Document:

2002 STOCK OPTION PLAN

 

Exhibit 4.4

COMPAGNIE GÉNÉRALE DE GÉOPHYSIQUE

S T O C K    O P T I O N    P L A N

MAY 15 2002

REGULATIONS

 

 

CONTENTS

	 	 	 	 	 
	I.
	 	The stock option plan
	 
	II.
	 	The price of the option
	 
	III.
	 	Vesting period and exercise period
	 
	IV.
	 	Obligation to keep the stocks
	 
	V.
	 	Conditions of Employment
	 
	VI.
	 	Conditions of exercise
	 
	VII.
	 	Suspension Period
	 
	VIII.
	 	Quotation of the new stocks
	 
	IX.
	 	Order for sale
	 
	X.
	 	Financial advantages of the stock option plan
	 
	 
	 	. gain on the purchase price
	 
	 
	 	. gain on the sale price
	 
	XI.
	 	Taxation of the advantages
	 
	Appendices :
	 	 
	 
	 
	 	Form no. 1 = Exercise of option
	 
	 
	 	Form no. 2 = Subscription form
	 
	 
	 	Form no. 3 = Undertaking
	 
	 
	 	Form no. 4 = Authorization to deduct charges from gross proceeds
	 
	 
	 	Form no. 5 = Sale Order

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I  – Definition of the stock option plan

French Company Law enables French companies to grant to all or part of their
staff the right to subscribe to stock options.

The Extraordinary General Meeting dated May 15, 2002 authorized the Board of
Directors to issue stock options.

The Company took advantage of this possibility to put in place a new plan.

A stock option provides the right, applicable only on request from the
beneficiary, to subscribe to new stocks, which are purchased at a predetermined
price.

The Board of Directors of the Company designated you on May 15, 2002 as a
beneficiary of this plan and you have already received a letter informing you
of the number of stocks offered to you and of the price at which you may
subscribe them.

These regulations detail the various clauses, governing the stock option plan,
as it concerns you.

II – The option price

The price of the option has been determined on the basis of the average opening
rates quoted at the twenty sessions of the Paris Stock Exchange preceding May
15, 2002. After rounding, this amounts to 43,47 Euros.

This unit price cannot be modified for the term of the validity of the options;
it may only be adjusted, according to the law, if the Company were to proceed
with financial operations affecting its capital. Adjustments affecting both the
unit price and the number of stocks under option will however have no effect on
the overall value of the option for each beneficiary.

Beneficiaries will be informed in good time of the new subscription price and
the new number of stocks to which they are entitled to subscribe.

III – Vesting period and exercise period

III.1 – Vesting period

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Options accrue rights by fifth every year during a five-year period starting
from May 15, 2002. The rights so accrued are definitively acquired and may not
be lost for any reason whatsoever, included in case of departure from the
Group.

The accrued rights are calculated for each ended 12-month period and remain
subject to the freeze period as hereunder defined.

		
	 	As an example, a beneficiary of an option giving right to acquire
1000 shares who would leave the Group in December 2002 will have
no accrued rights and would not be entitled to acquire any stock.
In December 2003, he would be able to acquire 200 shares, the
remaining 800 options being expired.

III.2 – Duration of the options

Attribution of the options was decreed by the Board of Directors of the Company
on May 15, 2002, so beneficiaries will be able to exercise their options at any
time up to and including May 14, 2010, subject to the freeze period and to
accrued rights.

Options are exercised in one or several occasions for the accrued part on
request from the beneficiaries, who decide to do so in their own discretion, in
function of their individual financial resources and movements of the CGG stock
price, however subject always to insiders rules.

III.3 – Freeze period

A three-year freeze period has been instituted until May 15, 2005.

Any portion of the accrued and vested part of the option cannot be purchased
before May 15, 2005 but may consequently be exercised at any time between May
16, 2005 and May 14, 2010 included.

Taking into account the vesting period, a beneficiary at the end of the Freeze
period will be allowed to exercise three-fifth of its option. The two remaining
fifth may only be exercised from respectively May 2006 and May 2007 until May
14, 2010, included.

III.3 – Exceptions

Beneficiaries will be allowed to exercise their whole option during the freeze
period upon the occurrence of any of the following events :

	•	 	redundancy or lay off, corresponding to the French concept of “Licenciement Economique”.
	 
	•	 	death, provided that the heirs of the deceased beneficiary exercise the option within a six month period from the date of
death.
	 
	•	 	take over bid or public offer of exchange related to the securities of the Company.

	 	–	 	In this case, exercise of option will be allowed only until the end of the take over and will be limited to 75% of
the total amount of the stocks allocated to each beneficiary (whether or not accrued).

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	 	–	 	In consequence thereof, after the termination of the take over, the
beneficiaries will not be authorized to exercise their options before the end
of the freeze period, i.e. May 15, 2005.

5

 

IV – Obligation to keep the stocks

IV.1 – Obligation to keep

Beneficiaries who have an option giving right to acquire 1000 stocks or more
are committed to keep their stocks under the registered form from the
acquisition date until May 15, 2006 included.

		
	 	As an example, a beneficiary who exercises his option on May 16,
2005, i.e immediately after the end of the freeze period, would
not be entitled to sell or transfer his stocks to the bearer form
before May 16, 2006. A beneficiary who exercises his option on May
16, 2006 would be free to sell the stocks on the same day.

IV.2 – Exceptions

However, the above obligation to keep stock will not apply to beneficiaries who
have an employment agreement governed by a law other than French law and who
work outside France, these two conditions being cumulative. A beneficiary who,
on May 15, 2002 meets these two conditions but who, on the date of option
exercise and/or on the date of the contemplated sale or transfer, no longer
meets them, must keep the stocks until May 16, 2006.

Furthermore, would not be subject to the obligation to keep the stock under the
registered form beneficiaries who may exercise their whole option during the
freeze period for one of the following events :

	•	lay off or redundancy (corresponding to the French concept of
“Licenciement Economique”)
	 
	•	death
	 
	•	in the event of take over bid or public offer of exchange, any
beneficiary of an option giving right to acquire 1000 stocks or more
will not be obligated to keep the stocks acquired before or during the
take over.
	 
	 	 	In case of a take over bid during the freeze period, a
beneficiary of an option to acquire 1000 stocks or more and who
would acquire 500 stocks from the 750 exercisable during the take
over period (i.e. 75%, see point III.3 above) shall be allowed to
sell only the 500 stocks, the remaining 250 must not be exercised
before the end of the freeze period or sold before May 16, 2006.

V – Conditions of employment

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The option, which is herein granted, is strictly linked to your status of
employee of the Group.

However, the accrued rights will be maintained whatever the reason of departure
from the Group. All the terms and conditions of this Plan such as but not
limited to the freeze period, the obligation to keep will remain applicable.

		
	 	A beneficiary of an option giving right to acquire 1000 stocks
who would leave the Group in June 2003 will keep his right to
acquire 200 stocks but will be entitled to acquire them only from
May 2005 and will not be allowed to sell them before May 2006. A
beneficiary who would leave the Group in December 2002 will have
no accrued rights and cannot purchase any stocks.

Beneficiaries shall be deemed to have lost the status of employee of CGG or an
affiliate (a company in which CGG holds directly or indirectly at least 30% of
the capital) on the date of termination of the service contract, i.e. at the
end of the required notice period, regardless the cause or the author of the
termination.

Exceptions

If a beneficiary ceases to be employee of the Group for one of the following
reasons, the options and the conditions of exercise will be treated as follows :

	•	 	Death : the heirs of a deceased beneficiary will be entitled to
exercise all or part of the option within a six month period from the
date of beneficiary’s death. At the end of this six month period, the
option will expire.
	 
	•	 	Lay off (French concept of “Licenciement Economique”) : options may be
exercised entirely at any time from the date of the lay off until May
14, 2010 without obligation to comply with the freeze period and/or
the obligation to keep the stocks.
	 
	•	 	Retirement, early retirement (“pre retraite” as such term is construed
under French Law) : beneficiaries will continue to benefit from their
options until May 14, 2010 but remain subject to all the terms and
conditions of the plan such as but not limited to the vesting period
and accrual of rights, the freeze period or obligation to keep the
stocks.
	 
	•	 	Affiliate leaving the Group : the beneficiaries, employees of such
affiliate, will continue to benefit from their options but remain
subject to all the terms and conditions of the plan such as but not
limited to the vesting period and accrual of rights, the freeze period
or obligation to keep the stocks.

