permitted by law, the Company, its directors, officers, fiduciaries, employees and shareholders (and the
directors, officers, fiduciaries, employees and shareholders or general and limited partners thereof) and each Person (including any such Person's directors, officers, fiduciaries, employees and
shareholders or general and limited partners), if any, controlling the Company within the meaning of the Securities Act and all other prospective sellers and
their directors, officers, fiduciaries, employees and shareholders, members or general and limited partners and respective controlling Persons (including any such Person's directors, officers,
fiduciaries, employees and shareholders, members or general and limited partners) against any and all Claims and expenses (including reasonable fees and expenses of counsel and any amounts paid in any
settlement effected with the consent of the indemnifying party, which consent shall not be unreasonably withheld or delayed) to which each such indemnified party may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such Claims or expenses arise out of or are based upon any Violation which occurs in reliance upon and in conformity with written information
furnished to the Company or its representatives by or on behalf of such holder or underwriter or qualified independent underwriter, if any, expressly stating that such information is for use in
connection with any registration statement, preliminary, final or summary prospectus or amendment or supplement or document incorporated by reference into any of the foregoing, or any issuer free
writing prospectus utilized in connection therewith; provided, however, that the aggregate amount which any such holder, underwriter or qualified
independent underwriter shall be required to pay pursuant to this Section 3.3(b) and Sections 3.3(c) and (e) shall be limited to (x) in the case of any such holder, the amount of
the gross proceeds received by such holder upon the sale of the Registrable Securities pursuant to the registration statement giving rise to such claim and (y) in the case of any such
underwriter or qualified independent underwriter, the amount of the total sales price of the Registrable Securities sold through or by it pursuant to the registration statement giving rise to such
claim. 

        (c)   Indemnification
similar to that specified in the preceding paragraphs (a) and (b) of this Section 3.3 (with appropriate modifications) shall be
given by the Company and each seller of Registrable Securities (and, if the Company requires as a condition to including any Registrable Securities in any registration statement filed in connection
with any Demand Registration, Piggyback Registration or S-3 Registration, any underwriter and qualified independent underwriter, if any) with respect to any required registration or other
qualification of securities under any state securities and "blue sky" laws. 

        (d)   Any
Person entitled to indemnification under this Agreement shall notify promptly the indemnifying party in writing of the commencement of any action or proceeding with
respect to which a claim for indemnification may be made pursuant to this Section 3.3, but the failure of any indemnified party to provide such notice shall not relieve the indemnifying party
of its obligations under this Section 3.3, except to the extent the indemnifying party is 

19

 

prejudiced
thereby and shall not relieve the indemnifying party from any liability which it may have to any indemnified party otherwise than under this Section 3.3. In case any action or
proceeding is brought against an indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, unless
in the reasonable opinion of outside counsel to the indemnified party a conflict of interest between such indemnified and indemnifying parties may exist in respect of such claim, to assume the defense
thereof jointly with any other indemnifying party similarly notified, to the extent that it chooses, with counsel reasonably satisfactory to such indemnified party, and after notice from the
indemnifying party to such indemnified party that it so chooses, the indemnifying party shall not be liable to such indemnified party for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the
indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within twenty (20) days after receiving notice from such indemnified party that the
indemnified party believes it has failed to do so; or (ii) if such indemnified party who is a defendant in any action or proceeding that is also brought against the indemnifying party
reasonably shall have concluded that there may be one or more legal defenses available to such indemnified party which are not available to the indemnifying party; or (iii) if representation of
both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue
its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties in each jurisdiction, except to the extent any indemnified party or parties reasonably shall
have concluded that there may be legal defenses available to such party or parties which are not available to the other indemnified parties or to the extent representation of all indemnified parties
by the same counsel is otherwise inappropriate under applicable standards of professional conduct) and the indemnifying party shall be liable for any reasonable expenses therefor. No indemnifying
party shall, without the written consent of the indemnified party, which consent shall not be unreasonably withheld, effect the settlement or compromise of, or consent to the entry of any judgment
with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential
party to such action or claim) unless such settlement, compromise or judgment (A) includes an unconditional release of the indemnified party from all liability arising out of such action or
claim and (B) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified party. 

        (e)   If
for any reason the foregoing indemnity is unavailable or is insufficient to hold harmless an indemnified party under Section 3.3(a), (b) or (c), then
each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of any Claim in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and the indemnified party on the other from the relevant offering of securities. If, however, the allocation provided in the immediately preceding sentence is not
permitted by applicable law, or if the indemnified party failed to give the notice required by Section 3.3(d) above and the indemnifying party is prejudiced thereby, then each indemnifying
party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative fault of but also the relative benefits received
by the indemnifying party, on the one hand, and the indemnified party, on the other hand, as well as any other relevant equitable considerations. The relative fault shall be determined by reference
to, among other things, whether the Violation relates to information supplied by the indemnifying party or the indemnified party and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such 

20

 

Violation.
The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 3.3(e) were to be determined by pro rata allocation or by any other method
of allocation which does not take account of the equitable considerations referred to in the preceding sentences of this Section 3.3(e). The amount paid or payable in respect of any Claim shall
be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such Claim. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11 (f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.
Notwithstanding anything in this Section 3.3(e) to the contrary, no indemnifying party (other than the Company) shall be required pursuant to this Section 3.3(e) to contribute any amount
in excess of (x) in the case of an indemnifying party that is a holder of Registrable Securities, the gross proceeds received by such indemnifying party from the sale of Registrable Securities
in the offering to which the losses, claims, damages or liabilities of the indemnified parties relate, or (y) in the case of an indemnifying party that is an underwriter or a qualified
independent underwriter, the amount of the total sales price of the Registrable Securities sold through or by it in the offering to which the losses, claims, damages or liabilities of the indemnified
parties relate, less, in any such case referred to in (x) and (y), the amount of all indemnification and contribution payments made pursuant to Sections 3.3(b) and (c) and this
Section 3.3(e), as the case may be, in connection with such offering. 

        (f)    The
indemnity agreements contained herein shall be in addition to any other rights to indemnification or contribution which any indemnified party may have pursuant to
law or contract and shall remain operative and in full force and effect regardless of any investigation made or omitted by or on behalf of any indemnified party and shall survive the transfer of the
Registrable Securities by any such Party. 

        (g)   The
indemnification and contribution required by this Section 3.3 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or expense, loss, damage or liability is incurred. 

        (h)   In
connection with underwritten offerings, the Company will use reasonable best efforts to negotiate terms of indemnification that are reasonably favorable to the
various Selling Shareholders pursuant thereto, as appropriate under the circumstances. 

        3.4   Deferral.
Notwithstanding anything to the contrary contained herein, the Company shall not be obligated to prepare and file, or cause to become effective, any
registration statement or listing pursuant to Section 3.1.2 hereof at any time when, in the good faith judgment of the Board of Directors of the Company, the filing thereof at the time
requested or the effectiveness thereof after filing should be delayed to permit the Company to include in the registration statement or listing documents the Company's financial statements (and any
required audit opinion thereon) for the then immediately preceding fiscal year or fiscal quarter, as the case may be. The filing of a registration statement by the Company cannot be deferred pursuant
to the provisions of the immediately preceding sentence beyond the time that such financial statements (or any required audit opinion thereon) would be required to be filed with the SEC as part of the
Company's Annual Report on Form 10-K or Quarterly Report on Form 1 0-Q, as the case may be, if the Company were then obligated to file such reports.
Notwithstanding anything to the contrary contained herein, the Company shall not be obligated to file a registration statement, or cause a registration statement previously filed pursuant to
Section 3.1 to become effective, or cause or maintain any listing of any Registrable Securities, and may suspend sales by the holders of Registrable Securities under any registration that has
previously become effective or comparable listing documents, at any time when, in the good faith judgment of the Board, it reasonably believes that the effectiveness of such registration statement or
the offering of securities would materially adversely affect a pending or proposed acquisition, merger, recapitalization, consolidation, reorganization or similar transaction or negotiations,
discussions or pending proposals 

21

 

with
respect thereto; provided that deferrals pursuant to this sentence shall not exceed, in the aggregate, 180 days in any calendar year. The filing of a registration statement or listing of
any Ordinary Shares, or any amendment or supplement thereto, by the Company cannot be deferred, and the rights of holders of Registrable Securities to make sales pursuant to an effective registration
statement or through an effective listing cannot be suspended, pursuant to the provisions of the immediately preceding sentence for more than 15 days after the abandonment or 30 days
after the consummation of any of the foregoing proposals or transactions, unless invoked under new circumstances. 

        3.5   "Market
Stand-Off' Agreement. Each Shareholder hereby agrees that, if the Company files a registration statement under the Act to register its Ordinary Shares, such
Shareholder (A) shall not (i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or
warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any Registrable Securities then owned by such Investor (other than those included in the registration), or
(ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Registrable Securities, whether any such
transaction described in clause (i) or (ii) above is to be settled by delivery of Ordinary Shares or such other securities, in cash or otherwise, for a period equal to
(x) 180 days after the consummation of the Company IPO, or (y) 90 days after the consummation of any other offering of Ordinary Shares registered under the Securities Act,
or (z) in each case, such longer period of time as may be reasonably requested or shorter period as may reasonably be deemed appropriate by the managing underwriter in connection with such
Company IPO or subsequent offering, so long as the FPC Shareholders agree to such longer period as well. Each Shareholder hereby authorizes and directs, and shall cause its Permitted Transferees to
authorize and direct, the Company not to authorize any transfer of any Registrable Securities that does not comply with this Section 3.5. In order to enforce the foregoing covenant, the Company
may impose stop-transfer instructions with respect to the Registrable Securities of each Shareholder (and the shares or securities of every other person subject to the foregoing
restriction) until the end of such period. 

        3.6   Rule 144
and Rule 144A. If the Company shall have filed a registration statement pursuant to the requirements of
Section 12 of the Exchange Act or a registration statement pursuant to the requirements of the Securities Act in respect of the Ordinary Shares, the Company covenants for the benefit of each
holder of Registrable Securities that so long as it remains subject to the reporting provisions of the Exchange Act, it will timely file the reports required to be filed by it under the Securities Act
or the Exchange Act (including, but not limited to, the reports under Sections 13 and 15(d) of the Exchange Act referred to in subparagraph (c)(l) of Rule 144. Upon the request of any
Shareholder, the Company will deliver to such Shareholder a written statement as to whether the Company has complied with the requirements of this Section 3.6. 

        3.7   Parent
IPO. In the event of the Parent IPO, the provisions in Sections 3.1 to 3.6 shall apply mutatis mutandis to the
shares of the Parent. 

 
 

ARTICLE 4.    
    
    RESTRICTIONS ON INITIAL PUBLIC OFFERING    
    

        4.1   Prior
to the Company IPO, there shall not be either an initial public offering or any public offerings, whether underwritten or not, of shares of any Person whose
principal asset, directly or indirectly, consists of shares of the Company and that controls, directly or indirectly, the Company (the "Parent"), whether on an international securities exchange or
pursuant to a registration statement or registration statements under the Securities Act (the "Parent IPO"), unless, in connection therewith, (i) each of the EDS Shareholders that the Company
reasonably believes is an Accredited Investor or to which the Company reasonably believes, after consultation with the Sellers' Representatives as this term 

22

 

is
defined in the Share Purchase Agreement, an offer and sale of securities would be exempt from registration under Regulation S under the Securities Act (collectively, the "Qualified EDS
Shareholders") is provided an opportunity to exchange their Ordinary Shares for shares of the Parent; or (ii) the Company makes arrangements reasonably determined by the Company, after
consultation with the Sellers' Representatives as this term is defined in the Share Purchase Agreement, to be appropriate to offer the Qualified EDS Shareholders rights to exchange their Ordinary
Shares for shares of the Parent; provided, however, for each of (i) and (ii) above, the Qualified EDS Shareholders have provided
representations reasonably satisfactory to the Company as to their investor status. If the Company makes arrangements to offer the Qualified EDS Shareholders rights to exchange their Ordinary Shares
for shares of the Parent, the EDS Shareholders agree that the Company can make such adjustments to their Ordinary Shares prior to the exchange of such Ordinary Shares for shares of the Parent as the
Company and the Parent deem appropriate, after consultation with the Sellers' Representatives as this term is defined in the Share Purchase Agreement. 

 
 

ARTICLE 5.    
    
    PREEMPTIVE RIGHTS    
    

        5.1   Preemptive
Rights. Prior to the earlier of the Company IPO or the Parent IPO, in the event that the Company proposes to issue or sell any New Securities, it shall, no
later than 30 days prior to the consummation of such transaction, give notice in writing (the "New Securities Notice") to each of the Qualified EDS Shareholders (each, a "Preemptive Rights
Offeree") of such proposed issuance of New Securities. The New Securities Notice shall describe the proposed issuance of New Securities (including the amount and price of such New Securities),
identify the proposed purchaser(s), and contain an offer (the "Preemptive Rights Offer") to sell to each Preemptive Rights Offeree, at the same price and for the same consideration to be paid by the
proposed purchaser(s), all or part of such Preemptive Rights Offeree's pro rata portion (as determined by the next sentence) of the New Securities. Following receipt of such notice, each Preemptive
Rights Offeree shall have ten (10) days (the "Preemptive Rights Waiting Period") during which it may elect to purchase a pro rata portion of the New Securities determined by dividing the number
of Ordinary Shares held by such Preemptive Rights Offeree by the aggregate number of Ordinary Shares outstanding immediately prior to the proposed issuance of New Securities, calculated on a fully
diluted, as converted basis. Such election shall be made by delivering written notice to the Company of such election (the "Notice of Preemptive Election") specifying either (a) the number of
Ordinary Shares that it elects to purchase in an amount up to, but not exceeding, its pro rata portion or (b) that such Preemptive Rights Offeree wishes to purchase its pro rata share of such
New Securities as calculated above. A Preemptive Rights Offeree who fails to give such Notice of Preemptive Election shall have no further pre-emptive rights to which the New Securities
Notice is related and the Company may offer and sell such New Securities as it desires. If the Company does not effectuate such sale described in the New Securities Notice within 90 days after
the expiration of such 30-day period, it shall be required to again comply with this Section 4 prior to effectuating any such sale. Notwithstanding the foregoing, if the Board of
Directors of the Company determines, in good faith, that it is desirable for the Company to consummate the issuance or sale of any New Securities prior to the expiration of the Preemptive Rights
Waiting Period, then the Company shall be entitled to consummate such transaction prior to the expiration of the Preemptive Rights Waiting Period, provided, that following the consummation thereof,
the Company shall promptly take all reasonably necessary and appropriate action to enable each Preemptive Rights Offeree, who otherwise would have given a Notice of Preemptive Election in respect of a
Preemptive Rights Offer had the Company effectuated such transaction in accordance with the terms and conditions of this Section 5.1, to purchase (whether from the Company or from one or more
Persons who purchased Ordinary Shares in such transaction) a sufficient number of Ordinary Shares to maintain such Preemptive Rights Offeree's pro rata ownership of Ordinary Shares (as calculated
immediately prior to such transaction). Notwithstanding the foregoing, the EDS Shareholders shall not 

23

 

have
any New Securities issued in connection with the Deed of Guarantee and Indemnity between Fox Paine Capital Fund II International L.P. and The Governor and Company of the Bank of Scotland;  provided, however, that (a) the Company will, within a reasonably period of time after the date hereof, provide any Qualified EDS Shareholders
with a right to subscribe for a proportionate interest in the securities to be issued to Fox Paine, and (b) such EDS Shareholders will have at least 30 days to irrevocably commit to
purchase such securities, at the same price as Fox Paine Capital Fund II International L.P., if such securities are ever sold to Fox Paine Capital Fund II International L.P. 

        5.2   Exchange
of Company Ordinary Share Equivalent. In order to exercise the preemptive rights described in Section 5.1 hereof, the Preemptive Rights Offerees who are
also EDS Equivalent Shareholders must, until the earlier of (i) the Company IPO or the Parent IPO or (ii) the third anniversary hereof, or (iii) the exercise of the EDS Equivalent
Shareholders' right to acquire Company Ordinary Shares, with respect to the Company Ordinary Share Equivalent other than the Company Preferred Stock as defined in the Share Purchase Agreement, place
the securities resulting from the exercise of the Preemptive Rights in a voting trust, escrow or similar arrangement acceptable to the FPC Shareholders in such a manner as to give the FPC Shareholders
the rights to exercise the votes attached to such securities. 

 
 

ARTICLE 6.    
    
    MISCELLANEOUS    
    

        6.1   Board
Observation Right. The EDS Shareholders shall have the right to appoint one (1) individual, from time to time, to be an observer to attend all the meetings
of the Board of Directors of the Company. Such an individual shall have no voting right at any such meeting and shall not have a right to participate in any adoption of a resolution by the Board of
Directors of the Company without a meeting. Such an individual shall hold in confidence and trust and not use or disclose any confidential information provide to or learned by such an individual at
any meeting of the Board of the Directors of the Company. This Section 5.1 shall expire upon the earlier of the Company IPO or the Parent IPO. 

        6.2   Prohibited
Merger. For a period of twelve (12) months after the closing of the Acquisition, the Company shall not and the FPC Shareholders shall cause the Company
not to merge or consolidate, with or into any other business organization, for which transaction the Company is valued for less than U.S. $400 million; provided,
however, this Section 5.2 shall not apply to any reorganization, reclassification or a similar transaction of the Company. This Section 5.2 shall expire upon the
Company IPO or the Parent IPO. 

        6.3   No
Voting or Conflicting Agreements. Prior to the earlier of the Company IPO or the Parent IPO, except as expressly provided for herein, none of the Shareholders shall
grant any proxy or enter into or agree to be bound by any voting trust with respect to the Ordinary Shares nor, at any time, shall any Shareholder enter into any shareholder agreements or arrangements
of any kind with any Person with respect to any Ordinary Shares, inconsistent with the provisions of this Agreement (whether or not such agreements and arrangements are with other Shareholders or
holders of Ordinary Shares that are not parties to this Agreement), without the prior written consent of the Company and the holders of a majority of the outstanding shares of the Company. The
foregoing prohibition includes, but is not limited to, agreements or arrangements with respect to the acquisition, disposition or voting of shares of Ordinary Shares inconsistent with the provisions
of this Agreement. No Shareholder shall act, at any time, for any reason, as a member of a group or in concert with any other Persons in connection with the acquisition, disposition or voting of
Ordinary Shares in any manner that is inconsistent with the provisions of this Agreement. 

        6.4   Specific
Performance. The parties hereto acknowledge that there would be no adequate remedy at law if any party fails to perform any of its obligations hereunder, and
accordingly, agree that 

24

 

each
party, in addition to any other remedy to which it may be entitled at law or in equity, shall be entitled to compel specific performance of the obligations of any other party under this Agreement
in accordance with the terms and conditions of this Agreement. Any remedy under this Section 5.4 is subject to certain equitable defenses and to the discretion of the court before which any
proceedings therefor may be brought. 

        6.5   Notices.
All notices, statements, instructions or other documents required to be given hereunder shall be in writing and shall be given either personally or by mailing
the same in a sealed envelope, by overnight courier or by telecopy, addressed to the Company at its principal offices and to the other parties at their addresses reflected in  Schedule Aattached
hereto. Each party hereto, by written notice given to the other parties hereto in accordance with this Section 5.5, may
change the address to which notices, statements, instructions or other documents are to be sent to such party. All notices, statements, instructions and other documents hereunder that are mailed or
telecopied shall be deemed to have been given on the date of mailing or, in the case of telecopying, upon confirmation of receipt. 

        6.6   Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties, and their respective successors and assigns. If any
Shareholder or any Transferee of any Shareholder shall acquire any Ordinary Shares in any manner, whether by operation of law or otherwise, such shares shall be held subject to all of the terms of
this Agreement, and, by taking and holding such shares, such Person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement. 

        6.7   Recapitalizations
and Exchanges Affecting Ordinary Shares. The provisions of this Agreement shall apply, to the full extent set forth herein with respect to Ordinary
Shares, to any and all shares of capital stock or equity securities of the Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) that may be
issued in respect of, in exchange for, or in substitution of, the Ordinary Shares, or that may be issued by reason of any stock dividend, stock split, reverse stock split, combination,
recapitalization, reclassification or otherwise. Upon the occurrence of any of such events, numbers of shares and amounts hereunder and any other appropriate terms shall be appropriately adjusted, as
determined in good faith by the Board of Directors of the Company. 

        6.8   Governing
Law. This Agreement shall be governed and construed and enforced in accordance with the laws of New York, without regard to the principles of conflicts of law
thereof. The parties hereto submit to the exclusive jurisdiction of competent courts of Amsterdam. 

        6.9   Descriptive
Headings, Etc. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning of terms contained
herein. Unless the context of this Agreement otherwise requires, references to "hereof," "herein," "hereby," "hereunder" and similar terms shall refer to this entire Agreement. 

        6.10 Amendment.
This Agreement may not be amended or supplemented, except by an instrument in writing signed by the Company and by Shareholders holding a majority of the
then, outstanding number of Ordinary Shares held by all Shareholders. 

        6.11 Joinder.
The parties hereby acknowledge that any third party who shall become a shareholder of the Company, pursuant to the exercise of options or otherwise, shall
execute a joinder agreement in a form satisfactory to the Company and pursuant to which such third party shall become a party to this Agreement. Thereafter, such third party shall be deemed to be a
"Shareholder" for all purposes hereof. 

        6.12 Severability.
If any term or provision of this Agreement shall to any extent be invalid or unenforceable, the remainder of this Agreement shall not be affected thereby,
and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. Upon the determination that any term or other provision is invalid, illegal or
incapable of being enforced, the 

25

 

parties
shall negotiate in good faith to modify this Agreement so as to effect their original intent as closely as possible in an acceptable manner to the end that transactions contemplated hereby are
fulfilled to the extent possible. 

        6.13 Further
Assurances. The parties hereto shall from time to time execute and deliver all such further documents and do all acts and things as the other parties may
reasonably require to effectively carry out or better evidence or perfect the full intent and meaning of this Agreement, including, to the extent necessary or appropriate, using all reasonable efforts
to cause the amendment of any incorporation documents of the Company in order to provide for the enforcement of this Agreement in accordance with its terms. In furtherance and not in limitation of the
foregoing, in the event of any amendment, modification or termination of this Agreement in accordance with its terms, the Shareholders shall cause the Board of Directors of the Company to meet within
thirty (30) days following such amendment, modification or termination or as soon thereafter as is practicable for the purpose of amending the any incorporation documents of the Company, as may
be required as a result of such amendment, modification or termination, and, to the extent required by law, proposing such amendments to the Shareholders of the Company entitled to vote thereon, and
such action shall be the first action to be taken at such meeting. 

        6.14 Complete
Agreement; Counterparts. This Agreement (together any other agreements referred to herein) constitutes the entire agreement and supersedes all other agreements
and understandings, both written and oral, among the parties or any of them, with respect to the subject matter hereof. This Agreement may be executed by any one or more of the parties hereto in any
number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same instrument. 

        6.15 Approval
of Management Agreement by Shareholders. The Shareholders by their execution of this Agreement, hereby (i) approve the payment by the Company to Fox
Paine & Company, LLC ("Fox Paine") of certain fees in connection with the consummation of the Acquisition and certain fees in connection with the provision of ongoing services to the Company
and the Parent, and (ii) approve, adopt and subject to certain equitable defenses and to the discretion of the court before which any proceedings therefor may be brought. 

        6.16 Certain
Transactions. The parties hereto agree that Fox Paine shall have the exclusive right to perform all consulting, financing, investment banking and similar
services for the Company, the Parent and their subsidiaries, for customary compensation and on other terms that are customary for similar engagements with unaffiliated third parties, and none of the
Company, the Parent and their subsidiaries shall engage any other Person to perform such services during the term of this Agreement, except to the extent Fox Paine & Company, LLC shall consent
thereto or shall decline, at its sole election, to perform such services. 

        6.17 No
Third Party Beneficiaries. The provisions of this Agreement shall be only for the benefit of the parties to this Agreement, and no other Person (other than any
indemnified party with respect to Section 3.3) shall have any third party beneficiary or other right hereunder. 

        6.18 EDS
Founder Shareholders. As a condition to the Company's willingness to consummate the Acquisition, each of the EDS Founder Shareholders agrees with the Company the
following: 

        (a)   With
respect to Jean-Laurent Mallet ("Mallet"), without the prior written consent of Paradigm Geophysical Corp. ("Geophysical"), during the term of the
Consulting Agreement dated as of August 11, 2006 between Geophysical and Mallet and for a period of twenty-four (24) months after Mallet receives any royalty payments, if
any, either individually, or in partnership, or jointly in conjunction with any person, as principal, agent, employee, shareholder (other than a holding of shares listed on a stock exchange that does
not exceed 5% of the outstanding shares so listed) or in any other manner whatsoever, carry on or be engaged in or be 

26

 

connected
with or advise, lend money to, guarantee the debts or obligations of or permit his name or any part thereof to be used or employed by any person engaged in or concerned with or interested in
any business or venture carrying on business that is engaged in any activities involving (a) products or services similar, related or alternative or actual services or products then produced,
developed or intended to be developed by the Geophysical or its subsidiaries or affiliates, or (b) information, processes, technology or equipment that is similar, related, or alternative to
information, processes, technology or equipment in which the Geophysical or its subsidiaries or affiliates then has a proprietary interest. Mallet agrees with Geophysical that this restriction applies
to any business or venture operating or conducting business in any location in which the Geophysical has done business in the last twelve (12) months of Mallet's services for Geophysical. 

        (b)   With
respect to Jean-Claude Dulac ("Dulac"), 

        (i)    during
the term of the Employment Agreement dated as of August 11, 2006 between Geophysical and Dulac (the "Dulac Agreement") and in the event employment of Dulac
is terminated: (i) by Geophysical for any reason that is not Cause (as defined in the Dulac Agreement), the period for which Severance Pay (as defined in the Dulac Agreement) is paid after
Dulac's termination; (ii) by the Geophysical for Cause, the period which ends on the later of July 4, 2011 or two years after the termination date, whichever is longer; or
(iii) by Dulac's resignation, the period that ends on July 4, 2011 or two years after resignation, whichever is longer 

        (ii)   either
individually, or in partnership, or jointly in conjunction with any person, as principal, agent, employee, shareholder (other than a holding of shares listed on
a United States stock exchange that does not exceed 5% of the outstanding shares so listed) or in any other manner whatsoever carry on or be engaged in or be connected with or advise, lend money to,
guarantee the debts or obligations of or permit his name or any part thereof to be used or employed by any person engaged in or concerned with or interested in any business or venture carrying on
business that is engaged in any activities involving 

        (1)   products
or services similar, related or alternative or actual services or products then produced, developed or intended to be developed by the Paradigm Group (as
defined in the Dulac Agreement), or 

        (2)   information,
processes, technology or equipment that is similar, related, or alternative to information, processes, technology or equipment in which the Paradigm Group
then has a proprietary interest. 

        (iii)  This
restriction applies to any business or venture operating or conducting business in any location in which the Company has done business in the last twelve
(12) months of Dulac's employment with Geophysical. 

        (iv)  Dulac
agrees that this provision defining the scope of activities constituting competition with the Geophysical is narrow and reasonable for the following reasons:
(i) Dulac is free to seek employment with other companies providing products and services that do not directly or indirectly compete with any business of the Geophysical and (ii) Dulac
is free to seek employment with other companies in the energy business that do not directly or indirectly compete with any business of the Geophysical, such as oil & gas exploration companies
that do not produce products and services for commercial sale that compete with the Geophysical's products and services. 

        (c)   With
respect to Pascal Le Melinaire ("Le Melinaire"), after the Amendment to The Employment Agreement (the "Le Melinaire Agreement") dated as of August 11, 2006
between EDS and Le Melinaire has terminated, in order to protect the legiti rests of the Paradigm Group, Le Melinaire undertakes not to directly or indirectly carry out any activity that would compete
with 

27

 

that
of the Paradigm Group, and in particular any activity in the energy sector, or to solicit the clients of the Paradigm Group with whom Le Melinaire worked with within the 12 months
preceding the termination of the Le Melinaire Agreement. 

        The
prohibition on competition will remain binding during the period of Le Melinaire's employment, and during the Post-Termination Period (as defined in the Le Melinaire
Agreement). This prohibition on competition applies to any business or venture operating or conducting business in any location in which the EDS has done business in the last twelve (12) months
of Le Melinaire's employment with EDS. 

        In
the event that the non competition clause is implemented and he is not receiving Severance Pay (as defined in the Le Melinaire Agreement), Le Melinaire will receive a monthly
indemnity amounting to 33.4% of the amount of the average gross monthly basic salary paid over the last 12 months preceding the termination of the Le Melinaire Agreement during the
non-competition period. 

        This
indemnity will not be due to Le Melinaire if the EDS releases him from his non competition obligation. 

        Le
Melinaire acknowledges that the conditions in which the above prohibition from competing shall apply, will not prevent him from carrying out an activity that corresponds to his
training and experience, and will not harm his freedom to work. 

        In
the event that this clause is violated, EDS will be released from paying the indemnity and Le Melinaire will be liable for any sums paid in this respect. Moreover, in the event of a
breach of this clause, Le Melinaire will be liable for the payment, for each breach, of an all-inclusive contractual indemnity equal to the remuneration of his last six (6) months
of activity, without prejudice to EDS's right to obtain the cessation of the breach by all available means, and to fully remedy any loss suffered. 

        However,
the EDS reserves the right to relinquish this clause without allowing Le Melinaire to claim an indemnity. In such a case, Le Melinaire will receive written notice thereof by
registered letter with proof of receipt, within the eight days following the termination of the Le Melinaire Agreement. 

28

   
        IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed on the date first written above. 

	 	 	PARADIGM GEOTECHNOLOGY B.V.
	

 	
 	

By:	

/s/  SHAI BUBER      
 Name: Shai Buber

Title: Attorney-in-Fact
	

    	
 	

 	

 
	 	 	PARADIGM GEOTECHNOLOGY HOLDINGS B.V.
	

 	
 	

By:	

/s/  SHAI BUBER      
 Name: Shai Buber

Title: Attorney-in-Fact
	

    	
 	

 	

 
	 	 	STICHTING

ADMINISTRATIEKANTOOR

PARADIGM GEOTECHNOLOGY I
	

 	
 	

By:	

/s/  SHAI BUBER      
 Name: Shai Buber

Title: Attorney-in-Fact
	

    	
 	

 	

 
	 	 	STICHTING

ADMINISTRATIEKANTOOR

PARADIGM GEOTECHNOLOGY, II
	

 	
 	

By:	

/s/  SHAI BUBER      
 Name: Shai Buber

Title: Attorney-in-Fact
	

    	
 	

 	

 
	 	 	UBANK TRUST COMPANY LTD.
	

 	
 	

By:	

/s/  ELDAD WEISS      
 Name: Eldad Weiss

Title:
	

    	
 	

 	

 
	 	 	JOHN W. GIBSON, JR.
	

 	
 	

By:	

/s/  JOHN W. GIBSON, JR.      

