Document:

Exhibit 10.23

THIS NOTE HAS NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY  APPLICABLE  STATE  SECURITIES  LAWS  AND MAY NOT BE  SOLD,  TRANSFERRED,
PLEDGED, OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (1) REGISTRAT1ON UNDER SUCH
ACT OR LAWS, OR (2) AN OPINION OF COUNSEL  REASONABLY  ACCEPTABLE TO THE COMPANY
TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.

August 2, 2004                                                       $200,000.00

                              SERIES E BRIDGE NOTE

FOR VALUE RECEIVED, Viper Motorcycle Company, a Minnesota corporation (the
"Company") hereby promises to pay to David Palmlund, III (the "Holder"), the
principal sum of Two Hundred Thousand Dollars ($200,000.00), or such portion
thereof actually advanced by Holder to the Company, together with a loan fee, on
or before the earlier of: (i) the date which occurs 20 days after the effective
date of an initial public offering of the Company's securities, or (ii) six
month's after the date of this Note (the "Payment Date")

1.       PAYMENT BY HOLDER; PAYMENT BY COMPANY; LOAN FEE.

         1.1 As payment for the obligations of the Company under this Note,
         Holder agrees to pay to the Company, by check or wire transfer of
         immediately available funds to an account designated to Holder by the
         Company: (i) $50,000 on July 2, 2004 (already received, as of the date
         of this note), (ii) $50,000 on August 3, 2004 (as SEC comments are
         completed, to be filed), (iii) $50,000 on or before August 15, 2004
         and (iv) $50,000 on or before September 15, 2004.

         1.2 The Company shall pay to Holder on the Payment Date, unless
         earlier paid under Section 2, the entire outstanding principal balance
         of this Note and any loan fee. The Company shall pay the applicable
         amount of principal and/or loan fees in lawful money of the United
         States by check or wire transfer of immediately available funds to an
         account designated in writing by the Holder from time to time.

         1.3 Loan Fee will be $10,000.00 to be paid from the payment, due on
         August 15, 2004. If this note is not paid back by October 1, 2004,
         then an additional loan fee of $10,000.00 will be paid to Holder. If
         this note is not paid by November 15, 2004, then an additional loan
         fee of $10,000.00 will be paid to Holder.

2.       PREPAYMENT.  The Company may prepay without premium or penalty, the
principal amount of this Note, plus any unpaid loan fees, in whole or in part,
at any time.

3.       UNSECURED OBLIGATION.  This Note is a general unsecured obligation of
the Company limited to the aggregate principal outstanding, together with all
unpaid loan fees thereon.

4.       DEFAULT. The entire unpaid principal balance of and the unpaid loan
fees on this Note shall become and be immediately due and payable upon written
demand of the Holder, without any other notice or demand of any kind or any
presentment or protest, if any one of the following events (each an "EVENT OF
DEFAULT") occurs and is continuing at the time of such demand,

<PAGE>

whether voluntarily or involuntarily, or, without limitation, the event occurs
or is brought about by operation of law or pursuant to or in compliance with any
judgment, decree or order of any court or any order, rule or regulation of any
governmental body:

         4.1 If the Company fails to make a payment of any principal or unpaid
         loan fees due under this Note or any open note to Holder;

         4.2 If the Company (i) makes an assignment for the benefit of
         creditors, (ii) applies for, consents to, acquiesces in, files a
         petition seeking or admits (by answer, default or otherwise) the
         material allegations of a petition filed against it seeking the
         appointment of a trustee, receiver or liquidation, in bankruptcy or
         otherwise, of itself or of all or a substantial portion of its assets,
         or a reorganization, arrangement with creditors or other remedy, relief
         or adjudication available to or against a bankrupt, insolvent or debtor
         under any bankruptcy or insolvency law or any law affecting the rights
         of creditors generally, or (iii) admits in writing its inability to pay
         its debts generally as they become due;

         4.3 If an order for relief is entered by a bankruptcy court or if a
         decree, order or judgment is entered adjudging the Company insolvent,
         or appointing a receiver, liquidator, custodian or trustee, in
         bankruptcy or otherwise, for it or for all or a substantial portion of
         its assets, or approving the winding-up or liquidation of its affairs
         on the grounds of insolvency or nonpayment of debts, and such order for
         relief, decree, order or judgment remains undischarged or unstayed for
         a period of forty-five (45) days; or if any substantial part of the
         property of the Company is sequestered or attached and is not returned
         to the possession of the Company or such subsidiary or released from
         such attachment within forty-five (45) days;

         4.4 If the Company is dissolved or liquidated; or

         4.5 If the Company fails to materially comply with the covenants of the
         Company contained in Section 6 and such default remains uncured for a
         period of ten (10) days after written notice or by email thereof from
         Holder to the Company.