As mentioned above, only death and redundancy (lay off) will allow the exercise
of the option during the Freeze period; beneficiaries leaving the group for the
other reasons listed above will not be entitled to acquire the stocks before
termination of the three-year Freeze period.

Furthermore, in the case of a beneficiary leaving the Group under a mutual
arrangement with the employer, the Company may contemplate, on a case-by-case

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basis, maintaining the beneficiary’s right to the stock options. Such pursuance
of the rights will follow the rules applicable for a retirement.

VI – Exercise of the option

VI.1 – In order to exercise an option, the following documents must be sent to
the Legal Division at CGG, Tour Maine Montparnasse, BP 191, 33 avenue du Maine,
75755 Paris Cedex (Valérie FERY/Caroline MIKOLAJCZYK):

	•	 	exercise of option form accurately completed and signed (Form no.1 attached)
	 
	•	 	subscription form accurately completed and signed (Form no. 2 attached)
	 
	•	 	payment in full of the sum corresponding to the number of stocks, in the form of a cheque made to the order of NSMD.
	 
	•	 	undertaking to keep the stocks under the registered form for the beneficiary holding an option for 1000 stocks or more
(Form no. 3 attached) ;
	 
	•	 	authorization given to the Bank to deduct from the sale proceeds an amount for payment of the social security charges.
(Form no. 4 attached). While this question concerns only French Tax residents, each beneficiary will be required to fulfill
it. It may be used only when a foreign beneficiary becomes French Tax resident on the date he sells his stocks.

Your stocks will be issued as registered stock in your name. Stocks will be
registered in an account opened with the Bank entrusted with the management of
the registered stocks (NSMD).

VI.2 – Within eight days from the date of receipt of the all documents listed
in VI.1 above, CGG will execute all formalities in order for you to acquire the
status of CGG’s shareholder.

The option shall be deemed to be exercised on the date of receipt by CGG of the
complete file, provided however that conditions related to the Vesting Period,
the Freeze Period and the Status of Employee are fulfilled.

VII – Suspension period

VII.1 – Conditions

CGG’s Board of Directors or, upon delegation from the Board, the Chairman and
CEO may suspend for a period which shall not exceed three months, any exercise
of option in case of:

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	–	 	Financial operation requiring a prior and strict knowledge of the number of
CGG’s stocks.
	 
	–	 	Adjustment affecting the unit price as provided by French Company law.

VII.2 – Notice

Within five (5) days from the Suspension decision of the Board of Directors or
of the Chairman and C.E.O., beneficiaries will be informed by internal
memorandum and/or by e-mail, general or individual:

	–	 	that a Suspension period has been instituted in accordance with point VII.1
above;
	 
	–	 	the duration of the Suspension.

If applicable, beneficiaries will be informed of the new subscription price and
new number of stock to which they are entitled to subscribe.

VII.3 – Transitory Period

To the extent possible, the beneficiaries will be allowed a reasonable time
period between the receipt of the above-mentioned notice and the entry into
effect of the suspension period during which they may exercise their options,
in whole or in part, provided of course that the freeze period has expired.

Each beneficiary hereby expressly acknowledges that the allowed time period, if
any, may be extremely reduced if so required by the envisaged financial
operations.

At the end of this transitory period, Beneficiaries shall not be entitled to
exercise their options until expiry of the Suspension Period.

VII.4 – Confidentiality

Beneficiaries undertake not to divulge any information related to the
Suspension and the cause thereof.

VIII – Quotation of the new stocks

New CGG stocks acquired under the stock option plan are freely transferable at
any time, except where the obligation to keep applies in accordance with
paragraph IV above.

The new stocks are issued with the right to dividend on 1st January of the year
in progress.

However, there is no right to dividend with respect to profit from the previous
financial year. For this reason, two cases may be envisaged during the year of
exercise:

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VIII.1 – The stocks acquired are assimilated to existing stocks

From the date on which dividend is paid or, if no dividend is paid, the date of
the Annual Ordinary Meeting of Stockholders, until 31 December of that year,
the new stocks will be quoted on the regular line of the Premier Marché of the
Paris Stock Exchange at the same rate as existing stocks (Index SICOVAM :
12016).

VIII.2 – The stocks acquired are not assimilated to existing stocks

From 1 January until the date on which dividend is paid or, if no dividend is
paid, until the date of the Annual Ordinary Meeting of Stockholders, the new
stocks will not be quoted at the same rate as existing stocks, but on a
separate line (separate index). After the date on which dividend is paid or, if
no dividend is paid, after the date of the Annual Ordinary Meeting of
Stockholders, the stocks will be transferred to the regular line (index SICOVAM : 12016) and assimilated to existing stocks.

		
	 	For example: The last Annual Ordinary Meeting of Stockholders
took place on May 15, 2002. All stocks purchased by the exercise
of stock options between January 1, 2002 and May 15, 2002 were
quoted on a separate line until May 15, 2002, at which date they
were transferred to Index 12016 and assimilated to existing
stocks. On the other hand, stocks subscribed by the exercise of
stock options between May 15, 2002 and December 31, 2002 were
quoted directly on the 12016 line.

Finally, it should be noted that non-assimilated new stocks usually have a
below par rating compared with stocks sold on the 12016 line (this is on
account of low trading levels even when no dividend is due from the preceding
financial year).

IX – Order for sale

The order for sale must be communicated directly to the Bank.

In addition to indicating the number of stocks to be sold, certain details may
be given to the Bank concerning the order for sale on the stock market:

	–	 	discretionary order. This order bears no instructions. It is carried out
at the opening of the next session of the Paris Stock Exchange (which is
generally when the greatest number of stocks are exchanged).

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	–	 	limited price order. This order sets a minimum rate at which the seller
agrees to transfer his stocks. It will therefore be carried out only if
the quoted rate is equal or superior to this minimum. CGG stocks are
quoted continuously and there may be fairly substantial differences
between the rates applied to various transactions carried out during
the same session. Limited price orders tend therefore to be more reliable than discretionary orders.

X – The financial advantages of the stock option plan

In addition to the advantage of being associated with the expansion of the
Group, beneficiaries who exercise their options can make profits in two ways
when selling the stocks:

	–	 	gain on the purchase price equal to the difference between the price
quoted on the Stock Exchange the day the option is actually exercised and
the subscription price of the option, and ;
	 
	–	 	gain on the sale price equal to the difference between the price at
which the stocks are sold and the price quoted on the Stock Exchange the
day the option is exercised.

	 	 	 	 	 	 	 	 	 
	Examples	 	Hypothesis
	 	 	

	(On the basis of a subscription price of 40 € )	 	T1	 	T2
	
	 	
	 	

	Stock subscription price (a)
	 	 	40	 	 	 	40	 
	Value on the Stock market of the the CGG Stock on the date
of option exercise (b)
	 	 	60	 	 	 	75	 
	Gain on the purchase price (b – a)
	 	 	20	 	 	 	35	 
	Sale price (c)
	 	 	70	 	 	 	80	 
	Gain on the sale price (c – b)
	 	 	10	 	 	 	5	 

T1 : Exercise of the option and sale of the stock on the same day

T2 : Exercise of the option on May 15, 2005 and sale of the stock on May 26,
2006.

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XI – Taxation of the advantages

The summary hereunder applies only to French tax residents who, as such, are
subject to French Tax legislation. General information may be provided to other
residents, upon request, on the relevant foreign tax rules. However, foreign
beneficiary should revert to his tax advisor.

XI.1 – Taxation on gains on the purchase price

Taxation on gains on the purchase price varies depending on whether or not the
beneficiary sells his stocks before the end of a four-year period starting from
the date of attribution of the option, i.e. not before May 15, 2006 and
depending on the time period during which the beneficiary continues to hold the
stocks.

It should be noted that if the stocks are transferred from registered stocks to
bearer stocks, they are considered as sold.

•     Failure to respect the fiscal four-year period

In this case, the gain on the purchase price is considered as additional salary
and as such is subject to income tax. The gain is added to the revenues for the
year during which the stocks are sold and not for the year in which the option
is exercised. However, after deductions applicable to salaries, tax is spread
according to the “quotient” system so as to take into account the length of
time for which the options have been held.

Furthermore, in this case, the gain on the purchase price will also be subject
to all French social security contributions (i.e. about 25 %).

It is again noted that if, during the fiscal four-year period, the acquired
stocks are simply transferred from registered stock to bearer stock, without
being sold the gain is likewise subject to income tax and social security
contributions.