	 	 	 	 

29

 

	

    	
 	

 	

 
	 	 	ELIJIO V. SERRANO
	

 	
 	

By:	

/s/  ELIJIO V. SERRANO      

	

    	
 	

 	

 
	 	 	JORGE MACHNIZH
	

 	
 	

By:	

/s/  JORGE MACHNIZH      

	

    	
 	

 	

 
	 	 	DAVID A. VERDUN
	

 	
 	

By:	

/s/  DAVID A. VERDUN      

	

    	
 	

 	

 
	 	 	FOSTER WILLIAMS
	

 	
 	

By:	

/s/  FOSTER WILLIAMS      

	

    	
 	

 	

 
	 	 	JONATHAN KELLER
	

 	
 	

By:	

/s/  JONATHAN KELLER      

	

    	
 	

 	

 
	 	 	SHAI BUBER
	

 	
 	

By:	

/s/  SHAI BUBER      

	

    	
 	

 	

 
	 	 	FCPR GALILEO III
	

 	
 	

By:	

/s/ Illegible
 Name:

Title:
	

    	
 	

 	

 
	 	 	R CAPITAL TECHNOLOGIES
	

 	
 	

By:	

/s/  JÊROME PUJOL      
 Name: Jêrome Pujol

Title:
	 	 	 	 

30

 

	

    	
 	

 	

 
	 	 	R CAPITAL PRIVE TECHNOLOGIES
	

 	
 	

By:	

/s/  JÊROME PUJOL      
 Name: Jêrome Pujol

Title:
	

    	
 	

 	

 
	 	 	MATIGNON TECHNOLOGIES
	

 	
 	

By:	

/s/ Illegible
 Name:

Title:
	

    	
 	

 	

 
	 	 	BLUE INSIDER
	

 	
 	

By:	

/s/ Galileo
 Name:

Title:

	

    	

 	
 	

 	

 	

 
	PASCAL LE MELINAIRE	 	MAGALI LECOUR
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	JULIEN ALAPETITE	 	DIDIER DONNER
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	JACQUES FORESTIER	 	ETIENNE CHERRIER
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	ISABELLE CONREAUX	 	BRUNO LEVY
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

*Signed as Attorney-in-Fact	
 	

 	

 	

 

31

 

	

    	

 	
 	

 	

 	

 
	KARINE AIT ETTAJER	 	RICHARD COGNOT
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	NATHALIE DULAC	 	PHILIPPE PLUYAUD
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	ARBEN SHTUKA	 	OLIVIER MARIEZ
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	JEAN-LAURENT MALLET	 	JOEL CONRAUD
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	JEAN-CLAUDE DULAC	 	ELISABETH MOUILLIE
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	THIERRY VALENTIN	 	JEAN-LOUIS MALLET
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	TAOUFIK AIT ETTAJER	 	AGNES MALLET
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	FABIEN BOSQUET	 	LAURE MALLET
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

*Signed as Attorney-in-Fact	
 	

 	

 	

 

32

 

	

    	

 	
 	

 	

 	

 
	DANIELLE MALLET	 	ANTOINE SAMAHA
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	LOUIS COCCIOLONE	 	STEPHANE CONREAUX
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	BERNADETTE ARBEY	 	ALEXANDRE HUGO
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	ISABELLE MAHE	 	MATHIEU QUINQUET
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	FRANCOIS LAFERRIERE	 	DAMIEN THENIN
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	YANNICK BOISSEAU	 	NICOLAS HEUZE
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	PHILIPPE LAMY	 	ALEXANDRA CACHEUX
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

*Signed as Attorney-in-Fact	
 	

 	

 	

 

33

QuickLinks

AMENDED AND RESTATED SHAREHOLDERS' AGREEMENT,

AMENDED AND RESTATED SHAREHOLDERS' AGREEMENT

RECITALS

ARTICLE 1. DEFINITIONS

ARTICLE 2. RESTRICTIONS ON TRANSFERS OF STOCK

ARTICLE 3. REGISTRATION RIGHTS

ARTICLE 4. RESTRICTIONS ON INITIAL PUBLIC OFFERING

ARTICLE 5. PREEMPTIVE RIGHTS

ARTICLE 6. MISCELLANEOUSQuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.1  

AMENDED AND RESTATED

SHARE PURCHASE AND CONTRIBUTION AGREEMENT  

 by and among  

 Paradigm Geotechnology B.V.  

 and  

 Paradigm Geotechnology Holdings B.V.  

 and  

 the Sellers as defined in this Agreement  

 dated as of  

 August 11, 2006  

 
  
 

    TABLE OF CONTENTS    
    

	
 ARTICLE I

PURCHASE AND SALE OF SHARES
	

Section 1.1	
 	

Sale and Transfer of Shares	
 	

2
	Section 1.2	 	Purchase Price	 	3
	Section 1.3	 	Closing Amount	 	3
	Section 1.4	 	Payment of the Closing Amount	 	4
	Section 1.5	 	Earn-Out	 	4
	Section 1.6	 	Calculation of Earn-Out; Dispute	 	5
	Section 1.7	 	Payment of The Earn-Out Amount	 	6
	
 ARTICLE II

THE CLOSING
	

Section 2.1	
 	

Initial Closing	
 	

6
	Section 2.2	 	Subsequent Closing	 	8
	
 ARTICLE III

REPRESENTATIONS AND WARRANTIES OF GUARANTORS
	

Section 3.1	
 	

[LEFT INTENTIONALLY BLANK]	
 	

9
	Section 3.2	 	[LEFT INTENTIONALLY BLANK]	 	9
	Section 3.3	 	[LEFT INTENTIONALLY BLANK]	 	9
	Section 3.4	 	[LEFT INTENTIONALLY BLANK]	 	9
	Section 3.5	 	[LEFT INTENTIONALLY BLANK]	 	9
	Section 3.6	 	Organization; Qualification of the Company	 	9
	Section 3.7	 	Capitalization	 	9
	Section 3.8	 	Subsidiaries and Affiliates	 	10
	Section 3.9	 	Consents and Approvals; No Violations	 	11
	Section 3.10	 	Books and Records	 	11
	Section 3.11	 	Company Financial Statements	 	12
	Section 3.12	 	No Undisclosed Liabilities	 	13
	Section 3.13	 	Absence of Certain Changes	 	13
	Section 3.14	 	Accounts Receivable	 	14
	Section 3.15	 	Assets	 	14
	Section 3.16	 	Environmental Matters	 	15
	Section 3.17	 	Material Contracts	 	15
	Section 3.18	 	Customers	 	18
	Section 3.19	 	Suppliers	 	18
	Section 3.20	 	Intellectual Property	 	18
	Section 3.21	 	Labor and Employee Matters	 	19
	Section 3.22	 	Litigation	 	21
	Section 3.23	 	Compliance with Laws	 	21
	Section 3.24	 	Permits	 	21
	Section 3.25	 	Insurance	 	22
	Section 3.26	 	Tax Matters	 	22
	Section 3.27	 	Brokers or Finders; Bonuses	 	24
	Section 3.28	 	Relationship with Related Persons	 	24
	Section 3.29	 	Certain Payments	 	24
	Section 3.30	 	Closing Date Cash	 	25
	 	 	 	 	 

i

 

	
 ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SELLERS AND THE MALLETS
	

Section 4.1	
 	

Power and Authority	
 	

26
	Section 4.2	 	Binding Agreement	 	26
	Section 4.3	 	No Conflict or Default	 	26
	Section 4.4	 	Share Ownership and Possession of Shares	 	26
	Section 4.5	 	Good Title Conveyed	 	26
	Section 4.6	 	Investment Representations	 	27
	
 ARTICLE V

REPRESENTATIONS AND WARRANTIES OF PURCHASER
	

Section 5.1	
 	

Power and Authority	
 	

28
	Section 5.2	 	Binding Agreement	 	28
	Section 5.3	 	No Conflict, Consents or Default	 	28
	Section 5.4	 	Capitalization	 	28
	Section 5.5	 	Subsidiaries and Affiliates	 	29
	Section 5.6	 	Consents and Approvals; No Violations	 	30
	Section 5.7	 	Purchaser Financial Statements	 	30
	Section 5.8	 	No Undisclosed Liabilities	 	31
	Section 5.9	 	Absence of Certain Changes	 	31
	Section 5.10	 	Accounts Receivable	 	31
	Section 5.11	 	Assets	 	31
	Section 5.12	 	Environmental Matters	 	32
	Section 5.13	 	Material Contracts	 	32
	Section 5.14	 	Customers	 	33
	Section 5.15	 	Suppliers	 	34
	Section 5.16	 	Intellectual Property	 	34
	Section 5.17	 	Labor and Employee Matters	 	35
	Section 5.18	 	Litigation	 	36
	Section 5.19	 	Compliance with Laws	 	36
	Section 5.20	 	Permits	 	36
	Section 5.21	 	Insurance	 	36
	Section 5.22	 	Tax Matters	 	37
	Section 5.23	 	Brokers or Finders	 	38
	Section 5.24	 	Relationship with Related Persons	 	38
	
 ARTICLE VI

COVENANTS
	

Section 6.1	
 	

Interim Operations of the Company	
 	

38
	Section 6.2	 	Interim Operations of Purchaser	 	41
	Section 6.3	 	Access	 	41
	Section 6.4	 	[INTENTIONALLY OMITTED]	 	41
	Section 6.5	 	Efforts and Actions to Cause Initial Closing to Occur	 	41
	Section 6.6	 	Notification of Certain Matters	 	42
	Section 6.7	 	Public Announcements	 	42
	Section 6.8	 	Confidentiality of Information	 	43
	Section 6.9	 	No Solicitation of Competing Transaction	 	43
	Section 6.10	 	General Meeting of Shareholders	 	43
	Section 6.11	 	Restrictions on Transfer of Purchaser Share	 	44
	 	 	 	 	 

ii

 

	
 ARTICLE VII

CONDITIONS
	

Section 7.1	
 	

Conditions to Each Party's Obligation to Effect the Initial Closing	
 	

44
	Section 7.2	 	Conditions to Obligation of Purchaser to Effect the Initial Closing	 	44
	Section 7.3	 	Conditions to Obligation of the Initial Sellers to Effect the Closing	 	46
	
 ARTICLE VIII

TERMINATION
	

Section 8.1	
 	

Termination	
 	

47
	Section 8.2	 	Effect of Termination	 	47
	
 ARTICLE IX

INDEMNIFICATION
	

Section 9.1	
 	

Purchaser's Indemnification by Guarantors; Remedies	
 	

48
	Section 9.2	 	Purchaser's Indemnification by Sellers	 	51
	Section 9.3	 	Seller's Indemnification; Remedies	 	52
	
 ARTICLE X

TAX MATTERS
	

Section 10.1	
 	

Purchaser's Tax Indemnification	
 	

54
	Section 10.2	 	Sellers' Tax Indemnification	 	55
	Section 10.3	 	Tax Returns	 	55
	Section 10.4	 	Contest Provisions	 	55
	Section 10.5	 	Assistance and Cooperation	 	56
	Section 10.6	 	Survival	 	56
	Section 10.7	 	Conflicts	 	56
	
 ARTICLE XI

DEFINITIONS AND INTERPRETATION
	

Section 11.1	
 	

Definitions	
 	

56
	Section 11.2	 	Interpretation	 	64
	
 ARTICLE XII

MISCELLANEOUS
	

Section 12.1	
 	

Fees and Expenses	
 	

65
	Section 12.2	 	Amendment and Modification	 	65
	Section 12.3	 	Notices	 	66
	Section 12.4	 	Entire Agreement; No Third Party Beneficiaries	 	67
	Section 12.5	 	Severability	 	67
	Section 12.6	 	Governing Law	 	67
	Section 12.7	 	Disputes Resolution	 	68
	Section 12.8	 	Sellers' Representatives and Guarantors' Representative	 	70
	Section 12.9	 	Parties' Right of Offset	 	71
	Section 12.10	 	Extension; Waiver	 	71
	Section 12.11	 	Election of Remedies	 	71
	Section 12.12	 	Assignment	 	71
	Section 12.13	 	Company Data Room	 	71
	Section 12.14	 	Financial Consolidation	 	71

iii

  

AMENDED AND RESTATED SHARE PURCHASE AND CONTRIBUTION AGREEMENT  

        This Amended and Restated Share Purchase and Contribution Agreement, dated as of August 11, 2006, by and among Paradigm Geotechnology B.V., a private
limited liability company organized and existing under the laws of The Netherlands ("Purchaser"); Paradigm Geotechnology Holdings B.V., a private limited liability company organized and existing under
the laws of The Netherlands ("Fox Paine"), and the entities and natural persons whose names and addresses are set forth in Exhibit A to this Agreement (the "Initial Sellers"); 

        WHEREAS,
the parties hereto entered into a Share Purchase and Contribution Agreement (the "Original Agreement") on July 3, 2006. 

        WHEREAS,
Fox Paine and Purchaser indicated to Sellers their intent to secure certain business objectives to be performed by the Company; 

        WHEREAS,
the parties hereto desire to amend and restate the Original Agreement in its entirety and enter into this Amended and Restated Share Purchase and Contribution Agreement (this
"Agreement"). 

        WHEREAS,
as of the date hereof, the Initial Sellers are the beneficial and record owner of 72.52% of the capital stock of Earth Decision Sciences S.A. a  société anonyme organized and existing under
the laws of France and with registered offices at 78 avenue du XXeme Corps,
54000 Nancy, France, registered with the Registry of Commerce and Companies of Nancy under number 410 087 159 (the "Company") and 78.67% of the capital stock of the Company after giving effect to
redemption of certain bonds as provided herein; 

        WHEREAS,
as of the date hereof, Fox Paine owns, directly and indirectly, in excess of 95% of the issued and outstanding capital stock of the Purchaser (after giving effect to the
ordinary shares issuable upon conversion of Purchaser's convertible subordinated debentures) and will cause Purchaser to perform its obligations hereunder; 

        WHEREAS,
some of the Initial Sellers listed in Exhibit A have granted powers of attorney to Pascal Le Melinaire and Galiléo Partners as the Sellers'
Representatives; 

        WHEREAS,
Sellers desire to sell and contribute to Purchaser, and Purchaser desires to purchase and receive from Sellers, all of the capital stock of the Company, upon the terms and
conditions set forth in this Agreement. 

        Certain
capitalized terms used in this Agreement have the meanings assigned to them in ARTICLE XI. 

1

 

        NOW,
THEREFORE, in consideration of the foregoing and the mutual representations, warranties, covenants and agreements set forth herein, the parties hereto agree as follows: 

 
 

ARTICLE I
  
    PURCHASE AND SALE OF SHARES    
    

        Section 1.1 Sale and Transfer of Shares 

        (a)   Subject
to the terms and conditions of this Agreement, each of the Initial Sellers (other than Professor Jean-Laurent Mallet, and
Mrs. Jean-Laurent Mallet, together referred to as the "Mallets") severally, but not jointly, agree to sell or contribute and transfer to Purchaser, and Purchaser agrees to purchase
from the Initial Sellers, that number of shares of capital stock of the Company listed opposite such Initial Seller's name on Exhibit 1.1(a)(1), which shares (the "Initial Shares") in the
aggregate, constitute 78.67% of the capital stock of the Company outstanding as of the date hereof and as of the Initial Closing Date (after giving effect to the redemption of certain bonds as
provided herein). In addition, the Initial Sellers agree, to the extent possible, in accordance with the terms and conditions of the Former Shareholder Agreement, to cause the entities and natural
persons whose names and addresses are set forth in Exhibit B to this Agreement (the "Drag-Along Sellers," together with the Initial Sellers, "Sellers") to transfer to Purchaser that
number of shares of capital stock of the Company listed opposite such Drag-Along Seller's name on Exhibit 1.1(a)(2), which shares (the "Drag-Along Shares" and, together
with the Initial Shares, the "Covered Shares") constitute 4.13% of the capital stock of the Company outstanding as of the date hereof and as of the Initial Closing Date (after giving effect to the
redemption of certain bonds as provided herein), and to perform their obligations under this Agreement. Except as set forth in Section 1.1(b), the Covered Shares include all the ordinary
shares, preferred shares, debt instruments convertible into ordinary or preferred shares of the Company, but excluding the outstanding Options and Warrants (collectively, the "Shares"), free and clear
of all Encumbrances, as of the Initial Closing or the Subsequent Closing, as applicable. The Initial Sellers agree that they shall cause, to the extent possible, the Drag-Along Sellers to
execute and deliver a joinder to this Agreement (the "Joinder to Amended and Restated Share Purchase and Contribution Agreement") substantially in the form of Exhibit C attached hereto within
30 days after the Initial Closing Date, and this Agreement shall thereupon constitute the binding obligation of the Drag-Along Sellers, enforceable against the
Drag-Along Sellers in accordance with the terms hereof. 

        (b)   Subject
to the terms and conditions of this Agreement, the Mallets agree to sell and transfer to Purchaser, and Purchaser agrees to purchase from the Mallets, a total of
three hundred and eighty-four (384) shares of capital stock of the Company, allocated among the Mallets as it will appear in the Closing Schedule (the "Mallets Sold Shares") for the
same consideration offered to the Initial Sellers under this Agreement. Furthermore, on the Initial Closing Date, the Mallets shall execute and deliver to Purchaser a shareholders' agreement entered
into with Purchaser, which Purchaser obligates itself to execute, in the same form as set forth in Exhibit D to this Agreement (the "Mallet Shareholders Agreement"). The Mallet Shareholders
Agreement shall provide, in particular, for the mandatory conversion of all of the ordinary shares of capital stock of the Company that are owned by the Mallets (less the Mallets Sold Shares), which
are identified on Exhibit 1.1(b), into non-voting preferred shares (actions de préférence sans droit de
vote) of the Company (the "Company Preferred Stock") as soon as possible after the Initial Closing Date, and the terms and conditions under which such non-voting
preferred shares of the Company, shall be sold and transferred to Purchaser after the Initial Closing Date, for the same consideration as the consideration offered to the other Initial Sellers under
this Agreement. 

2

 

        (c)   Each
of the Initial Sellers whose names and addresses are set forth in Exhibit E to this Agreement (the "Initial Option and Warrant Holders") hereby agrees to
execute and deliver a liquidity agreement entered into with Purchaser, as of the Initial Closing Date, in the same form as the draft liquidity agreement attached hereto as Exhibit 1.1
(c) (the "Liquidity Agreement"), which Purchaser accepts and which Purchaser obligates itself to execute. In addition, the Initial Sellers agree to cause, to the extent possible, each of the
entities and natural persons whose names and addresses are set forth in Exhibit F to this Agreement (the "Other Option and Warrant Holders"; and together with the "Initial Option and Warrant
Holders", the "Option and Warrant Holders") to execute and deliver a Liquidity Agreement entered into with Purchaser, within 30 business days after the Purchaser mails a Liquidity Agreement to them,
and such Liquidity Agreements shall thereupon constitute the binding obligations of the Option and Warrant Holders, enforceable against the Option and Warrant Holders in accordance with the terms
hereof. 

        The
Liquidity Agreements shall provide, in particular, for the right for each of the Option and Warrant Holders to request a loan from Purchaser in an amount equal to the aggregate
exercise price of the Options and/or Warrants held by each of the Option and Warrant Holders that the Option and Warrant Holders wish to exercise and the obligation for each of the Option and Warrants
Holders, immediately upon exercise of its Options and/or Warrants, to sell and transfer a number of ordinary shares of capital stock of the Company to Purchaser, for a purchase price in cash, whose
amount shall be equal to the amount of the loan granted by Purchaser to such Option and Warrant Holder, such purchase price being paid through set-off  (compensation) with the loan granted by Purchaser
to such Option and Warrant Holder. 

        Section 1.2
Purchase Price 

        The
aggregate consideration (the "Purchase Price") to be delivered by Purchaser for the Shares shall be the sum of (i) the Closing Amount as defined in Section 1.3 below to
be allocated among Sellers in accordance with a schedule (the "Closing Schedule") to be delivered to the Purchaser by the Sellers' Representative at least one business day prior to the Initial Closing
Date and (ii) the Earn-Out Amount as defined in Section 1.5 below. 

        Section 1.3
Closing Amount 

        (a)   The
aggregate consideration to be delivered by Purchaser at the Initial Closing and Subsequent Closing (the "Closing Amount") shall comprise the Contribution Amount, as
defined in Section 1.3(b) below, and the Cash Payment, as defined in Section 1.3(c) below. 

        (b)   Purchaser
shall issue (the "Per Share Amount") fifteen Purchaser Shares and five convertible subordinated debentures with the terms set forth in
Exhibit 2.1(b)(xiii) (the "Convertible Subordinated Debentures") in exchange for each of the Initial Shares other than (i) the Sold Shares (as defined in Section 1.3(c)
below) and (ii) the Reserved Shares (as defined in Section 1.5(a) below) (the "Contributed Shares"). The Per Share Amount multiplied by all of the Contributed Shares is referred to as
the "Contribution Amount." The Contribution Amount shall be allocated amongst the Initial Sellers as set forth in the Closing Schedule. 

        (c)   Purchaser
shall purchase from the Initial Sellers as set forth in the Closing Schedule (the "Selling Initial Sellers") the Initial Shares as set forth in the Closing
Schedule (the "Sold Shares") for a cash amount ("the Cash Payment") equal to the product of U.S.$183.00 multiplied by the number of the Sold Shares. The Cash Payment shall be allocated amongst the
Selling Initial Sellers as set forth in the Closing Schedule, provided that the Cash Payment shall not exceed five million U.S. dollars (U.S.$5,000,000). 

3

 

        Section 1.4
Payment of the Closing Amount 

        (a)   At
the Initial Closing, Purchaser shall: 

          (i)  pay
to the Selling Initial Sellers one hundred percent (100%) of the Cash Payment in exchange for the Sold Shares in accordance with the Closing Schedule; and 

         (ii)  issue
the Contribution Amount to the Initial Sellers in exchange for the Contributed Shares, in accordance with the Closing Schedule and in conformity with a Deed of
Issuance. 

        (b)   At
the Subsequent Closing, Purchaser shall: 

          (i)  deliver
to the Drag-Along Sellers an amount per Drag-Along Share other than the Reserved Shares equal to the Per Share Amount in conformity with
a Deed of Issuance. 

        Section 1.5
Earn-Out 

        (a)   At
the Initial Closing and at the Subsequent Closing, each of the Initial Sellers and each of the Drag-Along Sellers, respectively, shall contribute to
Purchaser a number of Initial Shares or Drag-Along Shares, respectively, equal to ten percent of the Initial Shares or Drag-Along Shares held by such Seller (the "Reserved
Shares") in exchange for an option to purchase Purchaser Shares on the terms set forth in this Section 1.5. The amount to be paid (subject to the terms and conditions of Sections 1.5, 1.6 and
1.7), by Purchaser to the Sellers on the Earn-Out Payment Date (the "Earn-Out Amount") shall be equal to the product of the total number of the Reserved Shares multiplied by
the Earn-Out Payment as provided in Section 1.5(b) below. 

        (b)   Each
Seller, for each Reserved Share held by such Seller, shall have an option to purchase the following amounts of Purchaser Shares and Convertible Subordinated
Debentures for one euro cent (€0.01) each (the "Earn-Out Payment"): 

          (i)  if
the EDS 2006 Gross Revenue is equal to or more than 95% of the 2006 Gross Revenue Budget, one and a half Purchaser Shares and half a Convertible Subordinated
Debenture; 

         (ii)  if
the EDS 2006 Gross Revenue is equal to or more than 80% of the 2006 Gross Revenue Budget and less than 95% of the 2006 Gross Revenue Budget, the product of
(x) one and a half Purchaser Shares and half a Convertible Subordinated Debentures, multiplied by (y) the Earn-Out Fraction; 

        (iii)  if
the EDS 2006 Gross Revenue is less than 80% of the 2006 Gross Revenue Budget, zero; and 

        (iv)  if
more than 50% of the Purchaser Shares (calculated on a fully-diluted basis) are transferred to a third party not affiliated with Fox Paine on or before
December 31, 2006, one and a half Purchaser Shares and half a Convertible Subordinated Debenture (without duplication for any amounts in the foregoing clauses (i) or (ii)). 

        (c)   In
the event that the convertible subordinated debentures of the Company owned by Fox Paine and its affiliates are redeemed or repurchased, the portion of the
Earn-Out Payment to be paid in respect of any Covered Share in the form of Convertible Subordinated Debentures, if any, shall become the right to receive consideration equivalent to the
consideration used to redeem or repurchase such convertible subordinated debentures. 

        (d)   From
the Initial Closing Date through December 31, 2006, Purchaser shall pay all commissionable sales employees of Purchaser and the Purchaser Subsidiaries for
all products and services of the Company sold by such sales employees of Purchaser and the Purchaser Subsidiaries. 

4

 

        (e)   From
the Initial Closing Date through December 31, 2006, the Purchaser shall (i) cause EDS and its current subsidiaries to conduct their businesses in the
same manner as heretofore conducted other than minor changes in the ordinary course of business and consistent with past practices (ii) enable Messrs Pascal Le Melinaire and
Jean-Claude Dulac to spend not less than 80% of their time on the sale of EDS products and services and (ii) not require any of the Company's current sales force to sell any
products and services other than those of EDS. 

        (f)    In
the event that the provisions of Section 1.6(d) and Section 1.6(e) hereof are breached by Purchaser, the EDS 2006 Gross Revenue shall be deemed to be
equal to the 2006 Gross Revenue Budget. 

        Section 1.6
Calculation of Earn-Out; Dispute 

        (a)   No
later than sixty (60) days after March 31, 2007, Purchaser shall prepare and deliver to the Sellers' Representatives a statement (the
"Earn-Out Statement"), setting forth in reasonable detail the calculation of the Earn-Out Amount. 

        (b)   Sellers'
Representatives shall have sixty (60) days after the delivery of the Earn-Out Statement (the "Earn-Out Objection Period") to make
any objection (the "Earn-Out Objection"). The Sellers' Representatives shall notify Purchaser in writing of any Earn-Out Objection, setting forth in reasonable detail a
description of such objection and, if applicable and ascertainable, the euro amount of such objection. If the Sellers' Representatives does not object during the Earn-Out Objection Period,
the Earn-Out Statement shall be conclusive and binding on the parties. If the Sellers' Representatives object during the Earn-Out Objection Period and the Sellers'
Representatives and Purchaser are unable to resolve such objections within fifteen (15) days after the later of delivery (i) by the Sellers' Representatives of the Earn-Out
Objection and (ii) all information reasonably requested by the Sellers' Representatives in connection with the Earn-Out Statement (which Purchaser shall reasonably promptly
provide), then all disagreements shall be submitted for resolution to an internationally recognized French independent auditor with international offices designated jointly by Purchaser and by the
Sellers' Representative, or failing such joint designation, by the President of the Tribunal de Commerce of Paris, at the request of either the
Purchaser or the Sellers Representatives (the "Earn-Out Independent Auditor"). The Earn-Out Independent Auditor shall have up to thirty (30) days after its appointment
to resolve the disputes submitted to it. The Earn-Out Statement, either as agreed to by Purchaser and the Sellers' Representatives (which shall be deemed to be the case in the event the
Sellers' Representatives fail to object thereto during the Earn-Out Objection Period) or as adjusted by the Earn-Out Independent Auditor pursuant to the preceding sentence,
shall be binding and final and shall be referred to as the "Final Earn-Out Statement." The fees and expenses of the Earn-Out Independent Auditor, to the extent required to be
funded prior to final resolution of any dispute, shall be borne by the Purchaser. If the difference between the amount set forth in the Final Earn-Out Statement and the amount set forth in
the Earn-Out Statement exceeds, or equals, US$250,000 (two hundred and fifty thousand U.S. dollars), Purchaser shall bear all of the Earn-Out Independent Auditor's fees and
expenses in connection with this Section. If the difference between the amount set forth in the Final Earn-Out Statement and the amount set forth in the Earn-Out Statement does
not exceed, or equal to US$250,000 (two hundred and fifty thousand U.S. dollars), the amount set forth in the Final Earn-Out Statement then shall be the amount set forth in the
Earn-Out Statement and all of the Earn-Out Independent Auditor's fees and expenses in connection with this Section shall be paid by the Sellers. 

5

 

        Section 1.7
Payment of The Earn-Out Amount 

        (i)    No
later than ten (10) Business Days after the determination of the Final Earn-Out Statement, or in the absence of an Earnout Objection Statement,
within (70) Business Days from the date on which the Earn-Out Statement was issued (the "Earn-Out Payment Date"), Purchaser shall pay to the Sellers' the
Earn-Out Payment due to Sellers, in accordance with the instructions provided by the Sellers' Representatives to Purchaser at least five (5) Business Days before the
Earn-Out Payment Date. The Convertible Subordinated Debentures issued in accordance with this Section 1.7 shall have a principal amount of U.S.$9.15 and shall be dated as of the
Initial Closing Date, with accrual of interest and other rights as of that date. 

 
 

ARTICLE II
  
    THE CLOSING    
    

        Section 2.1 Initial Closing 

        (a)   The
sale, contribution and transfer of the Initial Shares by the Initial Sellers to Purchaser (the "Initial Closing") shall simultaneously take place at the offices of
Skadden, Arps, Slate, Meagher & Flom LLP, 68 rue du Faubourg Saint-Honoré, 75008 Paris, France and at the offices of Lexence N.V., Peter van Anrooystraat 7, 1076 AD Amsterdam,
the Netherlands at 10:00 a.m., as soon as all the conditions to close set forth in ARTICLE VII (other than those conditions with respect to actions the Parties shall take at the Initial Closing
itself) have been satisfied and/or waived, unless another date or place is agreed to in writing by the Purchaser and the Sellers' Representatives. Subject to the provisions of ARTICLE VIII, failure to
consummate the purchase and sale provided for in this Agreement on the date and time and at the place determined pursuant to this Section 2.1 will not result in the termination of this
Agreement and will not relieve any Party of any of its obligations under this Agreement. 

        (b)   At
the Initial Closing, the Sellers' Representatives shall deliver to Purchaser: 

          (i)  for
each Initial Seller, a transfer order (ordre de mouvement) for the transfer to Purchaser of the Initial Shares of
such Initial Seller duly executed by such Initial Seller in favor of Purchaser; 

         (ii)  all
statutory registers and other books and records of the Company and EDS Corp. including but not limited to the Company's comptes
d'actionnaires and registre des mouvements de titres, as well as the registre des
procès-verbaux d'assemblèe and the registre des procès-verbaux de réunion du directoire et
du conseil de surveillance;

        (iii)  a
certified copy of the notices of the Company and Company Subsidiaries duly and timely convening supervisory board and, to the extent possible, shareholder meetings
on the Initial Closing Date; the agenda of which shall be to appoint new members of the Company's management board and the supervisory board and new directors and officers in each of the Company
Subsidiaries whose names shall have been previously communicated with reasonable prior notice to the Seller's Representatives by Purchaser; 

        (iv)  letters
from the members of the management board (directoire) and the supervisory board (conseil
de surveillance) of the Company, other than Mrs. Mallet, pursuant to which they resign from the management board and the supervisory board, respectively, of the Company
on the Initial Closing Date; 

         (v)  letters
from the directors of the Company Subsidiaries pursuant to which they resign from their function as directors on the Closing Date; 

6

 

        (vi)  a
copy of a confirmation letter from Sellers' Representative, sent by facsimile to the Notary, that (i) the Initial Shares of such Initial Seller have been
transferred and (ii) a Deed of Issuance and the Deed of Pledge may be executed; 

       (vii)  a
power of attorney in favor of Purchaser from each of the Initial Sellers authorizing Purchaser to terminate the Former Shareholders Agreement and all ancillary
agreements relating thereto as of the Subsequent Closing Date; 

      (viii)  a
certified copy of the minutes of the management board of the Company, acknowledging the redemption of the Bonds, the payment of the subscription price due in
respect of the redemption of the Bonds, the compilation of the capital increase and the issue of Ordinary Shares or Preferred Shares of the Company resulting from such exercises; 

        (ix)  the
New Shareholders' Agreement from each of the Initial Sellers; 

         (x)  duly
signed employment, consulting agreements of certain Sellers listed in Exhibit 2.1(b)(x) in a form to be agreed upon by the Purchaser and such Sellers; 

        (xi)  executed
copies of (A) the deed of pledge of the Guarantors substantially in the form attached as Exhibit 2.1(b)(xi) (the "Deed of Pledge"), with
respect to 461,504 Purchaser Shares (B) the debenture pledge agreement of the Guarantors substantially in the form attached as Exhibit 2.1(b)(xii) (the "Debenture Pledge
Agreement"), with respect to 153,835 Convertible Subordinated Debentures and (C) a pledge agreement of the Mallets in a form to be agreed upon between the Purchaser and the Guarantors
Representative, with respect to an aggregate of 119,390 Convertible Subordinated Debentures and 358,168 Purchaser Shares (or 23,878 shares of Company Preferred Stock); 

       (xii)  [INTENTIONALLY
OMITTED] 

      (xiii)  the
debenture agreement of the Initial Sellers substantially in the form attached as Exhibit 2.1(b)(xiii); and 

      (xiv)  all
other previously undelivered documents required to be delivered by each of the Sellers, to Purchaser at or prior to the Closing in connection with the
Transactions. 