         Except as otherwise expressly provided in this Note, the Company hereby
waives presentment, demand for payment, notice of nonpayment, protest, notice of
protest, notice of dishonor, and all other notices in connection herewith, as
well as filing of suit (if permitted by law) and diligence in collecting this
Note, and agrees to pay (if permitted by law) all expenses incurred in
collection, including the Holder's actual attorneys' fees.

5.       FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part of
Holder hereof in the exercise of any power, right or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such power, right or privilege preclude other or further exercise thereof or of
any other right, power or privilege. All rights and remedies existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise
available.

6.       REPRESENTATIONS OF THE COMPANY. The Company represents, warrants and
covenants that that as long as principal or unpaid loan fees of this Note
remains outstanding, the Company will:

<PAGE>

         6.1 Maintain and preserve its corporate existence and all rights,
         franchises, and other authority adequate for the effective conduct of
         its business; maintain its properties, equipment, facilities and
         intellectual property in good status, order and repair; and conduct its
         business in an orderly manner without voluntary interruption.

         6.2 Maintain adequate insurance including public liability, property
         damage, fire and other hazards with responsible insurance carriers
         reasonably sufficient to protect all property and business operations
         of the Company.

         6.3 Pay and discharge, prior to becoming delinquent, all taxes,
         assessments and governmental charges upon or against the Company or its
         properties, except to the extent and so long as any of such liabilities
         are being contested by Company in good faith.

         6.4 Promptly notify Holder in writing of any Event of Default
         hereunder.

         6.5 Shall not make any loans or advances to any person or party unless
         in the ordinary course of business approved by the Noteholder, and
         shall not incur any material mortgage, pledge, encumbrance or lien
         against any property of the Company unless for a valid business
         purpose.

         6.6 Shall not sell, lease, assign or transfer any substantial part of
         its business or fixed assets or intellectual property unless consented
         to in writing by Holder.

7.       REPRESENTATIONS OF THE HOLDER. The Holder represents, warrants and
covenants that

         7.1 The Holder qualifies as an "accredited investor" within the meaning
         of Rule 501 promulgated under the Securities Act of 1933, as amended
         (the "Securities Act").

         7.2 This Note is acquired ~or Holder's account only, and not with a
         view to, or for sale in connection with, any distribution of the shares
         in violation of the Securities Act.

         7.3 Holder has such knowledge and experience in financial and business
         matters so as to be capable of evaluating the risks and uncertainties
         of this investment in this Note.

         7.4 Holder has had such opportunity as Holder has deemed adequate to
         obtain from representatives of the Company such information as is
         necessary to permit Holder to evaluate the merits of Holder's
         investment in the Company.

8.       SUCCESSOR AND ASSIGNS. This Note and the obligations and rights of
the Company hereunder, shall be binding upon and inure to the benefit of the
Company, the Holder and their respective heirs, successors and assigns. This
Note may be assigned by the Holder and shall be subject to: (a) the prior
approval of the Company, which approval shall not be unreasonably withheld, and
(b) prior delivery by the proposed transferee to the Company of an opinion of
counsel reasonably satisfactory to the Company that such transfer is in
compliance with all federal and state securities laws. In order to transfer this
Note, the Holder or its duly authorized attorney, shall surrender this Note at
the offices of the Company, accompanied by an assignment duly executed by the
Holder.

<PAGE>

9.        NO RECOURSE AGAINST OTHERS. A director, officer, employee or
stockholder, as such, of the Company is not liable for any obligations of the
Company under this Note or for any claim based on, in respect of or by reason
of, such obligations or their creation. The Holder by accepting a Note waives
and releases such persons from all such liability. The waiver and release are
part of the consideration for the issuance of this Note.

10.       AMENDMENT. Any amendment, supplement or modification of or to any
provision of this Note, any waiver of any provision of this Note and any consent
to any departure from the terms of any provision of this Note, will be effective
(a) only if it is made or given in writing and signed by the Company and the
Holder and (b) only in the specific instance and for the specific purpose for
which made or given.

11.       NOTICE. All notices, requests, consents and other communications
required or permitted hereunder shall be in writing and shall be personally
delivered, mailed first-class postage prepaid, registered or certified mail, or
delivered by a nationally recognized overnight courier:

If to the Holder:

David Palmlund, III
5323 Swiss Ave.
Dallas, TX  75214

If to the Company:

Viper Motorcycle Company
5733 International Pkwy
New Hope, MN  55428
Attn:    John Lai

Both the Holder and the Company may change the address and facsimile number for
notice by five (5) days advance written notice to the other.