Exceptions:

As an exception, tax exemption on the gain on the purchase price applies if the
stocks are sold or transferred from registered stock to bearer stock before the
expiry of the fiscal four-year period in the following cases:

	–	 	dismissal
	–	 	retirement
	 	 	In the above two cases, the options must have been acquired by the
beneficiary at least 3 months before date of the event in question.
	–	 	invalidity corresponding to classification in the second or third
category defined in Article 310 of the French “Code de la Sécurité
Sociale”.
	–	 	death.
	 
	•	Respect of the fiscal four-year period and of the two-year period of holding

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The French law on New Economical Regulations enacted on May 15, 2001 has
modified the fiscal treatment of stock options for plans instituted from April 20, 2000.

	•	 	The gain on the purchase price, up to 152 500€, is taxed at the rate
of 30% plus 10% with respect to social contributions (i.e. 40%).
	 
	•	 	The gain on the purchase price above 152 500€ is taxed at the rate of
40% plus 10% for social contributions (i.e. 50%).

The beneficiary may always decide, at his sole discretion, to be taxed on the
basis of income tax.

This tax treatment may be optimized if the beneficiary keeps the stocks
acquired during a two-year period, i.e. if he does not sell them before a
two-year period from the date of acquisition.

	•	 	In that case, the gain on the purchase price up to 152 500€ will be
taxed at the rate of 16% plus 10% for social contributions i.e. 26%.
	 
	•	 	The part of the gain exceeding 152 500€ will be taxed at the rate of
30% plus 10% for social contributions (i.e. 40%).

This specific rule will apply only if the stocks have been kept under the
registered form during at least a two-year period. This two-year period is to
be computed from the end of the fiscal four-year period.

In consequence thereof, if the stocks were subscribed 1 year before the end of
the fiscal period, a beneficiary must hold the stocks during a three-year
period if he wants to optimize the taxation.

The above taxation will apply only if the total value of sales (including stock
sales unrelated to the present stock option plan) made by the beneficiary
during the year of the sale exceeds the threshold determined on an annual basis
by the French Tax authorities (7 590€ for fiscal 2001).

The beneficiary may always decide, at his sole option, to be taxed on the basis
of income tax.

XI.2 – Taxation on gains made on the sale of stocks

The gain made on the sale of stocks is taxed at the regular rate for capital
gains. The tax rate is therefore 16.0% (for fiscal 2001) plus around 10% with
respect to social security contributions, if the total value of sales
(including stock sales unrelated to the present stock option plan) made by the
beneficiary during the year of the sale or transfer exceeds the threshold
determined on an annual basis by the taxation authorities (7 590 euros for
fiscal 2001).

XI.3 – Declaration commitments

Company’s obligations

Each year, the Company has to provide tax authorities with a certificate
including the name of beneficiaries who have exercised options during the
preceding year, the dates of the exercise, the number of stocks acquired
and the subscription price.

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Each year until the expiry of the fiscal five-year period during which stocks
are sold or transferred from registered stocks to bearer stocks, the
Company has to declare, dates of sale or of transfer to bearer stock, date
of attribution and the date of the option exercise, the number of stocks,
the subscription price and the price quoted on the Stock Exchange the day
the option is exercised.

Beneficiary’s obligation

The year during which the option is exercised, the beneficiary shall append
to his tax declaration the statement that will be communicated to him by
the Bank.

The year during which the stocks are sold or are transferred from registered
stocks to bearer stocks before the expiry of the fiscal five-year period,
the beneficiary will state on his tax declaration :

	–	 	the difference between the price quoted on the Stock Exchange the day the
option is exercised and the subscription price,
	 
	–	 	the gain made on the sale of stocks, equal to the difference between the
price at which the stocks are sold and the price quoted on the Stock
Exchange the day the option is exercised, only if the total annual value
of stocks sales (including stock sales unrelated to the present stock
option plan) exceeds the threshold determined by the taxation authorities
(7 590 euros for fiscal 2001).

*

* *

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Form no. 1

Plan d’options de souscription d’actions du 15 Mai 2002

Stock Options plan dated May 15, 2002

DECLARATION DE LEVEE D’OPTION

(EXERCISE OF OPTION)

Je, soussigné (e)

(I, the undersigned)

	 	 	 	 	 
	NOM : ___________________________________________
	 	Prénom:________________________________________________
	(Name)
	 	(First Name)
	 

	Adresse fiscale : n° _________________________________
	 	Rue ___________________________________________________
	(Fiscal address : n°)
	 	(Street)
	 

	Code Postal _______________________________________
	 	VILLE _________________________________________________
	(Zip code)
	 	(City)

Date de naissance et lieu de naissance:_____________________________________________

(Date and place of birth)

Adresse courrier si différente de
l’adresse fiscale : n° __________________ Rue____________________________

(if different from Fiscal Address : Mailing address
n°)                    
                    
     
               (Street)

	 	 	 	 	 
	Code Postal _________________
	 	VILLE __________________________________
	(Zip code)
	 	(City)

déclare exercer à hauteur de _______________________ actions, l’option de souscription de
______________________actions de 2 € de nominal à un prix de souscription de 43,47 €
chacune qui m’a été consentie le 15 Mai 2002, conformément à la décision de
l’Assemblée Générale Mixte du 15 Mai 2002 et à la délibération du Conseil
d’Administration du 15 Mai 2002.

(hereby declare that I wish to purchase _______________________ stocks, exercising my option to
subscribe to _______________________ nominal 2 € stocks at a subscription price of 43,47 €
each, as granted to me on May 15, 2002, in compliance with the decision taken
by the Extraordinary General Meeting on May 15, 2002 and with the deliberations
of the Board of Directors on May 15, 2002)

En conséquence, je souscris _______________________ actions au moyen du mandat de
souscription joint et je m’engage à verser la somme de _______________________
Euros représentant le montant intégral du prix d’émission des actions
souscrites.

(In pursuance whereof, I hereby subscribe to _______________________ stocks by means of
the subscription form enclosed herewith and undertake to pay the sum of
_______________________ Euros which represents the total cost of issuing the stocks
subscribed)

Fait à                           
    ,
le           
                     Signature :

(Executed in)(on)

(en 2 exemplaires, dont l’un reste en ma possession)

(two copies, one of which remains in my possession)

 

Form no. 2

Plan d’options de souscription d’actions du 15 Mai 2002

Stock Options plan dated May 15, 2002

MANDAT DE SOUSCRIPTION

(SUBSCRIPTION FORM)

Je, soussigné (e)

(I, the undersigned)

	 	 	 	 	 
	NOM : ___________________________________________
	 	Prénom:________________________________________________
	(Name)
	 	(First Name)
	 

	Adresse fiscale : n° _________________________________
	 	Rue ___________________________________________________
	(Fiscal address : n°)
	 	(Street)
	 

	Code Postal _______________________________________
	 	VILLE _________________________________________________
	(Zip code)
	 	(City)

déclare donner mandat à la Banque NSMD de souscrire pour mon compte ________________________
actions COMPAGNIE GENERALE DE GEOPHYSIQUE.

(hereby declare that I empower the Bank NSMD to subscribe for my account
________________________ stocks in the COMPAGNIE GENERALE DE GEOPHYSIQUE.)

Ces titres seront inscrits en nominatif à la Banque NSMD.

(These stocks will be registered in my name account with the Bank NSMD.)

A l’appui de ma souscription, je règle par chèque à l’ordre de la banque NSMD
la somme
de ________________________ Euros égale au montant du prix d’émission des actions
souscrites.

(In support of my subscription, I am paying by cheque, to the order of the
Banque NSMD, the sum of ________________________ Euros which is equal to the price of
issuing the stocks to which I am subscribing.)

Fait à                     
          , le                     
           Signature (*) :

(Signed in)                               (on)

(*) Faire précéder la signature de la mention” Bon pour souscription à ________________________________ actions” (en toutes lettres)

(*) (The signature must be preceded by the wording « Bon pour souscription à
________________________________ actions »-)

 

Form no. 3

Plan d’options de souscription d’actions du 15 Mai 2002

Stock Options plan dated May 15, 2002

ENGAGEMENT DE DETENTION DES ACTIONS

(UNDERTAKING)

Je, soussigné (e)

(I, the undersigned)

	 	 	 	 	 
	NOM : ___________________________________________
	 	Prénom:________________________________________________
	(Name)
	 	(First Name)
	 
	Code Postal _______________________________________
	 	VILLE _________________________________________________
	(Zip code)
	 	(City)

Déclare avoir exercé à hauteur de ________________________________ actions, l’option de
souscription de ________________________________ actions de 2 € de nominal à un prix de
souscription de 43,47 € chacune qui m’a été consentie le 15 Mai 2002,
conformément à la décision de l’Assemblée Générale Mixte du 15 Mai 2002 et à
la délibération du Conseil d’Administration du 15 Mai 2002.