        (c)   At
the Initial Closing, Purchaser shall deliver to the Sellers' Representatives: 

          (i)  the
Closing Amount due to the Initial Sellers; provided, that the amount of cash due to any Initial Seller in consideration of such Initial Seller's Sold Shares shall
be paid to the such Initial Seller as provided in the instructions set forth in the Closing Schedule; 

         (ii)  a
copy of the confirmation letter of Purchaser, sent by facsimile to the Notary, that (i) the Initial Shares have been transferred and (ii) the Deed of
Issuance and the Deed of Pledge may be executed; 

        (iii)  the
Liquidity Agreements for the Initial Sellers; 

        (iv)  such
other documents as are required to be delivered by Purchaser to the Initial Sellers at or prior to the Initial Closing under this Agreement; 

         (v)  duly
signed employment, consulting or intellectual property agreements of certain Sellers listed in Exhibit 2.1(b)(x) in a form to be mutually agreed upon
by the Purchaser and such Sellers; 

        (vi)  satisfactory
evidence that the Contribution Amount has been issued; and 

       (vii)  a
form of notice necessary for the Purchaser to exercise the drag-along rights under the Former Shareholders Agreement, which will be sent promptly after
the Initial Closing as provided in the Former Shareholders Agreement. 

7

 

        Section 2.2
Subsequent Closing

        The
sale, contribution and transfer of the Drag-Along Shares by the Drag-Along Sellers to Purchaser (the "Subsequent Closing") shall take place at the offices of
Skadden, Arps, Slate, Meagher & Flom, 68 rue du Faubourg Saint-Honoré, 75008 Paris, at 10:00 a.m. and at the offices of Lexence N.V., Peter Van Anrooystraat, 1076 AD
Amsterdam; The Netherlands, as soon as possible after the Initial Closing. In view of the Subsequent Closing, Purchaser undertakes to implement the drag-along provided in the Former
Shareholders Agreement. 

        (a)   At
the Subsequent Closing, each of the Drag-Along Sellers shall deliver to Purchaser: 

          (i)  a
joinder to this Agreement as a Drag-Along Seller; 

         (ii)  a
transfer order (ordre de mouvement) for the transfer to Purchaser of the Shares duly executed by such
Drag-Along Seller in favor of Purchaser; 

        (iii)  a
copy of a confirmation letter from such Drag-Along Seller, sent by facsimile to the Notary, that (i) the Drag-Along Shares of such
Drag-Along Seller have been transferred and (ii) the Deed of Issuance may be executed; 

        (iv)  a
power of attorney in favor of Purchaser authorizing Purchaser to terminate the Former Shareholders' Agreement and all ancillary agreements relating thereto as of the
Subsequent Closing Date; 

         (v)  the
New Shareholders' Agreement from each of the Drag-Along Sellers; and 

        (vi)  all
other previously undelivered documents required to be delivered by each of the Drag-Along Sellers, to Purchaser at or prior to the Subsequent Closing in
connection with the Transactions. 

        (b)   At
the Subsequent Closing, Purchaser shall deliver to each of the Drag-Along Sellers: 

          (i)  the
Per Share Amount due to the Drag-Along Sellers in respect of the Drag-Along Shares; 

         (ii)  a
copy of the confirmation letter of Purchaser, sent by facsimile to the Notary, that (i) the Drag-Along Shares have been transferred and
(ii) the Deed of Issuance may be executed; and 

        (iii)  such
other documents as are required to be delivered by Purchaser to Sellers at or prior to the Subsequent Closing under this Agreement. 

8

  

 
 

ARTICLE III
  
    REPRESENTATIONS AND WARRANTIES OF GUARANTORS    
    

        Except as specifically set forth in the disclosure schedule (the "Guarantors Disclosure Schedule") prepared on behalf of the Guarantors and signed by the
Guarantors and delivered to Purchaser simultaneously with the execution hereof, each of the Guarantors, severally, but not jointly, each in the percentage specified for it in Annex 3 attached hereto,
represents and warrants to Purchaser that all of the statements contained in this ARTICLE III are true and complete as of the date of this Agreement, and will be true and complete as of the Initial
Closing Date. Each exception set forth in the Guarantors Disclosure Schedule and each other response to this Agreement set forth in the Guarantors Disclosure Schedule is identified by reference to, or
has been grouped under a heading referring to, a specific individual section of this Agreement and, except as otherwise specifically stated with respect to such exception, relates only to such
section, provided that an exception relating to one section shall also apply to other sections to the extent that it is clearly apparent that such exception would also apply to such other sections. In
the event of any inconsistency between statements in the body of this Agreement and statements in the Guarantors Disclosure Schedule (excluding exceptions expressly set forth in the Guarantors
Disclosure Schedule with respect to a specifically identified representation or warranty), the statements in the body of this Agreement shall control. 

        Section 3.1
[LEFT INTENTIONALLY BLANK] 

        Section 3.2  [LEFT INTENTIONALLY BLANK] 

        Section 3.3  [LEFT INTENTIONALLY BLANK] 

        Section 3.4
[LEFT INTENTIONALLY BLANK] 

        Section 3.5
[LEFT INTENTIONALLY BLANK] 

        Section 3.6
Organization; Qualification of the Company

        The
Company (i) is a société anonyme duly organized and validly existing under the laws of France;
(ii) has full power and authority to carry on its business as it is now being conducted and to own, lease, use and operate the properties and assets it now owns, leases, uses or operates; and
(iii) is duly qualified or licensed to do business as a foreign corporation in good standing in every jurisdiction in which the Company is currently doing business and in which such
qualification is required, except in the case of clauses (ii) and (iii), as would not be reasonably likely to have a material adverse effect on the business of the Company and its subsidiaries
taken as a whole and as currently conducted. 

        Section 3.7  Capitalization

        (a)   As
of the date hereof, the capitalization of the Company consists of 176,800 Class A ordinary shares, par value €2.3 each
(actions ordinaires, the "Ordinary Shares"); 17,241 Class B Preferred Shares, par value €2.3 each
(actions privilégiées à bon de souscription d'actions privilégiées, the
"Preferred Shares"); 12,069 Class C Preferred Shares, par value €2.3 each, 12,069 Class D Preferred Shares, par value €2.3 each and 690 Class E
Preferred Shares par value €2.3. In addition, as of the date hereof, the Company has outstanding 63,103 Bonds (obligations remboursables en actions
privilégiées à bon de souscription d'actions privilégiées
"ORAPBSAP, "the "Bonds"), 20,675 Options (options de souscription d'actions, the "Options") and 13,075
Warrants (bons de souscriptions de parts de créateurs d'entreprise, the "Warrants"). The exercise price of the Options is as set forth on
Schedule 3.7(a) of the Guarantors Disclosure Schedule. The Shares have been duly authorized, are validly issued and fully paid and, as of the date hereof, are held of record by the respective
Sellers as set forth in Section 3.7(a) of the Guarantors Disclosure Schedule. As of the Initial Closing Date, after the redemption of the Bonds and after exercise of certain Options and
Warrants and the conversion of all Preferred Shares into Ordinary Shares, the Capitalization of the Company shall be as set forth in the Closing Schedule. 

9

 

        (b)   Except
as set forth above and as set forth in section 3.7(b) of the Guarantors Disclosure Schedule, (i) there are no shares of capital stock of the Company
authorized, issued or outstanding, (ii) there are no securities, options, warrants, calls, pre-emptive, exchange, conversion, purchase or subscription rights, or other rights,
agreements, arrangements or commitments of any kind, contingent or otherwise, that could require the Company to issue, sell or otherwise cause to become outstanding, any shares of capital stock or
other equity or debt interest in the Company or require the Company to grant or enter into any such option, warrant, call, subscription, conversion, purchase or other right, agreement, arrangement or
commitment, and no authorization has been given therefore, and (iii) there are no commitments or agreements of any kind to which the Company or any Company Subsidiary is bound obligating the
Company to accelerate the vesting or exercisability of any instrument referred to in clause (ii) of this paragraph as a result of the Transactions, either alone or upon the occurrence of any
additional subsequent events. 

        (c)   Except
as set forth in Section 3.7(c) of the Guarantors Disclosure Schedule, there are no voting trusts, stockholder agreements, proxies or other agreements or
understandings in effect regarding the governance, the voting or transfer of any shares of capital stock or any other equity interests in, or any rights or obligations of any equity holders of the
Company. True and complete copies of any and all agreements providing for any such rights are attached in Section 3.7(c) of the Guarantors Disclosure Schedule. 

        Section 3.8
Subsidiaries and Affiliates 

        (a)   Set
forth on Section 3.8(a) of the Guarantors Disclosure Schedule is a complete and correct list of all Company Subsidiaries, indicating the name, the
jurisdiction of organization, the capitalization, and the shareholders (with the number of shares of capital stock (or other equity securities) owned by such shareholders) of each Company Subsidiary. 

        (b)   Each
Company Subsidiary (i) is duly organized and validly existing under the laws of the jurisdiction of its organization; (ii) has full power and
authority to carry on its business as it is now being conducted and to own, lease, use and operate the properties and assets it now owns, leases, uses and operates; and (iii) is duly qualified
or licensed to do business as a foreign corporation in good standing in every jurisdiction in which such qualification is required as set forth in Section 3.3(b) of the Guarantors Disclosure
Schedule, except in each case, as would not be reasonably likely to have a material adverse effect on the business of the Company and its Subsidiaries taken as a whole and as currently conducted. 

        (c)   All
of the shares of capital stock of each Company Subsidiary have been duly authorized, are validly issued, fully paid and non-assessable. As of the date
hereof, all of the shares of capital stock of each Company Subsidiary are owned, free and clear of any Encumbrance, by the Company or by another Company Subsidiary. 

        (d)   There
are no securities, options, warrants, calls, preemptive, exchange, conversion, purchase or subscription rights, or other rights, agreements, arrangements or
commitments of any kind, contingent or otherwise, that could require a Company Subsidiary to issue, sell or otherwise cause to become outstanding, any shares of capital stock or other equity or debt
interest in the Company Subsidiary or require a Company Subsidiary to grant or enter into any such option, warrant, call, subscription, conversion, purchase or other right, agreement, arrangement or
commitment, and no authorization has been given therefore. 

        (e)   There
are no voting trusts, stockholder agreements, proxies or other agreements or understandings in effect regarding the governance, the voting or transfer of any
shares of capital stock or any other equity interests in, or any rights or obligations of any equity holders of, any of the Company Subsidiaries. 

10

 

        (f)    None
of the Company and the Company Subsidiaries own, directly or indirectly, any capital stock or other equity securities of any corporation or have any direct or
indirect interest or investment (whether equity or debt) in any other Person (other than the Company Subsidiaries and/or publicly traded securities constituting less than two percent of the
outstanding equity of the issuing entity). 

        Section 3.9
Consents and Approvals; No Violations 

        Except
as disclosed in Section 3.9 of the Guarantors' Disclosure Schedule, neither the execution, delivery and performance of this Agreement by any Seller, nor the consummation of
the Transactions or compliance by the Company with any of the provisions hereof will (i) conflict with or result in any breach of any provision of the certificate of incorporation, the
by-laws or similar organizational documents of the Company or any Company Subsidiary, (ii) require any filing with, or permit, authorization, consent or approval of, any
Governmental Entity or other Person (including consents from parties to loans, contracts, leases and other agreements to which the Company or any Company Subsidiary is a party), (iii) require
any consent, approval or notice under, or result in a violation or breach of, or constitute (with or without due notice or the passage of time or both) a default (or give rise to any right of
termination, amendment, cancellation, acceleration, increase of payments) under, or result in the loss of a benefit or the creation of any Encumbrance on any property or asset of the Company or any
Company Subsidiary, under, any of the terms, conditions or provisions of any Contract, or (iv) violate any order, writ, injunction, decree, statute, rule or regulation applicable to the
Company, any Company Subsidiary or any of their properties or assets. 

        Section 3.10
Books and Records 

        (a)   The
Guarantors have delivered to Purchaser correct and complete copies of the certificates of incorporation and the by-laws as well as of any other
constituent or governing document of each of the Company and Company Subsidiaries (as amended to date). To the Knowledge of Guarantors, neither the Company nor any of Company Subsidiaries is in
default under or in violation of any provision of its certificate of incorporation by-laws or other constituent or governing document applicable to it. 

        (b)   The
books of account, minute books, stock record books and other records of the Company and the Company Subsidiaries are complete and correct in all material respects
and have been maintained in accordance with sound business practices and proper internal controls. The minute books of the Company contain accurate and complete records of all meetings of, and
corporate actions taken by, the shareholders of the Company, the Board and all committees of the Board, and no meeting of the Company shareholders, the Board or such committees has been held for which
minutes have not been prepared and are not contained in such minute books. To the Knowledge of Guarantors, the corporate bodies of the Company and each of Company Subsidiaries operate in accordance
with all Requirements of Law. The True and complete copies of the minute books of the Company since January 1, 2003 are listed in Section 3.10(b) at the Guarantors Disclosure Schedule
and Company Subsidiaries have been provided to Purchaser prior to the date hereof. 

        (c)   Section 3.10(c)
of the Guarantors Disclosure Schedule lists the directors and officers of each of the Company and Company Subsidiaries. 

11

 

        Section 3.11
Company Financial Statements 

        (a)   Set
forth in Section 3.11(a)(i) of the Guarantors Disclosure Schedule are true and complete copies of (i) the balance sheet of each of the Company
and Company Subsidiaries as of December 31, 2004 and December 31, 2005, and the related profits and loss statements for the fiscal year ending on such dates, as well as all existing
annexes and notes thereto and (ii) the audited balance sheets of each of the Company and EDS Corp. as of December 31, 2005, and the related statements of income, changes in shareholders'
equity and cash flow for the fiscal year ending on such date, as well as all annexes and notes thereto, together with, for each of the accounts set forth in (ii) above, the reports thereon from
the independent statutory auditors (commissaires aux comptes) or the certified public accountants (the accounts for the Company and EDS Corp. being
hereinafter referred to as the "Company Financial Statements"). 

        (b)   The
Company Financial Statements (i) have been prepared from, are in accordance with, and accurately reflect, the books of account and other financial records of
the Company and EDS Corp., (ii) are true and correct (réguliers et sincères) and fairly present  (donnent une image fldèle et sincère)
of the financial position and the results of operations and cash flows (and changes
in financial position, if any) of the Company and EDS Corp. at the dates and for the periods to which they relate, (iii) have been prepared in accordance with French GAAP for the Company and
U.S. GAAP for EDS Corp. respectively, consistently applied throughout the periods presented in the Company Financial Statements, and (iv) reflect all liabilities (whether absolute, accrued,
contingent or otherwise) of the Company and EDS Corp. required to be recorded thereon or in the annexes or notes thereto in accordance with French GAAP or U.S. GAAP as applicable as at the respective
dates thereof. 

        (c)   Set
forth in Section 3.11(c) of the Guarantors Disclosure Schedule are true and complete copies of the unaudited consolidated balance sheet of the Company as of
March 31, 2006 (the "March 31 Balance Sheet") and the related profits and loss statements for the quarter ending on such date (together with the March 31 Balance Sheet, the
"March 31 Financial Statements"). The March 31 Financial Statements were prepared as management accounts, for internal use, but were prepared using the same accounting methods and
principles as those used to prepare the financial statements of the Company included in the Company Financial Statements. The March 31 Financial Statements were prepared in accordance with
French GAAP, except that certain transactions may not be reflected in the March 31 Financial Statements, which transactions, if not accurately taken into account in accordance with French GAAP
would not be likely in the aggregate to have a material adverse impact on the truthfulness, correctness, accuracy and the fair presentation of financial position and the results of operations and cash
flow of the Company in the March 31 Financial Statement and except that there is a risk that the U.S. $4,016,000 paid by Roseneft to the Company, might be characterized as second quarter
revenues, notwithstanding this inclusion in the March 31 Financial Statements. Set forth in Section 3.11(c) of the Guarantors Disclosure Schedule are true and complete copies of the
unaudited balance sheet of EDS Corp. as of March 31, 2006 and the related statement of operations and statement of cashflows for the quarter ending on such date (collectively, the "EDS Corp.
March 31 Financial Statements"). The March 31 Financial Statements were prepared as management accounts, for internal use, but fairly present, in all material respects, the financial
position of EDS Corp. as of the dates thereof and the statements of operations, and cash flows for the periods set forth therein and have been prepared in accordance with U.S. GAAP applied on a basis
consistent with the basis used in preparing the EDS Corp. financial statements included in the Company Financial Statements throughout the periods involved (subject, where appropriate, to normal
period-end adjustments that would not be material in amount or effect). 

        (d)   Except
as set forth in Section 3.11(d) of the Guarantors Disclosure Schedule, the statements of income, changes in shareholders' equity and cash flows included in
the Company Financial Statements do not reflect the operations of any entity or business that will not constitute a part of the business and operations of the Company and EDS Corp. at the Closing. 

12

 

        (e)   The
Company maintains a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with
management's general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with French GAAP and U.S. GAAP, when
applicable, and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate actions are taken with respect to any differences, when requested by applicable accounting
principles. Since January 1, 2004, there are no, nor have there been, material evidence of any significant breaches or violations of internal accounting control systems or procedures or fraud,
or allegations of fraud, committed by an officer of the Company or other persons in a financial control or management position. 

        (f)    Neither
the Company nor any of Company Subsidiaries: (i) has suspended its payments or is unable or deemed to be unable to pay its debts as they become due,
(ii) has initiated a safeguarding procedure (procédure de sauve-garde) (ii) has made an amicable settlement with its
creditors (règlement amiable) or entered into any moratorium or other arrangement with its creditors generally, (iii) is in
judicial reorganization (redressement judiciaire)or judicial liquidation (liquidation judiciaire),
(iv) has been the object of any proceedings for the reorganization or collective discharge of its liabilities under the laws of any jurisdiction, (v) has filed any motion, request or
petition of bankruptcy, reorganization, suspension of lawsuits or claims by its creditors or the equivalent thereof, or (vi) is under the threat of any such proceedings. Neither the Company nor
any of Company Subsidiaries are under voluntary liquidation or winding-up or cease or propose to cease to carry on all or a substantial part of their respective businesses. 

        Section 3.12
No Undisclosed Liabilities 

        Except
as set forth in Section 3.12 of the Guarantors Disclosure Schedule, and except as mentioned in Section 3.17 of the Guarantors Disclosure Schedule and Sections 3.20
and 3.22 hereafter and in the related sections of the Guarantors Disclosure Schedule, neither the Company nor any of Company Subsidiaries has any material liability or obligation of any nature
(whether known or unknown and whether absolute, accrued, contingent or otherwise), except (i) as disclosed in the Company Financial Statements and (ii) for liabilities and obligations
incurred in the ordinary course of business and consistent with past practice since December 31, 2005 (the "Company Balance Sheet Date"). Except as regards potential liabilities mentioned in
Section 3.12 of the Managers Disclosure Schedule and Sections 3.20 and 3.22 hereafter and in the related sections of the Guarantors Disclosure Schedule, and except, as set forth in
Section 3.12 of the Guarantors Disclosure Schedule, the reserves reflected in the Company Financial Statements under French and U.S. GAAP are adequate, appropriate and reasonable and have been
calculated in a consistent manner. 

        Section 3.13
Absence of Certain Changes 

        Since
the Company Balance Sheet Date, (i) the Company and each of Company Subsidiaries have conducted their respective businesses in a prudent manner (en
bon père de famille), in the ordinary course of business and consistent with past practice and (ii) there has not occurred any material adverse change (or
any development that, insofar as reasonably can be foreseen, is reasonably like to result in any material adverse change) in the financial condition, assets, liabilities, businesses, results of
operations or prospects of the Company and Company Subsidiaries, except as disclosed in Sections 3.15 and 3.17 and the related sections of the Guarantors Disclosure Schedule. 

13

 

        Section 3.14
Accounts Receivable 

        At
the Company Balance Sheet Date and at March 31, 2006, and excluding inter-company revenues between the Company and its subsidiaries, all accounts receivable of the Company and
each of Company Subsidiaries, whether reflected in the Company Balance Sheet, the March 31 Balance Sheet or otherwise, represent sales actually made or services actually performed in the
ordinary course of business and are current and, to the Knowledge of Guarantors, collectible net of the reserves shown on the Company Balance Sheet for such accounts receivables (as adjusted to
reflect the ordinary course of business through the Initial Closing Date in accordance with past custom and practices). Subject to such reserves, each such account receivable either has been collected
in full or will be collected in full, without any set-off or counterclaims, within 365 days after the day on which it became due and payable. Except as disclosed in
Section 3.14 of the Guarantors Disclosure Schedule, all allowances, rebates and discounts to customers of the Company and Company Subsidiaries are reflected on the books of the Company and
Company Subsidiaries. The aggregate amount of reserves for uncollectible accounts receivable and allowances, rebates and discounts to customers, as reflected on the books of the Company and Company
Subsidiaries, does not exceed five (5) percent of the accounts receivable of the Company and Company Subsidiaries. 

        Section 3.15
Assets 

        (a)   Subject
to information mentioned in Section 3.15(a) to the Guarantors Disclosure Schedule, the Company and Company Subsidiaries own, lease or otherwise have full
and legally enforceable rights to use, all the assets (real or personal, tangible or intangible) necessary for the conduct of, or otherwise material to their respective businesses and operations as
presently conducted or proposed to be conducted (the "Company Assets"). 

        (b)   Subject
to information mentioned in Section 3.15(b) of the Guarantors Disclosure Schedule, the Company and Company Subsidiaries have good, valid and marketable
title to, or in the case of leased assets a valid leasehold interest in all the Company Assets and all other assets (real or personal, tangible or intangible) that they purport to own, including those
reflected in the Company Financial Statements or acquired since the Company Balance Sheet Date (other than those disposed of in the ordinary course of business), in each case free and clear of all
Encumbrances other than Encumbrances granted for the financing of such assets or that would not, individually or in the aggregate, detract from the values of such assets or interfere with the use of
such assets or the conduct of the business and operations of the Company or any of Company Subsidiaries. 

        (c)   Subject
to normal wear and tear, all of the Company Assets are in good working condition with no known material Defect and are adequate for the uses to which they are
being put. None of such Company Assets is in need of maintenance or repair, except ordinary, routine maintenance and repairs which are not material in nature or cost. With respect to each item of such
Company Assets, neither the Company nor any of Company Subsidiaries have received any notification that they are in violation of any applicable regulation and, to the Knowledge of Guarantors, no such
violation exists. 

        (d)   Set
forth on Section 3.15(d) of the Guarantors Disclosure Schedule is a complete and correct list of all real property leases, subleases and occupancy agreements
pursuant to which the Company or a Company Subsidiary uses or occupies any real property in connection with, necessary for the conduct of, or otherwise material to, its business and operations. 

14

 

        Section 3.16
Environmental Matters 

        (a)   Each
of the Company and Company Subsidiaries (and their respective predecessors) is and at all times has been in full compliance with all Environmental Laws, except in
each case, as would not be reasonably likely to have a material adverse effect on the business of the Company and the Company Subsidiaries taken as a whole and as currently conducted. Such compliance
includes, but is not limited to, the possession by the Company and each of Company Subsidiaries of all permits and other authorizations by Governmental Entities required under all applicable
Environmental Laws, and compliance with the terms and conditions thereof, except in each case, as would not be reasonably likely to have a material adverse effect on the business of the Company and
the Company Subsidiaries taken as a whole and as currently conducted. 

        (b)   To
the Knowledge of Guarantors, neither the Company nor any of Company Subsidiaries has received any communication (written or oral), whether from a Governmental Entity
or any Person, that alleges that the Company or any of Company Subsidiaries is not in full compliance with any Environmental Laws, and there are no circumstances that may prevent or interfere with
such full compliance in the future. 

        (c)   To
the Knowledge of Guarantors, there is no significant Environmental Claim by any Person that is pending or threatened against the Company or any of Company
Subsidiaries, or against any Person whose liability for any Environmental Claim the Company or any of Company Subsidiaries has retained or assumed either contractually or by operation of law and there
are no past or present actions, activities, circumstances, conditions, events or incidents, including the release, emission, discharge, presence or disposal of any Materials of Environmental Concern,
that could form the basis of any significant Environmental Claim against the Company or any of Company Subsidiaries or against any Person whose liability for any Environmental Claim the Company or any
of Company Subsidiaries has retained or assumed either contractually or by operation of law. 

        (d)   To
the Knowledge of Guarantors, none of the employees or other personnel of the Company or any of Company Subsidiaries have been exposed to, or have come into contact
with, any pollutants, chemicals or industrial, toxic or hazardous substances or wastes due to his/her employment duties with the Company or any of Company Subsidiaries, that would result in any
significant liability or obligation on the part of the Company or any of Company Subsidiaries. 

        Section 3.17
Material Contracts 

        (a)   Section 3.17(a)
of the Guarantors Disclosure Schedule sets forth a true and complete list of, and Guarantors have made available to Purchaser true and complete
copies of each of the following type of Contracts to which the Company or Company Subsidiaries is a party (each a "Material Contract") except for those of the Contracts which are related to IP matters
listed in Section 3.20 of the Guarantors Disclosure Schedule and except for intercompany contracts: 

          (i)  Material
contracts relating to the ownership, development or use of the software or know-how used by the Company or any of Company Subsidiaries, except as
regards standard software available for on standard terms (such as compilators, maintenance software; office; etc...); 

         (ii)  Contracts
relating to research and development projects in which the Company or any of Company Subsidiaries is involved and pursuant to which any of the Company or
Company Subsidiaries is obligated to pay amounts in excess of fifty thousand euros (€50,000) per twelve-month period; 

        (iii)  Except
for Contracts otherwise disclosed in Section 3.17 of the Disclosure Guarantor Schedule Contracts that were not entered into in the ordinary course of
business or pursuant to which the Company or Company Subsidiaries is obligated to pay amounts in excess of two hundred thousand dollars ($200,000) per twelve-month period; 

15

 

        (iv)  Contracts
that involve performance of services (excluding maintenance) or delivery of goods by either the Company or any of Company Subsidiaries of an amount or value
in excess of two hundred fifty thousand dollars ($250,000) per twelve-month period; 

         (v)  Except
for contracts otherwise disclosed in Section 3.17 of the Disclosure Guarantor Schedules, contracts entered into over the last twelve months with
(a) significant suppliers and partners, and (b) suppliers and partners that contain (1) exclusivity provisions and/or (2) price discounts in excess of the greater of
(i) two hundred fifty thousand dollars ($250,000) or (ii) 25%; 

        (vi)  Contracts
with resellers or agents; 

       (vii)  Contracts
concerning a partnership or a joint-venture in the corporate sense; 

      (viii)  Contracts
excluding resellers or agents or employees; 

        (ix)  Loan
agreements, indentures, letters of credit, mortgages, security agreements, pledge agreements, deeds of trust, bonds, notes, guarantees and other agreements and
instruments relating to the borrowing of money or obtaining of or extension of credit pursuant to which the Company or any of Company Subsidiaries is an obligor or guarantor, other than intercompany
loans solely amongst the Company and the Company Subsidiaries; 

         (x)  Agreements
and instruments pursuant to which the Company or any of Company Subsidiaries has received or is entitled to receive a subsidy or other form of financial
assistance; 

        (xi)  Material
licenses, licensing arrangements, and other Contracts providing in whole or in part for the use of, or limiting the use of, any Intellectual Property; 

       (xii)  Contracts
for the employment of any individual on a full-time, part-time, consulting or other basis providing fixed annual compensation in
excess of one hundred thousand euros (€100,000) (or foreign equivalent) or providing severance benefits; 

      (xiii)  Collective
bargaining agreements with labor unions that relate to employees of the Company or Company Subsidiaries; 

      (xiv)  In
addition to the Options and Warrants, any profit-sharing, stock option, stock purchase, stock appreciation, deferred compensation, severance or other material plan
or arrangement for the benefit of the Company or Company Subsidiaries' current or former directors, officers or employees; 

       (xv)  Contracts
entered into by the Company or any of Company Subsidiaries with any director, manager, seller or Affiliate of any Seller (excluding employment agreements and
the Intellectual Property-related contracts described in Section 3.20 of the Guarantors Disclosure Schedule; 

      (xvi)  Contracts
that contain a provision or covenant materially prohibiting, impairing, limiting or restricting, or purporting to materially prohibit, impair, limit or
restrict, the ability of the Company or any of Company Subsidiaries to (i) sell or license any products or services of or to any other person in any material respect, (ii) engage in any
line of business, or (iii) compete with or obtain products or services from any person or limit the ability of any person to provide products or services to the Company or any of Company
Subsidiaries; 

     (xvii)  Contracts
(other than customer contracts and office rental) which are material to the Company or Company Subsidiaries and which cannot be terminated, either at all or
without payment of a fee in excess of €50,000, by the Company or the Company Subsidiaries, as the case may be, with less than six (6) months advance notice; 

    (xviii)  Contracts
under which either the Company or Company Subsidiaries would be responsible for consequential damages; 

16

 

      (xix)  Contracts
pursuant to which the Company or a Company Subsidiary has obligations or liabilities as guarantor, co-signer, endorser or otherwise in respect of
the obligations of any Person; 

       (xx)  Contracts
granting any Person any rights of first refusal, rights of first offer, preemptive rights, or similar rights; 

      (xxi)  Contracts
under which the consummation of the Transactions would constitute a breach or a default or an event of acceleration or would give the other contracting party
the right to terminate, accelerate, renegotiate or amend such contract; 

     (xxii)  Settlement
agreements, consent orders and similar agreements under which the Company or any of Company Subsidiaries has ongoing obligations; 

    (xxiii)  Powers
of attorney currently effective and outstanding within the Company and any of Company Subsidiaries; 

        Neither
the Company nor any of Company Subsidiaries has entered into any other agreement, oral or written, the purpose or the effect of which would be identical or similar to those
listed above and which would not have been disclosed in Section 3.17(a) of the Guarantors Disclosure Schedule. 

        (b)   Except
as set forth in Section 3.17 of the Guarantors Disclosure Schedule, each Material Contract is (i) valid, binding, enforceable and is in full force
and effect and will continue to be valid, binding, enforceable and in full force and effect on identical terms following the consummation of the Transactions in accordance with their terms and for the
duration specified therein, (ii) has been entered into in writing, (iii) does not contain a change of control provision, and (iv) neither Guarantors nor the Company have any
reason to believe that the other party will terminate the Material Contract because of the Transactions. 

        (c)   In
addition, each Material Contract containing service level agreements, (i) under which the Company or Company Subsidiaries purchase services contains all
required, sufficient and necessary provisions to ensure the continued conduct of, and for the purposes of, the Companies or Company Subsidiaries' businesses; or (ii) pursuant to which the
Company or Company Subsidiaries provide services to third parties, do not contain provisions imposing on the Company or Company Subsidiaries any obligation or liability exceeding generally accepted
industry standards. 

        (d)   Neither
the Company nor any of Company Subsidiaries, or any other party thereto, is in breach of or default under, any Material Contract, and no event has occurred and
to the Knowledge of Guarantors, no condition exists which, with the lapse of time, the giving of notice, or both, or the occurrence of any further event or condition, would become a default of a
provision under any Material Contract. Neither the Company nor any of Company Subsidiaries has released or waived any material right or benefit under any Material Contract and any material amendments
or modifications have been disclosed. 

        (e)   Except
for the Material Contracts set forth in Section 3.17(e) of the Guarantors Disclosure Schedule, none of the Material Contracts contains any
"most-favored nation" or similar provision. 

        (f)    The
agreement, dated December 1, 2004, between the Company and Aelios Finance has been terminated without any penalty, termination payment or premium of any kind. 

17

  

        Section 3.18 Customers 

        Set
forth in Section 3.18 of the Guarantors Disclosure Schedule is a complete and correct list of the ten (10) largest customers of the Company and Company Subsidiaries
based on the revenue earned by the Company or Company Subsidiaries by providing services to such customers during the 2005 fiscal year, together with a list, and the revenue earned by providing
services to, such customer during such twelve (12)-month period. Except as regards the OXY client, since December 31, 2005, there has not been any material adverse change in the business
relationships of the Company or any Company Subsidiary with any significant customer, and neither the Company nor any of Company Subsidiaries has received any notice, or has reason to believe, that
there would be a material adverse change in its relations with any customer as a result of the acquisition of the Company by Purchaser. 

        Section 3.19
Suppliers 

        Set
forth on Section 3.19 of the Guarantors Disclosure Schedule is a complete and correct list of the ten (10) largest suppliers, including, in particular without
limitation, any hardware, software and IT services supplier, of the Company and Company Subsidiaries based on the aggregate value of products, licenses, merchandise, raw materials and other goods and
services ordered by the Company and Company Subsidiaries from such suppliers during the 2005 fiscal year, together with a list, and the aggregate value, of the goods, licenses, products and services
supplied by each supplier during such twelve (12)-month period. Since December 31, 2005, there has not been any material adverse change in the business relationships of the Company or any
Company Subsidiary with any significant supplier, and neither the Company nor any Company Subsidiary has received any notice, or has any reason to believe, that there would be a material adverse
change in its relations with any supplier as a result of the acquisition of the Company by Purchaser. 