12.      GOVERNING LAW. This Note is governed by the internal laws of the
State of Minnesota, without regard to its conflict of laws provisions.

13.      SEVERABILITY. If any one or more of the provisions contained in
this Note, or the application thereof in any circumstance, is held invalid,
illegal or unenforceable in any respect for any reason, the validity, legality
and enforceability of any remaining provisions hereof will not be in any way
impaired, unless the provisions held invalid, illegal or unenforceable
substantially impair the benefits of the remaining provisions hereof.

                                         VIPER MOTORCYCLE COMPANY

                                         By: /s/  John Lai
                                             -----------------------------------
                                                  John Lai, Vice PresidentEX-10.1

 

Exhibit 10.1

SUBSCRIPTION AGREEMENT

among

COMPAGNIE GÉNÉRALE DE GÉOPHYSIQUE

and

ONEX PARTNERS LP

ONEX AMERICAN HOLDINGS II LLC

ONEX US PRINCIPALS LP

CGG EXECUTIVE INVESTCO, LLC

ONEX CORPORATION

US$ 84,980,000 7.75% Convertible Subordinated Bonds due 2012

Dated 27 September 2004

Confidential material has been redacted where indicated by the following symbol: [*]

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	1.	 	 	DEFINITIONS
	 	 	4	 
	 	2.	 	 	ISSUE OF THE BONDS AND SUBSCRIPTION
	 	 	4	 
	 	3.	 	 	CONDITIONS PRECEDENT TO THE ISSUE AND
SUBSCRIPTION OF THE BONDS
	 	 	5	 
	 	4.	 	 	PAYMENT OF THE SUBSCRIPTION PRICE
	 	 	8	 
	 	5.	 	 	ARRANGEMENT FEE AND EXPENSES
	 	 	8	 
	 	6.	 	 	REPRESENTATIONS AND WARRANTIES
	 	 	10	 
	 	7.	 	 	COVENANTS OF THE COMPANY
	 	 	16	 
	 	8.	 	 	MUTUAL COVENANTS
	 	 	16	 
	 	9.	 	 	COVENANTS OF THE SUBSCRIBERS
	 	 	16	 
	 	10.	 	 	GOVERNANCE
	 	 	16	 
	 	11.	 	 	TAX
	 	 	16	 
	 	12.	 	 	INDEMNIFICATION
	 	 	16	 
	 	13.	 	 	NOTICES
	 	 	16	 
	 	14.	 	 	MISCELLANEOUS
	 	 	16	 
	 	15.	 	 	SUBSTITUTION OF SUBSCRIBERS
	 	 	16	 
	 	16.	 	 	CONFIDENTIALITY
	 	 	16	 
	 	17.	 	 	EXCLUSIVITY
	 	 	16	 
	 	18.	 	 	GOVERNING LAW AND JURISDICTION
	 	 	16	 
	 	19.	 	 	OTHER AGREEMENTS
	 	 	16	 

 

 

THIS SUBSCRIPTION AGREEMENT (the “Agreement”) is made on 27 September 2004

AMONG:

	(1)	 	COMPAGNIE GÉNÉRALE DE GÉOPHYSIQUE, a French société anonyme with a share
capital of 23,363,436 euros having its registered office at 1, rue Léon
Migaux-Massy, 91300 with registered number 969 202 241 RCS Evry (the
“Company”), and
	 
	(2)	 	ONEX PARTNERS LP, a limited partnership organised under the laws of
Delaware with its registered office at 1209, Orange Street, Wilmington,
Delaware 19801, U.S.A. c/o The Corporation Trust Company,
	 
	(3)	 	ONEX AMERICAN HOLDINGS II LLC, a limited liability company organised
under the laws of Delaware with its registered office at 15, East Dover
Street, Dover (Kent County), Delaware 19901, U.S.A.,
	 
	(4)	 	ONEX US PRINCIPALS LP, a limited partnership organised under the laws of
Delaware with its registered office at United Corporate Services, 15 E.
North Street, Dover, Delaware 19901, U.S.A.,
	 
	(5)	 	CGG EXECUTIVE INVESTCO, LLC, a limited liability company organised under
the laws of Delaware with its registered office at 874, Walker Road, Suite
C, Dover (Kent County), Delaware, 19904, U.S.A.,
	 
	(6)	 	ONEX CORPORATION, a corporation organised under the laws of the Province
of Ontario with its registered office at 161, Bay Street, P.O. Box 700,
Toronto, Ontario M5J 2S1, Canada (“Onex”) (Onex Corporation being a party
to this Agreement solely with respect to sections 5.1, 5.3, 5.4 and 8.1).