(Hereby declare having purchased ______________________ stocks in COMPAGNIE GENERALE DE
GEOPHYSIQUE of 2 € par value at a subscription price of 43,47 € each,
exercising my option to subscribe to a total of ___________________ stocks as granted to
me on May 15, 2002, in compliance with the decision taken by the Extraordinary
General Meeting on May 15, 2002 and with the deliberations of the Board of
Directors on May 15, 2002)

Je reconnais avoir pris connaissance du règlement du plan susmentionné et
notamment de ce qu’il impose à chaque bénéficiaire d’options donnant droit
d’acquérir 1 000 actions ou plus l’obligation de détenir les actions sous la
forme nominative à compter de la levée des options et jusqu’au 15 Mai 2006
inclus.

(I acknowledge having read the explanatory leaflet of the above mentioned stock
options plan and more particularly with respect to the obligation to keep the
stocks under the registered form until May 15, 2006 imposed on each beneficiary
holding an option to acquire 1 000 stocks or more)

En conséquence, je déclare et m’engage par la présente à conserver les actions
ainsi souscrites en la forme nominative et à ne pas les vendre avant le 15 Mai
2006 inclus, conformément au règlement du plan d’option de souscription en
date du 15 Mai 2002.

(In consequence thereof, I hereby declare and undertake to keep the stocks so
subscribed under the registered form and not to sell them before May 15, 2006
(included) in accordance with the explanatory leaflet)

Je reconnais être dégagé de cette obligation dans la seule mesure où je suis
titulaire d’un contrat de travail non régi par le droit français et travaille
hors de France au moment de la levée de l’option et au moment envisagé de la
vente.

(I acknowledge being released from this obligation in the sole case where, at
the subscription date and at the contemplated sale date, I have an employment
agreement governed by a law other than French law and I work outside France)

Fait à ______________________ , le ________________________________       
            Signature :

(Signed in)                     
                      
                  (on)

(en 2 exemplaires, dont l’un reste en ma possession)

(two copies, one of which remains in my possession)

 

Form no. 4

Plan d’options de souscription d’actions du 15 Mai 2002

Stock Options plan dated May 15, 2002

AUTORISATION DE PRELEVEMENT

Authorization to deduct charges from the proceeds

Je, soussigné (e)

(I, the undersigned)

	 	 	 	 	 
	NOM : ___________________________________________
	 	Prénom:________________________________________________
	(Name)
	 	(First Name)
	 
	Code Postal _______________________________________
	 	VILLE _________________________________________________
	(Zip code)
	 	(City)

Déclare avoir exercé à hauteur de ______________________ actions, l’option de
souscription de ______________________ actions de 2 € de nominal à un prix de
souscription de 43,47 € chacune qui m’a été consentie le 15 Mai 2002,
conformément à la décision de l’Assemblée Générale Mixte du 15 Mai 2002 et à
la délibération du Conseil d’Administration du 15 Mai 2002.

(Hereby declare having purchased ______________________ stocks in COMPAGNIE GENERALE DE
GEOPHYSIQUE of 2 € par value at a subscription price of 43,47 € each,
exercising my option to subscribe to a total of ______________________ stocks as granted to me on May 15, 2002, in
compliance with the decision taken by the Extraordinary General Meeting on May 15, 2002 and with the deliberations of the Board of
Directors on May 15, 2002)

Je reconnais avoir pris connaissance du règlement du plan susmentionné
notamment en ce qu’il décrit le régime social et fiscal applicable aux plus
values réalisées à la suite de la levée des options de souscription d’actions.
Je reconnais ainsi que la plus-value d’acquisition est soumise aux cotisations
salariales, à la CSG et à la CRDS lorsque je réalise la vente de ces actions
avant le 15 Mai 2006 et que le prélèvement desdites charges dans le mois de la
vente des actions est opéré sur bulletin de paie, ce qui s’avère impossible
lorsque le contrat de travail a pris fin pour quelque raison que ce soit.

(I have reviewed the Regulations of the Stock Option Plan more particularly
with respect to the tax and social charges applicable to the purchase or
capital gains realized following the stock options exercise. I acknowledge
that this gain is subject, in France to social security charges, CSG and CRDS
when I sell the stocks before May 15, 2006 and that payment of these charges
is made on the basis of the next wages payment, which is impossible when the
employment agreement is terminated for whatever reason).

En conséquence, j’autorise expressément la Banque NSMD, ou toute banque qui
lui sera substituée par CGG, (ensemble « la Banque ») à prélever sur le
produit de la vente des actions CGG que j’aurai acquises au travers de
l’exercice des options de souscription d’actions qui m’ont été consenties dans
le cadre du plan du 15 Mai 2002 une somme correspondant à 25% (vingt cinq pour
cent) de la plus value d’acquisition alors réalisée via l’exercice de ces
options aux fins de constituer une provision pour les charges salariales, CSG
et CRDS que je devrais. Je reconnais que la Banque me reversera l’éventuel
trop perçu lorsque le montant exact des charges sociales dont je serai
redevable sera connu.

(In consequence thereof, I hereby authorize the Bank NSMD, or any other bank
that may be appointed by CGG, (together “the Bank”) to deduct from the gross
proceeds resulting from the sale of the stocks I will have acquired through
stock option granted on May 15, 2002 a sum amounting to 25% of the purchase
gain then realized in order to constitute a reserve for the payment of the
social security charges , CSG and CRS that I will have to pay. The Bank will
reimburse me the amount in excess of the actual amount of social charges due
when this latter will be known).

La présente autorisation de prélèvement ne sera utilisable que dans la seule
mesure où mon contrat de travail avec CGG, ou l’une de ses filiales a pris fin
et ce pour quelque raison que ce soit.

 

(This authorization will only be usable if my employment agreement with CGG or
with one of its affiliates has been terminated for whatever reason.)

Fait à ______________________ ,
le           
                      
         Signature (*)

(en 2 exemplaires, dont l’un reste en ma possession)

 

Form no 5

ORDRE DE VENTE  –  SALE ORDER

A adresser par courrier ou par fax à – To be forwarded by mail or fax to

Banque de NSMD  –  Services Plans d’Options –  3 avenue Hoche 75410 PARIS Cedex 08

Je, soussigné(e)

(I the undersigned)

	 	 	 	 	 
	NOM : ___________________________________________
	 	Prénom:________________________________________________
	(Name)
	 	(First Name)
	 

	Adresse fiscale : n° _________________________________
	 	Rue ___________________________________________________
	(Fiscal address : n°)
	 	(Street)
	 

	Code Postal _______________________________________
	 	VILLE _________________________________________________
	(Zip code)
	 	(City)

Adresse courrier si différente de l’adresse fiscale : n° __________________ Rue
__________________________________

(if different from Fiscal Address : Mailing address n°)           
                    
          (Street)

Code Postal ________________ VILLE ___________________________

(Zip code)                    
          
          (City)

N° de compte (account number ) : ____________________________________________
vous donne, par la présente, ordre de vendre ________________________ (1) actions Compagnie
Générale de Géophysique – CGG, acquises dans le cadre du plan d’options ouvert
le 15 Mai 2002,

(I instruct you by these presents to sell _______________________ (1) GEOPHYSIQUE’S shares
acquired under the Stock Option Plan of May 15, 2002).

	 	 	 	 	 	 	 	 	 	 	 	 
	(2)
	•	au prix du marché	 	 	(2)	•	avec limite de _______________ Euros
	 
	 	(at the market price)	 	 	 	 	(with a limit of _______________ Euros)

Fait à _________________ le _________________           
          
          
Signature
(Executed in)          
                    (on)

	(1)	 	Indiquer le nombre d’actions à vendre ((Indicate number of shares to be sold)
	(2)	 	Rayer la mention inutile (Cross out inappropriate mention)

Comment passer un ordre de vente

Les ordres doivent être adressés au Département ESR – Plans d’options de la
Banque NSMD (75410 PARIS Cedex 08), ou à CGG lors de l’envoi du dossier de
levée. Ils peuvent être transmis à l’aide de l’imprimé joint, mais également
sur papier libre (sous réserve des mentions nécessaires à sa bonne
execution), par courrier ou par fax (01 56 21 97 80). (1) L’ordre doit
comporter l’indication du nombre des actions à vendre, ainsi que les
précisions suivantes [rayer la mention inutile ] :

	(2)	 	l’ordre au prix du marché n’est assorti d’aucune indication de cours.
Il sera exécuté dès la transmission de l’ordre par la Banque ;
	 	 	l’ordre avec limite permet de fixer le cours minimum auquel le vendeur
accepte de céder ses actions. Cet ordre ne sera donc exécuté que si le
cours coté est égal ou supérieur à cette limite. Il sera pris en compte dès
sa réception par la Banque, sauf mention particulière.