        Section 3.20
Intellectual Property 

        (a)   The
Company and Company Subsidiaries own all rights, title and interest in and to Ingrid free and clear of any Encumbrances. 

        (b)   The
Company and Company Subsidiaries own all rights, title and interest in and to the trademarks as described in Schedule 3.20(b) of the Guarantors Disclosure
Schedule, free and clear of any Encumbrances. 

        (c)   The
Company and Company Subsidiaries own all rights, title and interest in and to the domain name as described in Schedule 3.20(c) of the Guarantors Disclosure
Schedule, free and clear of any Encumbrances. 

        (d)   The
DSI Patent License is (i) valid, binding, enforceable and is in full force and effect and will continue to be valid, binding, enforceable and in full force
and effect on identical terms as set forth in Schedule 3.20(d) of the Guarantors Disclosure Schedule (which reference is not an exception to the DSI Patent License continuing to be valid,
binding, enforceable and in full force and effect following the consummation of the Transactions), following the consummation of the Transactions, and (ii) there is no reason to believe that
the other parties will terminate the DSI License because of the Transaction. 

        (e)   The
Company and Company Subsidiaries own all rights, title and interest in and to the GOCAD Software, except for the licenses set forth in Schedule 3.20(e) of the
Guarantors Disclosure Schedule. 

        (f)    The
GOCAD Software developed by ASGA is a collective work, and was validly and completely transferred by ASGA to the Company, subject to the licenses set forth in
Schedule 3.20(1) of the Guarantors Disclosure Schedule. For the avoidance of doubt, "developed by ASGA" means the development of the software prior to the transfer by ASGA to the Company and
the Company has good and valid title to all developments of the GOCAD Software after its transfer to the Company by ASGA. 

18

 

        (g)   Neither
the Company nor the Company Subsidiaries nor, to the Knowledge of the Guarantors, any other party thereto, are in breach of, or default under, any of the
agreements or licenses set forth in this Section 3.20 and the related sections of the Guarantors Disclosure Schedule, except as would not be reasonably likely, in the aggregate, to have a
material adverse effect on the Company and the Company Subsidiaries, taken as a whole, and, no event has occurred and to the Knowledge of the Guarantors, no condition exists which, with the lapse of
time, the giving of notice, or both, or the occurrence of any further event or condition, would become a default of a provision under any of the agreements set forth in this Section 3.20 and
the related sections of the Guarantors Disclosure Schedule. Neither the Company nor any of the Company Subsidiaries has released or waived any material right or benefit under any intellectual property
rights in, or to, Ingrid, the GOCAD Software or the licensee rights set forth in the DSI License and the related sections of the Guarantors Disclosure Schedules. 

        (h)   Except
as set forth in Schedule 3.20(h) of the Guarantors Disclosure Schedule, the Company and the Company Subsidiaries own or otherwise have all Intellectual
Property rights needed to conduct the business of the Company and the Company Subsidiaries as currently conducted without infringing the rights of any third parties. 

        (i)    To
the best Knowledge of the Guarantors, except as set forth in Section 3.20(i)(a) of the Guarantors Disclosure Schedule, the Company and the Company Subsidiaries
have good and valid title and ownership or valid license enforceable and in full force and effect to all patents, trademarks, service marks, trade names, domain names, copyrights, trade secrets,
information, proprietary rights, software, know how source-code and processes necessary for its business. To the Knowledge of the Guarantors, there is no violation or infringement of, or
other conflict or alleged conflict (except as to alleged conflicts disclosed in Section 3.20(i)(b) of the Purchaser's Disclosure Schedule) with, the rights of others. Schedule 3.20(i)(c)
of the Guarantors Disclosure Schedule contains a complete list of patents and pending patent applications and registrations and applications for trademarks, of the Company and the Company
Subsidiaries. 

        Section 3.21
Labor and Employee Matters 

        (a)   The
employees of the Company and Company Subsidiaries, along with details of their status, age, seniority, base salary, variable remuneration scheme, benefits in kind,
type of contract (fixed-term, indefinite term, part-time, full time), are listed in Section 3.21(a) of the Guarantors Disclosure Schedule. 

        (b)   True
and complete copies of the employment contracts of the ten (10) highest paid key executives of the Company and Company Subsidiaries have been provided to the
Purchaser prior to the date hereof. 

        (c)   Except
for the employment contracts which represent gross annual fixed wages in excess of €100,000, of which true and complete copies are attached in
Section 3.21(b) of the Guarantors Disclosure Schedule, the employment contracts of all employees of the Company or Company Subsidiaries conform with the standard employment of the Company of
which a true and complete copy is attached in Section 3.21(b) of the Guarantors Disclosure Schedule. 

        (d)   No
executive key employee or group of employees has notified its decision to terminate employment with either the Company or any of Company Subsidiaries as a result of
the Transactions or otherwise, and, to the Knowledge of Guarantors, no such employee or group of employees has any such plans. 

19

 

        (e)   Except
as set for in Section 3.21(d) of the Guarantors Disclosure Schedule, to the Knowledge of Guarantors, there are no complaints, lawsuits or other proceedings
pending or threatened in any forum by or on behalf of any present or former employee or group of employees of the Company or any of Company Subsidiaries or by or on behalf of any union, union
representatives, works council, or employee delegate, alleging breach of any employment contract, any laws or contractual arrangements governing employment or the termination thereof, or other
discriminatory, wrongful or tortuous conduct in connection with the employment relationship, except in each case, as would not be reasonably likely to have a material adverse effect on the business of
the Company and the Company Subsidiaries taken as a whole and as currently conducted. 

        (f)    Except
as stated in Section 3.21(f) of the Guarantors Disclosure Schedule, no employment or other contract has been concluded with any current or former employee
or director of the Company or of any of Company Subsidiaries which contains provisions of an exceptional and significant nature, including, but not limited to, dismissal indemnities exceeding those
provided by the applicable collective convention or provisions granting the beneficiary exceptional specific advantages including special employee benefits. 

        (g)   All
pension and employee plans (collectively, the "Employee Plans") in which the Company or any of Company Subsidiaries participate are listed in Section 3.21(g)
of the Guarantors Disclosure Schedule. To the Knowledge of Guarantors, there are no unpaid amounts due or lack in depreciations in respect of any Employee Plans in which the Company and the Company
Subsidiaries participate. All liabilities and contingent liabilities with regards to such Employee Plans as at the Company Balance Sheet Date have been properly accounted for in the Company Financial
Statements in conformity with French GAAP and US GAAP when applicable. 

        (h)   To
the Knowledge of Guarantors, the Company and Company Subsidiaries comply in all material respects with all applicable labor and employee health and safety laws, rules
and regulations, including, without limitation, any provision thereof relating to wages, working time, collective bargaining agreements, employee health, safety and welfare, and the payment of social
security and similar taxes, and with all orders from any Governmental Entity relating to labor and employee health and safety matters applicable to them, except in each case, as would not be
reasonably likely to have a material adverse effect on the business of the Company and its Subsidiaries taken as a whole and as currently conducted. Neither the Company nor any of Company Subsidiaries
is subject to any specific material proceedings by any applicable Governmental Entity with respect to failures to comply with labor law, rules and regulations, except in each case, as would not be
reasonably likely to have a material adverse effect on the business of the Company and its Subsidiaries taken as a whole and as currently conducted. 

        (i)    Except
as set forth in Section 3.21(i) of the Guarantors Disclosure Schedule, neither the Company nor any of Company Subsidiaries is a party to or bound by
any collective bargaining or similar agreement with any labor organization or work rules or practices agreed to with any labor organization or employee association applicable to employees of the
Company or any of Company Subsidiaries and no collective bargaining agreement which is binding on the Company or any of Company Subsidiaries restricts any of them from relocating or closing any of
their operations. 

        (j)    There
is no labor strike, dispute, corporate campaign, slowdown, stoppage or lockout actually pending, or, to the Knowledge of Guarantors, threatened against or
affecting the Company or any of Company Subsidiaries and during the past five (5) years there has not been any such action. 

        (k)   All
collective bargaining agreements and Employee Plans have been entered into in accordance with applicable Laws and all Employee Plans have been entered into in
accordance with applicable collective bargaining agreements. 

20

 

        (l)    Except
as disclosed in Schedule 3.22 of the Guarantors Disclosure Schedule, The Company has never employed more than 50 employees on as annual average basis and
therefore is not in breach with participation scheme obligations or work council regulation. 

        (m)  Except
as disclosed in Schedule 3.22 of the Guarantors Disclosure Schedule. None of the Company and Company Subsidiaries or employers of the Company or Company
Subsidiaries has breached or otherwise failed to comply with any material provisions of the collective bargaining agreements or any employment agreements or arrangements, and there are no material
grievances pending or, to the Knowledge of Guarantors, threatened, against these companies under any such agreements or arrangements; 

        Section 3.22
Litigation 

        (a)   Except
as set forth in Section 3.22(a) of the Guarantors Disclosure Schedule, to the Knowledge of Guarantors, there is no injunction, or material action, claim,
complaint, suit, inquiry, proceeding or investigation by or before any court or Governmental Entity pending or threatened against or involving the Company or any of Company Subsidiaries, or any
injunction, action, claim, complaint, suit, inquiry, proceeding or investigation by or before any court or Governmental Entity which questions or challenges the validity of this Agreement or any
action taken or to be taken by Guarantors, the Company or any of Company Subsidiaries pursuant to this Agreement or in connection with the Transactions; and there is no valid basis for any such
injunction, action, claim, complaint, suit, inquiry, proceeding or investigation. 

        Section 3.23
Compliance with Laws 

        (a)   To
the Knowledge of Guarantors, each of the Company and Company Subsidiaries has complied in a timely manner and in all material respects with all Requirements of Law
applicable to it, the conduct or operation of its business or the use or ownership of any of its assets, and no event has occurred or no circumstance exists that may constitute or result in (with or
without notice or lapse of time, or both) a violation or a failure to comply with any such material Requirements of Law. 

        (b)   Neither
the Company nor any of Company Subsidiaries has received any notice from any Governmental Entity or any other Person regarding (i) any actual, alleged,
possible, or potential violation of, or failure to comply with any material Requirements of Law, or (ii) any actual, alleged, possible, or potential obligation on the part of either the Company
or any of Company Subsidiaries to undertake, or to bear all or any portion of the cost of any material remedial action of any nature. 

        (c)   Except
as set forth in Section 3.23(c) of the Guarantors Disclosure Schedule, there is no agreement, judgment, injunction, order or decree binding upon the
Company or Company Subsidiaries which has or, to the Knowledge of Guarantors, could reasonably be expected to have a material adverse effect on the conduct of business by the Company or Company
Subsidiaries taken as a whole as currently conducted. 

        Section 3.24
Permits 

        To
the Knowledge of Guarantors, each of the Company and Company Subsidiaries has, and at all times has had, all permits, licenses and other authorizations of Governmental Entities that
are required for the conduct of its business and operations as presently conducted (including permits, licenses and other authorizations relating to health and safety matters, environmental protection
and pollution control); and the Company and each of Company Subsidiaries is, and during the last twelve months, has been, in compliance with the provisions of such permits, licenses and
authorizations. 

21

 

        Section 3.25
Insurance 

        Provided
this is normal business practice in the respective countries, the Company and the U.S. and Dubai subsidiaries maintain, or are entitled to benefit from, insurance coverage of
the type and in amounts customarily maintained by Persons conducting businesses or owning or operating assets similar to those of the Company and Company Subsidiaries and the insurance policies of the
Company and the U.S. and Dubai subsidiaries provide coverage of the type and in amounts customarily maintained by Persons in the Company's business. The Company and the material Company Subsidiaries
maintain, or are entitled to benefit from, insurance coverage of the type and in amounts required by any Requirements of Law. Section 3.25 of the Guarantors Disclosure Schedule sets forth a
true and complete list and summary description of all insurance policies and other insurance arrangements entered into by the Company and Company Subsidiaries in connection with the operation of their
respective businesses and assets, together with a statement of the aggregate amount of claims paid out for the last twenty-four (24) months, and claims pending, under each such
insurance policy or other arrangement through the date hereof. All such insurance coverage mentioned above (i) is in full force and effect; (ii) complies with all applicable Requirements
of Law and all requirements of any applicable lease; and (iii) provides reasonable coverage for all normal risks incident to the conduct of the business of the Company and any of Company
Subsidiaries as currently conducted or proposed to be conducted. Neither the Company nor any of material Company Subsidiaries is in breach or default under any provision of such insurance coverage.
Neither the Company nor any of material Company Subsidiaries has received a notice of a termination, cancellation or material alteration of any insurance coverage, nor, to the Knowledge of Guarantors
(including knowledge of Persons in charge of insurance matters), is any such termination, cancellation or material alteration threatened. To the Knowledge of Guarantors, there is no material claim
pending under any of such insurance policies or arrangements as to which coverage has been questioned, denied or disputed by the underwriters of such policies or arrangements. 

        Section 3.26
Tax Matters 

        (a)   For
purposes of this Section 3.26, the terms "Company" and "Subsidiaries" shall include any other company, partnership, or interest grouping which has been
merged, absorbed, liquidated, or contributed by way of a universal transfer of assets and liabilities to the Company or the Company Subsidiaries. 

        (b)   The
Company and each of the Company Subsidiaries comply and have complied, in all material respects for all periods open for Tax audit or claims under the applicable
statutes of limitation (as the same may be extended under applicable law), with the Tax Regulations and, more particularly, and without limitation, have filed on a timely basis with the appropriate
Governmental Entity all material Tax Returns required to be filed by them under applicable Requirements of Law. Where a Tax Return was required to be filed on behalf of the Company or any of the
Company Subsidiaries with any Governmental Entity by another taxpayer by reason of a tax consolidation regime or otherwise, such Tax Return has been duly and timely filed. All such Tax Returns filed
by or on behalf of the Company or any of Company Subsidiaries have been true, sincere and complete in all material respects. 

        (c)   All
material Taxes required to be paid in respect of any material Tax by or on behalf of the Company and Company Subsidiaries that were due and payable on or prior to
the Closing Date, whether or not shown on any Tax Return, have been timely and duly paid to the appropriate Governmental Entity and in the manner prescribed by applicable Requirements of Law. The
Company and EDS Corp. have made sufficient provisions in the respective balance sheets as of December 31, 2005 for the payment of all Taxes which may become due in relation to periods prior to
December 31, 2005. 

22

 

        (d)   There
are no pending or, to the Guarantors' Knowledge, threatened material Tax-related audits, inspections, inquiries or litigation proceedings or claims
against, or related to the taxable income of, the Company or any of Company Subsidiaries, no material deficiency for any Taxes has been proposed, asserted or assessed which has not been finally
resolved, and none of the Company or Company Subsidiaries, has received any material request for information or notice from any Tax authority. Section 3.26(d) of the Guarantors Disclosure
Schedule sets forth (i) a list of all Tax audits, examinations or investigations completed by tax administration with respect to the Company and Company Subsidiaries with respect to Taxable
periods ending since January 1, 2003, (ii) the amounts claimed against the Company or any Company Subsidiary in connection with such audits, examinations, or investigations and
(iii) the amounts paid by or on behalf of the Company or any of Company Subsidiaries, and the amount of any provisions made in the consolidated balance sheet of the Company or Company
Subsidiaries as of December 31, 2005 as a result of such audits, examinations or investigations. Such provisions as made in the consolidated balance sheet as of December 31, 2005 are
sufficient (as determined in accordance with French GAAP or US GAAP when applicable) to cover all reasonable risks and costs associated with all pending Tax-related audits, inspections,
inquiries or litigation proceedings or claims. 

        (e)   Neither
the Company nor any of Company Subsidiaries (i) has received any written Tax ruling or entered into any written and legally binding agreement or is
currently under negotiations to enter into any such agreements with any Tax authority that would be adversely affected upon consummation of the Transactions or that would adversely affect the
combination of the Company and Company Subsidiaries with the Purchaser, (ii) has made any commitment or entered into any agreement or taken any action resulting in Tax deferral or in a Tax
deferred liability, (iii) benefits from a specific Tax regime subordinated to the respect of any undertaking whatsoever, or has consented to, or may be found liable as a result of, any
undertaking in respect of Taxes made in the context of acquisitions, divestitures, mergers, restructuring or similar transactions, (iv) has waived any statute of limitations in respect of Taxes
or agreed to any extension of time with respect to a material Tax assessment or deficiency. 

        (f)    To
the Knowledge of the Guarantors, there are no Encumbrances on any of the assets of the Company or of any of Company Subsidiaries in connection with any failure (or
alleged failure) to pay any Tax. 

        (g)   To
the Knowledge of the Guarantors, there are no pending claims made by an authority in a jurisdiction where neither the Company nor any of the Company Subsidiaries
files Tax Returns and, to the Knowledge of the Guarantors, neither the Company nor any of Company Subsidiaries have a permanent establishment, including without limitation by virtue of dependent
agents, in a jurisdiction other than the jurisdiction of their respective incorporation or effective management. 

        (h)   The
Guarantors have provided, and will provide, to the Purchaser such Tax information and assistance (including access to information systems: software, hardware and
documentation) with respect to the operations, ownership, assets, or activities of the Company or any of Company Subsidiaries to the extent that such information and assistance was, or will be,
necessary for (i) the preparation of any Tax Return of the Company or any of Company Subsidiaries, relating to any period ending on or before the Closing Date; or (ii) the Tax audit of
any period ending on or before the Closing Date. 

        (i)    To
the Knowledge of the Guarantors, neither the Company nor any of the Company Subsidiaries has even been a member of or a party to any partnerships, joint ventures or
interest groupings, or Tax groupings (intégration fiscale) or Tax allocation agreements under which the Company or any of the Company
Subsidiaries may be responsible for any Tax obligations of any other Person, except in each case, as would not be reasonably likely to have a material adverse effect on the business of the Company and
its Subsidiaries taken as a whole and as currently conducted. 

23

 

        (j)    All
Tax credits and Tax losses reported in the Tax Returns of the Company or any of Company Subsidiaries are valid and will not be affected by the Transactions. 

        (k)   The
Company is not, and has not at any time during the last twelve (12) months, a "Controlled Foreign Corporation" (as defined in Section 957 of the
Internal Revenue Code of 1986, as amended (the "Code") or a "Passive Foreign Investment Company" (as defined in Section 1297 of the Code). 

        Section 3.27
Brokers or Finders; Bonuses 

        Except
as set forth in Section 3.27 of the Guarantors Disclosure Schedule, none of Sellers, the Company or any of Company Subsidiaries is bound by any agreement or arrangement
under which any broker, investment banker, financial advisor or other person is entitled to any broker's, finder's or financial advisor's fee or any similar payment in connection with the Transactions
contemplated by this Agreement. No director, officer, or employee of the Company or any of Company Subsidiaries is entitled to any bonus, or has a claim to seek a bonus, as a result of the
consummation of the Transactions. 

        Section 3.28
Relationship with Related Persons 

        Except
as set forth in Section 3.28 of the Guarantors Disclosure Schedule, in particular in respect of the intellectual property rights held by Professor Jean-Laurent
Mallet in the DSI Patent, neither the Sellers or any of their respective Affiliates nor any officer, director or manager of the Company or any Company Subsidiary has, any interest in any property
(whether real, personal, or mixed and whether tangible or intangible such as Company Intellectual Property) used in or pertaining to the Company or Company Subsidiaries' businesses. Except for certain
of the Sellers who are now employees of Competitors or Contractors of the Company, neither the Sellers or any of their respective Affiliates nor any officer, director or manager of the Company or any
Company Subsidiary, owns (of record or as a beneficial owner) an equity interest or any other financial or profit interest in, a Person that has (i) had business dealings or a material
financial interest in any transaction with the Company or a Company Subsidiary, (ii) engaged in competition with the Company or Company Subsidiaries with respect to any line of the products or
services of the Company or Company Subsidiaries in any market presently served by the Company or Company Subsidiaries, or (iii) owns, directly or indirectly, in whole or in part, any
Intellectual Property rights or any other Intellectual Property that are necessary for the business of the Company or any Company Subsidiary. Except as described in Section 3.23 of the
Guarantor's Disclosure Schedule, neither the Sellers nor any of their respective Affiliates nor any officer, director or manager of the Company or any Company Subsidiary is a party to any Contract
with, or has any claim or right against, the Company or a Company Subsidiary. 

        Section 3.29
Certain Payments 

        (a)   No
unrecorded fund or asset of the Company or any Company Subsidiary has been established for any purpose. 

        (b)   No
accumulation or use of corporate funds of the Company or any Company Subsidiary has been made without being properly accounted for in the books and records of the
Company or such Company Subsidiary. 

        (c)   No
payment has been made by or on behalf of the Company or any Company Subsidiary with the understanding that any part of such payment is to be used for any purpose
other than that described in the documents supporting such payment. 

24

 

        (d)   None
of the Company, any Company Subsidiary, any director, officer, employee or agent of the Company or any Company Subsidiary or any other Person associated with or
acting for or on behalf of the Company or any Company Subsidiary has, directly or indirectly, made any illegal contribution, gift, bribe, rebate, payoff, influence payment, kickback or other payment
to any Person, private or public, regardless of form, whether in money, property or services, (i) to obtain favorable treatment for shareholders, the Company, any Company Subsidiary or any
Affiliate of the Company in securing business, (ii) to pay for favorable treatment for business secured for shareholders, the Company, any Company Subsidiary or any Affiliate of the Company,
(iii) to obtain special concessions, or for special concessions already obtained, for or in respect of any shareholder, the Company, any Company Subsidiary or any Affiliate of the Company, or
(iv) otherwise for the benefit of any shareholder, the Company, any Company Subsidiary or any Affiliate of the Company in violation of any Requirements of Law. To the Knowledge of the
Guarantors, neither the Company nor any Company Subsidiary nor any current director, officer, employee nor other Person acting on behalf of the Company or any Company Subsidiary has accepted or
received any unlawful contribution, payment, gift, kickback, expenditure or other item of value. 

        Section 3.30
Closing Date Cash. 

        (a)   On
the business day prior to the Initial Closing Date, the Closing Date Cash of the Company and its Subsidiaries shall be an amount equal to the amounts of Cash and
Accounts Receivable (as defined below) shown on a schedule provided by Sellers' Representative to Purchaser at the Initial Closing; provided, that, (1) in calculating such amount, amounts owing
in respect of checks issued by the Company and the Company Subsidiaries shall not be included, even if they have not cleared or been negotiated, and (2) amounts in respect of checks received by
the Company and the Company Subsidiary shall only be included to the extent that payment therefore by the payor has cleared such payor's financial institution. For purposes of this
Section 3.30, "Accounts Receivable" shall mean all accounts receivable of the Company and each of Company Subsidiaries, excluding inter-company revenues between the Company and its
Subsidiaries, as of the business day prior to the Initial Closing Date. 

        (b)   Each
of the Accounts Receivable, subject to the reserves shown on the schedule described in Section 3.30(a), will be collected in full, without any
set-off or counterclaims, within 365 days after the day on which it became due and payable. 

 
 

ARTICLE IV
  
    REPRESENTATIONS AND WARRANTIES OF SELLERS AND THE MALLETS    
    

        Except as specifically set forth in the disclosure schedule (the "Sellers Disclosure Schedule") prepared on behalf of the Sellers and the Mallets and signed by
the Sellers' Representatives on behalf of the Sellers and the Mallets and delivered to Purchaser simultaneously with the execution hereof, each of the Sellers and the Mallets, severally, but not
jointly represents and warrants to Purchaser that all of the statements contained in this ARTICLE IV with respect to such Seller and such Seller's Shares are true and complete as of the date of this
Agreement, and will be true and complete as of the Closing Date. 

25

 

        Section 4.1
Power and Authority 

        Each
Seller and each of the Mallets represents that it has full power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the
Transactions. The execution, delivery and performance by such Seller or by the Mallets of this Agreement and the consummation of the Transactions have been duly authorized by all requisite action, and
no other corporate or other action on the part of each Seller or the Mallets is necessary to authorize the execution, delivery and performance of this Agreement or the consummation of the Transactions
by each Seller or the Mallets. The spouses of Sellers who are natural persons, if applicable, will have duly approved the Transactions prior to the Subsequent Closing. 

        Section 4.2
Binding Agreement 

        This
Agreement has been duly executed and delivered by each Seller or the Mallets and, assuming due and valid authorization, execution, and delivery by Purchaser, this Agreement
constitutes a legal, valid and binding obligation of each Seller or the Mallets, enforceable against each of them in accordance with its terms, except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance and other similar laws of general application affecting enforcement of creditors' rights generally. 

        Section 4.3
No Conflict or Default 

        Neither
the execution and delivery of this Agreement and the performance by each of Sellers or the Mallets of their obligations hereunder nor the consummation of any of the Transactions
will (with or without giving notice or the lapse of time, or both) result in a violation of, or a default under, or conflict with, or require any consent, approval or notice under, any contract,
commitment, agreement, obligation, understanding, arrangement or restriction of any kind to which any Seller or either of the Mallets is a party or by which any of them is bound or to which the Shares
are subject. Consummation by each Seller or the Mallets of the Transactions will not violate, or require any consent, approval, notice or other action under, any provision of any judgment, order,
decree, statute, law, rule or regulation applicable to any of them, or the Shares. 

        Section 4.4
Share Ownership and Possession of Shares 

        Sellers
and the Mallets are as of the date hereof the record and beneficial owners of the type and amount of the Shares set forth in Section 4.4 of the Sellers Disclosure
Schedule. The Sellers Disclosure Schedule also sets forth the ownership and rights with regard to each type of the Shares as of the date of this Agreement. Sellers and the Mallets shall as of the
Initial Closing Date or the Subsequent Closing Date, as applicable, have valid title to all the Shares, free and clear of all Encumbrances, with the full legal right, authority and power to sell and
transfer such Shares to Purchaser in accordance with the terms of this Agreement in the case of the Sellers. None of the Sellers or the Mallets, or their respective Affiliates, own any other equity
interest in the Company or Company Subsidiaries. 

        Section 4.5
Good Title Conveyed 

        Upon
execution and delivery of the transfer orders (orders de movement) for the Shares to Purchaser and the recording of the name of Purchaser as owner of the Shares in the Company's
statutory registers as provided herein, Purchaser will acquire good, valid and marketable title to the Shares, free and clear of all Encumbrances, and all other rights or warrants issued by the
Company will have been validly extinguished. 

26

  

        Section 4.6 Investment Representations 

        (a)   Each
of the Sellers, the Initial Option and Warrant Holders and the Mallets understands and acknowledges that (i) none of Paradigm Securities have been or will be
registered under the Securities Act, or any other applicable securities laws, (ii) the Purchaser Securities are being offered by Purchaser in the Transactions not requiring registration under
the Securities Act, and (iii) the Purchaser Securities may not be offered, sold, pledged or otherwise transferred by Sellers or the Mallets except in compliance with the registration
requirements of the Securities Act, or any other applicable securities laws, pursuant to an exemption therefrom or in a transaction not subject thereto. 

        (b)   Each
of the Sellers, the Initial Option and Warrant Holders and the Mallets understands that the Purchaser Securities are being offered and sold in reliance upon an
exemption from registration under the Securities Act provided by Section 4(2) of the Securities Act and/or Regulation S under the Securities Act. Each of the Initial Sellers, the Initial
Option and Warrant Holders and the Mallets represents that either (i) it is an "accredited investor" as that term is defined in Rule 501(a) of the Securities Act, or (ii) it is
not a "U.S. Person" (as defined in Regulation S under the Securities Act) and is not acquiring the Purchaser Securities for the account or benefit of any U.S. person and that it will acquire
the Purchaser Securities in an "offshore transaction" (as defined in Regulation S under the Securities Act). 

        (c)   Each
of the Sellers, the Initial Option and Warrant Holders and the Mallets represents and warrants that it is purchasing the Purchaser Securities for its own account,
for investment and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act or any other applicable securities laws, subject to its
ability to resell such Purchaser Securities pursuant to an effective registration statement under the Securities Act or any other applicable securities laws or pursuant to an exemption there from or
in a transaction not subject thereto. 

        (d)   Each
of the Sellers, the Initial Option and Warrant Holders and the Mallets represents that it is eligible to purchase the Purchaser Securities under the laws applicable
to such Seller, Initial Option and Warrant Holder, or the Mallets. 

        (e)   Each
of the Sellers, the Initial Option and Warrant Holders and the Mallets represents and warrants that it has such knowledge and experience in financial and business
matters that it is capable of evaluating the merits and risks of purchasing the Purchaser Securities and is aware that it will be required to bear the economic risk of an investment in the Purchaser
Securities for a certain period of time. 

        (f)    Each
of the Drag-Along Sellers represents that it is required to perform its obligations under this Agreement pursuant to the Former Shareholders Agreement. 

 
 

ARTICLE V
  
    REPRESENTATIONS AND WARRANTIES OF PURCHASER    
    

        Except as specifically set forth in the disclosure schedule (the "Purchaser Disclosure Schedule") prepared and signed by Purchaser and delivered to the Sellers'
Representatives simultaneously with the execution hereof, Purchaser represents and warrants to Sellers that all of the statements contained in this ARTICLE V are true and complete as of the date of
this Agreement, and will be true and complete as of the Closing Date. Each exception set forth in the Purchaser Disclosure Schedule and each other response to this Agreement set forth in the Purchaser
Disclosure Schedule is identified by reference to, or has been grouped under a heading referring to, a specific individual section of this 

27

 

Agreement
and, except as otherwise specifically stated with respect to such exception, relates only to such section, provided that an exception relating to one section shall also apply to other
sections to the extent that it is clearly apparent that such exception would also apply to such other sections. In the event of any inconsistency between statements in the body of this Agreement and
statements in the Purchaser Disclosure Schedule (excluding exceptions expressly set forth in the Purchaser Disclosure Schedule with respect to a specifically identified representation or warranty),
the statements in the body of this Agreement shall control. 

        Purchaser
represents and warrants to Sellers that: 

        Section 5.1
Power and Authority 

        Purchaser
has full corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the Transactions. The execution, delivery
and performance by Purchaser of this Agreement and the consummation of the Transactions have been duly authorized by the board of managing directors of Purchaser and the board of supervisory directors
of Purchaser, and no other corporate action on the part of Purchaser is necessary to authorize the execution, delivery and performance by Purchaser of this Agreement or the consummation of the
Transactions. 

        Section 5.2
Binding Agreement 

        This
Agreement has been duly executed and delivered by Purchaser, and, assuming due and valid authorization, execution and delivery hereof by each of Sellers, this Agreement constitutes
a legal, valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms except as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance and other similar laws of general application affecting enforcement of creditors' rights generally. 

        Section 5.3
No Conflict, Consents or Default 

        Neither
the execution, delivery and performance of this Agreement, the consummation by Purchaser of the Transactions or compliance by Purchaser with any of the provisions hereof will
(i) conflict with or result in any breach of any provision of the articles of association of Purchaser, (ii) require any filing with, or permit, authorization, consent or approval of,
any Governmental Entity, (iii) result in a violation or breach of, or constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination,
cancellation or acceleration) under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, lease, license, contract, agreement or other instrument or obligation to which
Purchaser or any of Company Subsidiaries is a party or by which any of them or any of their respective properties or assets may be bound, or (iv) violate any Requirements of Law applicable to
Purchaser, any of the Purchaser Subsidiaries or any of their properties or assets, excluding from the foregoing clauses (ii), (iii) and (iv) such violations, breaches or defaults which
would not, individually or in the aggregate, have a material adverse effect on Purchaser's ability to consummate the Transactions or which arise from the regulatory status of the Company or Company
Subsidiaries. 

        Section 5.4
Capitalization 

        (a)   Purchaser
is a private limited liability company (besloten vennootschap met beperkte aansprakelijkheid), duly
incorporated and validly existing under the laws of The Netherlands and has all corporate power and capacity to own, lease, use and operate the properties and assets it now owns, leases, uses or
operates and to carry on its business as presently conducted and as proposed to be conducted, and is duly qualified or licensed to do business as a foreign corporation in good standing in every
jurisdiction in which such qualification is required, except where the failure to be so qualified or licensed would not, individually or in the aggregate, be reasonably likely to have a material
adverse effect on the business of Purchaser as currently conducted. 