The parties mentioned under (2) to (5) above shall be referred to collectively
as the “Subscribers” and individually as a “Subscriber”.

PREAMBLE

WHEREAS, on 20 September 2004, the Board of Directors of the Company approved
in principle the issuance to the Subscribers of US$ 84,980,000 nominal amount
7.75% Convertible Subordinated Bonds due 2012 (the “Bonds”), which Bonds are
convertible into new ordinary shares with a 2 euros par value of the Company
(each a “Share”) and are redeemable in cash or, in certain circumstances, at
the option of the Company at Maturity, for new and/or existing Shares;

 

 

WHEREAS, the issuance of the Bonds by the Company to the Subscribers is subject
to a number of conditions, and in particular, the approval by the shareholders
of the Company at the Shareholders’ Meeting (as defined in section 3.1.2); and

WHEREAS, the purpose of this Agreement is to define the terms and conditions of
the subscription of the Bonds by the Subscribers.

THE PARTIES HEREBY AGREE as follows:

	1.	 	DEFINITIONS

In this Agreement:

	1.1	 	Terms beginning with capitalised letters shall have the meaning given to
them in the Terms and Conditions (as defined in section 2.2) save for the
terms expressly defined in this Agreement.
	 
	1.2	 	A reference to a section or schedule, unless the context otherwise
requires, is a reference to a section or schedule to this Agreement.
	 
	1.3	 	An expression of notice, agreement, waiver or satisfaction, pursuant to
the terms of this Agreement, by one Subscriber will constitute notice,
agreement, waiver or satisfaction for all the Subscribers.
	 
	1.4	 	The headings and sub-titles are for information purposes only and have no
bearing on the interpretation of this Agreement.
	 
	2.	 	ISSUE OF THE BONDS AND SUBSCRIPTION
	 
	2.1	 	On the Issue Date (as defined in section 4.1), upon the terms and subject
to the conditions of this Agreement, the Company agrees to issue to the
Subscribers, and the Subscribers undertake to subscribe for, the Bonds for
the Subscription Price (as defined in section 4.2) in accordance with the
allocation set forth in schedule A.
	 
	2.2	 	The Company and the Subscribers each agree that the terms and conditions
of the Bonds (the “Terms and Conditions”), if and when issued in
accordance with the terms and subject to the conditions of this Agreement,
shall be the terms and conditions set forth in schedule B (the “Draft
Terms and Conditions”) together with any amendments or modifications
expressly and specifically required (a) by the Autorité des Marchés
Financiers (the “AMF”) or (b) by reason of any change in laws and
regulations coming into force prior to the Issue Date.

 

 

	3.	 	CONDITIONS PRECEDENT TO THE ISSUE AND SUBSCRIPTION OF THE BONDS
	 
	3.1	 	Mutual Conditions

The obligation of the Company to issue the Bonds to the Subscribers and the
obligation of the Subscribers to subscribe and pay for the Bonds shall be
subject to the prior satisfaction or waiver by each of the Company and the
Subscribers of the following conditions:

	 	3.1.1	 	the receipt of all governmental and regulatory approvals
necessary for the issuance of the Bonds to the Subscribers and the
issuance of Shares pursuant to the Bonds, including the approval by
the AMF (visa) on the Note d’Opération (the “Note d’Opération”) filed
with the AMF on 20 September 2004 and all approvals required to
permit the issuance and listing on the first market (Premier Marché)
of Euronext Paris S.A. of up to 4,599,900 Shares as soon as (i) the
Bonds are converted in whole or in part into Shares in accordance
with the Terms and Conditions (“Conversion of Bonds”), (ii) the Bonds
are redeemed by the Company at maturity in accordance with the Terms
and Conditions through the issuance of new Shares (“Redemption of
Bonds”), or (iii) Shares are issued by the Company for purposes of
paying interest which has accrued on the Bonds in accordance with the
Terms and Conditions (“Share Interest Payment”);
	 
	 	3.1.2	 	the approval by shareholders of the Company at the ordinary
and extraordinary general meeting of the shareholders of the Company
held in accordance with section 7.1 hereof (the “Shareholders’
Meeting”) of (a) the issuance of the Bonds to the Subscribers and the
issuance of Shares pursuant to the Bonds, (b) the creation and
reservation of the Shares into which the Bonds may be converted,
redeemed or issued as payment of interest, in favour of the holders
of the Bonds, and (c) the corresponding suppression of shareholders’
preferential subscription rights on the Bonds and the Shares into
which the Bonds may be converted, redeemed or issued as payment of
interest; and
	 