Pour information, les frais de bourse proprement dits s’élèvent
approximativement à 1.15% (+ TVA) du montant des ventes (pour plus de détail,
se reporter aux conditions générales applicables aux opérations des
particuliers de la Banque NSMD) et l’impôt boursier à 0.3% diminué de 23€
(maximum 610€). Les fonds sont disponibles 4 jours ouvrés après la cession
effective, et peuvent être transférés sous réserve de l’envoi d’un Relevé
d’Identité Bancaire (RIB).

****

(Sale orders must be sent to NSMD, ESR department – Stock options plans
(75410 PARIS Cedex 08) or to CGG at the time of exercise of option’s sending.
They can be passed on aid of enclosed printed mater, by mail or fax(33 1 56
21 97 80)

Your order must indicate the number of shares you wish to sell, as well as
your choice with respect to the following options :

	•	 	unconditional order (market price) : this order will be executed
immediately upon its receipt by the bank (shares will be sold at the
first demand quotation)
	•	 	order with price limit : seller sets a price floor below which he
does not wish to sell his shares

Brokerage fees amounts approximately to 1.15% (+ VAT if applicable) of the
amounts of purchases and sales with respect to an order executed on the
Monthly Settlement. In addition, stock exchange tax amounts to 0.3% of the
sale proceeds after deduction of 23€ and with a maximum limit of 610€.

The funds are available 4 working days after the effective sale, and could be
transferred subject to the sending banking details.).<PAGE>
                                                                    Exhibit 10.1

                           SUPPLEMENTARY PENSION PLAN
                                       OF
                        AIR PRODUCTS AND CHEMICALS, INC.
                         AMENDED AND RESTATED EFFECTIVE
                                AS OF MAY 1, 2003

         WHEREAS, Air Products and Chemicals, Inc. did, effective October 1,
1978, establish a Supplementary Retirement Plan for those of its employees
eligible to participate therein, which Plan was thereafter amended from time to
time, and was amended, restated and renamed the Supplementary Pension Plan of
Air Products and Chemicals, Inc. as of October 1, 1988, and was thereafter
amended, inter alia, as of 20 September 1995, 1 October 1995, 1 January 1996, 16
September 1999 and 20 September 2000; and

         WHEREAS, Air Products and Chemicals, Inc. now wishes to make certain
revisions in the Plan and to restate said Plan in its entirety;

         NOW, THEREFORE, the Supplementary Pension Plan of Air Products and
Chemicals, Inc. is hereby amended and restated in its entirety as follows
effective as of 1 May 2003 and the said Supplementary Pension Plan, as so
revised and restated, shall apply only to an Employee whose Separation from
Service occurs on or after 1 May 2003, except as otherwise provided. The rights
and benefits, if any, of a former employee shall be determined in accordance
with the provisions of the Plan in effect on the date his Separation from
Service occurred.
<PAGE>
                                    ARTICLE 1
                               PURPOSE OF THE PLAN

         SECTION 1.1 This Plan is established to provide supplementary
retirement income benefits to a certain select group of management or highly
compensated persons in the employ of Air Products and Chemicals, Inc. and
participating subsidiaries. It thereby supplements the benefits payable to such
persons under the Air Products and Chemicals, Inc. Pension Plan for Salaried
Employees.

                                    ARTICLE 2
                                   DEFINITIONS

         SECTION 2.1 As used herein, the following terms shall have the
following meanings, unless the context clearly indicates otherwise.

         "ACCRUED BENEFIT" shall mean, in the case of an Employee, a monthly
retirement benefit for the life of the Employee that such Employee would
receive, commencing at his Normal Retirement Date, in an amount determined under
Section 3.2 hereof based on his Credited Service, Average Compensation and
benefit payable under the Salaried Pension Plan as of the date such Accrued
Benefit is being determined.

         "ANNUAL INCENTIVE PLAN" shall mean the Air Products and Chemicals, Inc.
1997 Annual Incentive Plan adopted by the Company's stockholders, as it may be
amended from time to time.

         "AVERAGE COMPENSATION" shall have the meaning set forth in Section 3.3
hereof."BOARD" shall mean the board of directors of the Company or the
Management

                                       2
<PAGE>
Development and Compensation Committee of the board of directors of the Company
or another committee thereof duly appointed by such Board to exercise and carry
out the authority and responsibilities of the Board under the Plan.

         "CHANGE IN CONTROL" shall mean the first to occur of any one of the
events described below:

                  (i) Stock Acquisition. Any "person", as such term is used in
Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934 (the "Act"),
other than the Company or a corporation whose outstanding stock entitled to vote
is owned in the majority, directly or indirectly, by the Company, or a trustee
of an employee benefit plan sponsored solely by the Company and/or such a
corporation, is or becomes, other than by purchase from the Company or such a
corporation, the "beneficial owner" (as such term is defined in Rule 13d-3 under
the Act), directly or indirectly, of securities of the Company representing 20%
or more of the combined voting power of the Company's then outstanding voting
securities. Such a Change in Control shall be deemed to have occurred on the
first to occur of the date securities are first purchased by a tender or
exchange offeror, the date on which the Company first learns of acquisition of
20% of such securities, or the later of the effective date of an agreement for
the merger, consolidation or other reorganization of the Company or the date of
approval thereof by a majority of the Company's shareholders, as the case may
be.

                  (ii) Change in Board. During any period of two consecutive
years, individuals who at the beginning of such period were members of the Board
cease for any reason to constitute at least a majority of the Board, unless the
election or nomination for election by the Company's shareholders of each new
director was approved by a vote of at least two-thirds of the directors then
still in office who were directors at the beginning of the period. Such a

                                       3
<PAGE>
Change in Control shall be deemed to have occurred on the date upon which the
requisite majority of directors fail to be elected by the shareholders of the
Company.

                  (iii) Other Events. Any other event or series of events which,
not withstanding any other provision of this definition, is determined, by a
majority of the outside members of the Board serving in office at the time such
event or events occur, to constitute a change in control of the Company for
purposes of this Plan. Such a Change in Control shall be deemed to have occurred
on the date of such determination or on such other date as such majority of
outside members of the Board shall specify.

         "COMMITTEE" shall mean the Committee designated to administer the Plan
in accordance with the provisions of Article 4 hereof.

         "COMPANY" shall mean Air Products and Chemicals, Inc. and any successor
thereto by merger, purchase or otherwise.

         "COMPENSATION" shall have the meaning set forth in Section 3.3 hereof.

         "EFFECTIVE DATE" shall mean, as to the Company, October 1, 1978 and, as
to any other Employer, the date on which employees of such Employer become
eligible to participate in the Salaried Pension Plan.

         "EMPLOYEE" shall mean any person who is employed by an Employer on a
regular salaried basis on or after the Effective Date of the Plan applicable to
such Employer, who participates or participated in the Salaried Pension Plan as
an "Employee" as defined therein, and who has been granted Incentive
Compensation by an Employer for and in respect of any fiscal year of the Company
or part thereof during such person's most recent ten (10) years of Credited
Service or portion thereof.

                                       4
<PAGE>
         "EMPLOYER" shall mean the Company and/or any Participating Employer
either collectively or separately as the context requires.

         "INCENTIVE COMPENSATION" shall mean a bonus award of stock and/or cash
paid on a current basis by an Employer pursuant to the Annual Incentive Plan
upon or following the conclusion of the Company's fiscal year to which such
award relates and/or a bonus award of stock and/or cash, the payment of which
was deferred under the terms of the Annual Incentive Plan.

         "PARTICIPATING EMPLOYER" shall mean each Affiliated Company, some or
all of whose employees are participating in the Salaried Pension Plan as
"Employees" as defined therein, and have also received awards under the Annual
Incentive Plan.

         "PLAN" shall mean the "Supplementary Pension Plan of Air Products and
Chemicals, Inc." as set forth herein and as amended from time to time.