28

 

        (b)   The
authorized share capital of Purchaser is € 300,000, divided into 30,000,000 ordinary shares, having par value one euro cent
(€ 0.01) per share or per Convertible Subordinated Debenture. As of the date hereof, a total of 14,567,029 ordinary shares in the share capital of Purchaser are issued of
which 14,330,164 ordinary shares in the share capital of Purchaser are outstanding. In addition, Purchaser has outstanding options exercisable for 5,370,894 ordinary shares, warrants exercisable for
97,087 ordinary shares and convertible subordinated debentures convertible for 5,820,447 ordinary shares. All of the issued and outstanding share capital of Purchaser is (A) owned by the
Persons listed on Section 5.4(b) of the Purchaser Disclosure Schedule, (B) fully paid and nonassessable, and (c) subject to no options to purchase or similar rights of any Person. 

        (c)   Sellers
shall as of the Initial Closing Date or the Subsequent Closing Date, as applicable, receive full and valid title to all the Purchaser Shares to be received by
them pursuant to this Agreement, free and clear of all Encumbrances, except for any Encumbrances created under this Agreement. 

        (d)   Except
as set forth above, (i) there are no shares of capital stock of Purchaser authorized, issued or outstanding, (ii) there are no securities, options,
warrants, calls, pre-emptive, exchange, conversion, purchase or subscription rights, or other rights, agreements, arrangements or commitments of any kind, contingent or otherwise, that
could require Purchaser to issue, sell or otherwise cause to become outstanding, any shares of capital stock or other equity or debt interest in Purchaser or require Purchaser to grant or enter into
any such option, warrant, call, subscription, conversion, purchase or other right, agreement, arrangement or commitment, and no authorization has been given therefore, and (iii) except as
disclosed in Section 5.4(d) of the Purchaser Disclosure Schedule, there are no commitments or agreements of any kind to which Purchaser is bound obligating Purchaser to accelerate the vesting
or exercisability of any instrument referred to in clause (ii) of this paragraph as a result of the Transactions, either alone or upon the occurrence of any additional subsequent events. 

        (e)   Except
as disclosed in Section 5.4(e) of the Purchaser Disclosure Schedule there are no voting trusts, stockholder agreements, proxies or other agreements or
understandings in effect regarding the governance, the voting or transfer of any shares of capital stock or any other equity interests in, or any rights or obligations of any equity holders of
Purchaser. 

        (f)    Between
the date hereof and the Initial Closing, Purchaser may (1) sell a number of Purchaser Shares for U.S. $9.15 per share in an amount up to U.S. $5,000,000,
not in excess of Cash Amount, and (2) increase its authorized share capital, provided, however that the Sellers shall be entitled to subside to 20% of the Shares thus issued in the proportions
to be indicated to the Purchases to the Seller's Representations. 

        Section 5.5
Subsidiaries and Affiliates 

        (a)   Set
forth on Section 5.5(a) of the Purchaser Disclosure Schedule is a complete and correct list of all Purchaser Subsidiaries, indicating the name, the
jurisdiction of organization, the capitalization, and the shareholders (with the number of shares of capital stock (or other equity securities) owned by such shareholders) of each Purchaser
Subsidiary. 

        (b)   Each
Purchaser Subsidiary (i) is duly organized and validly existing under the laws of the jurisdiction of its organization; (ii) has full power and
authority to carry on its business as it is now being conducted and to own, lease, use and operate the properties and assets it now owns, leases, uses and operates; and (iii) is duly qualified
or licensed to do business as a foreign corporation in good standing in every jurisdiction in which such qualification is required, except, in each case, as would not be reasonably likely to have a
material adverse effect on the business of Purchaser and Purchaser Subsidiaries, taken as a whole. 

        (c)   All
of the shares of capital stock of each Purchaser Subsidiary have been duly authorized, are validly issued, fully paid and non-assessable. 

29

 

        (d)   Except
as disclosed in Section 5.5(d) of the Purchaser Disclosure Schedule, there are no securities, options, warrants, calls, pre-emptive, exchange,
conversion, purchase or subscription rights, or other rights, agreements, arrangements or commitments of any kind, contingent or otherwise, that could require a Purchaser Subsidiary to issue, sell or
otherwise cause to become outstanding, any shares of capital stock or other equity or debt interest in the Purchaser Subsidiary or require a Purchaser Subsidiary to grant or enter into any such
option, warrant, call, subscription, conversion, purchase or other right, agreement, arrangement or commitment, and no authorization has been given therefore. 

        Section 5.6
Consents and Approvals; No Violations 

        Neither
the execution, delivery and performance of this Agreement by Purchaser, nor the consummation of the Transactions or compliance by Purchaser with any of the provisions hereof will
(i) conflict with or result in any breach of any provision of the certificate of incorporation, the by-laws or similar organizational documents of Purchaser or any Purchaser
Subsidiary, (ii) require any filing with, or permit, authorization, consent or approval of, any Governmental Entity or other Person (including consents from parties to loans, contracts, leases
and other agreements to which Purchaser or any Purchaser Subsidiary is a party), (iii) require any consent, approval or notice under, or result in a violation or breach of, or constitute (with
or without due notice or the passage of time or both) a default (or give rise to any right of termination, amendment, cancellation, acceleration, increase
of payments) under, or result in the loss of a benefit or the creation of any Encumbrance on any property or asset of Purchaser or any Purchaser Subsidiary, under, any of the terms, conditions or
provisions of any contract, or (iv) violate any order, writ, injunction, decree, statute, rule or regulation applicable to Purchaser, any Purchaser Subsidiary or any of their properties or
assets; except, in the case of clauses (ii), (iii) and (iv) above, for any violation, conflict, consent, breach, default, termination, cancellation, modification, acceleration, loss or
creation that would not be reasonably likely to have a material adverse effect on the business of Purchaser, as currently conducted. 

        Section 5.7
Purchaser Financial Statements 

        (a)   Set
forth in Section 5.7(a) of the Purchaser Disclosure Schedule are true and complete copies of (i) the audited consolidated balance sheet of the
Purchaser and Purchaser Subsidiaries as of December 31, 2005 and the related audited consolidated statements of income, changes in stockholders' equity and cash flows for the fiscal year ending
on such date, as well as all annexes and notes thereto, and (ii) the consolidated balance sheet of the Purchaser and Purchaser Subsidiaries as of March 31, 2006, as well as all annexes
and notes thereto, together with, for each of the accounts set forth in (i) and (ii) above, the reports thereon from the independent certified public accountants (collectively, the
"Purchaser Financial Statements"). 

        (b)   The
Purchaser Financial Statements (i) have been prepared from, are in accordance with, and accurately reflect, the books of account and other financial records
of Purchaser and Purchaser Subsidiaries, (ii) are true and correct and fairly present the financial position and the results of operations and cash flows (and changes in financial position, if
any) of Purchaser at the dates and for the periods to which they relate, (iii) have been prepared in accordance with U.S. GAAP, consistently applied throughout the periods presented in the
Purchaser Financial Statements, and (iv) reflect all liabilities (whether absolute, accrued, contingent or otherwise) of Purchaser and Purchaser Subsidiaries required to be recorded thereon or
in the annexes or notes thereto in accordance with U.S. GAAP as at the respective dates thereof, except, in each case, as would not be reasonably likely to have a material adverse effect on the
business of Purchaser as currently conducted. 

        (c)   Except
as disclosed in Section 5.7(c) of the Purchaser Disclosure Schedule, Since January 1, 2005, there are no, nor have there been, material evidence of
any significant breaches or violations of internal accounting control systems or procedures or fraud, or allegations of fraud, committed by an officer of Purchaser or other persons in a financial
control or management position. 

30

 

        (d)   Neither
Purchaser nor any of Purchaser Subsidiaries: (i) has suspended its payments or is unable or deemed to be unable to pay its debts as they become due,
(ii) has made an amicable settlement with its creditors or entered into any moratorium or other arrangement with its creditors generally, (iii) has been the object of any proceedings for
the reorganization or collective discharge of its liabilities under the laws of any jurisdiction, (iv) has filed any motion, request or petition of bankruptcy, reorganization, suspension of
lawsuits or claims by its creditors or the equivalent thereof, or (v) except as disclosed in Section 5.7(d) of the Purchaser Disclosure Schedule is under the threat of any such
proceedings. Neither Purchaser nor any of Purchaser Subsidiaries are under voluntary liquidation or winding-up or cease or propose to cease to carry on all or a substantial part of their
respective businesses, except as disclosed in Section 5.7(d) of the Purchaser Disclosure Schedule. 

        Section 5.8
No Undisclosed Liabilities 

        Purchaser
has no material liability or obligation of any nature except (i) as disclosed in the Purchaser Financial Statements and (ii) for liabilities and obligations
incurred in the ordinary course of business and consistent with past practice since the Purchaser Balance Sheet Date. Purchaser believes that the reserves reflected in the Purchaser Financial
Statements under U.S. GAAP are adequate and have been calculated in a consistent manner. 

        Section 5.9
Absence of Certain Changes 

        Since
March 31, 2006 (the "Purchaser Balance Sheet Date"), (i) the Purchaser and each of Purchaser Subsidiaries have conducted their respective businesses in the ordinary
course of business; and (ii) there has not occurred any significant material adverse change (or any development that, insofar as reasonably can be foreseen, is reasonably like to result in any
material adverse change) in the financial condition, assets, liabilities, businesses, results of operations or prospects of the Purchaser and Purchaser Subsidiaries, taken as a whole. 

        Section 5.10
Accounts Receivable 

        Excluding
inter-company revenues between Purchaser and its subsidiaries, all accounts receivable of Purchaser and each of Purchaser Subsidiaries represent sales actually made or services
actually performed in the ordinary course of business. Not less than 85% of these receivables (after taking into account currently existing bad debt reserves or provisions) will be collected within
365 days. 

        Section 5.11
Assets 

        (a)   Except
as set forth in Section 5.11(a) of the Purchaser Disclosure Schedule, the Purchaser and Purchaser Subsidiaries own, lease or otherwise have full and
legally enforceable rights to use, all the tangible real or personal assets necessary for the conduct of, or otherwise material to their respective businesses and operations as presently conducted or
proposed to be conducted (the "Assets"). 

        (b)   Purchaser
and Purchaser Subsidiaries have good, valid and marketable title to, or in the case of leased assets a valid leasehold interest in all the Purchaser Assets and
all other tangible real or personal assets that they purport to own. 

        (c)   Set
forth on Section 5.11(c) of the Purchaser Disclosure Schedule is a complete and correct list of all real property leases, subleases and occupancy agreements
pursuant to which the Purchaser or a Purchaser Subsidiary uses or occupies any real property in connection with, necessary for the conduct of, or otherwise material to, its business and operations. 

31

 

        Section 5.12
Environmental Matters 

        Each
of Purchaser and Purchaser Subsidiaries (and their respective predecessors) is and at all times has been in full compliance with all Environmental Laws, except for any violation
that would not be reasonably likely to have a material adverse effect on Purchasers and Purchaser Subsidiaries, taken as a whole. Such compliance includes, but is not limited to, the possession by
Purchaser and each of Purchaser Subsidiaries of all permits and other authorizations by Governmental Entities required under all applicable Environmental Laws, and compliance with the terms and
conditions thereof, except for any violation that would not be reasonably likely to have a material adverse effect on the business of Purchasers as currently conducted. 

        (a)   Neither
Purchaser nor any of Purchaser Subsidiaries has received any communication (written or oral), whether from a Governmental Entity or any Person, that alleges that
Purchaser or any of Purchaser Subsidiaries is not in full compliance with any Environmental Laws, and there are no circumstances that may prevent or interfere with such full compliance in the future. 

        (b)   To
the Knowledge of Purchaser, there is no significant Environmental Claim by any Person that is pending or threatened against Purchaser or any of Purchaser
Subsidiaries, or against any Person whose liability for any Environmental Claim Purchaser or any of Purchaser Subsidiaries has retained or assumed either contractually or by operation of law and there
are no past or present actions, activities, circumstances, conditions, events or incidents, including the release, emission, discharge, presence or disposal of any Materials of Environmental Concern,
that could form the basis of any significant Environmental Claim against Purchaser or any of Purchaser Subsidiaries or against any Person whose liability for any Environmental Claim Purchaser or any
of Purchaser Subsidiaries has retained or assumed either contractually or by operation of law. 

        (c)   None
of the employees or other personnel of Purchaser or any of Purchaser Subsidiaries have been exposed to, or have come into contact with, any pollutants, chemicals or
industrial, toxic or hazardous substances or wastes due to his/her employment duties with Purchaser or any of Purchaser Subsidiaries, that would result in any significant liability or obligation on
the part of Purchaser or any of Purchaser Subsidiaries. 

        Section 5.13
Material Contracts 

        (a)   Section 5.13(a)
of the Purchaser Disclosure Schedule sets forth a true and complete list of, and Purchaser have made available to Sellers' Representatives true
and complete copies of each of the following type of Contracts to which the Purchaser or Purchaser Subsidiaries is a party (each a "Purchaser Material Contract"): 

          (i)  Contracts
relating to the ownership, development or use of software that is material in the conduct of the business of the Purchaser and the Purchaser Subsidiaries,
taken as a whole, as it is currently being conducted; 

         (ii)  Contracts
relating to material research and development projects in which the Purchaser or any of Purchaser Subsidiaries is actively involved; 

        (iii)  Contracts
pursuant to which any of the Purchaser or Purchaser Subsidiaries is obligated to pay, as of the date of this agreement, amounts in excess of two million U.S.
dollars (U.S.$2,000,000) per twelve-month period; 

        (iv)  Contracts
that involve performance of services (excluding maintenance) or delivery of goods by either the Purchaser or any of Purchaser Subsidiaries of an amount or
value in excess of three million U.S. dollars (U.S.$3,000,000) per twelve-month period; 

         (v)  Contracts
with significant resellers or agents; 

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        (vi)  Loan
agreements, letters of credit, security agreements, pledge agreements, bonds, notes, guarantees and other agreements and instruments relating to the borrowing of
money or obtaining of or extension of credit pursuant to which the Purchaser or any of Purchaser Subsidiaries is an obligor or guarantor and which involve amounts in excess of two million U.S. dollars
(U.S.$2,000,000); 

       (vii)  Agreements
and instruments pursuant to which the Purchaser or any of Purchaser Subsidiaries has received or is entitled to receive a subsidy or other form of financial
assistance; 

      (viii)  Material
licenses, licensing arrangements, and other Contracts providing in whole or in part for the use of, or limiting the use of, any Intellectual Property; 

        (ix)  Any
significant profit-sharing, stock option, stock purchase, stock appreciation, severance or other material plan or arrangement besides employment agreements for the
benefit of the Purchaser's current directors or officers; and 

         (x)  Each
amendment, supplement, and modification (whether oral or written) in respect of any of the foregoing. 

        Neither
the Purchaser nor any of Purchaser Subsidiaries has entered into any other agreement, oral or written, the purpose or the effect of which would be identical or similar to those
listed above and which would not have been disclosed in Section 5.13 of the Purchaser Disclosure Schedule. 

        (b)   Each
Purchaser Material Contract is valid, binding, enforceable and is in full force and effect and will continue to be valid, binding, enforceable and in full force and
effect on identical terms following the consummation of the Transactions. Purchaser does not have any reason to believe that the other party will terminate the Purchaser Material Contract because of
the Transactions. 

        (c)   Neither
the Purchaser nor any of Purchaser Subsidiaries, or any other party thereto, is in breach of or default under, any Purchaser Material Contract, except as would
not be reasonably likely, in the aggregate, to have a material adverse effect on Purchaser and Purchaser Subsidiaries, taken as a whole, and, no event has occurred and to the Knowledge of Purchaser,
no condition exists which, with the lapse of time, the giving of notice, or both, or the occurrence of any further event or condition, would become a default of a provision under any Purchaser
Material Contract. Neither the Purchaser nor any of Purchaser Subsidiaries has released or waived any material right or benefit under any Purchaser Material Contract. 

        Section 5.14
Customers 

        Set
forth on Section 5.14 of the Purchaser Disclosure Schedule is a complete and correct list of the ten (10) largest customers of Purchaser and Purchaser Subsidiaries
based on the revenue earned by Purchaser or Purchaser Subsidiaries by providing services to such customers during 2005, together with a list, and the revenue earned by providing services to, such
customer during 2005. Since December 31, 2005, there has not been any material adverse change in the business relationships of Purchaser or any Purchaser Subsidiary with any significant
customer, and neither Purchaser nor any of Purchaser Subsidiaries has received any notice, or has reason to believe, that there would be a material adverse change in its relations with any customer as
a result of the acquisition of the Company by Purchaser. 

33

 

        Section 5.15
Suppliers 

        Set
forth on Section 5.15 of the Purchaser Disclosure Schedule is a complete and correct list of the ten (10) largest suppliers, including, in particular without
limitation, any hardware, software and IT services supplier, of Purchaser and Purchaser Subsidiaries based on the aggregate value of products, licenses, merchandise, raw materials and other goods and
services ordered by Purchaser and Purchaser Subsidiaries from such suppliers during 2005, together with a list, and the aggregate value, of the goods, licenses, products and services supplied by each
supplier between April 1, 2005 and April 30, 2006. Since December 31, 2005, there has not been any material adverse change in the business relationships of Purchaser or any
Purchaser Subsidiary with any significant supplier, and neither the Purchaser nor any of Purchaser Subsidiaries has received any notice, or has any reason to believe, that there would be a material
adverse change in its relations with any supplier as a result of the acquisition of the Company by Purchaser. 

        Section 5.16
Intellectual Property 

        (a)   To
the Knowledge of Purchaser, Purchaser and Purchaser Subsidiaries have good and valid title and ownership or valid licenses, enforceable and in full force and effect,
to all patents, trademarks, service marks, trade names, domain names, copyrights, trade secrets, information, proprietary rights, software, know how, source-code and processes necessary
for its, or respectively their business, and no event has occurred and, to the Knowledge of Purchaser, no condition exists which, with the lapse of time, the giving of notice, or both, or the
occurrence of any further event or condition, would become a default of a provision under any of the agreements set forth in this Section 5.14 and the related Sections of the Purchaser
Disclosure Schedule, except as would not have a material adverse effect on the business of the Purchaser and the Purchaser Subsidiaries, taken as a whole. To the Knowledge of Purchaser and Purchaser
Subsidiaries, there is no violation or infringement of, or other conflict or alleged conflict (except as to alleged conflicts disclosed in Section 5.16 of the Purchaser's Disclosure Schedule)
with, the rights of others. Section 5.16(a) of the Purchaser Disclosure Schedule contains a complete list of patents and pending patent applications and registrations and applications for
trademarks, of Purchaser and the Purchaser Subsidiaries. 

        (b)   A
Purchaser Subsidiary owns all rights, title, and interest in and to the core Geolog product free and clear of any Encumbrances, excluding licenses to software used in
the core Geolog product that are not specifically designed for the core Geolog product. To the best of Purchaser's Knowledge all such licenses are valid, binding and enforceable in accordance with
their terms and Purchaser is not aware of any reason that causes Purchaser to believe that any such license that is material to the Geolog product is likely to be terminated or materially altered in
the next two years. Certain modules to the core Geolog product contain certain technologies licensed to that Purchaser Subsidiary by non affiliated third parties as listed in Schedule 5.16(b)
to the Purchaser Disclosure Schedule. 

        (c)   A
Purchaser Subsidiary owns all rights, title and interest in and to the core Focus product free and clear of any Encumbrances, excluding licenses to software used in
the core Focus product that are not specifically designed for the core Focus product. Purchaser is not aware of any reason that causes Purchaser to believe that any such license that is material to
the Focus product is likely to be terminated or materially altered in the next two years. 

        (d)   A
Purchaser Subsidiary owns all rights, title, and interest in and to core Geodepth product free and clear of any Encumbrances, excluding licenses to software used in
the core Geodepth product that are not specifically designed for the core Geodepth product. Purchaser is not aware of reason that causes Purchaser to believe that any such license that is material to
the Geodepth product is likely to be terminated or materially altered in the next two years. 

34

 

        (e)   A
Purchaser Subsidiary owns a license to Voxelgeo from Vital Images, Inc., dated August 25, 1995 and such license is valid, binding, and enforceable.
Purchaser is not aware of any reason that causes Purchaser to believe that such license is likely to be terminated or materially altered in the next two years. 

        (f)    Except
as set forth in Section 5.16(f) of the Purchaser Disclosure Schedule, there are no contracts (including licenses, covenants, or commitments of any nature)
or other agreement, or any judgment, decree or order of any court or administrative agency, that, as of the date of this Agreement and the Initial Closing Date, would interfere with the use of the
Purchaser's chief executive officer's best efforts to promote the Purchaser's business as it is currently being conducted. 

        Section 5.17
Labor and Employee Matters 

        (a)   No
executive or key employee has notified its decision to terminate employment with either the Purchaser or any of Purchaser Subsidiaries as a result of the Transactions
or otherwise. 

        (b)   Except
as disclosed in Section 5.17(b) of the Purchaser Disclosure Schedule, to the Knowledge of Purchaser, there are no complaints, lawsuits or other proceedings
pending or threatened in writing in any forum by or on behalf of any present or former employee or group of employees of the Purchaser or any of Purchaser Subsidiaries or by or on behalf of any union,
union Representatives, works council, or employee delegate, alleging breach of any employment contract, any laws or contractual arrangements governing employment or the termination thereof, or other
discriminatory, wrongful or tortuous conduct in connection with the employment relationship, except as would not, individually or in the aggregate, be reasonably likely to have a material adverse
effect on the Purchaser and its Subsidiaries, taken as a whole. 

        (c)   No
employment agreement or other contract exists with any current employee or director of the Purchaser that provides for bonuses as a result of extraordinary events or
transactions, except for agreements or contracts with terms customary to the industry of the Purchaser and of Purchaser Subsidiaries. 

        (d)   To
the Knowledge of Purchaser, the Purchaser and Purchaser Subsidiaries comply in all material respects with all applicable labor and employee health and safety laws,
rules and regulations, and in particular with their relevant collective status and collective bargaining agreements, and with all orders from any Governmental Entity relating to labor and employee
health and safety matters applicable to them, except as would not, individually or in the aggregate, be reasonably likely to have a material adverse effect on the Purchaser and its Subsidiaries, taken
as a whole. Neither the Purchaser nor any of Purchaser Subsidiaries is subject to any specific proceedings by any applicable Governmental Entity with respect to failures to comply with labor law,
rules and regulations, except as would not, individually or in the aggregate, be reasonably likely to have a material adverse effect on the Purchaser and its Subsidiaries, taken as a whole. 

        (e)   There
is no labor strike, dispute, corporate campaign, slowdown, stoppage or lockout actually pending, or, to the Knowledge of Purchaser, threatened against or affecting
the Purchaser or any of Purchaser Subsidiaries and during the past five (5) years there has not been any such action. 

35

 

        Section 5.18
Litigation 

        Except
as set forth in Section 5.18 of the Purchaser Disclosure Schedule, there is no injunction, action, claim, complaint, suit, inquiry, proceeding or investigation by or before
any court or Governmental Entity pending against Purchaser or any Purchaser Subsidiary, except as would not, individually or in the aggregate, be reasonably likely to have a material adverse effect on
the business of Purchaser as currently conducted, or which questions or challenges the validity of this Agreement or any action taken or to be taken by Purchaser pursuant to this Agreement or in
connection with the Transactions; and there is no valid basis for any such injunction, action, claim, complaint, suit, inquiry, proceeding or investigation, except as would not, individually or in the
aggregate, be reasonably likely to have a material adverse effect on the business of Purchaser as currently conducted. 

        Section 5.19
Compliance with Laws 

        (a)   Purchaser
has complied in all material respects with the Requirements of Law applicable to it, the conduct or operation of its business or the use or ownership of any of
its assets, and no event has occurred or no circumstance exists that may constitute or result in (with or without notice or lapse of time, or both) a violation or a failure to comply with any such
Requirements of Law, except as would not, individually or in the aggregate, be reasonably likely to have a material adverse effect on the business of Purchaser, as currently conducted. 

        (b)   Purchaser
has not received any notice or other communication (whether oral or written) from any Governmental Entity or any other Person regarding (i) any actual,
alleged, possible, or potential violation of, or failure to comply with any Requirements of Law, or (ii) any actual, alleged, possible, or potential obligation on the part of either the
Purchaser or any of the Purchaser Subsidiaries to undertake, or to bear all or any portion of the cost of any remedial action of any nature, except as would not, individually or in the aggregate, be
reasonably likely to have a material adverse effect on the business of Purchaser as currently conducted. 

        (c)   There
is no agreement, judgment, injunction, order or decree binding upon Purchaser which has or could reasonably be expected to have a material adverse effect on the
conduct of business by Purchaser as currently conducted. 

        Section 5.20
Permits 

        Each
of Purchaser and Purchaser Subsidiaries has, and at all times has had, all material permits, licenses and other authorizations of Governmental Entities that are required for the
conduct of its business and operations as presently conducted (including permits, licenses and other authorizations relating to health and safety matters, environmental protection and pollution
control); and each of Purchaser and Purchaser Subsidiaries is, and at all times has been, in material compliance with the provisions of such permits, licenses and authorizations. 

        Section 5.21
Insurance 

        The
Purchaser and each material Purchaser Subsidiary maintain, or are entitled to benefit from, insurance coverage of the type and in amounts specified in Section 5.21 of the
Purchaser Disclosure Schedule. All such insurance coverage: (i) is in full force and effect; (ii) complies with the applicable Requirements of Law and all requirements of any applicable
lease; and (iii) is reasonably expected to provide adequate coverage for normal risks incident to the conduct of the business of the Purchaser and the material Purchaser Subsidiaries as
currently conducted, except as Purchaser's failure to comply with (i) through (iii) of this Section 5.21 would not, individually or in the aggregate, be reasonably likely to have
a material adverse effect on Purchaser and the Purchaser Subsidiaries, taken as a whole. 

36

  

        Section 5.22 Tax Matters 

        (a)   For
purposes of this Section 5.22, the term "Purchaser" shall include any other company, partnership, or interest grouping which has been merged, absorbed,
liquidated, or contributed by way of a universal transfer of assets and liabilities to Purchaser or Purchaser Subsidiaries. 

        (b)   The
Purchaser and each of the Purchaser Subsidiaries comply and have complied, in all material respects, for all periods open for Tax audit or claims under the
applicable statutes of limitation (as the same may be extended under applicable law), with the Tax Regulations and, more particularly, and without limitation, have filed on a timely basis with the
appropriate Governmental Entity all material Tax Returns required to be filed by them under applicable Requirements of Law. Where a material Tax Return was required to be filed on behalf of the
Purchaser or any of the Purchaser Subsidiaries with any Governmental Entity by another taxpayer by reason of a tax consolidation regime or otherwise, such Tax Return has been duly and timely filed.
All such Tax Returns filed by or on behalf of the Purchaser or any of Purchaser Subsidiaries have been true, correct and complete in all material respects. 

        (c)   All
material Taxes required to be paid in respect of any material Tax by or on behalf of the Purchaser and Purchaser Subsidiaries that were due and payable on or prior
to the Closing Date, and have been timely and duly paid to the appropriate Governmental Entity and in the manner prescribed by applicable Requirements of Law. 

        (d)   Except
as disclosed in Section 5.22(d) of the Purchaser's Disclosure Schedule, there are no pending material Tax-related audits or litigation
proceedings or claims against, or related to the taxable income of, the Purchaser or any of Purchaser Subsidiaries, no material deficiency for any Taxes has been proposed, asserted or assessed which
has not been finally resolved, and none of the Purchaser or Purchaser Subsidiaries, has received any material request for information or notice from any Tax authority. 

        (e)   Neither
the Purchaser nor any of Purchaser Subsidiaries (i) has received any written Tax ruling or entered into any written and legally binding agreement or is
currently under negotiations to enter into any such agreements with any Tax authority that would be adversely affected upon consummation of the Transactions; or (ii) has waived any statute of
limitations in respect of any material Taxes or agreed to any extension of time with respect to a material Tax assessment or deficiency. 

        (f)    There
are no material Encumbrances on any of the assets of the Purchaser or of any of Purchaser Subsidiaries in connection with any failure (or alleged failure) to pay
any Tax. 

        (g)   To
the Knowledge of Purchaser, there are no pending claims made by an authority in a jurisdiction where neither the Purchaser nor any of the Purchaser Subsidiaries files
Tax Returns and, to the Knowledge of the Purchaser, neither the Purchaser nor any of such Purchaser Subsidiaries has a permanent establishment, including without limitation by virtue of dependent
agents, in a jurisdiction other than the jurisdiction of their respective incorporation or effective management. 

        (h)   Neither
the Purchaser nor any of Purchaser Subsidiaries has taken or, to the Knowledge of Purchaser, omitted to take any action which has resulted in the extension of
any statute of limitations for the collection of any Tax or for the audit of any Tax Return for any period ending on or before the Closing Date except as disclosed in Section 5.22 above. 

        (i)    To
the Knowledge of Purchaser, neither the Purchaser nor any of Purchaser Subsidiaries has, within the 3 years prior to the date of this Agreement, been a member
of or a party to any partnerships, joint ventures or interest groupings, or Tax grouping or Tax allocation agreements under which the Purchaser or any of Purchaser Subsidiaries may be responsible for
any Tax obligations of any other Person, except, in each case, as would not have a material adverse effect on Purchaser or except when the Person is not the Purchaser or a Purchaser Subsidiary. 

37

 

        (j)    All
Tax credits and Tax losses reported in the Tax Returns of the Purchaser or any of Purchaser's Subsidiaries are valid and will not be affected by the Transactions. 

        Section 5.23
Brokers or Finders 

        Except
as disclosed in Section 5.23 of the Purchaser Disclosure Schedule, none of Purchaser or any of Purchaser Subsidiaries is bound by any agreement or arrangement under which
any broker, investment banker, financial advisor or other person is entitled to any broker's, finder's or financial advisor's fee or any similar payment in connection with the Transactions
contemplated by this Agreement. 

        Section 5.24
Relationship with Related Persons 

        Neither
Purchaser nor any of its respective Affiliates nor any officer or director of Purchaser has, any interest in any property (whether real, personal, or mixed and whether tangible
or intangible) used in or pertaining to Purchaser's businesses. Neither Purchaser or any of its Affiliates nor any officer or director of Purchaser, owns (of record or as a beneficial owner) an equity
interest or any other financial or profit interest in (in each case, other than an equity interest of 10 percent or less than the outstanding equity interests in a Person that is publicly
traded in the United States or listed outside of the United States), a Person that has (i) had business dealings or a material financial interest in any transaction with Purchaser,
(ii) engaged in competition with Purchaser with respect to any line of the products or services of Purchaser in any market presently served by Purchaser, or (iii) owns, directly or
indirectly, in whole or in part, any Intellectual Property rights or any other Intellectual Property that are necessary for the business of Purchaser. Except as set forth on Section 5.24 of the
Purchaser Disclosure Schedule and for employment contracts, neither Purchaser nor any of its Affiliates nor any officer or director of Purchaser is a party to any material Contract with, or has any
claim or right against, Purchaser. 