	 	3.1.3	 	(i) there shall not be in effect any statute, regulation,
order, decree or judgment in any jurisdiction which makes illegal or
enjoins or prevents any of the matters set forth in section 3.1.2;
and (ii) there shall not have been commenced by any unrelated third
party, and be continuing, any action, proceedings or order which
seeks to prevent or enjoin the completion of any of the matters
referred to in section 3.1.2 and/or any action required to be taken
by the Board of Directors in order to cause the issuance of the Bonds
to the Subscribers.

	3.2	 	Company’s Conditions

The obligation of the Company to issue the Bonds to the Subscribers shall be
subject to prior satisfaction of the following further conditions, either of
which may be waived in whole or in part by the Company:

	 	3.2.1	 	the Subscribers shall have paid the Subscription Price (as
defined in section 4.2) to the Company on the Issue Date in
accordance with the terms and subject to the conditions of this
Agreement;

 

 

	 	3.2.2	 	there shall have been no amendments or modifications to any of
sections 3.2 to 3.8, inclusive, 5.1 to 5.7, inclusive, 6.1 or 6.2 of
the Draft Terms and Conditions that are, individually or in the
aggregate, adverse to the Company from a financial point of view;
provided, however, that the Company shall be entitled to the benefit
of this condition only if the Company has fully complied with its
covenants in section 7.7;
	 
	 	3.2.3	 	the representations and warranties of the Subscribers set out
in section 6.2 of this Agreement shall be true and accurate in all
respects as though expressly made at and as of the Issue Date; and
	 
	 	3.2.4	 	the Subscribers shall have delivered to the Company a
certificate signed by the Officers of the Subscribers in the form set
out in schedule C.

	3.3	 	Subscriber’s Conditions

The obligation of the Subscribers to subscribe for the Bonds shall be subject
to the prior satisfaction of the following further conditions, any of which may
be waived in whole or in part by the Subscribers:

	 	3.3.1	 	the Company shall have delivered to the Subscribers all of the
documents and information specified in schedule D in form and in
substance satisfactory to the Subscribers;
	 
	 	3.3.2	 	(a) the Company shall have complied with its obligations
pursuant to section 7.4 below and (b) the Subscribers shall be
reasonably satisfied with the results of their due diligence
investigations (conditions (a) and (b) will be deemed to have been
satisfied if the Subscribers shall not have notified the Company to
the contrary in writing on or prior to 22 October 2004);
	 
	 	3.3.3	 	no material adverse change shall have occurred in the
business, affairs, assets, financial performance or condition or
prospects of the Company or of the Group (as defined in section
6.1.1) (a “Material Adverse Event”) between 1 September 2004 and the
Issue Date;
	 
	 	3.3.4	 	there shall not have been any change in national or
international financial, political or economic conditions, currency
exchange rates, exchange controls or banking and capital markets
conditions as would be likely to materially prejudice dealings in the
Shares or the value of the Shares, the rights of the Subscribers
under the Bonds, the value of the Bonds or the obligations of the
Company under the Bonds;
	 
	 	3.3.5	 	the representations and warranties of the Company set out in
section 6.1 shall be true and accurate in all respects as though
expressly made at and as of the Issue Date;
	 
	 	3.3.6	 	the Company shall have satisfied all of the covenants on its
part to be performed or satisfied hereunder on or before the Issue
Date;

 

 

	 	3.3.7	 	all third-party approvals required under any credit facility,
indenture, contractual or other obligation binding or affecting the
Company in connection with the issuance of the Bonds to the
Subscribers and the issuance of Shares upon conversion of the Bonds
shall have been received on terms satisfactory to the Subscribers;
	 
	 	3.3.8	 	the Company shall have delivered to the Subscribers a
certificate signed by an Officer of the Company in the form set out
in schedule E;
	 
	 	3.3.9	 	Mr. Andrew J. Sheiner shall have been elected to the Board of
Directors of the Company, such appointment becoming effective upon
the payment by the Subscribers of the Subscription Price to the
Company;
	 
	 	3.3.10	 	the Registration Rights Agreement executed and delivered by the
Company in the form set out in schedule F (the “Registration Rights
Agreement”) shall remain in full force and effect;
	 
	 	3.3.11	 	the Subscribers shall have received legal opinions from counsel to
the Company, the substantial forms of which are set out in schedules
G and H, that are reasonably satisfactory in form and scope to the
Subscribers; and
	 
	 	3.3.12	 	there shall have been no amendments or modifications to any of
sections 3.2 to 3.8, inclusive, 5.1 to 5.7, inclusive, 6.1 or 6.2 of
the Draft Terms and Conditions that are, individually or in the
aggregate, adverse to the Subscribers from a financial point of view
(including, for clarity, provisions in respect of timing and
process).