         "PLAN ADMINISTRATOR" shall mean the Company's Director of Compensation
and Benefits.

         "PLAN YEAR" shall mean the annual period beginning on October 1 and
ending on September 30. A Plan Year shall be designated according to the
calendar year in which such Plan Year ends.

         "SALARIED PENSION PLAN" shall mean the "Air Products and Chemicals,
Inc. Pension Plan for Salaried Employees" effective January 1, 1957 and as
heretofore and hereafter amended from time to time.

         SECTION 2.2 As used herein, the terms "Credited Service", "ERISA",
"Employee", "Retire", "Retired", or "Retirement" and "Separate", "Separated" or
"Separation from Service", and, except as specifically provided in this Article,
all other capitalized terms, shall have the

                                       5
<PAGE>
same meanings as provided for in the Salaried Pension Plan, unless the context
clearly indicates otherwise.

         SECTION 2.3 The masculine pronoun whenever used herein shall include
the feminine.

                                       6
<PAGE>
                                    ARTICLE 3
                                    BENEFITS

         SECTION 3.1 ELIGIBILITY AND VESTING. An Employee shall be entitled to
receive benefits under this Plan if such person shall be entitled to receive a
benefit under the Salaried Pension Plan. Benefits under this Plan shall be
calculated in accordance with Section 3.2 hereof and shall be subject to the
limitations herein provided.

         SECTION 3.2 AMOUNT OF BENEFITS. The amount of the benefit to be paid to
an Employee or any other person entitled to receive a benefit hereunder shall be
equal to the amount of the benefit such person would have received under the
Salaried Pension Plan (without regard to the limitations under Sections
401(a)(17), and 415 of the Internal Revenue Code) if such benefit were
calculated using Average Compensation calculated pursuant to Section 3.3 hereof,
and then reduced by the amount of the actual benefit payable to such person
under the Salaried Pension Plan. The normal form of benefit under Section 4.1 of
the Salaried Pension Plan shall be employed as the basis for making computations
under this Section 3.2 in order to insure the attaining for such purpose of
equivalency between the various forms of benefits provided by the Salaried
Pension Plan and this Plan, regardless of whether an optional form of benefit
has been selected under Article V of the Salaried Pension Plan and/or under
Section 3.6 of this Plan.

         SECTION 3.3 EMPLOYEE COMPENSATION. For purposes of computing an
Employee's benefit in accordance with Section 3.2 hereof, the Employee's Average
Compensation shall be the monthly average of the Compensation of the Employee
for the 36 consecutive months (or total consecutive months if he or she was
employed by an Employer for less than 36 months) in which his Compensation was
the highest during the 120 months nearest preceding his Separation from Service
(or total period of employment if he or she was employed by an Employer less
than

                                       7
<PAGE>
120 months). For this purpose, an Employee's Compensation for any period shall
be equal to the sum of his "Compensation" for such period as defined in Article
I of the Salaried Pension Plan, provided that no limitation based on Code
Section 401(a)(17) shall apply, plus one hundred percent (100%) of the
Employee's Incentive Compensation allocated to such period in accordance with
Section 3.4 hereof and one hundred percent (100%) of the amount of annual salary
deferred by the Employee under the Air Products and Chemicals, Inc.
Supplementary Savings Plan, which amount, but for such deferral election, would
have been received by the Employee as annual salary during such period.

         SECTION 3.4 ALLOCATION OF INCENTIVE COMPENSATION. For the purpose of
computing the Employee's Compensation in accordance with Section 3.3 hereof, all
Incentive Compensation shall be allocated to the period for which the Incentive
Compensation was awarded to the Employee by the Employer, notwithstanding actual
distribution of the Incentive Compensation at a later time. The total dollar
value of Incentive Compensation awards shall be allocated in equal amounts to
each month of the period for which the award was made.

         SECTION 3.5 PAYMENT OF BENEFITS. Benefits shall be payable under the
Plan under the same terms and conditions, and at such time or times, as a
corresponding benefit is payable to the Employee or such other person entitled
thereto under the Salaried Pension Plan; provided that, an Employee who
Separates from Service prior to Retirement shall not be permitted to commence
payment of benefits until attaining age fifty five (55) except as provided for
small benefits in Section 3.8. Payment of benefits will commence only upon the
Employee's proper application therefore, except for small benefits as described
in Section 3.8(a). Benefits shall be paid in the Primary Form of Benefit as
determined in Section 5.2 of the Salaried Pension Plan, unless the Employee
shall elect to have an optional form of benefit in accordance with the
provisions of

                                       8
<PAGE>
Section 3.6 hereof. All payments of benefits shall be subject to Federal income
and such other tax withholding as required by applicable law.

         SECTION 3.6 OPTIONAL FORMS OF RETIREMENT BENEFIT.

         (a) An Employee may elect prior to his Retirement to have distribution
of any benefits otherwise payable in accordance with Section 3.5 hereof made in

                  (i)      either the Primary Form of Benefit as determined in
                           the manner set forth in Section 5.2 of the Salaried
                           Pension Plan or any of the optional forms of such
                           benefit set forth in such Section 5.2, in both cases
                           substituting the benefit determined under Section 3.2
                           above for the benefit determined under Article IV of
                           the Salaried Plan, and notwithstanding that a
                           different form of benefit may be selected by such
                           Employee for the distribution of benefits under the
                           Salaried Pension Plan, or

                  (ii)     a lump sum form of benefit described hereinafter in
                           this Section 3.6.

         Except as otherwise provided in Section 3.6(b) as to the lump sum form
of benefit, the same election of form of benefit procedures and terms and
conditions as are in effect under the Salaried Pension Plan shall be in effect
under the Plan including that, if the Employee is married on the Annuity
Starting Date, the Primary Form of Benefit shall take the form of Option A as
provided in Section 5.2 of the Salaried Pension Plan.

         (b) Subject to satisfaction of the procedures set forth below in this
Section 3.6(b), an Employee who so elects will have distribution of his benefit
under the Plan made in the form of a

                                       9
<PAGE>
single lump sum cash payment calculated by converting the benefit determined
under Section 3.2 into a single cash payment, using the following assumptions:

                  (x)      For distributions prior to 20 September 2000, the
                           mortality assumptions to determine life expectancy
                           shall be the mortality table or tables used by the
                           actuary as the basis for preparing the annual
                           actuarial valuation for the Salaried Pension Plan for
                           the Plan Year immediately preceding the Employee's
                           Retirement and, for distributions made on or after 20
                           September 2000, the mortality assumptions used for
                           this purpose shall be determined from a unisex
                           version of the 1994 Group Annuity Mortality Table;
                           provided that, with respect to any Employee who had
                           an accrued benefit in the Plan as of 20 September
                           2000, the single cash payment shall be the greater of
                           the amount calculated using the pre-September 20,
                           2000 mortality assumptions or the post-September 20,
                           2000 mortality assumptions; and

                  (y)      The discount rate used to determine the lump sum
                           actuarial present value of the primary form of
                           benefit shall be the yield for Aaa Municipal Bonds as
                           published periodically by Moody's Investor Service,
                           Inc. in Moody's Bond Survey, such rate to be based on
                           the average yield of the three (3) months immediately
                           preceding the ninety (90) day period prior to the
                           Annuity Starting Date for the benefit.

                                       10
<PAGE>
In case either of the above measures is no longer in use or available, the
Committee will select a comparable alternative. The lump sum form of benefit
will be paid only if the following procedures are satisfied:

         1. ADVANCE NOTICE. Written requests for a lump sum form of benefit will
be accepted not more than three hundred sixty-five (365) days and not less than
thirty (30) days prior to the Employee's Retirement.

         2. EMPLOYEE STATEMENT. The Employee will be required to furnish a
written statement that he forgoes any future ad hoc or other increases in
benefits paid under the Plan.

         3. SPOUSAL CONSENT. The Employee will be required to furnish a written,
notarized consent from his spouse.

         4. COMMITTEE APPROVAL. The Committee, through the Plan Administrator,
will have sole discretion to approve or disapprove any election of a lump sum
form of benefit, including the right to deny such an election if payment of the
Employee's Plan benefit in such form would adversely affect the Company. Once an
election of a lump sum form of benefit is approved or disapproved and the
Employee Retires, the form of payment cannot be changed.

         5. FURTHER ADMINISTRATIVE PROCEDURES. The Plan Administrator shall from
time to time adopt such additional procedures as he, in his discretion, shall
determine to be necessary or appropriate for the proper administration of
elections, approvals and payment of Plan benefits in lump sum form, including
procedures as to the timing of payment thereof, taking into consideration when
information as to the Employee's final Incentive Compensation for services
rendered to the date of his Retirement is first available. Such procedures shall
be binding on Employees and the Company for all purposes of the Plan.