 
 

ARTICLE VI
  
    COVENANTS    
    

        Section 6.1 Interim Operations of the Company 

        Each
of the Guarantors shall procure that, and covenant and agree that, after the date hereof and until the Initial Closing Date, except (i) as expressly provided in this
Agreement, or (ii) as may be agreed in writing by Purchaser: 

        (a)   the
business of the Company and Company Subsidiaries shall be conducted in the same manner as heretofore conducted and in a prudent manner (en
bon père de famille), in the ordinary course, and each of the Guarantors, the Company and Company Subsidiaries shall use its best efforts to preserve the
business organization of the Company and Company Subsidiaries intact, keep available the services of the current officers and employees of the Company and Company Subsidiaries and maintain the
existing relations with franchisees, customers, suppliers, creditors, business partners and others having business dealings with the Company or Company Subsidiaries, to the end that the goodwill and
ongoing business of the Company and Company Subsidiaries shall be unimpaired at the Closing Date. Neither the Company nor any of Company Subsidiaries shall institute any new methods of purchase, sale,
lease, management, accounting or operation or engage in any transaction or activity other than minor changes in the ordinary course of business and consistent with past practice; 

        (b)   except
as set forth in Section 6.1 (b) of the Guarantors Disclosure Schedule neither the Company nor any of Company Subsidiaries shall amend their
certificates of incorporation or by-laws or other constituent or governing document, to the extent any such modification is not required by law, or by the rules or regulations of any
Governmental Entity; 

38

 

        (c)   except
as set forth in Section 6.1 (b) of the Guarantors Disclosure Schedule neither the Company nor any of Company Subsidiaries shall alter the Company or
Company Subsidiaries' outstanding capital stock or declare, set aside, make or pay any dividend; or purchase or redeem any shares of the Company or Company Subsidiaries' capital stock; 

        (d)   neither
the Company nor any of Company Subsidiaries shall issue or sell any of its capital stock or any options, warrants or other rights to purchase any such shares or
any securities convertible into or exchangeable for such shares; 

        (e)   neither
the Company nor any of Company Subsidiaries shall: (i) incur or assume any long-term Indebtedness, or except in the ordinary course of
business, incur or assume short-term Indebtedness exceeding twenty-five thousand euros (€25,000) in the aggregate from the date hereof until the Initial
Closing; (ii) pay, repay, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company or any of Company Subsidiaries, except as required by the terms
thereof; (iii) modify the terms of any Indebtedness or other liability, other than modifications of short term debt in the ordinary and usual course of business and consistent with past
practice and except for the conversion of certain bonds as contemplated by this Agreement; (iv) assume, guarantee, endorse or otherwise become liable or responsible (whether directly,
contingently or otherwise) for the obligations of any other Person, except as described in the Guarantors Disclosure Schedule as being in the ordinary course of business and consistent with past
practice and except for the conversion of certain bonds as contemplated herein; (v) make any loans, advances or capital contributions to, or investments in, any other Person; (vi) enter
into any material commitment or transaction (including any capital expenditure or purchase, sale or lease of assets or real estate); (vii) write down the value of any inventory or
write-off as uncollectible, any notes or accounts receivable, (viii) dispose of, abandon or permit to lapse any rights to any Company Intellectual Property or (ix) change any
of the existing banking or safe deposit arrangements, described or referred to in the Guarantors Disclosure Schedule; 

        (f)    neither
the Company nor any of Company Subsidiaries shall permit or allow any of their properties or assets (real, personal or mixed, tangible or intangible) to be
subjected to any liens; 

        (g)   neither
the Company nor any of Company Subsidiaries shall cancel any Indebtedness; 

        (h)   neither
the Company nor any of Company Subsidiaries shall be a party to any acquisition, merger, spin-off, consolidation, purchase of stock or interest in
any corporation, partnership, association or other business organization or enter into or form any material joint-venture or enter into any agreement leading to any of the foregoing; 

        (i)    neither
the Company nor any of Company Subsidiaries shall make any change in the compensation payable or to become payable to any of its officers, directors, employees,
agents or consultants or to Persons providing management services, or, except for the employment agreement with Cyril Gallera, enter into or amend any employment, severance, consulting, termination or
other agreement with, or employee benefit plan for, or make any loan or advance to, any of its officers, directors, employees, Affiliates, agents or consultants or make any change in its existing
borrowing or lending arrangements for or on behalf of any of such Persons pursuant to an employee benefit plan or otherwise; 

        (j)    neither
the Company nor Company Subsidiaries shall make any changes to their severance policy or practices; 

39

 

        (k)   neither
the Company nor any of Company Subsidiaries shall (i) pay or make any accrual or arrangement for payment of any pension, retirement allowance or other
employee benefit pursuant to any existing plan, agreement or arrangement to any officer, director, employee or Affiliate or pay or agree to pay or make any accrual or arrangement for payment to any
officer, director, employee or Affiliate of any amount relating to unused vacation days, except to the extent the Company or a Company Subsidiary is unconditionally obligated to do so on the date
hereof, (ii) adopt or pay, grant, issue, accelerate or accrue salary or other payments or benefits pursuant to any pension, profit-sharing, bonus, extra compensation, incentive, deferred
compensation, stock purchase, stock option, stock appreciation right, group insurance, severance pay, retirement or other employee benefit plan, agreement or arrangement, or any employment or
consulting agreement with or for the benefit of any director, officer, employee, agent or consultant, whether past or present, or (iii) amend any such existing plan, agreement or arrangement in
a manner inconsistent with the foregoing; 

        (l)    neither
the Company nor any of Company Subsidiaries shall enter into or terminate any Contract or transaction outside the ordinary course of business; 

        (m)  neither
the Company nor any of Company Subsidiaries shall (i) grant to any third party a license to the Intellectual Property outside the ordinary course of
business; (ii) grant to any third party a license to the Software in source code form; or (iii) assign or otherwise transfer ownership of any Intellectual Property or any Company
Software to any third party; 

        (n)   neither
the Company nor any of Company Subsidiaries shall pay, repurchase, discharge or satisfy any of its claims, liabilities or obligations (absolute, accrued,
asserted or unasserted, contingent or otherwise), other than the payment, discharge or satisfaction in the ordinary course of business and consistent with past practice, of claims, liabilities or
obligations reflected or reserved against in, or contemplated by, the Company Financial Statements or incurred since the Company Balance Sheet date in the ordinary course of business; 

        (o)   neither
the Company nor any of Company Subsidiaries shall (i) change any of the accounting methods used by it unless required by French GAAP or the applicable
Foreign GAAP or (ii) make any election relating to Taxes, change any election relating to Taxes already made, adopt any accounting method relating to Taxes, change any accounting method
relating to Taxes unless required by French GAAP, the applicable Foreign GAAP or any Requirements of Law, enter into any closing agreement relating to Taxes, settle any claim or assessment relating to
Taxes or consent to any claim or assessment relating to Taxes or any waiver of the statute of limitations for any such claim or assessment, without prior consent of the Purchaser; 

        (p)   except
for the existing agreements which have been disclosed neither the Company nor any of Company Subsidiaries shall pay, loan or advance any amount to, or sell,
transfer or lease any material properties or assets (real, personal or mixed, tangible or intangible) to, or enter into any agreement or arrangement with, any of their respective officers, directors
or shareholders or any Affiliate or associate of any of their officers, directors or shareholders except for directors' fees, and compensation to officers at rates consistent with the Company, or the
Company Subsidiaries' past practice; 

        (q)   neither
the Company nor any of Company Subsidiaries shall take, or agree to or commit to take, any action that would or is reasonably likely to result in any of the
conditions to the Closing set forth in ARTICLE VII not being satisfied, or would make any representation or warranty of Guarantors contained herein inaccurate in any respect at, or as of any time
prior to, the Closing Date, or that would materially impair the ability of Sellers, the Company or Purchaser to consummate the Closing in accordance with the terms hereof or materially delay such
consummation; and 

        (r)   neither
the Company nor any of Company Subsidiaries shall enter into any agreement, contract, commitment or arrangement (whether in writing or otherwise) to do any of
the foregoing, or authorize, recommend, propose or announce an intention to do, any of the foregoing. 

40

 

        Section 6.2
Interim Operations of Purchaser 

        Purchaser
covenants and agrees that, after the date hereof and until the Initial Closing Date, except (i) as expressly provided in this Agreement, or (ii) as may be agreed
in writing by the Sellers Representatives. 

        (a)   The
business of Purchaser and Purchaser Subsidiaries shall be conducted in the same manner as heretofore conducted and in a prudent manner, in the ordinary course, and
each of Purchaser and Purchaser Subsidiaries shall use its best efforts to preserve the business organization of Purchaser and Purchaser Subsidiaries intact, keep available the services of the current
officers and employees of Purchaser and Purchaser Subsidiaries and maintain the existing relations with franchisees, customers, suppliers, creditors, business partners and others having business
dealings with Purchaser or Purchaser Subsidiaries, to the end that the goodwill and ongoing business of Purchaser and Purchaser Subsidiaries shall be unimpaired at the Closing Date; 

        (b)   Purchaser
shall not declare, set aside, make or pay any dividend; or purchase or redeem any shares of Purchaser's capital stock. 

        Section 6.3
Access 

        Between
the date of this Agreement and the Initial Closing, the Sellers shall cause the Company and Company Subsidiaries to (i) grant Purchaser and its authorized representatives
reasonable access, subject to reasonable prior notice, to all offices and other facilities of the Company and Company Subsidiaries and to all books and records of the Company and Company Subsidiaries,
(ii) permit Purchaser, subject to reasonable prior notice, to make such inspections and to make copies of such books and records as it may reasonably require and (iii) furnish Purchaser,
subject to reasonable prior notice, with such financial and operating data and other information as Purchaser may from time to time reasonably request. Purchaser and its authorized representatives
shall conduct all such inspections in a manner that will minimize disruptions to the business and operations of the Company and Company Subsidiaries. 

        Section 6.4
[INTENTIONALLY OMITTED] 

        Section 6.5
Efforts and Actions to Cause Initial Closing to Occur 

        (a)   Prior
to the Initial Closing, upon the terms and subject to the conditions of this Agreement, the Initial Sellers and Purchaser shall use their best efforts to take, or
cause to be taken, all actions, and to do, or cause to be done and cooperate with each other in order to do, all things necessary, proper or advisable (subject to any applicable laws) to consummate
the Initial Closing including, but not limited to (i) the preparation and filing of all forms, registrations and notices required to be filed to consummate the Initial Closing and the other
Transactions and the taking of such actions as are necessary to obtain any requisite approvals, authorizations, consents, orders, licenses, permits, qualifications, exemptions or waivers by any third
party or Governmental Entity. In addition, no party hereto shall take any action after the date hereof that could reasonably be expected to materially delay the obtaining of, or result in not
obtaining, any permission, approval or consent from any Governmental Entity or other Person required to be obtained prior to the Initial Closing. 

        (b)   The
Initial Sellers shall use their reasonable best efforts to take, or cause to be taken, all actions, and to do, or cause to be done and cooperate with each other in
order to do, all things necessary, proper or advisable (subject to any applicable laws) to cause the Drag-Along Sellers to sign the Joinder to Share Purchase and Contribution Agreement and
to cause the Subsequent Closing to occur. In addition, none of the Initial Sellers shall take any action after the date hereof that could reasonably be expected to materially delay the obtaining of,
or result in not obtaining, any permission, approval or consent from any Governmental Entity or other Person required to be obtained prior to Subsequent Closing. 

41

 

        (c)   In
addition to and without limiting the agreements of the Parties contained above, Purchaser and each Initial Seller shall: 

          (i)  cooperate
with each other in connection with any filing with any antitrust Authority and in connection with resolving any investigation or other inquiry concerning the
Transactions commenced by any other Governmental Entity; 

         (ii)  use
all commercially reasonable efforts to resolve such objections, if any, as may be asserted with respect to the Transactions under any antitrust law; and 

        (iii)  advise
the other parties promptly of any material communication received by such party from any Governmental Entity regarding any of the Transactions. 

        (iv)  the
Guarantors will cause the Initial Sellers to elect, within seven days of the date of this Agreement, to determine the number of Sold Shares. 

        Section 6.6
Notification of Certain Matters 

        (a)   From
time to time prior to the Initial Closing, the Parties shall promptly supplement or amend the Guarantors Disclosure Schedule or the Purchaser Disclosure Schedule,
as applicable, with respect to any matter arising after the delivery thereof pursuant hereto that, if existing at, or occurring on, the date of this Agreement, would have been required to be set forth
or described in the Guarantors Disclosure Schedule or the Purchaser Disclosure Schedule, as applicable. No supplement to or amendment of the Guarantors Disclosure Schedule or the Purchaser Disclosure
Schedule, as applicable, made after the execution hereof pursuant to this section or otherwise shall be deemed to cure any breach of any representation of or warranty made pursuant to this Agreement. 

        (b)   Each
Party shall give notice to the other Party promptly after becoming aware of (i) the occurrence or non-occurrence of any event whose occurrence or
non-occurrence would be likely to cause either (A) any representation or warranty contained in this Agreement to be untrue or inaccurate in any material respect at any time from the
date hereof to the Initial Closing Date or (B) any condition set forth in ARTICLE VII to be unsatisfied in any material respect at any time from the date hereof to the Initial Closing Date and
(ii) any material failure of the Initial Sellers, or the Company, Company Subsidiaries, or any of their respective officers, directors, employees or agents thereof on the one hand, or any
material failure of Purchaser, Purchaser Subsidiaries, or any of their respective officers, directors, employees or agents thereof on the other hand, to comply with or satisfy any covenant, condition
or agreement to be complied with or satisfied hereunder; provided, however, that (x) the delivery of any notice pursuant to this section shall not limit or otherwise affect the remedies
available hereunder to the party receiving such notice and (y) the failure to give such notice shall not be required from and after the time the Party to whom such notice is to be given has
actual knowledge of the information required to be included in such notice. 

        Section 6.7
Public Announcements 

        Except
as required by applicable laws or regulations, neither the Sellers, the Company and Company Subsidiaries on the one hand nor Purchaser and Purchaser Subsidiaries on the other hand
shall be permitted to make any public statement or announcement with respect to this Agreement or the Transactions without the prior written consent of the other Party, which consent shall not be
unreasonably delayed or withheld. If either Sellers, the Company or Company Subsidiaries on the one hand or Purchaser or Purchaser Subsidiaries on the other hand are required to make such public
statement or announcement by applicable laws or regulations, such Party shall promptly notify and consult with the other Party before making any such public statement or announcement. For the
avoidance of doubt, it is expressly agreed that all Parties shall be entitled to make reference to the basic elements of this transaction as part of their track record in any future written
communications setting forth their track record generally in a manner substantially consistent with Exhibit 6.7. 

42

 

        Section 6.8
Confidentiality of Information 

        The
Parties shall not use, and shall cause their Affiliates not to use, for any purpose or disclose to any Person any nonpublic confidential or proprietary information relating to the
Company or any of Company Subsidiaries on the one hand and Purchaser and Purchaser Subsidiaries on the other hand, their respective businesses and operations, or any of their assets, unless compelled
to disclose by judicial or administrative process or, in the opinion of legal counsel, by other Requirements of Law. In the event a Party or any of its Affiliates is required to disclose any such
information under applicable laws or regulations, such Person shall, promptly notify the other Party of such requirement so that the other Party may seek an appropriate order of injunction in
expedited proceedings. For the avoidance of doubt, it is expressly agreed that all Parties shall be entitled to make reference to the basic elements of this transaction as part of their track record
in any future written communications setting forth their track record generally in a manner substantially consistent with Exhibit 6.7. 

        Section 6.9
No Solicitation of Competing Transaction 

        Neither
Initial Sellers, the Company or Company Subsidiaries nor their respective Affiliates shall (and Sellers shall cause the officers, directors, employees, Representatives and agents
of the Company, each of Company Subsidiaries and each of their Affiliates, including investment bankers, attorneys and accountants, not to), directly or indirectly, encourage, solicit, initiate or
participate in discussions or negotiations with, or provide any information to, any Person or group (other than Purchaser, any of its Affiliates or Representatives) concerning any acquisition
proposal. None of the Initial Sellers shall, and each of them shall cause the Company and Company Subsidiaries not to, enter into any agreement with respect to any acquisition proposal. 

        Upon
execution of this Agreement, each Initial Seller shall, and shall cause the Company to immediately cease any existing activities, discussions or negotiations with any parties
conducted heretofore with respect to any of the foregoing and each Seller shall, and shall cause the Company or Company Subsidiaries to request (or if either of them has the contractual right to do
so, demand) the return of all documents, analyses, financial statements, projections, descriptions and other data previously furnished to others in connection with the Initial Sellers' efforts to sell
the Company or Company Subsidiaries. Initial Sellers shall and shall cause the Company to immediately notify Purchaser of the existence of any proposal or inquiry received by the Company, Company
Subsidiaries or Initial Sellers, and immediately communicate to Purchaser the terms of any proposal or inquiry which any of them may receive (and shall immediately provide to Purchaser copies of any
written materials received by the Company, Company Subsidiaries and Initial Sellers in connection with such proposal, discussion, negotiation or inquiry) and the identity of the party making such
proposal or inquiry. 

        Section 6.10
General Meeting of Shareholders 

        The
Company management board shall call a general meeting of the shareholders to be held as soon as possible after the Initial Closing and in any way no later than nineteen
(19) days thereafter, in order to amend the terms and conditions of the 2003, 2004 and 2005 option plans so as to render them compatible with the Liquidity Agreement and the Purchaser shall
vote in favor of such amendments during such general meeting. 

43

 

        Section 6.11
Restrictions on Transfer of Purchaser Share 

        Each
Seller agrees that it will comply with all applicable laws on securities offering and therefore, will not offer, sell, transfer, pledge, assign, encumber, hypothecate or otherwise
dispose of any of the Purchaser shares received by such Seller except pursuant to (i) a registration statement with respect to such shares that is effective under the Securities Act or
applicable securities law, or (ii) any exemption from registration under the Securities Act, or applicable securities law, relating to the disposition of securities, including Rule 144
under the Securities Act, provided an opinion of counsel is furnished to the Purchaser, in form and substance reasonably satisfactory to the Purchaser, to the effect that an exemption from the
registration requirements of the Securities Act and applicable securities law is available. Each Seller authorizes and directs the Purchaser not to register any transfer of the Purchaser shares not
made in accordance with the foregoing. 

 
 

ARTICLE VII
  
    CONDITIONS    
    

        Section 7.1 Conditions to Each Party's Obligation to Effect the Initial Closing 

        The
respective obligations of each Party to effect the Initial Closing shall be subject to the satisfaction at or prior to the Closing Date of each of the following conditions: 

        (a)   Statutes;
Court Orders 

        No
statute, rule, regulation or decision shall have been issued, enacted or promulgated by any Governmental Entity which prohibits, prevents or precludes the consummation of the Closing;
and there shall be no order or injunction of a court of competent jurisdiction in effect precluding or prohibiting consummation of the Closing; 

        (b)   Directors
Description and Auditor's Certificate 

        The
Directors Description and the Auditor's Certificate shall have been issued in conformity with Dutch law. 

        Section 7.2
Conditions to Obligation of Purchaser to Effect the Initial Closing 

        The
obligations of Purchaser to consummate the Initial Closing shall be subject to the satisfaction on or prior to the Initial Closing Date of each of the following conditions. The
following conditions are for the sole benefit of Purchaser, may be waived by Purchaser, in whole or in part, at any time and from time to time in the sole discretion of Purchaser, The failure by
Purchaser at any time to exercise any of the following rights shall not be deemed a waiver of any such right and each such right shall be deemed an ongoing right which may be asserted at any time and
from time to time. 

        (a)   Material
Adverse Change 

        There
shall not have occurred any material adverse change (or any development that, insofar as reasonably can be foreseen, is reasonably likely to result in any material adverse change),
in the financial condition, assets, liabilities, businesses, results of operations or prospects of the Company or any of Company Subsidiaries. For the avoidance of doubt, any item disclosed in the
Guarantor's Disclosure schedule shall not be considered a "material adverse change." 

        (b)   Ownership
of the Shares 

        Initial
Sellers shall be the owners of all of the Initial Shares, free of all Encumbrances. 

44

 

        (c)   Consents
Obtained 

        All
material consents of any Person necessary to the consummation of the Initial Closing and the other Transactions, including consents from parties to loans, Material Contracts, leases
or other agreements and consents from governmental agencies, shall have been obtained, and a copy of each such consent shall have been provided to Purchaser at or prior to the Initial Closing. 

        (d)   Representations
and Warranties 

        All
of the Sellers' representations and warranties and Guarantors' representations and warranties set forth in this Agreement that are qualified as to materiality shall be true and
complete in all respects and any such representation or warranty that is not so qualified shall be true and complete in all material respects, in each case as of the date of this Agreement and as of
the Initial Closing Date, except that the representations and warranties that by their terms speak as of a specific date shall be true and complete in all respects as of such date. 

        (e)   Sellers'
Breach 

        None
of the Sellers shall have failed to perform in any material respect any obligation or to comply in any material respect with any agreement or covenant to be performed or complied
with by such Seller under this Agreement. 

        (f)    Employment,
Consulting and Other Agreements 

        Each
Seller listed in Exhibit 2.1(b)(x) shall have delivered to Purchaser an employment consulting and/or other agreement in a form to be mutually agreed upon by such
Seller and Purchaser, duly executed by such Seller. 

        (g)   Redemption
of Bonds 

        All
Bonds shall have been validly redeemed and exchanged for Preferred Shares of the Company. 

        (h)   New
Shareholders' Agreement 

        Each
Initial Seller shall have executed and delivered to Purchaser the New Shareholders' Agreement in the form attached hereto as Exhibit 7.2(i) (the "New Shareholders'
Agreement"). 

        (i)    Powers
of Attorney Sellers 

        Each
Initial Seller shall have executed and delivered to the Notary the powers of attorney (certified and apostilled to the extent required) to execute the Deed of Issuance and the Deed
of Pledge. 

        (j)    Minimum
Closing Date Cash 

        The
Company shall have Closing Date Cash at least equal to the Minimum Closing Cash Amount. 

        (k)   Initial
Sellers' Spousal Consents 

        The
spouses of the Initial Sellers who are natural persons, if applicable, shall have duly approved the Transactions, which consent can be provided by such spouses counter-signing the
powers of attorney delivered to the Sellers Representative. 

45

 

        Section 7.3
Conditions to Obligation of the Initial Sellers to Effect the Closing 

        The
obligations of the Initial Sellers to consummate the Initial Closing shall be subject to the satisfaction on or prior to the Initial Closing Date of each of the following conditions.
The following conditions are for the sole benefit of the Initial Sellers, may be waived by the Initial Sellers, in whole or in part, at any time and from time to time in the sole discretion of the
Initial Sellers. The failure by the Initial Sellers at any time to exercise any of the following rights shall not be deemed a waiver of any such right and each such right shall be deemed an ongoing
right which may be asserted at any time and from time to time. 

        (a)   Material
Adverse Change 

        There
shall not have occurred any material adverse change (or any development that, insofar as reasonably can be foreseen, is reasonably likely to result in any material adverse change),
in the financial condition, assets, liabilities, businesses or results of operations of Purchaser and Purchaser Subsidiaries. For the avoidance of doubt, any item disclosed in the Purchaser's
Disclosure Schedule shall not be considered a "material adverse change." 

        (b)   Ownership
of the Shares 

        Fox
Paine shall be the direct or indirect owner of not less than 95% of the issued and outstanding shares of the Purchaser (after giving effect to the ordinary shares issuable upon
conversion of Purchaser's existing convertible subordinated debentures). 

        (c)   Consents
Obtained 

        The
consents set forth on Section 7.3(c) of the Purchaser Disclosure Schedule shall have been obtained, and a copy of each such consent shall have been provided to the Initial
Sellers at or prior to the Initial Closing. 

        (d)   Representations
and Warranties 

        All
of the representations and warranties of Purchaser set forth in this Agreement that are qualified as to materiality shall be true and complete in all respects and any such
representations and warranties that are not so qualified shall be true and complete in all material respects, in each case as of the date of this Agreement and as of the Initial Closing Date, except
that the representations and warranties that by their terms speak as of a specific date shall be true and complete in all respects as of such date. 

        (e)   Purchaser
Breach 

        Purchaser
shall not have failed to perform in any material respect any obligation or to comply in any material respect with any agreement or covenant to be performed or complied with by
it under this Agreement. 

        (f)    New
Shareholders' Agreement 

        Purchaser
shall have executed and delivered to the Sellers the New Shareholders' Agreement in the form attached hereto as Exhibit 7.2(i). 

        (g)   Amendment
of Management Agreement 

        The
parties thereto shall have executed and delivered the amended and restated management agreement in the form attached as Exhibit 7.3(g). 

        (h)   Liquidity
Agreement 

        Purchaser
shall have executed and delivered the Liquidity Agreement to the Option and Warrant Holders in the form attached hereto as Exhibit 1.1(c). 

        (i)    Power
of Attorney Purchaser 

        Purchaser
shall have executed and delivered to the Notary the power of attorney to execute the Deed of Issuance and the Deed of Pledge. 

46

  

 
 

ARTICLE VIII
  
    TERMINATION    
    

        Section 8.1 Termination 

        The
Transactions may be terminated or abandoned at any time prior to the Initial Closing Date: 

        (a)   By
the mutual written consent of Purchaser and Initial Sellers. 

        (b)   By
Purchaser or Initial Sellers if any Governmental Entity shall have issued an order, decree or ruling or taken any other action (which order, decree, ruling or other
action the parties hereto shall use their reasonable efforts to lift), which permanently restrains, enjoins or otherwise prohibits the acquisition by Purchaser of the Initial Shares and such order,
decree, ruling or other action shall have become final and non-appealable. 

        (c)   By
Purchaser: 

          (i)  if
any Initial Seller shall have breached any representation, warranty, covenant or other agreement contained in this Agreement which would give rise to the failure of
a condition set forth in ARTICLE VII; or 

         (ii)  on
or after August 31, 2006, if the Initial Closing shall not have theretofore occurred and if the failure of the Initial Closing to occur is not the result of a
breach of a representation, warranty or covenant by Purchaser. 

        (d)   By
Initial Sellers: 

          (i)  if
Purchaser shall have breached in any material respect any of its representations, warranties, covenants or other agreements contained in this Agreement, which breach
cannot be or has not been cured within thirty (30) days after the giving of written notice by Sellers to Purchaser specifying such breach; or 

         (ii)  on
or after August 31, 2006, if the Initial Closing shall not have theretofore occurred and if the failure of the Initial Closing to occur is not the result of a
breach of a representation, warranty or covenant by any Initial Seller. 

        Section 8.2
Effect of Termination 

        In
the event of the termination or abandonment of the Transactions by any party hereto pursuant to the terms of this Agreement, written notice thereof shall forthwith be given to the
other party or parties specifying the provision hereof pursuant to which such termination or abandonment of the Transactions is made, and there shall be no liability or obligation thereafter on the
part of Purchaser, Sellers, the Company or Company Subsidiaries except (a) for fraud or for breach of the covenants in this Agreement prior to such termination or abandonment of the
Transactions and (b) as set forth in Section 12.1. 

47

 

 
 

ARTICLE IX
  
    INDEMNIFICATION    
    

        Section 9.1 Purchaser's Indemnification by Guarantors; Remedies 

        (a)   Each
of the Guarantors shall, acting severally, but not jointly, in the proportions set forth in Annex 3 attached hereto, indemnify, defend and hold harmless Purchaser
Indemnified Persons from and against and in respect of all losses, liabilities, damages, judgments, settlements and reasonable expenses (including interest and penalties recovered by a third party
with respect thereto and reasonable attorneys' fees and expenses and reasonable accountants' fees and expenses incurred in the investigation or defense of any of the same or in asserting, preserving
or enforcing any of the rights of Purchaser arising under Section 9.1 (the "Purchaser Losses") incurred by the Company, Company Subsidiaries or any of the Purchaser Indemnified Persons that
arise out of: 

          (i)  Any
net increase of the liabilities of the Company or Company Subsidiaries, any net decrease of the assets of the Company or Company Subsidiaries (x) resulting
from any facts or circumstances that occurred prior to the Closing Date and (y) that have not been regularly and adequately accounted for in the Company's or the Company Subsidiaries' financial
statements in accordance with French or Foreign GAAP, as applicable, as of the dates by reference to which such financial statements were prepared; 

         (ii)  any
breach or violation by Guarantors of any of Guarantors' representations and warranties contained in, made by or pursuant to this Agreement, other than pursuant to
Section 3.7; 

        (iii)  any
breach or violation by Guarantors of any of Guarantors' representations and warranties contained in Section 3,7; and 

        (iv)  any
breach or violation by Guarantor of any of Guarantors' covenants contained in, made by or pursuant to this Agreement. 

        (b)   Limitations

          (i)  Guarantors'
indemnification obligations under (A) Section 9.1(a)(i) and Section 9.1(a)(ii) shall survive for twenty-four
(24) months after the Subsequent Closing Date; provided that Guarantors' indemnification obligations relating to tax matters shall survive until the 60th day after the expiration
of the applicable statute of limitations, and (B) Section 9.1(a)(iii) and Section 9.1 (a)(iv) shall survive indefinitely. No claim for the recovery of any Purchaser
Losses may be asserted by any Purchaser Indemnified Person after the expiration of the applicable indemnification period; provided,  however, that claims
asserted in writing by any Purchaser Indemnified Person with reasonable specificity prior to the expiration of the applicable
indemnification period shall not thereafter be barred by the expiration of the applicable indemnification period. 

         (ii)  Guarantors'
indemnification obligations under Section 9.1(a)(ii) shall not be triggered unless and until (x) each individual Purchaser Losses
exceeds an individual amount of twenty-five thousand U.S. dollars (U.S. $25,000) (the "Guarantor Threshold") and (y) the aggregate amount of all Purchaser Losses exceeds two hundred
and fifty thousand U.S. dollars (U.S. $250,000), at which point Guarantors will be obligated to indemnify Purchaser Indemnified Person from and against Purchaser Losses in excess thereof (the
"Guarantor Deductible"); provided, however, all Purchaser Losses, including all Purchaser Losses not indemnified solely due to the failure to satisfy the Guarantor Threshold other than the four
largest Purchaser Losses that were not indemnified solely due to the failure to satisfy the Guarantor Threshold, shall be applied to satisfy the Guarantor Deductible. 

48

 

        (iii)  In
the event that any Purchaser Indemnified Party shall suffer any Purchaser Losses, Purchaser shall only have the right to repurchase Purchaser Shares or Convertible
Subordinated Debentures from the Guarantors (other than the Mallets) or the Company Preferred Stock from the Mallets at a price equal to the Repurchase FMV in the amounts set forth on
Section 9.1. Any and all payments under this Section 9.1 and Section 10.1 shall occur exclusively by means of set-off on the same day of amounts to be paid to
repurchase the securities from the Guarantors in accordance with this Section 9.1(b)(iii). On the twenty-four (24) month anniversary of the Subsequent Closing Date, the
Company shall release the Guarantors' obligations under the Deed of Pledge and the Debenture Pledge, unless there are pending claims for indemnification at that time. The aggregate amount of any and
all payments pursuant to this Section 9.1 and Article X shall not exceed U.S. $10,000,000 (calculated at the Repurchase FMV) and in any event, the number of Ordinary Shares, Company
Preferred Stock and Convertible Subordinated Debentures which may be repurchased pursuant to the provisions of this Article IX shall not exceed an aggregate of 1,092,897 (which can include up
to 23,878 shares of Company Preferred Stock, in the case of Mallets), which are covered by the Deed of Pledge and pledge agreements. 

        (iv)  The
Parties agree that Purchaser Losses which consist of reasonable attorney's fees and expenses incurred by Purchaser in investigating or defending any third party
claim shall give rise to indemnification, subject to the limitations set forth in Section 9.1(b) which shall apply. 

         (v)  Any
deficiency assessed by the Tax authorities whose sole effect is to shift a Tax liability from one fiscal year to another shall give rise to indemnification by the
Guarantors only insofar as the Company or the Company Subsidiaries are required to pay a penalty or interest charge in relation thereto. 

        (vi)  Any
deficiency assessed with regard to a Tax, such as a value-added Tax, which is recoverable shall give rise to indemnification by the Guarantors only insofar as the
Company or the Company Subsidiaries are required to pay a penalty or interest charge in relation thereto. 

       (vii)  Any
indemnification due by the Guarantors shall be calculated taking into account (a) the effect of any actual Tax savings realized by the Company and the
Company Subsidiaries as a result of the Tax deductibility of the relevant Purchaser Loss; and (b) the effect of the taxation of any such indemnification so that the Company or the relevant
Company Subsidiary or the Purchaser shall be in the same position as it would have been should the Purchaser Loss have not occurred. 

      (viii)  The
provisions of this Section 9.1 shall apply, to the full extent set forth herein with respect to Company Preferred Stock, Purchaser Shares and Convertible
Subordinated Debentures, to any and all shares of capital stock or other securities of the Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets or
otherwise) that may be issued in respect of, in exchange for, or in substitution of, the Company Preferred Stock, the Convertible Subordinated Debentures and the Purchaser Shares, or that may be
issued by reason of any stock dividend, stock split, reverse stock split, combination, recapitalization, reclassification or otherwise, including shares issued upon conversion or redemption of the
Convertible Subordinated Debentures or exchange of the Mallet Preferred, with appropriate adjustments to the Repurchase FMV. Upon the occurrence of any of such events, numbers of shares and amounts
hereunder and any other appropriate terms shall be appropriately adjusted. 