	 	 	The Subscribers shall promptly notify the Company if they have
conclusively determined that one or more of the conditions set forth in
this section 3.3 will not be satisfied by the Company on the Issue Date or
waived by the Subscribers.
	 
	3.4	 	Failure to Satisfy Conditions Precedent

	 	3.4.1	 	Except as otherwise agreed upon by the Subscribers and the
Company, if the mutual conditions referred to in section 3.1 have not
been satisfied (or waived in whole or in part by both the Subscribers
and the Company, in writing), either the Subscribers or the Company
can terminate this Agreement and, as a result, the Subscribers will
cease to have any obligation to subscribe to the Bonds and the
Company will cease to have any obligation to issue the Bonds.
	 
	 	3.4.2	 	Except as otherwise waived in whole or in part by the
Subscribers in writing on or before the Issue Date, if the conditions
precedent set forth in section 3.3 have not been satisfied and the
Subscribers have so notified the Company, the Subscribers can
terminate this Agreement and, as a result, the Subscribers will cease
to have any obligation to subscribe to the Bonds and the Company will
cease to have any obligation to issue the Bonds.
	 
	 	3.4.3	 	Except as otherwise waived in whole or in part by the Company
in writing on or before the Issue Date, if the condition precedent
set forth in section 3.2 has not been satisfied and the Company has
so notified the Subscribers, the Company

 

 

	 	 	 	can terminate this Agreement and, as a result, the Subscribers
will cease to have any obligation to subscribe to the Bonds and
the Company will cease to have any obligation to issue the Bonds.
	 
	 	3.4.4	 	If the Subscribers or the Company terminate this Agreement
pursuant to sections 3.4.1, 3.4.2 or 3.4.3 above, each party shall
cease to have any obligation or liability to each other under this
Agreement, except as described in sections 5.3 and 14.4.

	4.	 	PAYMENT OF THE SUBSCRIPTION PRICE
	 
	4.1	 	The issue of the Bonds shall take place on the day (the “Issue Date”)
that is (i) three (3) Business Days after the later of the date of the
Shareholders’ Meeting and the date that all required regulatory approvals
for the issuance of the Bonds and the issuance of Shares upon conversion
of the Bonds have been obtained by the Company or (ii) such other date
agreed upon by the Company and the Subscribers in writing; provided that
in no event shall the Issue Date be any later than 31 December 2004. If
the Issue Date does not occur on or prior to 31 December 2004, this
Agreement will terminate automatically on 1 January 2005, except as
described in sections 5.3 and 14.4. The Issue Date shall be a Business
Day and shall be notified by the Company to the Subscribers no later than
three (3) Business Days prior to such date.
	 
	4.2	 	On the Issue Date, and in accordance with the terms and subject to the
conditions of this Agreement, the Subscribers shall pay to the Company in
US Dollars an aggregate amount equal to 100% of the principal amount of
the Bonds (being US$ 84,980,000) (the “Subscription Price”) and the
Company shall issue the Bonds to the Subscriber in accordance with the
allocation set forth in schedule A.
	 
	4.3	 	Payment Terms

	 	4.3.1	 	The Subscription Price will be paid into an account of the
Company denominated in US Dollars in accordance with the transfer
instructions to be delivered to the Subscribers not later than three
(3) Business Days prior to the Issue Date.
	 
	 	4.3.2	 	The Company shall ensure that promptly following the issue of
the Bonds the necessary recordings are made in the shareholders’
register held by BNP Paribas Securities Services acting on behalf of
the Company.

	5.	 	ARRANGEMENT FEE AND EXPENSES
	 
	5.1	 	The Company undertakes to pay, upon subscription of the Bonds by the
Subscribers , to Onex a cash arrangement fee equal to US$ [*].
	 
	5.2	 	Furthermore, the Company, upon subscription of the Bonds by the
Subscribers, shall on demand pay in cash to the Subscribers the amount of
all reasonable and duly evidenced out-of-pocket costs and expenses
incurred by the Subscribers in connection with the transactions
contemplated by this Agreement up to a maximum amount of US$ [*]
(including legal fees incurred up to the Issue Date).