                                       11
<PAGE>
         SECTION 3.7 PRE-RETIREMENT SPOUSAL BENEFITS. If an Employee dies prior
to the commencement of his or her benefit under Section 3.6, a pre-Retirement
spousal benefit shall be payable to the Employee's surviving spouse, if any,
under the same terms and conditions and at such time or times as a corresponding
benefit is payable to the Employee's surviving spouse under Section 5.7 of the
Salaried Pension Plan, and calculated in the same manner as provided in such
Section 5.7 except substituting the benefit determined under Section 3.2 above
for the benefit determined under Article IV of the Salaried Pension Plan. The
surviving spouse of the Employee may elect to have distribution of any such
benefit made any time permitted under Section 5.7 of the Salaried Pension Plan,
notwithstanding that a different time of benefit payment may be selected by such
surviving spouse for the distribution of benefits under the Salaried Pension
Plan. The same election of benefit procedures as are in effect under the
Salaried Pension Plan shall be in effect under the Plan. For Annuity Starting
Dates on or after 15 May 2002, the surviving spouse of an Employee who otherwise
would have been eligible to elect a lump sum form of payment under Section 3.6
above, may also elect to have his or her pre-Retirement spousal benefit paid in
the form of a single lump sum cash payment, calculated by converting the
pre-Retirement spousal benefit to a single sum in accordance with Section 3.6(b)
above.

         SECTION 3.8 SMALL BENEFIT PAYMENT PROCEDURES.

         (a) Notwithstanding Sections 3.5, 3.6 and 3.7 above, the payment of any
Employee's monthly benefit hereunder having an aggregate actuarial present value
of less than $5,000 at the time of the Employee's Separation from Service or at
the time of the commencement of payment of such benefit hereunder, shall be made
by payment of a single lump sum, in which case the lump sum amount so paid shall
be the actuarial present value of the monthly benefit.

                                       12
<PAGE>
         (b) If an Employee Separates from Service prior to his or her Early
Retirement Date and the aggregate actuarial present value of the Employee's
monthly benefit hereunder is $10,000 or less, the Employee may elect upon such
Separation from Service, within 90 days of receiving notice from the Plan
Administrator of his or her election right, to receive a single lump sum payment
of the actuarial present value of his or her Plan benefit in full settlement of
his or her rights under the Plan.

         (c) For purposes of this Section 3.8, the same actuarial factors,
assumptions and procedures as are employed under Section 5.1 of the Salaried
Pension Plan shall be employed to calculate the actuarial present value of any
benefit.

         SECTION 3.9 CHANGE IN CONTROL. Notwithstanding the above provisions of
this Article 3, upon a Change in Control, an Employee shall have an immediate,
nonforfeitable right to his or her Accrued Benefit under the Plan and, for a
three-year period commencing on the date of the Change in Control, the Employee
shall be entitled to elect an immediate lump sum payment of such amount or, if
greater, the amount of the Employee's vested Accrued Benefit on the date of the
election. If an Employee elects a lump sum distribution pursuant to this Section
3.9, it shall not affect his or her continued eligibility under the Plan;
however, his or her Accrued Benefit under the Plan shall be reduced by the
amount paid out.

                                   ARTICLE 3A
                          SPECIAL SUPPLEMENTAL BENEFITS

         Notwithstanding any provision of the Plan to the contrary, certain
employees of the Employer who have not been granted Incentive Compensation shall
be entitled to receive a special supplemental benefit under the Plan in
accordance with the following provisions:

                                       13
<PAGE>
                  (a) Any Participant in the Salaried Pension Plan who is not an
Employee at the time of his or her Separation from Service, and who:

                           (i) Would be described in Section 3.2(b) of the
                           Salaried Plan text except that such Participant was a
                           Highly Compensated Employee at the time of his or her
                           Separation from Service; or

                           (ii) Would be described in Section 3.2(c) of the
                           Salaried Plan text except that such Participant was a
                           Highly Compensated Employee Separated from Service
                           after 1 January 2001 and notified of such Separation
                           from Service prior to 1 July 2002 shall be entitled
                           to a benefit under this Plan as follows:

                  (b) The amount of the benefit shall be the difference between
the monthly retirement benefit the Participant receives under Section 3.4 of the
Salaried Pension Plan and the benefit the Participant would have received under
Section 3.2 of the Salaried Pension Plan had he or she Separated from Service on
or after his or her Early Retirement Date.

                  (c) Such a Participant shall be treated as an Employee for
purposes of this Plan except for purposes of Sections 3.1-3.4; provided that
such a Participant whose Separation from Service occurred prior to 1 January
2000 shall not be treated as an Employee for purposes of Subsections 3.6(a)(ii)
or 3.6(b).

                                    ARTICLE 4
                                 ADMINISTRATION

         SECTION 4.1 PLAN ADMINISTRATION AND INTERPRETATION. The Plan shall be
administered by the Committee which shall be composed of the same persons
designated by the

                                       14

<PAGE>
Board to administer the Salaried Pension Plan. The Committee shall have full
power and authority to administer the Plan and interpret the Plan in a manner
which is as consistent with the interpretations of similar provisions in the
Salaried Pension Plan as the context reasonably permits. The Committee's powers
shall include, by way of illustration and not limitation, the discretionary
authority and power to construe and interpret the Plan provisions, decide all
questions of eligibility for benefits, and determine the amount, time, and
manner of payments of any benefits and to authorize the payment of benefits
hereunder, to the extent such powers have not been given to the Plan
Administrator pursuant to Section 4.2 below or otherwise. The Committee may
appoint one or more individuals or committees to assist it in carrying out its
duties and responsibilities under the Plan and may adopt rules and regulations
for the administration of the Plan and alter, amend, or revoke any rules or
regulations so adopted. The decisions of the Committee or its delegates shall be
final and binding on the Company, the Employers, the Employees, and their
beneficiaries.

         SECTION 4.2 CLAIM AND APPEAL PROCEDURE

                  (A) CLAIM PROCEDURE. In the event of a claim by an Employee or
an Employee's beneficiary for or in respect of any benefit under the Plan or the
method of payment thereof, such Employee or beneficiary shall present the reason
for his claim in writing to the Plan Administrator. The Plan Administrator
shall, within ninety (90) days after the receipt of such written claim, send
written notification to the Employee or beneficiary as to its disposition,
unless special circumstances require an extension of time for processing the
claim. If such an extension of time for processing is required, written notice
of the extension shall be furnished to the claimant prior to the termination of
the initial ninety (90) day period. In no event, however,

                                       15
<PAGE>
shall such extension exceed a period of ninety (90) days from the end of such
initial period. The extension notice shall indicate the special circumstances
requiring an extension of time and the date by which the Plan Administrator
expects to render the final decision.

         In the event the claim is wholly or partially denied, the Plan
Administrator's written notification shall state the specific reason or reasons
for the denial, include specific references to pertinent Plan provisions on
which the denial is based, provide an explanation of any additional material or
information necessary for the Employee or beneficiary to perfect the claim and a
statement of why such material or information is necessary, and set forth the
procedure by which the Employee or beneficiary may appeal the denial of the
claim. If the claim has not been granted and notice is not furnished within the
time period specified in the preceding paragraph, the claim shall be deemed
denied for the purpose of proceeding to appeal in accordance with paragraph (b)
below.

(B) APPEAL PROCEDURE. In the event an Employee or beneficiary wishes to appeal
the denial of his claim, he may request a review of such denial by making
written application to the Committee within sixty (60) days after receipt of the
written notice of denial (or the date on which such claim is deemed denied if
written notice is not received within the applicable time period specified in
paragraph (a) above). Such Employee or beneficiary (or his duly authorized
representative) may, upon written request to the Committee, review documents
which are pertinent to such claim, and submit in writing issues and comments in
support of his position. Within sixty (60) days after receipt of the written
appeal (unless an extension of time is necessary due to special circumstances or
is agreed to by the parties, but in no event more than

                                       16
<PAGE>
one hundred and twenty (120) days after such receipt), the Committee shall
notify the Employee or beneficiary of its final decision. If such an extension
of time for review is required because of special circumstances, written notice
of the extension shall be furnished to the claimant prior to the commencement of
the extension. The final decision shall be in writing and shall include: (i)
specific reasons for the decision, written in a manner calculated to be
understood by the claimant, and (ii) specific references to the pertinent Plan
provisions on which the decision is based.