49

 

        (c)   Notice
of Claim; Defense 

        Purchaser
shall give Guarantors' Representative prompt notice of any third-party claim that may give rise to any indemnification obligation under this Section 9.1, together with
the estimated amount of such claim, and Guarantors' Representative shall have the right to assume the defense (at the Purchaser's expense, which expenses shall constitute Purchaser's Losses) of any
such claim through counsel of Guarantors' Representative's own choosing by so notifying Purchaser within sixty (60) days of the first receipt by Guarantors' Representative of such notice from
Purchaser; provided, however, that any such counsel shall be reasonably satisfactory to Purchaser.
Failure to give such notice shall not affect the indemnification obligations hereunder in the absence of actual and material prejudice. If Guarantors' Representative assumes such defense, Purchaser
shall have the right to participate in the defense thereof and to employ counsel, at its own expense, separate from the counsel employed by Guarantors' Representative. If, under applicable standards
of professional conduct, a conflict with respect to any significant issue between any Purchaser Indemnified Person and Guarantors' Representative exists in respect of such third-party claim, the
Purchaser shall pay the reasonable fees and expenses of such additional counsel as may be required to be retained in order to resolve such conflict. The reasonable fees and expenses of counsel
employed by Purchaser for any period during which Guarantors' Representative has not assumed the defense of any such third-party claim (other than during any period in which the Sellers
Representatives will have failed to give notice of the third-party claim as provided above). If Guarantors' Representative assumes such defense, Purchaser shall have the right to participate in the
defense thereof and to employ counsel, at its own expense, separate from the counsel employed by Guarantors' Representative. If Guarantors' Representative chooses to defend or prosecute a third-party
claim, Purchaser shall cooperate in the defense or prosecution thereof, which cooperation shall include, to the extent reasonably requested by Guarantors' Representative, the retention, and the
provision to Guarantors' Representative, of records and information reasonably relevant to such third-party claim, and making employees of the Company available on a mutually convenient basis to
provide additional information and explanation of any materials provided hereunder. If Guarantors' Representative chooses to defend or prosecute any third-party claim, Purchaser shall agree to any
settlement, compromise or discharge of such third-party claim that Guarantors' Representative may recommend and that, by its terms, discharges Purchaser and the Purchaser Affiliates from the full
amount of liability in connection with such third-party claim; provided, however, that, without the
consent of Purchaser, Guarantors' Representative shall not consent to, and Purchaser shall not be required to agree to, the entry of any judgment or enter into any settlement that (i) provides
for injunctivc or other non-monetary relief affecting Purchaser or any Affiliate of Purchaser; (ii) does not include as an unconditional term thereof the giving of a release from
all liability with respect to such claim by each claimant or plaintiff to each Purchaser Indemnified Person that is the subject of such third-party claim; or (iii) provides for monetary relief
that is not indemnified under this ARTICLE IX by the Guarantors. 

        (d)   Tax
Effect of Indemnification Payments 

        All
indemnity payments made by Guarantors to Purchaser Indemnified Persons, pursuant to this Agreement shall be treated for all Tax purposes as a reduction of the Purchase Price of the
Shares. 

50

 

        (e)   Effect
of Investigation 

        The
right to indemnification, payment of Purchaser Losses or for other remedies based on any representation, warranty, covenant or obligation of Sellers or Guarantors contained in or
made pursuant to this Agreement or the Closing documents shall not be affected by any investigation conducted with respect to, or any knowledge acquired (or capable of being acquired) at any time,
whether before or after the execution and delivery of this Agreement or the date the Closing occurs, with respect to the accuracy or inaccuracy of or compliance with, any such representation,
warranty, covenant or obligation. The waiver of any condition to the obligation of Purchaser to consummate the Transactions, where such condition is based on the accuracy of any representation or
warranty, or on the performance of or compliance with any covenant or obligation, shall not affect the right to indemnification, payment of Purchaser Losses, or other remedy based on such
representation, warranty, covenant or obligation. 

        (f)    Survival
of Indemnification Claims 

        The
indemnification obligations set forth in this Section 9.1 shall survive the Subsequent Closing. 

        (g)   Survival
of Covenants, Representations and Warranties 

        Each
of the covenants, representations and warranties of Guarantors in this Agreement or in any schedule, instrument or other document delivered pursuant to this Agreement shall be valid
as of the Initial Closing Date. 

        (h)   Payment
of the Indemnification 

        Any
indemnification due by Guarantors in accordance with this Section 9.1 shall be paid by Guarantors in accordance with Section 9.1(b)(iii) above, within sixty
(60) days from the date of receipt of the claim made hereunder by Purchaser, or should Guarantors challenge such claim within such period, within sixty (60) days from the date at which
the Purchaser Losses if finally quantified (either by settlement between the Parties or by a final and binding decision ("Due Date"). 

        Section 9.2
Purchaser's Indemnification by Sellers 

        (i)    Each
of the Sellers shall, acting severally, but not jointly, indemnify, defend and hold harmless Purchaser Indemnified Persons from and against and in respect of all
losses, liabilities, damages, judgments, settlements and reasonable expenses (including interest and penalties recovered by a third party with respect thereto and reasonable attorneys' fees and
expenses and reasonable accountants' fees and expenses incurred in the investigation or defense of any of the same or in asserting, preserving or enforcing any of the rights of Purchaser arising under
ARTICLE IV, and including any Tax liability incurred by the Company or any of the Purchaser Indemnified Persons in connection with the receipt of any amounts paid under Section 9.2) incurred by
the Company, Company Subsidiaries or any of the Purchaser Indemnified Persons that arise out of any breach or violation by such Seller of any of such Sellers representations and warranties contained
in, made by or pursuant to this Agreement. 

51

 

        Section 9.3
Seller's Indemnification; Remedies 

        (a)   Purchaser
shall indemnify, defend and hold harmless Seller Indemnified Persons from and against and in respect of all losses, liabilities, damages, judgments,
settlements and reasonable expenses (including interest and penalties recovered by a third party with respect thereto and reasonable attorneys' fees and expenses and reasonable accountants' fees and
expenses incurred in the investigation or defense of any of the same or in asserting, preserving or enforcing any of the rights of Sellers arising under Section 9.3 (the "Seller Losses")
incurred by Sellers or any of the Seller Indemnified Persons that arise out of any breach or violation by Purchaser of any of Purchaser's representation and (i) warranties and covenants
contained in, made by or pursuant to this Agreement, other than Section 5.4 and (ii) any breach or violation by Purchaser of any Purchaser's representations and warranties contained in
Section 5.4. 

        (b)   Limitations

          (i)  Purchaser's
indemnification obligations under Section 9.3(b)(i) shall survive until twenty-four (24) months after the Initial Closing
Date, provided that Purchaser's indemnification obligations relating to tax matters and environmental matters shall survive until the 60th day after the expiration of the applicable
statute of limitations. No claim for the recovery of any Purchaser Losses may be asserted by any Seller Indemnified Person after the expiration of the applicable indemnification period;  provided,
however, that claims asserted in writing by any Seller Indemnified Person with reasonable
specificity prior to the expiration of the applicable indemnification period shall not thereafter be barred by the expiration of the applicable indemnification period. 

         (ii)  Purchaser's
indemnification obligations under Section 9.3(a) shall not be triggered unless and until (X) each individual Seller Losses exceeds an
individual amount of twenty-five thousand U.S. dollars (U.S. $25,000) (the "Purchaser Threshold") and (Y) the aggregate amount of all Seller Losses exceeds two hundred and fifty
thousand U.S. dollars (U.S. $250,000), at which point Purchaser will be obligated to indemnify Seller Indemnified Person from and against Seller Losses in excess thereof (the "Deductible"), provided,
however, all Seller Losses, including all Seller Losses not indemnified solely due to the failure to satisfy the Guarantor Threshold other than the four largest Seller Losses that were not indemnified
solely due to the failure to satisfy the Purchaser Threshold, shall be applied to satisfy the Guarantor Deductible. 

        (iii)  Any
and all payments under this Section 9.3 and Section 10.2 shall occur exclusively by means of the exercise by the Sellers of the option hereby granted
to the Sellers to buy up to 819,672 newly issued Ordinary Shares and up to 273,224 Convertible Subordinated Debentures for one euro cent (€ 0.01) each. The number of such
Ordinary Shares and Convertible Subordinated Debentures that may be purchased will equal the amount of Seller Losses divided by the Repurchase FMV. The aggregate amount of any and all payments by the
Purchaser (to be satisfied through exercise of such option) pursuant to this Section 9.3 and Article X shall not exceed U.S. $10,000,000. 

        (iv)  Any
deficiency assessed by the Tax authorities whose sole effect is to shift a Tax liability from one fiscal year to another shall give rise to indemnification by the
Purchaser only insofar as the Purchaser or the Purchaser Subsidiaries are required to pay a penalty or interest charge; 

         (v)  Any
deficiency assessed with regard to a Tax, such as a value-added Tax, which is recoverable shall give rise to indemnification by the Purchaser only insofar as the
Purchaser or the Purchaser Subsidiaries are required to pay a penalty or interest charge in relation thereto; 

        (vi)  Any
indemnification by the Purchaser shall be calculated taking into account the effect of any Tax savings realized by the Purchaser and the Purchaser Subsidiaries as a
result of the Tax deductibility of the relevant Seller Loss. 

52

 

       (vii)  The
provisions of this Section 9.3 shall apply, to the full extent set forth herein with respect to Purchaser Shares, to any and all shares of capital stock or
other securities of the Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) that may be issued in respect of, in exchange for, or in
substitution of, the Purchaser Shares, or that may be issued by reason of any stock dividend, stock split, reverse stock split, combination, recapitalization, reclassification or otherwise, with
appropriate adjustments to the Repurchase FMV. Upon the occurrence of any of such events, numbers of shares and amounts hereunder and any other appropriate terms shall be appropriately adjusted. 

        (c)   Notice
of Claim; Defense 

        The
Sellers Representatives shall give Purchaser prompt notice of any third-party claim that may give rise to any indemnification obligation under this Section 9.3, together with
the estimated amount of such claim, and Purchaser shall have the right to assume the defense (at the Purchaser's expense) of any such claim through counsel of Purchaser's own choosing by so notifying
the Sellers Representatives within sixty (60) days of the first receipt by Purchaser of such notice from the Sellers Representatives. Failure to give such notice shall not affect the
indemnification obligations hereunder in the absence of actual and material prejudice. If, under applicable standards of professional conduct, a conflict with respect to any significant issue between
any Seller Indemnified Person and Purchaser exists in respect of such third-party claim, Purchaser shall pay the reasonable fees and expenses of such additional counsel as may be required to be
retained in order to resolve such conflict. Purchaser shall be liable for the reasonable fees and expenses of counsel employed by Purchaser for any period during which Purchaser has not assumed the
defense of any such third-party claim (other than during any period in which Purchaser will have failed to give notice of the third-party claim as provided above). If Purchaser assumes such defense,
Sellers shall have the right to participate in the defense thereof and to employ counsel, at its own expense, separate from the counsel employed by Purchaser. If Purchaser chooses to defend or
prosecute a third-party claim, Sellers shall cooperate in the defense or prosecution thereof, which cooperation shall include, to the extent reasonably requested by Purchaser, the retention, and the
provision to Purchaser, of records and information reasonably relevant to such third-party claim, and making employees of the Company available on a mutually convenient basis to provide additional
information and explanation of any materials provided hereunder. If Purchaser chooses to defend or prosecute any third-party claim, Sellers shall agree to any settlement, compromise or discharge of
such third-party claim that Purchaser may recommend and that, by its terms, discharges Sellers and their Affiliates from the full amount of liability in connection with such third-party claim;  provided,
however, that, without the consent of the Sellers Representative, Purchaser shall not consent
to, and the Sellers Representative shall not be required to agree to, the entry of any judgment or enter into any settlement that (i) provides for injunctive or other non-monetary
relief affecting Sellers or any Affiliate of Sellers; (ii) does not include as an unconditional term thereof the giving of a release from all liability with respect to such claim by each
claimant or plaintiff to each Seller Indemnified Person that is the subject of such third-party claim; or (iii) provides for monetary relief that is not indemnified under this
Section 9.3 by the Purchaser. 

53

 

        (d)   Effect
of Investigation 

        The
right to indemnification, payment of Seller Losses or for other remedies based on any representation, warranty, covenant or obligation of Purchaser contained in or made pursuant to
this Agreement or the Closing documents shall not be affected by any investigation conducted with respect to, or any knowledge acquired (or capable of being acquired) at any time, whether before or
after the execution and delivery of this Agreement or the date the Initial Closing occurs, with respect to the accuracy or inaccuracy of or compliance with, any such representation, warranty, covenant
or obligation. The waiver of any condition to the obligation of Sellers to consummate the Transactions, where such condition is based on the accuracy of any representation or warranty, or on the
performance of or compliance with any covenant or obligation, shall not affect the right to indemnification, payment of Seller Losses, or other remedy based on such representation, warranty, covenant
or obligation. 

        (e)   Survival
of Indemnification Claims 

        The
indemnification obligations set forth in this Section 9.3 shall survive the Subsequent Closing. 

        (f)    Survival
of Covenants, Representations and Warranties 

        Each
of the covenants, representations and warranties of Purchaser in this Agreement or in any schedule, instrument or other document delivered pursuant to this Agreement shall be valid
as of the Initial Closing Date. 

        (g)   Payment
of the Indemnification 

        Any
indemnification due by Purchaser in accordance with this Section 9.3 shall be paid by Purchaser in accordance with Section 9.3(b)(iii) above, within sixty
(60) days from the date of receipt of the claim made hereunder by the Sellers Representative, or should Purchaser challenge such claim within such period, within sixty (60) days from the
date at which the Seller Losses if finally quantified (either by settlement between the Parties or by a final and binding decision ("Due Date"). 

 
 

ARTICLE X
  
    TAX MATTERS    
    

        Section 10.1 Purchaser's Tax Indemnification 

        Each
Guarantor shall severally, but not jointly, indemnify, defend and hold harmless Purchaser Indemnified Persons from and against and in respect of all Purchaser Losses incurred by the
Company, its Subsidiaries or any of the Seller Indemnified Persons that arise out of: 

          (i)  All
Tax Claims; 

         (ii)  any
breach of or inaccuracy in any representation or warranty contained in Section 3.26 of this Agreement; and 

        (iii)  any
breach by the Guarantors or the Guarantors' Representative or the failure by the Guarantors or Guarantors' Representative to perform any of the covenants made by
them or agreements entered into contained in this Article X. 

        If
the same facts are indemnifiable under clause (i) and (ii), they will be indemnified only once at the highest amount. 

54

 

        Section 10.2
Sellers' Tax Indemnification 

        Purchaser
shall indemnify, defend and hold harmless Seller Indemnified Persons from and against and in respect of all Seller Losses incurred by Sellers any of the Purchaser Indemnified
Persons that arise out of: 

          (i)  any
breach of or inaccuracy in any representation or warranty contained in Section 5.22 of this Agreement; and 

         (ii)  any
breach by the Purchaser or the failure by the Purchaser to perform any of the covenants made by them or agreements entered into contained in this Article X. 

        Section 10.3
Tax Returns 

        The
Guarantors' Representative shall timely file or cause to be timely filed when due (taking into account all extensions properly obtained) all Tax Returns that are required to be filed
by or with respect to the Company and its Subsidiaries on or before the Closing Date and shall remit or cause to be remitted any Taxes shown to be due in respect of such Tax Returns. The Purchaser
shall timely file or cause to be timely filed when due (taking into account all extensions properly obtained) all Tax Returns that are required to be filed by or with respect to the Company and its
Subsidiaries after the Closing Date, and shall remit or cause to be remitted any Taxes shown to be due in respect of such Tax Returns. 

        Section 10.4
Contest Provisions 

        In
the event that after the Closing any Governmental Entity informs either the Guarantors' Representative (or the Sellers) or the Purchaser (or the Company or its Subsidiaries) of any
proposed or actual audit, examination, adjustment, claim, assessment, or demand concerning the amount of Taxes of the Company or any Subsidiary (an "Audit") with respect to any periods closed before
the Closing Date ("Pre-Closing Period"), the party so informed shall notify each other party of such matter within ten (10) Business Days after receiving such notice. No failure or
delay in informing the other party shall reduce or otherwise affect the obligations or liabilities of any party hereto, except to the extent such failure or delay shall have materially and adversely
affected the recipient party's ability to defend against any liability or claim with respect to such Taxes. Any notice shall be accompanied by a copy of any written notice or other document received
from the applicable Governmental Entity with respect to such matter. So long as the Guarantors' Representative diligently does so, the Guarantors' Representative shall have the right to control, at
its expense, the contest of the portions of such Audit for any Pre-Closing Period; provided,  however, that if the Guarantors' Representative elects to
control the contest, the Company and the Purchaser shall have the right, at their expense, to
participate in such contest. For avoidance of doubt, the Purchaser and the Company (and not the Guarantors' Representative) shall have the sole right to control the contest of the portion of any Audit
for the period open before and closed after the Closing Date and periods closed thereafter. No party hereto shall agree or settle or compromise any issue related to Taxes of the Company or its
Subsidiaries with respect to any Pre-Closing Period, which settlement or compromise would have any adverse impact on the liability for Taxes hereunder of any other party, without such
other party's consent (which consent shall not be unreasonably withheld or delayed). 

55

  

        Section 10.5 Assistance and Cooperation 

        The
Guarantors' Representative, the Sellers, and the Purchaser agree to furnish or cause to be furnished to each other, upon request, as promptly as practicable, such information
(including access to books and records) and assistance relating to the Company and each Subsidiary as is reasonably requested for the filing of any Tax Returns, for the preparation of any audit and
for the prosecution or defense of any Tax claim. The Guarantors' Representative, the Sellers, and the Purchaser agree that each shall preserve and keep all books and records with respect to Taxes and
Tax Returns of the Company and each Subsidiary in such party's possession as of the Closing Date, or as later come into such party's possession, until the expiration of the applicable statute of
limitations. Any information obtained under this Section 10.5 shall be kept confidential except (i) as may be otherwise necessary in connection with the filing of Tax Returns or claims
for refund or in conducting an audit or other proceeding or (ii) with the consent of the both of the Guarantors' Representative or the Purchaser, as the case may be. 

        Section 10.6
Survival 

        Guarantors'
indemnification obligations under Section 10.1 and Purchaser's indemnification obligations under Section 10.2 shall survive until the 60th day after the
expiration of the applicable statute of limitations. 

        Section 10.7
Conflicts 

        This
ARTICLE X and not ARTICLE IX shall govern all claims for indemnification for Taxes under this Agreement. 

 
 

ARTICLE XI
  
    DEFINITIONS AND INTERPRETATION    
    

        Section 11.1 Definitions 

        For
all purposes of this Agreement, except as otherwise expressly provided or unless the context clearly requires otherwise: 

        "2006
Gross Revenue Budget" shall mean U.S.$33,353,000. 

        "Accounts
Receivables" shall have the meaning ascribed to it in Section 3.30(a). 

        "Affiliate"
shall mean, with respect to any Person, any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common
control with, such first Person. The term "control" (including its correlative meanings "controlled by" and "under common control with") shall have the meaning ascribed thereto in Article L.
233-3 of the French Commercial Code (Code de commerce).

        "Agreement"
or "this Agreement" shall mean this Share Purchase Agreement, together with the Exhibits and Annexes hereto and the Disclosure Schedule. 

        "ASGA"
shall mean the Association Scientifique pour la Geologie et ses Applications. 

        "Annex"
shall mean an annex to this Agreement. 

        "Audit"
shall have the meaning ascribed to it in Section 10.4. 

        "Auditor's
Certificate" shall mean the certificate issued by a Dutch auditor in respect of the Directors Description, in accordance with Section 2:204b j° 2:204a of
the Dutch Civil Code. 

        "Board"
shall mean the board of supervisory directors of the Company. 

        "Bonds"
shall have the meaning ascribed to it in Section 3.7. 

56

 

        "Business
Days" shall mean a day on which banks are open for business in France and in the State of New York. 

        "Cash
Payment" shall have the meaning ascribed to it in Section 1.3(b) 

        "Closing
Amount" shall have the meaning ascribed to it in Section1.3(a) 

        "Closing
Schedule" shall have the meaning ascribed to it in Section 1.2 

        "Closing
Date Cash" shall signify the (i) cash held by the Company and the Company Subsidiaries as of midnight on the business day prior to the Initial Closing and (ii) the
amount of the Accounts Receivables. 

        "Company
Asset" shall have the meaning ascribed to it in Section 3.15(a). 

        "Company
Balance Sheet" shall mean the most recent audited balance sheet of the Company and each of Company Subsidiaries, as applicable, included in the Company Financial Statements. 

        "Company
Balance Sheet Date" shall mean the date of the Company Balance Sheet. 

        "Company
Financial Statements" shall have the meaning ascribed to it in Section 3.11. 

        "Company
Intellectual Property" shall mean Intellectual Property owned, in whole or in part, by the Company or Company Subsidiaries. 

        "Company
Preferred Stock" shall have the meaning ascribed to it in Section 1.1(b). 

        "Company
Subsidiary" shall mean, with respect to the Company, any other Person, of which the Company (either alone or through or together with any other Company Subsidiary) owns,
directly or indirectly, a majority of the outstanding equity securities or securities carrying a majority of the voting power in the election of the board of directors or other governing body of such
Person. 

        "Contract"
shall mean any contract, agreement, obligation, undertaking, binding commitment, lease, license, mortgage, bond, note, indenture or instrument, whether written or oral, that
is legally binding, and relates to the Company or any of Company Subsidiaries. 

        "Contributed
Shares" shall have the meaning ascribed to it in Section 1.3(b). 

        "Contribution
Amount" shall have the meaning ascribed to it in Section 1.3(b). 

        "Covered
Shares" shall have the meaning ascribed to it in Section 1.1(a). 

        "Convertible
Subordinated Debentures" shall have the meaning ascribed to it in Section 1.3(b). 

        "Deed
of Issuance" shall mean a notarial deed of issuance of the Contribution Amount or the Per Share Amount per Drag-Along Share, in the form reasonably agreed upon by the
Purchaser and the Sellers Representative, to be executed in the Netherlands at the Closing Date before the Notary. 

        "Deed
of Pledge" shall have the meaning ascribed to it in Section 2.1(b)(xi). 

        "Directors'
Description" shall mean the description prepared and executed by each of the managing directors of Purchaser in accordance with Section 2:204b j° 2:204a of
the Dutch Civil Code, in respect of the contribution of the Shares against the Cash Payment and against the issuance of the Stock Payment. 

        "Debenture
Pledge Agreement" shall have the meaning ascribed to it in Section 2. l(b)(xii). 

        "Defect"
shall mean a defect or impurity of any kind, whether in design, manufacture, processing, or otherwise, including any dangerous propensity associated with any reasonably
foreseeable use of a product, or the failure to warn of the existence of any defect, impurity, or dangerous propensity. 

57

 

        "Disclosure
Schedule" shall mean the disclosure schedule of even date herewith prepared and signed by the Sellers and delivered to Purchaser simultaneously with the execution hereof. 

        "Dispute"
shall have the meaning ascribed to it in Section 12.7. 

        "Drag-Along
Sellers" shall have the meaning ascribed to it in Section 1.1. 

        "Drag-Along
Shares" shall have the meaning ascribed to it in Section 1.1(a). 

        "DSI
Patent" shall mean the application filed with the French patent authorities on September 20, 1989, as No. 89 12341, for a method called "DSI" (for "Discrete Smooth
Interpolation"), and all issued patents, foreign patents, and patent applications resulting therefrom, as listed on Section 3.20 of the Sellers disclosure Schedule. 

        "DSI
Patent License" shall mean the license signed November 13, 2003, between the Company, as Licensee, and Total SA, Compagnie Generale de Geophysique, and Jean Laurent Mallet,
collectively, as Licensor. 

        "Due
Date" shall have the meaning ascribed to it in Section 9.1. 

        "Earn-Out
Fraction" shall mean a fraction in which (x) the numerator is equal to (1) quotient of (A) the EDS 2006 Gross Revenue, divided by
(B) the 2006 Gross Revenue Budget, minus (2) 0.8; and (y) a denominator equal to 0.15; 

        "Earn-Out
Independent Auditor" shall have the meaning ascribed to it in Section 1.6(b). 

        "Earn-Out
Objection" shall have the meaning ascribed to it in Section 1.6(b). 

        "Earn-Out
Objection Period" shall have the meaning ascribed to it in Section 1.6(b). 

        "Earn-Out
Payment Date" shall have the meaning ascribed to it in Section 1.7. 

        "Earn-Out
Statement" shall have the meaning ascribed to it in Section 1.6(a). 

        "EDS
2006 Gross Revenue" shall mean the consolidated gross revenues of the Company for the year ended December 31, 2006, calculated in accordance with French GAAP applying
consistently the accounting principles and methods followed by the Company until Initial Closing Date. From the Initial Closing Date through December 31, 2006, the Company shall maintain
pricing consistent with its past practices and, in any event, any revenues from contracts entered into after the Initial Closing Date and on or prior to December 31, 2006, shall be excluded
from the ED 2006 Gross Revenue if the price of the product or service is discounted more than 30 percent from the most recent list price for such product or service at the Initial Closing Date,
unless such a discount is approved by the management board of the Company in advance, which approval shall not be unreasonably withheld. 

        "EDS
Corp. March 31 Financial Statements" ascribed to it in Section 3.11(c). 

        "Employee
Plans" shall have the meaning ascribed to it in Section 3.21(g). 

        "Employment
Agreement" shall have the meaning ascribed to it in Section 7.2(f). 

        "Encumbrances"
shall mean, with respect to any property, any lien, security interest, mortgage, pledge, hypothecation, charge, claim, option, title defect, restriction or encumbrance
relating to that property, of any nature whatsoever, whether consensual, statutory or otherwise, including the interest of a vendor or lessor under any conditional sale agreement, capital lease or
other title retention agreement relating to such property. 

58

 

        "Environmental
Claim" shall mean any claim, action, cause of action, investigation or written notice by any Governmental Entity alleging actual or potential liability for investigatory,
cleanup or governmental response costs, or natural resources or property damages, or personal injuries, attorney's fees or penalties relating to (i) the presence, or release into the
environment, of any Materials of Environmental Concern at any location owned or operated by the Company or any of Company Subsidiaries, now or in the past, or (ii) circumstances forming the
basis of any violation, or alleged violation, of any Environmental Law. 

        "Environmental
Law" shall mean each Requirement of Law relating to pollution, protection or preservation of human health or the environment including ambient air, surface water, ground
water, land surface or subsurface strata, and natural resources, and including Requirements of Law relating to emissions, discharges, releases or threatened releases of Materials of Environmental
Concern, or otherwise relating to the manufacturing, processing, distribution, use, treatment, generation, storage, containment (whether above ground or underground), disposal, transport or handling
of Materials of Environmental Concern, or the preservation of the environment or mitigation of adverse effects thereon and each Requirement of Law with regard to record keeping, notification,
disclosure and reporting requirements respecting Materials of Environmental Concern. 

        "Financial
Institution Sellers" shall mean FCPR Galiléo III, Rothschild & Cie Gestion and Matignon Technologies. 

        "Foreign
GAAP" shall mean the generally accepted accounting principals applicable to a Person's financial statements. 

        "Former
Shareholders' Agreement" shall mean the agreement entered into among Sellers terminating the shareholders' agreement dated November 14, 2003 (the "Former Shareholders'
Agreement"). 

        "Fox
Paine" shall have the meaning ascribed to it in the recitals. 

        "French
GAAP" shall mean French generally accepted accounting principles and practices. 

        "GOCAD
Consortium" shall mean the group of companies, not-for-profit organizations and universities formed to support the development of the GOCAD project. 

        "GOCAD
Software" shall mean the software described in Exhibit 1.11. 

        "Governmental
Entity" shall mean any European, national, regional, municipal, local or foreign government or any political subdivision of the foregoing, governmental, regulatory, taxing
or administrative entity, authority, agency, commission, ministry or other similar body including any public utility control or public service commission or similar regulatory body, or any court,
tribunal, or judicial or arbitral body whether such arbitral body is public or private, or any collecting societies or guilds. 

        "Guarantors"
shall mean Jean-Claude Dulac, Jean-Laurent Mallet, Danielle Mallet, and Pascal Le Melinaire. 

        "Guarantors
Disclosure Schedule shall have the meaning ascribed to it in ARTICLE III. 

        "Guarantors'
Representative" shall mean Pascal Le Melinaire. 

        "ICC"
shall have the meaning ascribed to it in Section 12.7. 

        "Ingrid"
shall mean all the software plugins developed by the Company and subject to three deposits referenced as follows; 

        —InGrid
(version alpha.0) registered by the Company with "1'Agence Pour la Protection des Programmes, 249 rue crimée, 75019 Paris France" (data and software
protection agency) under references of Inter Deposit Digital Number: IDDN.FR. 001.260024.000.S.P.2006.000.31500, 

59

 

        —TGridLab
(version alpha.0) registered by the Company with "1'Agence Pour la Protection des Programmes, 249 rue crimée, 75019 Paris France" (data and software
protection agency) under references of Inter Deposit Digital Number: IDDN.FR. 001.260023.000.S.P.2006.000.31500, 

        —GridLab
(version alpha.0) registered by the Company with "1'Agence Pour la Protection des Programmes, 249 rue crimée, 75019 Paris France"(data and software
protection agency) under references of Inter Deposit Digital Number: IDDN.FR. 001.260026.000.S.P.2006.000.31500. 

        "Indebtedness"
shall mean (i) all indebtedness for borrowed money or for the deferred purchase price of property or services (other than current trade liabilities incurred in the
ordinary course of business and payable in accordance with customary practices), (ii) any other indebtedness that is evidenced by a note, bond, debenture or similar instrument, (iii) all
obligations under financing leases, (iv) all obligations in respect of acceptances issued or created, (v) all liabilities secured by any lien on any property and (vi) all
guarantee obligations. 

        "Initial
Closing" shall mean the closing referred to in Section 2.1. 

        "Initial
Closing Date" shall mean the date on which the Initial Closing occurs. 

        "Initial
Option and Warrant Holders" shall have the meaning ascribed to it in Section 1.1(c). 

        "Initial
Sellers" shall have the meaning ascribed to it in the recitals. 

        "Initial
Shares" shall have the meaning ascribed to it in Section 1.1(a). 

        "Intellectual
Property" shall mean all of the following: 

          (i)  trademarks
and services marks (registered or unregistered), product configurations, trade names, the names under which the Company and Company Subsidiaries are
registered and other names and slogans embodying business or product goodwill or indications of origin, all applications or registrations in and for any jurisdiction pertaining to the foregoing and
all goodwill associated therewith; 

         (ii)  patentable
inventions, discoveries, improvements, ideas, know-how, formula methodology, processes, technology and all applications and patents in and for
any jurisdiction pertaining to the foregoing, including reissues, continuations, divisions, continuations-in-part, renewals or extensions; 

        (iii)  trade
secrets, including confidential and other non-public information, and the right in any jurisdiction to limit the use or disclosure thereof; 

        (iv)  registered
or unregistered copyrights in writings, designs, literary works, dramatic works, choreographic works, cinematographic works, audiovisual works, paintings,
graphic works, musical works, tracks (including but not limited to ringtones and ringback tones) videoclips, pictures, images, computer programs and software (including source code, any documentation
and information pertaining to the source code, object code, development documentation (including preparatory material), programming tools, drawings, specifications and data), organigrams, user
interfaces and audiovisual effects, mask works or other works, applications or registrations in and for any jurisdiction for the foregoing and all moral rights related thereto; 

         (v)  databases
and all database rights, including copyright on such databases and sui generis rights pertaining to database producers; 

        (vi)  internet
Web sites, labels and device trademarks and applications and registrations pertaining thereto; 

       (vii)  licenses,
immunities, covenants not to sue and the like relating to the foregoing; 

      (viii)  books
and records describing, or used in connection with, the foregoing; 

60

 

        (ix)  any
priority right attached to the foregoing; and 

         (x)  claims
or causes of action arising out of, or related to, infringement or misappropriation of the foregoing. 

        "IPO"
shall mean an underwritten public offering of ordinary shares of Purchaser on any regulated market (such as defined by the European Union applicable rules or such as Nasdaq). 