 

 

	5.3	 	In the event that the condition precedent in section 3.1.2 is not
satisfied as at the Latest Approval Date (as defined in section 7.1),
then, provided that the Subscribers have not delivered to the Company
prior to the earlier of the date of the Shareholders’ Meeting and the
Latest Approval Date written notice that they have conclusively determined
that one or more of the conditions set forth in section 3.3 will not be
satisfied by the Company on the Issue Date or waived by the Subscribers,
the Company shall pay or cause to be paid a breakage fee of US$ 5,500,000
in cash to Onex (the “Breakage Fee”) within five (5) Business Days after
the earlier of:

	 	5.3.1	 	the date of the Shareholders’ Meeting;
	 
	 	5.3.2	 	29 October 2004, if the Latest Approval Date (as defined in
section 7.1) is not extended in accordance with section 7.1;
	 
	 	5.3.3	 	30 November 2004, if the Latest Approval Date is extended in
accordance with section 7.1 (other than clause (i) thereof, in which
case clause 5.3.1 above shall apply) to a date that is after 29
October 2004 and on or before 30 November 2004; and
	 
	 	5.3.4	 	31 December 2004, if the Latest Approval Date is extended in
accordance with section 7.1 to a date that is after 30 November 2004
and on or before 31 December 2004.

	 	 	In the event the Company pays or causes to be paid the Breakage Fee in
accordance with the provisions of this section 5.3, the Company shall not
be liable to the Subscribers for the reimbursement of the Subscribers’
out-of-pocket expenses as described in section 5.2, nor for any other
form of liability or payment of damages, indemnification, compensation of
losses, costs and/or expenses to the benefit of the Subscribers, which
the Subscribers expressly acknowledge and agree, and the Subscribers
shall be deemed to waive any right of action against the Company as well
as any right under this Agreement, including any right to damages or any
form of indemnification from the Company for any reason whatsoever in
connection with or in relation to this Agreement or the transactions
contemplated therein, in all cases other than as provided in section
12.4. This Agreement shall automatically terminate upon payment of the
Breakage Fee, save for this section 5.3 and sections 12 (to the extent
provided in section 12.4), 13, 14 (excluding section 14.4), 16, 17 and
18.
	 
	5.4	 	All consideration due from the Company under this Agreement shall be
deemed to be exclusive of any value added tax (“VAT”). If VAT is
chargeable thereon, an amount equal to such VAT (in addition to the
consideration in respect of which it is chargeable) shall be paid to the
Subscribers or to Onex, as applicable, in addition to and at the same time
as the relevant consideration.
	 
	5.5	 	Where this Agreement requires the Company to reimburse the Subscribers
for any costs or expenses incurred by the Subscribers, the Company shall
also at the same time pay and indemnify the Subscribers against all VAT
incurred by the Subscribers in respect of the costs or expenses save to
the extent that the Subscribers are entitled to repayment or credit in
respect of such VAT.

 

 

	6.	 	REPRESENTATIONS AND WARRANTIES
	 
	6.1	 	Representations and Warranties of the Company
	 
	 	 	The Company represents and warrants to the Subscribers and agrees with the
Subscribers, as follows:

	 	6.1.1	 	Corporate Existence and Power
	 
	 	 	 	The Company and each of the companies controlled by it within the
meaning of Article L.233-3 of the Code de commerce (collectively
hereinafter the “Subsidiaries” and, individually, a “Subsidiary”,
and the Company and its Subsidiaries collectively hereinafter the
“Group”) are duly organised and validly existing pursuant to laws
and regulations currently in effect and are duly qualified to do
business and are in good standing in each jurisdiction in which
their respective ownership or lease of property or the conduct of
their respective businesses requires such qualification, and
possess, both in France and abroad, all material permits,
licenses, approvals and authorizations that are necessary to
conduct their respective businesses. The Company is registered
with the commercial and companies registry of Evry under no. 969
202 241, its bylaws have been approved in compliance with all
applicable law and the members of its Board of Directors and the
chairman of such Board of Directors have been duly appointed and
perform their respective duties in compliance with French law.
	 
	 	6.1.2	 	The Company has a share capital as of the date hereof of
23,363,436 euros represented by 11,681,718 ordinary shares of the
same class giving their holders identical rights and all of the
issued and outstanding share capital of the Company has been validly
issued and is fully paid.
	 
	 	6.1.3	 	Except as set forth in the Document de Référence filed with
the AMF on 10 May 2004 and all subsequent publicly filed updates and
amendments thereto (the “Document de Référence”), the Company’s
annual report on Form 20-F for the year ended 31 December 2003 (the
“CGG 20-F”) and Schedule I, there are no outstanding shares,
securities, options, commitments, instruments or warrants giving
access to a portion of the capital or voting rights of the Company
nor any other undertakings to issue such shares, securities, options,
commitments, instruments or warrants.
	 