         (C) CHANGE IN CONTROL. Notwithstanding the above, upon a Change in
Control, for the three-year period commencing on the date of the Change in
Control, the Plan Administrator shall notify the Employee of the disposition of
a claim under paragraph (a) above, and the Committee shall notify the Employeeof
the decision on an appeal underparagraph (b) above, within ten (10) days of
receipt of the claim or appeal, respectively.

                                       17
<PAGE>
                                    ARTICLE 5

                                     FUNDING

         SECTION 5.1 BENEFITS UNFUNDED. The Plan shall be unfunded. Neither an
Employer nor the Committee shall be required by the terms of the Plan to
segregate any assets in connection with the Plan. Neither an Employer, the Board
nor the Committee shall be deemed to be a trustee of any amounts to be paid
under the Plan. Any liability to any person with respect to benefits payable
under the Plan shall be only a claim against the general assets of the Employer.
No such liability shall be deemed to be secured by any pledge or any other
encumbrance on any specific property of the Employer.

         SECTION 5.2 NON-QUALIFIED PLAN. The Plan will not be qualified under
the Code and the Company and the Employers shall not be required to qualify the
Plan.

         SECTION 5.3 ERISA. The Plan is intended to constitute an unfunded plan
maintained primarily for the purpose of providing deferred compensation to a
select group of management or highly compensated employees of the Employer which
qualifies for the exclusion provided for in Sections 201(2), 301(a)(3) and
401(a)(1) of ERISA. In the event that any regulatory body should determine that
the Plan does not qualify for such exclusion, then the Company may retroactively
revise the eligibility criteria under the Plan so that this Plan may qualify for
the exclusion or take such other action as is deemed necessary, and the Company
and the Employers shall have no liability to those individuals who had been
eligible for benefits under the Plan prior to such revision or action except to
the extent of the individual's Accrued Benefit as of the effective date of such
action.

                                       18
<PAGE>
                                    ARTICLE 6
                            AMENDMENT AND TERMINATION

         SECTION 6.1 AMENDMENT AND TERMINATION. While the Company intends to
maintain this Plan in conjunction with the Salaried Pension Plan for so long as
necessary or desirable, the Company reserves the right at any time to amend,
suspend and/or terminate this Plan by action of the Board (or the Committee
consistent with the Committee's authority therefore under the Salaried Pension
Plan or delegations from the Board), in its sole discretion, for whatever reason
it may deem appropriate; provided that, no such amendment, termination or
suspension shall reduce the benefits payable to or accrued by an Employee as of
the date of such amendment, suspension or termination, except as provided in
Section 5.3. If this Plan is terminated, no new benefits shall be accrued
hereunder; and all benefits previously accrued shall be payable at such times as
otherwise provided herein.

         SECTION 6.2 CONTRACTUAL OBLIGATIONS. Notwithstanding Section 6.1
hereof, each Employer hereby makes a contractual commitment to pay the benefits
theretofore accrued in respect of each Employee of such Employer under the Plan
to the extent it is financially capable of meeting such obligations from its
general assets, and at such times as such benefits are payable under the terms
hereof.

         SECTION 6.3 NO EMPLOYMENT RIGHTS. Nothing contained in the Plan shall
be construed as a contract of employment between an Employer and any Employee,
or as a right of any Employee to be continued in the employment of an Employer,
or as a limitation on the right of an Employer to discharge any of its
Employees, with or without cause. Specifically, no rights are created under the
Plan with respect to continued employment. It is understood that each

                                       19
<PAGE>
Employee is employed at the will of the respective Employer and the Employee and
in accord with all statutory provisions.

                                       20
<PAGE>
                                    ARTICLE 7
                               GENERAL PROVISIONS

         SECTION 7.1 NON-ALIENATION OF BENEFITS. Except as may be required by
law, no benefit payable under the Plan is subject in any manner to anticipation,
alienation, sale, transfer, assignment, garnishment, pledge, encumbrance, or
charge whether voluntary or involuntary, including in respect of liability of an
Employee or his beneficiary for alimony or other payments for the support of a
spouse, former spouse, child, or other dependent, prior to actually being
received by the Employee or beneficiary under the Plan, and any attempt to
anticipate, alienate, sell, transfer, assign, garnish, pledge, encumber, or
charge the same shall be void. No such benefits will in any manner be liable for
or subject to the debts, liabilities, engagements, or torts of any Employee or
other person entitled to receive the same and if such person is adjudicated
bankrupt or attempts to anticipate, assign, or pledge any benefits, the
Committee shall have the authority to cause the same or any part thereof then
payable to be held or applied to or for the benefit of such Employee, his
spouse, children or other dependents, or any of them, in such manner and in such
proportion as the Committee may deem proper.

         SECTION 7.2 MINOR OR INCOMPETENT. If the Committee determines that any
Employee or beneficiary entitled to payments under the Plan is a minor or
incompetent by reason of physical or mental disability, it may, in its sole
discretion, cause all payments thereafter becoming due to such person to be made
to any other person for his benefit, without responsibility to follow
application of amounts so paid. Payments made pursuant to this

                                       21
<PAGE>
provision shall completely discharge the Company, the Employers, the Plan, the
Board, and the Committee from all further obligations with respect to benefits
under the Plan.

         SECTION 7.3 PAYEE UNKNOWN. If the Committee has any doubt as to the
proper beneficiary to receive payments hereunder, the Committee shall have the
right to withhold such payments until the matter is finally adjudicated.
However, any payment made in good faith shall fully discharge the Committee, the
Company, the Employers, and the Board from all further obligations with respect
to that payment.

         SECTION 7.4 ILLEGAL OR INVALID PROVISION. In case any provision of the
Plan shall be held illegal or invalid for any reason, such illegal or invalid
provision shall not affect the remaining parts of the Plan, but the Plan shall
be construed and enforced without regard to such illegal or invalid provision.

         SECTION 7.5 GOVERNING LAW AND HEADINGS. The provisions of the Plan
shall be construed, administered, and governed in accordance with the laws of
the Commonwealth of Pennsylvania, including its statute of limitation
provisions, to the extent such laws are not preempted by ERISA or other
applicable Federal law. Titles of Articles and Sections of the Plan are for
convenience of reference only and are not to be taken into account when
construing and interpreting the provisions of the Plan.

         SECTION 7.6 LIABILITY LIMITATION. No liability shall attach to or be
incurred by any member of the Committee or any other officer or director of the
Company or an Employer under or by reason of the terms, conditions, and
provisions contained in the Plan, or for the acts or decisions taken or made
thereunder or in connection therewith; and as a condition precedent to the
receipt of benefits hereunder, such liability, if any, is expressly waived and
released by the Employee and by any and all persons claiming under or through
the Employee or any other

                                       22
<PAGE>
person. Such waiver and release shall be conclusively evidenced by any act of
participation in or the acceptance of benefits under the Plan.

         SECTION 7.7 NOTICES. Except as otherwise specified, any notice to the
Committee, the Company, or an Employer which shall be or may be given under the
Plan shall be in writing and shall be sent by registered or certified mail to
the Plan Administrator. Notice to a Participant shall be sent to the address
shown on the Company's or the Employer's records. Any party may, from time to
time, change the address to which notices shall be mailed by giving written
notice of such new address.

         SECTION 7.8 ENTIRE AGREEMENT. Except as may be provided in an
individual severance agreement between the Company or other Employer and a
Participant, this Plan document shall constitute the entire agreement between
the Company or other Employer and the Participant with respect to the benefits
promised hereunder and no other agreements or representations with respect to
such benefits, oral or otherwise, express or implied, shall be binding on the
Company or other Employer.

         SECTION 7.9 BINDING EFFECT. All obligations for amounts not yet paid
under the Plan shall survive any merger, consolidation, or sale of substantially
all of the Company's or an Employer's assets to any entity, and be the liability
of the successor to the merger or consolidation or purchaser of assets, unless
otherwise agreed to in writing by the parties thereto.

                                       23
<PAGE>
         IN WITNESS WHEREOF, the Company, intending to be legally bound hereby,
has caused the Plan to be adopted and approved by the execution of its duly
authorized officers as of the ____ day of ___________________, 2003.

                                          AIR PRODUCTS AND CHEMICALS, INC.

                                          By:
                                               _________________________________
                                               Vice President - Human Resources

ATTEST:

______________________________________
           Assistant Secretary

                                      -24-

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