        "Joinder
to Share Purchase and Contribution Agreement" shall have the meaning ascribed to it in Section 1.1. 

        "Knowledge
of Guarantors" concerning a particular subject, area or aspect of the Company or the Company Subsidiaries' business or affairs shall mean the knowledge of each Guarantor,
after due inquiry. 

        "Knowledge
of Purchaser" concerning a particular subject, area or aspect of the Purchaser or the Purchaser Subsidiaries' business or affairs shall mean the knowledge of the executive
officers of the Purchaser, after due inquiry. 

        "Liquidity
Agreement" shall have the meaning ascribed to it in Section 1.1(c). 

        "March 31
Balance Sheet" shall have the meaning ascribed to it in Section 3.11(c). 

        "March 31
Financial Statements" shall have the meaning ascribed to it in Section 3.11(c). 

        "Mallet
Shareholders Agreement" shall have the meaning ascribed to it in Section 1.1 (b). 

        "Mallets"
shall have the meaning ascribed to it in Section 1.1(a). 

        "Material
Contracts" shall have the meaning ascribed to it in Section 3.17(a). 

        "Minimum
Closing Date Cash" shall equal U.S. $8,200,000, plus an amount equal to the exercise price of any options exercised since April 15, 2006. 

        "New
Shareholders' Agreement" shall have the meaning ascribed to it in Section 7.2(h). 

        "Notary"
shall mean Mr. Hendrik ten Voorde (civil law notary) or his/her substitute from Lexence N.V., in Amsterdam, the Netherlands. 

        "Notice
of Relationship" shall have the meaning ascribed to it in Section 12.7(b)(iii). 

        "Notified
Party" shall have the meaning ascribed to it in Section 12.7(b)(iii). 

        "Notifying
Party" shall have the meaning ascribed to it in Section 12.7(b)(iii). 

        "Option
and Warrant Holders" shall have the meaning ascribed to it in Section 1.1(c). 

        "Options"
shall have the meaning ascribed to it in Section 3.7. 

        "Ordinary
Shares" shall have the meaning ascribed to it in Section 3.7. 

        "Other
Option and Warrant Holders" shall have the meaning ascribed to it in Section 1.1(c). 

        "Other
Sellers" shall mean the Sellers other than the Financial Institution Sellers. 

        "Parties"
shall mean Purchaser and Sellers. 

        "Per
Share Amount" shall have the meaning ascribed to it in Section 1.3(b). 

        "Person"
shall mean a natural person, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture,
Governmental Entity or other entity or organization. 

        "Pre-Closing
Period" shall have the meaning ascribed to it in Section 10.4. 

61

 

        "Preferred
Shares" shall have the meaning ascribed to it in Section 3.2. 

        "Proceeding"
shall mean any claim, action, suit, dispute or legal, administrative, arbitration or other alternative dispute resolution proceeding or investigation (whether civil,
criminal, administrative or other). 

        "Purchase
Price" shall have the meaning ascribed to it in Section 1.2. 

        "Purchaser"
shall have the meaning ascribed to it in the recitals. 

        "Purchaser
Assets" shall have the meaning ascribed to it in Section 5.11(b). 

        "Purchaser
Balance Sheet" shall mean the most recent audited balance sheet of Purchaser included in the Purchaser Financial Statements. 

        "Purchaser
Balance Sheet Date" shall mean the date of the Purchaser Balance Sheet. 

        "Purchaser
Disclosure Schedule" shall have the meaning ascribed to it in ARTICLE V. 

        "Purchaser
Financial Statements" shall have the meaning ascribed to it in Section 5.7(a). 

        "Purchaser
Indemnified Persons" shall mean Purchaser and each of its Affiliates. 

        "Purchaser
Losses" shall have the meaning ascribed to it in Section 9.1(a). 

        "Purchaser
Securities" means the Purchaser Shares (including the Purchaser Shares issuable upon conversion of the Convertible Subordinated Debentures and upon the exercise of the
Liquidity Agreements), the Convertible Subordinated Debentures, the Company Preferred Stock and the Liquidity Agreements. 

        "Purchaser
Shares" shall mean the ordinary shares in the share capital of Purchaser. 

        "Purchaser
Subsidiary" shall mean, with respect to Purchaser, any other Person, of which Purchaser (either alone or through or together with any other Purchaser Subsidiary) owns,
directly or indirectly, a majority of the outstanding equity securities or securities carrying a majority of the voting power in the election of the board of directors or other governing body of such
Person. 

        "Registered
Intellectual Property" shall mean any Intellectual Property that are registered, filed, or issued under the authority of, with or by any Governmental Entity, including in
particular all patents, registered copyrights, domain names, company name and registered trademarks and all applications for any of the foregoing. 

62

 

        "Repurchase
FMV" shall mean, with respect to any share of Purchaser Stock or any Convertible Subordinated Debentures, (i) for the first twelve months after the Initial Closing,
U.S. $9.15 per share or per Convertible Subordinated Debenture or U.S. $183.00 per share of Company Preferred Stock, and (x) thereafter the fair market value per ordinary share of Purchaser (or
the fair market value of 20 ordinary shares of Purchaser, in the case of shares of Company Preferred Stock), which, if Purchaser shall not have consummated an initial public offering, will be the
exercise price of the most recent options granted to Purchaser's employees; provided, however, that in the event that the aggregate number of shares and debentures to be repurchased exceeds 100,000
with respect to any repurchase and the Guarantors' Representative disagrees with such value, the parties shall retain an independent investment bank, valuation firm or accounting firm as determined as
follows: First, the Guarantors' Representative shall recommend 3 firms to conduct the valuation and the Purchaser may select one of them, Second, if the Purchaser does not select one of these firms,
the Purchaser shall recommend 3 firms to conduct the valuation and the Guarantors Representative may select one of them, Third, if the parties have not otherwise agreed, then the parties will
designate a neutral arbiter to make the decision which firm to select, based upon the firms that each had recommended; if the parties cannot reach agreement on a neutral arbiter, they will each select
one neutral arbiter, experienced in financial matters, that participates in the resolution of similar disputes and has no financial relationship to the parties, and the two neutral arbiters will
select a third neutral arbiter, and the panel of 3 arbiters will select which firm to use for the valuation, based upon majority vote. 

        "Requirements
of Law" shall mean any domestic, foreign or international constitution; law, ordinance, judgment, order, decree, injunction, permit, statute, treaty, rule or regulation, or
determination of (or an agreement with) an arbitrator. 

        "Securities
Act" means the United States Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 

        "Seller
Indemnified Persons" shall mean Sellers and their Affiliates. 

        "Seller
Losses" shall have the meaning ascribed to it in Section 9.3(a). 

        "Sellers"
shall have the meaning ascribed to it in Section 1.1. 

        "Sellers
Disclosure Schedule" shall have the meaning ascribed to it in Article III. 

        "Sellers'
Representatives" shall have the meaning ascribed to it in Section 12.8(a). 

        "Selling
Initial Seller" shall have the meaning ascribed to it in Section 1.3(c). 

        "Shares"
shall have the meaning ascribed to it in Section 1.1. 

        "Software"
shall mean all computer programs (whether in source code or object code form and including, without limitation, any and all software implementations of algorithms, models and
methodologies), and all data bases, compilations and documentation (including, without limitation, user, operator, and training manuals) related to the foregoing, that are owned, licensed, leased or
otherwise used in the business of the Company or any of Company Subsidiaries. 

        "Sold
Shares" shall have the meaning ascribed to it in Section 1.3(c). 

        "Subsequent
Closing" shall have the meaning ascribed to it in Section 2.2. 

        "Subsequent
Closing Date" shall mean the date the Subsequent Closing occurs. 

63

 

        "Tax"
or "Taxes" shall mean all taxes, tariffs, charges, fees, duties, levies, penalties or other assessments imposed, assessed or collected by or under the authority of any Governmental
Entity, including without limitation income, gross receipts, excise, property, sales, gain, use, license, custom duty, unemployment, capital stock, transfer, franchise, payroll, retirement,
withholding, social security, minimum estimated, profit, gift, estate, real estate, severance, value added, disability, premium, recapture, credit, occupation, service, leasing, employment, stamp,
CSG, CRDS, prélèvement social, contribution additionnelle au prélèvement social, précompte,
prélèvement exceptionnel sur les distributions de dividendes and other taxes, and shall include interest, fines, penalties or additions
attributable thereto or attributable to any failure to comply with any requirement regarding Tax Returns or Tax Regulations. 

        "Tax
Claim" shall mean any claim from any Governmental Entity with respect to any and all Taxes imposed upon the Company and its Subsidiaries relating to the operations of the Company
and its Subsidiaries prior to the Closing Date (other than any amount for Taxes specifically identified and reflected as a liability for unpaid Taxes on the Company Balance Sheet). 

        "Tax
Regulations" shall mean any Tax or custom law, statute, decree, ordinance, rule, order or other text of application of the said law applicable in a given country as well as any
international treaty (including the derivative law—directive, regulations or others—of this treaty). 

        "Tax
Return" shall mean any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any such document prepared on a consolidated,
combined or unitary basis and also including any schedule or attachment thereto, and including any amendment thereof. 

        "Third
Party Intellectual Property" means Intellectual Property owned by any third party and used by the Company or Company Subsidiaries in the conduct of their business. 

        "Transactions"
shall mean all the transactions provided for or contemplated by this Agreement. 

        "Transfer
Taxes" shall mean all sales (including bulk sales), use, transfer, recording, ad valorem, privilege, documentary, gains, gross
receipts, registration, conveyance, excise, license, stamp, duties or similar Taxes and fees. 

        "Warrants"
shall have the meaning ascribed to it in Section 3.2. 

        Section 11.2
Interpretation 

        (a)   The
headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 

        (b)   When
a reference is made in this Agreement to a section or article, such reference shall be to a section or article of this Agreement unless otherwise clearly indicated
to the contrary. 

        (c)   Whenever
the words "include", "includes" or "including" are used in this Agreement they shall be deemed to be followed by the words "without limitation." 

        (d)   The
words "hereof", "herein" and "herewith" and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any
particular provision of this Agreement, and article, section, paragraph, exhibit and schedule references are to the articles, sections, paragraphs, exhibits and schedules of this Agreement unless
otherwise specified. 

        (e)   The
meaning assigned to each term defined herein shall be equally applicable to both the singular and the plural forms of such term, and words denoting any gender shall
include all genders. Where a word or phrase is defined herein, each of its other grammatical forms shall have a corresponding meaning. 

        (f)    A
reference to any party to this Agreement or any other agreement or document shall include such party's successors and permitted assigns. 

64

  

        (g)   A reference to any legislation or to any provision of any legislation shall include any amendment to, and any modification or re-enactment thereof, any
legislative provision substituted therefor and all regulations and statutory instruments issued thereunder or pursuant thereto. 

        (h)   As
used in this Agreement, any reference to any event, change or effect being material or having a material adverse effect on or with respect to any entity (or group of
entities taken as a whole) means such event, change or effect is materially adverse to (i) the prospects, consolidated financial condition, businesses or results of operations of such entity or
(ii) the ability of such entity (or group) to consummate the Transactions. 

        (i)    The
parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of
this Agreement. 

 
 

ARTICLE XII
  
    MISCELLANEOUS    
    

        Section 12.1 Fees and Expenses 

        All
costs and expenses incurred in connection with this Agreement and the consummation of the Transactions shall be paid by the party incurring such expenses, except as specifically
provided to the contrary in this Agreement and except as follows: 

        (a)   Except
to the extent provided in paragraph (c) below, Sellers shall bear (and shall reimburse the Company at or prior to the Closing for all legal, accounting and
other fees and expenses incurred by the Company and each of Company Subsidiaries in connection with the negotiation, execution and closing of the Transactions (the "Sellers' Transaction Expenses"); 

        (b)   Except
to the extent provided in paragraph (c) below, all Transfer Taxes arising out of, in connection with or attributable to the transactions effected pursuant
to this Agreement shall be borne and paid equally by the Sellers and the Purchaser. The Transfer Tax payor shall prepare and timely file all relevant Tax Returns required to be filed in respect of
such Transfer Tax, pay the Transfer Tax shown on such Tax Return, and notify the other parties in writing of the Transfer Tax shown on such Tax Return and how such Transfer Tax was calculated,
(including the Company and if the Transfer Tax payor is Purchaser or its Affiliates (including the Company Subsidiaries after the Closing Date), Sellers shall reimburse the Transfer Tax payor for the
amount of such Transfer Tax in immediately available funds within ten (10) Business Days of receipt of such notice; and 

        (c)   If
the amount of Closing Date Cash exceeds the Minimum Closing Date Cash, the Purchaser shall pay a portion of the Sellers' Transaction Expenses equal to (1) the
difference between (i) the amount of the Closing Date Cash, minus (ii) the Minimum Closing Date Cash; provided,  however, that in no event will
such payment exceed U.S. $2,500,000 and (2) the Purchaser shall pay the Transfer Taxes to be paid by Sellers up to
any amount in excess of the U.S. $2,500,000 limit described in the previous clause. These payments will be made at the latest 30 days after the Initial Closing. 

        Section 12.2
Amendment and Modification 

        This
Agreement may be amended, modified and supplemented in any and all respects, but only by a written instrument signed by all of the parties hereto expressly stating that such
instrument is intended to amend, modify or supplement this Agreement. 

65

 

        Section 12.3
Notices 

        All
notices and other communications hereunder shall be in writing and shall be deemed given when delivered personally, telecopied (which telecopy shall be confirmed and followed by a
copy of such notice by overnight courier service) or sent by an overnight courier service, such as Federal Express, to the Purchaser or to the Sellers' Representatives at the following addresses (or
at such other address for a party as shall be specified by such party by like notice): 

if
to Purchaser, to: 

Paradigm
Geotechnology B.V.

Two Memorial City Plaza

820 Gessner, Suite 400

Houston, Texas 77024

United States of America

Attention: Chief Financial Officer, General Counsel

Facsimile: 

With
a copy to: 

Paradigm
Geotechnology B.V.

Telestone—Teleport

Naritaweg 165

1043 BW Amsterdam

The Netherlands 

with
a copy to: 

Skadden,
Arps, Slate, Meagher & Flom LLP

300 South Grand Avenue, Suite 3400

Los Angeles, California 90071

United States of America

Attention: Casey T. Fleck

Facsimile: +1-213-687-5600 

if
to Sellers' Representatives, to: 

The
Financial Institution Sellers' Representative: 

Galiléo
Partners

106, rue de 1'Université

75007 Paris

France

Attention: François Duliège

Facsimile: +33 1 53 59 92 00 

The
Other Investors' Representative: 

Pascal
Le Melinaire

4 Montagu Mews West

London W1H 2EE 

66

 

with
a copy to: 

Fried,
Frank, Harris, Shriver & Jacobson LLP

5, Boulevard de la Tour-Maubourg

75007 Paris,

France

Attention: David Chijner

Facsimile: + 33 1 40 62 22 29 

if
to Guarantors' Representative, to: 

The
Guarantors' Representative: 

Pascal
Le Melinaire

4 Montagu Mews West

London W1H 2EE 

with
a copy to: 

Fried,
Frank, Harris, Shriver & Jacobson LLP

5, Boulevard de la Tour-Maubourg

75007 Paris,

France

Attention: David Chijner

Facsimile: + 33 1 40 62 22 29 

        Section 12.4
Entire Agreement; No Third Party Beneficiaries 

        This
Agreement (a) constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the Parties with respect to the subject
matter hereof and (b) is not intended to confer any rights or remedies hereunder upon any Person other than the Parties hereto. 

        Section 12.5
Severability 

        Any
term or provision of this Agreement that is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable in any situation in any jurisdiction
shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other
jurisdiction. If the final judgment of a court of competent jurisdiction or other authority declares that any term or provision hereof is invalid, void or unenforceable, the Parties agree that the
court making such determination shall have the power to reduce the scope, duration, area or applicability of the term or provision, to delete specific words or phrases, or to replace any invalid, void
or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision. 

        Section 12.6
Governing Law 

        This
Agreement shall be exclusively governed in all respects by the laws of the State of New York, United States of America, without regard to principles of conflicts of law. 

67

 

        Section 12.7
Disputes Resolution 

        Any
dispute, controversy or claim arising out of or in connection with this Agreement or the breach, termination or validity thereof (the "Dispute") shall be resolved in accordance with
the dispute resolution procedures set forth in this Section 12.7. Notwithstanding the foregoing, (i) the Parties may at any time seek injunctive or equitable relief from a court of
competent jurisdiction, and (ii) nothing herein shall prevent a Party from defending any claim, or pursuing a counterclaim, in proceedings in court or otherwise initiated by a third party. 

        (a)   Negotiations
by senior management 

          (i)  In
the event of a Dispute among the Parties, the Parties will endeavor to reach a satisfactory solution by referring the Dispute to the senior management of Purchaser
and the Seller's Representatives. For this purpose, Representatives of each disputing Party shall reduce the main background information and contended issues to a written report, which report or
reports will be submitted to senior management of Purchaser and the Seller Representatives. 

         (ii)  After
receiving the written report or reports pursuant to Section 12.7(a)(i), the senior management of Purchaser and the Seller's Representatives will meet as
soon as possible, on no less than seven (7) days' written notice, unless specifically agreed otherwise. The senior management of Purchaser and the Seller's Representatives shall examine the
arguments given in the written reports as well as any other submissions by each disputing Party, and shall, if the Dispute cannot be resolved immediately, agree to convene for further negotiations
aimed at resolving the Dispute. 

        (iii)  Should
the senior management of Purchaser and the Seller's Representatives be unable to resolve the Dispute within twenty-one (21) days, any
disputing Party may, by submission of a Request for Arbitration to the ICC Secretariat, copied to the other disputing Party or Parties, submit the Dispute to binding arbitration in accordance with
Section 12.7(b). 

        (b)   Binding
arbitration 

          (i)  If
a Dispute remains unresolved after the discussions of the senior management of Purchaser and the Seller's Representatives in accordance with Section 12.7(a),
or if disputing Party fails to comply with any of the time periods set forth in Section 12.7(a), the Parties agree that upon submittal of a Request for Arbitration by any disputing Party, all
such Disputes shall be finally settled by binding arbitration, pursuant to the Rules of Arbitration (the "Rules") of the International Chamber of Commerce (the "ICC"). 

         (ii)  If
the amount in controversy in any Dispute is less than five million U.S. dollars (U.S. $5,000,000), the arbitration shall be conducted by one independent arbitrator,
appointed by the ICC, which arbitrator shall be a member of a bar, or a professor of law, fluent in English and French. 

68

 

        (iii)  If
the amount in controversy in any Dispute is five million U.S. dollars (U.S. $5,000,000) or more, or (unless otherwise agreed by the disputing Parties) if the amount
in controversy is not clear at the outset of the proceedings, the arbitration shall be conducted by three (3) arbitrators who are to be appointed in accordance with the said Rules and who shall
be members of a bar, or professors of law, fluent in English and French. Where there are only two Parties to the Dispute, one arbitrator shall be nominated by each of those Parties for confirmation by
the ICC Court in accordance with the ICC Rules. Where there are more than two Parties to the Dispute, whether as Claimant or as Respondent, the multiple Claimants, jointly, and the multiple
Respondents, jointly, shall nominate an arbitrator for confirmation by the ICC Court in accordance with the ICC Rules. In the absence of such a joint nomination and where all Parties are unable to
agree to a method for the constitution of the arbitral tribunal, the ICC Court may appoint each member of the arbitral tribunal pursuant to Article 10(2) of the ICC Rules. In any case, the
third arbitrator, who shall act as the chairman of the tribunal, shall be nominated by agreement of the two party-appointed arbitrators within fourteen days of the confirmation of the appointment of
the second arbitrator, or in default of such agreement, appointed by the ICC Court. 

        (iv)  The
seat of arbitration shall be London, England. The arbitration hearing shall be held in such city as may be agreed by the Parties, provided that if the Parties do
not agree upon any city within thirty (30) days after submission of the Request for Arbitration referred to in Section 12.7(a)(iii), the arbitration hearing shall be held in London,
England. The hearing will be held at a site in such city to be determined by the sole arbitrator or by a majority of the arbitrators (as the case may be), following consultation with the Parties. The
arbitration proceedings shall be held in the English language; provided, however, that the Parties shall be entitled to adduce original written evidence in French without any translation and provided
further that witnesses will be entitled to express themselves in either English or French (or both), but there shall be a simultaneous translation of any French testimony into English. 

         (v)  The
arbitration hearing shall be concluded within thirty (30) days of the commencement of the hearing unless otherwise ordered by the sole arbitrator or a
majority of the arbitrators, as the case may be, on compelling grounds, and the award thereon or decision with respect thereto shall be made as soon as possible after the close of the submission of
evidence. Arbitration demanded hereunder by any Party shall be final and binding on the Parties, and the Parties agree that leave to appeal under Section 69(1) or an application for the
determination of a preliminary point of law under Section 45 of the Arbitration Act 1996 may not be sought with respect to any question of law arising from or in connection with an arbitration
or any award. The decision, arbitration order and relief agreed upon in writing by the sole arbitrator, or by any two or more of the arbitrators (in the case of a three-member panel) shall be deemed
the arbitrators' decision for all purposes hereof. If there is no majority in respect of a decision of a three-person arbitration panel, then the decision of the arbitrator not appointed by any Party
shall control. The references herein to the arbitration panel shall also be deemed to refer to the single arbitrator where a panel is not being used hereunder, and all references to decisions, orders,
awards and relief granted by the panel of arbitrators shall mean the decision, order, award or relief agreed upon in writing by the required number of members of the panel, as indicated. 

        (vi)  The
Parties agree that the arbitration panel may render and the Parties shall abide by any interim ruling that the arbitration panel deems necessary or prudent
regarding discovery, summary proceedings, or other pre-hearing matters. 

       (vii)  The
decision of the arbitration panel shall be final and binding on all Parties, and judgment on the award of the arbitration panel may be entered by any court having
jurisdiction thereof. 

69

 

      (viii)  Any
costs or other expenses, including reasonable attorneys' fees and costs incurred by the successful Party, arising out of or occurring because of the arbitration
proceedings may be assessed against the unsuccessful Party, borne equally, or assessed in any manner within the discretion of the arbitration panel and shall be included as part of any order or
decision rendered by the arbitration panel. 

        (ix)  Third
parties dealing with any Party shall be entitled to fully rely on any written arbitration order or decision with regard to the matters addressed therein, whether
or not such arbitration order or decision has been confirmed or adopted by a court, or incorporated in any order of any court. 

        Section 12.8
Sellers' Representatives and Guarantors' Representative 

        (a)   The
Other Sellers hereby authorize, direct and appoint Pascal Le Melinaire and, the Financial Institution Sellers hereby authorize, direct and appoint
Galiléo Partners, to act as sole and exclusive agent, attorney-in-fact and Representatives of the Sellers (each, a "Sellers' Representatives"), with full power
of substitution with respect to all matters under this Agreement, including, without limitation, determining, giving and receiving notices and processes hereunder, entering into any amendment or
modification hereof, contesting and settling any and all claims for indemnification against the Sellers pursuant to this Agreement hereof or resolving any other disputes hereunder. Any such actions
taken, exercises of rights, power or authority, and any decision or determination made by the Sellers' Representatives consistent therewith, shall be absolutely and irrevocably binding on each Seller
as if such Seller personally had taken such action, exercised such rights, power or authority or made such decision or determination in such Seller's individual capacity. Notwithstanding anything to
the contrary contained in this Agreement, any action required to be taken by the Sellers hereunder or any action which Sellers, at their election, have the right to take hereunder, shall be taken only
by the Sellers' Representatives and no Seller acting on its own shall be entitled to take any such action. All deliveries and payments to be made by the Purchaser to any Seller hereunder shall be made
exclusively to the Sellers' Representatives on behalf of the Sellers and any delivery or payment so made to the Sellers' Representatives shall constitute full performance of the obligations hereunder
of the Purchaser to the Sellers. The Purchaser shall not be liable for allocation of particular deliveries and payments among the Sellers. Prior to the date hereof, each Seller has provided the
Purchaser with a true and correct copy of the instrument or other document pursuant to which the Other Sellers have appointed Pascal Le Melinaire and, the Financial Institution Sellers have appointed
Galiléo Partners to act as the Sellers' Representatives and such instrument or other document is in full force and effect and has not been rescinded, revoked, modified or otherwise
amended. 

        (b)   The
provisions of this Section 12.8 shall in no way impose any obligations on the Purchaser. In particular, notwithstanding any notice received by the Purchaser
to the contrary (except any notice of the appointment of a successor Sellers' Representatives approved by the Purchaser) and absent bad faith or willful misconduct, Purchaser (i) shall be fully
protected in relying upon and shall be entitled to rely upon, shall have no liability to the Sellers with respect to, actions, decisions and determinations of the Sellers' Representatives and
(ii) shall be entitled to assume that all actions, decisions and determinations of the Sellers' Representatives are fully authorized by all of the Sellers. 

        (c)   The
Sellers' Representatives shall not be liable to any of Sellers or any of their respective Affiliates for any decisions made or actions taken by the Sellers'
Representatives. Each of the Sellers agrees, severally, but not jointly, in proportion to the Purchase Price received by such Seller, to indemnify the Sellers' Representatives from and against any
losses that the Sellers' Representatives may incur as a result of his acting as the Sellers' Representatives hereunder or in connection with the performance of any of his duties hereunder to the
fullest extent permitted by applicable law, except to the extent that such losses are caused by actions taken by, or omitted to be taken by, the Sellers' Representatives in bad faith. 

70

 

        (d)   The
Guarantors hereby authorize, direct and appoint Pascal Le Melinaire to act as sole and exclusive agent, attorney-in-fact and Representatives
of the Guarantors (the "Guarantors' Representative"), with full power of substitution with respect to all matters under this Agreement, including, without limitation, determining, giving and receiving
notices and processes hereunder, entering into any amendment or modification hereof, contesting and settling any and all claims for indemnification against the Guarantors pursuant to this Agreement or
resolving any other disputes hereunder. 

        Section 12.9
Parties' Right of Offset 

        Each
of the Parties hereto hereby agrees that, any Party shall have the right to offset any obligation incurred by one Party towards another Party in relation to this Agreement against
any other obligation incurred by another Party in relation to this Agreement. 

        Section 12.10
Extension; Waiver 

        At
any time prior to the Closing Date, the Parties may (a) extend the time for the performance of any of the obligations or other acts of the other Parties, (b) waive any
inaccuracies in the representations and warranties of the other Parties contained in this Agreement or in any document delivered pursuant to this Agreement or (c) waive compliance by the other
Parties with any of the agreements or conditions contained in this Agreement. Any agreement on the part of a Party to any such extension or waiver shall be valid only if set forth in an instrument in
writing signed on behalf of such Party. The failure of any Party to this Agreement to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of those rights. 

        Section 12.11
Election of Remedies 

        Neither
the exercise of nor the failure to exercise a right of set-off or to give notice of a claim under this Agreement will constitute an election of remedies or limit
Purchaser or any of the Purchaser Indemnified Persons in any manner in the enforcement of any other remedies that may be available to any of them, whether at law or in equity. 

        Section 12.12
Assignment 

        Neither
this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the Parties hereto (whether by operation of law or otherwise) without the
prior written consent of the other Parties, except that Purchaser may assign, in its sole discretion, any or all of its rights and interests hereunder to any direct or indirect wholly owned subsidiary
of Purchaser. Subject to the preceding sentence, this Agreement shall be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and assigns. 

        Section 12.13
Company Data Room 

        A
copy of the agreements and documents listed, or otherwise referred to, in the Sellers Disclosure Schedule and the Guarantors Disclosure Schedule has been recorded at the date hereof on
a CD-Rom in presence of Mr. Emery in his capacity as bailiff (huissier) who has put such CD-Rom under seal. In the event of an indemnification claim under
Article IX of this Agreement, each of the parties hereto shall be entitled to consult the copy of the documents recorded on such CD Rom. 

        Section 12.14
Financial Consolidation 

        The
Parties agree that Purchaser can begin consolidating the Company for accounting purposes effective as of August 1, 2006, or as of September 1, 2006, at Purchaser's
discretion. 

71

  

	PARADIGM GEOTECHNOLOGY B.V.	 
	

By:	

/s/  SHAI BUBER      
	

 
	Name:	Shai Buber	 
	Title:	Attorney-in-Fact	 
	

    	

 	

 
	PARADIGM GEOTECHNOLOGY HOLDINGS B.V.	 
	

By:	

/s/  ILLEGIBLE      
	

 
	Name:	    
	 
	Title:	    
	 
	

    	

 	

 
	

    	

 	

 
	

    	

 	

 
	[Signature Page to Amended & Restated SPCA]
	

 	

 	

 

72

 

	

SELLERS	

 	

 
	
 PASCAL LE MELINAIRE	
 	

MAGALI LECOUR
	

By:	

/s/  PASCAL LE MELINAIRE      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	JULIEN ALAPETITE	 	DIDIER DONNER
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	JACQUES FORESTIER	 	ETIENNE CHERRIER
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	ISABELLE CONREAUX	 	BRUNO LEVY
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	KARINE AIT ETTAJER	 	RICHARD COGNOT
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	NATHALIE DULAC	 	PHILIPPE PLUYAUD
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	ARBEN SHTUKA	 	OLIVIER MARIEZ
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	JEAN-LAURENT MALLET	 	JOEL CONRAUD
	

By:	

/s/  JEAN-LAURENT MALLET      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

*Signed as Attorney-in-Fact	
 	

 	

 	

 

73

 

	JEAN-CLAUDE DULAC	 	ELISABETH MOUILLIE
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	THIERRY VALENTIN	 	JEAN-LOUIS MALLET
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	TAOUFIK AIT ETTAJER	 	AGNES MALLET
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	FABIEN BOSQUET	 	LAURE MALLET
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	DANIELLE MALLET	 	ANTOINE SAMAHA
	

By:	

/s/  DANIELLE MALLET      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	LOUIS COCCIOLONE	 	STEPHANE CONREAUX
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	BERNADETTE ARBEY	 	ALEXANDRE HUGO
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	ISABELLE MAHE	 	MATHIEU QUINQUET
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

*Signed as Attorney-in-Fact	
 	

 	

 	

 

74

 

	FRANCOIS LAFERRIERE	 	DAMIEN THENIN
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	YANNICK BOISSEAU	 	NICOLAS HEUZE
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	PHILIPPE LAMY	 	ALEXANDRA CACHEUX
	

By:	

/s/  PASCAL LE MELINAIRE*      
	
 	

By:	

/s/  PASCAL LE MELINAIRE*      
	

 
	

    	

 	
 	

 	

 	

 
	FCPR GALILEO III	 	MATIGNON TECHNOLOGIES
	

By:	

/s/ [ILLEGIBLE]
	
 	

By:	

/s/ [ILLEGIBLE]
	

 
	

Name:	

[ILLEGIBLE]
	
 	

Name:	

[ILLEGIBLE]
	

 
	

Title:	

	
 	

Title:	

	

 
	

    	

 	
 	

 	

 	

 
	ROTSCHILD GESTION	 	BLUE INSIDER
	

By:	

/s/ [ILLEGIBLE]
	
 	

By:	

/s/ [ILLEGIBLE]
	

 
	

Name:	

[ILLEGIBLE]
	
 	

Name:	

[ILLEGIBLE]
	

 
	

Title:	

	
 	

Title:	

	

 
	

    	

 	
 	

 	

 	

 
	FCPR R CAPITAL TECHNOLOGIES	 	 	 	 
	

    	

 	
 	

 	

 	

 
	FCPR R CAPITAL DRIVE TECHNOLOGIES	 	 	 	 
	

*Signed as Attorney-in-Fact	
 	

 	

 	

 

75

QuickLinks

TABLE OF CONTENTS

ARTICLE I PURCHASE AND SALE OF SHARES

ARTICLE II THE CLOSING

ARTICLE III REPRESENTATIONS AND WARRANTIES OF GUARANTORS

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SELLERS AND THE MALLETS

ARTICLE V REPRESENTATIONS AND WARRANTIES OF PURCHASER

ARTICLE VI COVENANTS

ARTICLE VII CONDITIONS

ARTICLE VIII TERMINATION

ARTICLE IX INDEMNIFICATION

ARTICLE X TAX MATTERS

ARTICLE XI DEFINITIONS AND INTERPRETATION

ARTICLE XII MISCELLANEOUS

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