	 	6.1.4	 	Enforceability
	 
	 	 	 	This Agreement, the Terms and Conditions and the Registration
Rights Agreement have been duly authorized and, when executed and
delivered by the Company, will constitute valid and legally
binding agreements which shall be enforceable against the Company
in accordance with their terms.

 

 

	 	6.1.5	 	Validity of Bonds and Shares

	 	(a)	 	On the Issue Date, the Bonds will have been
validly authorised by the requisite corporate approvals
including all necessary approvals of the Board of Directors
and the shareholders of the Company;
	 
	 	(b)	 	On the Issue Date, subject to the payment of
the Subscription Price by the Subscribers, the Bonds will be
validly issued and will constitute binding obligations of the
Company enforceable in accordance with the Terms and
Conditions;
	 
	 	(c)	 	As of the date of this Agreement, the Board of
Directors has taken all actions presently within its power
and required by law to cause the issuance of the Bonds to the
Subscribers;
	 
	 	(d)	 	Upon completion of the issuance of the Bonds,
the Bonds shall be validly issued, freely transferable and
fully paid and there are not at the date of this Agreement
and there shall not be at the Issue Date any options,
commitments, warrants or other subscription, purchase,
pre-emption rights or third-party rights with respect to the
Bonds;
	 
	 	(e)	 	On the Issue Date, the Bonds shall be issued
entirely outside France; and
	 
	 	(f)	 	The Shares to be issued upon conversion, or
issued or delivered upon redemption or payment of interest of
the Bonds have been duly authorised by the Company and are,
in the case of existing Shares and in the case of new Shares
will be upon their issuance, validly issued and fully paid
and free from any right of pledge or usufruct, preferential
subscription right (droit préférentiel de souscription) or
priority subscription period (délai de priorité).

	 	6.1.6	 	Compliance with Law

	 	(a)	 	The Company has not since 1 January 2003
violated the continuous disclosure provisions provided by any
law, regulation or stock exchange rule applicable to the
Company.
	 
	 	(b)	 	Neither the Company nor any of its Subsidiaries
has since 1 January 2003 violated any applicable provision of
any law, regulation or stock exchange rule not referred to in
paragraph (a) above, except for violations of laws,
regulations or rules that have not had and will not have,
individually or in the aggregate, a Material Adverse Effect
(as defined in section 6.1.8).

	 	6.1.7	 	Compliance of Contemplated Transactions with Agreements,
By-Laws and Laws

	 	(a)	 	The Company has all third-party approvals
required under any credit facility, indenture, contractual or
other obligation binding or affecting the Company in
connection with (A) the issuance of the Bonds to the
Subscribers and (B) the issuance of Shares upon conversion of
the Bonds;

 

 

	 	(b)	 	The issuance, subscription, conversion and
transfer of the Bonds, the use of the proceeds therefrom, the
execution and performance of this Agreement and the
Registration Rights Agreement by the Company and the
performance by the Company of its obligations pursuant to the
Terms and Conditions (x) do not and shall not violate any
legislation, regulation or decision applicable to the Company
or any of its Subsidiaries, or the provisions of its or their
by-laws (y) do not and shall not constitute a breach of any
indenture, mortgage, deed of trust, loan agreement (including
but not limited to the revolving credit facility agreement
(the “Senior Credit Facility”) dated 12 March 2004 by and
between the Company as principal company, the Company, CGG
Marine and Sercel as borrowers, Natexis Banques Populaires as
arranger, Natexis Banques Populaires as agent and the Lenders
(as such term is used in the Senior Credit Facility) and the
Indenture (the “Indenture” ) dated as of 22 November 2002,
among the Company, any Guarantors (as such term is used in
the Indenture) and The Chase Manhattan Bank as trustee,
relating to the Company’s Series A and Series B 10-5/8%
Senior Notes due 2007 or other agreement or other instrument
binding upon the Company or any judgment, order or decree of
any governmental body, agency or court having jurisdiction
over the Company except in such case as would not have a
Material Adverse Effect, and (z) do not and shall not
constitute an event of default allowing any creditor to
accelerate any indebtedness for borrowed money contracted or
guaranteed by the Company or any of its Subsidiaries.
	 
	 	(c)	 	Except for the approval (visa) of the AMF on
the Note d’Opération, no consent, approval, authorization or
order of, or qualification with, any governmental body or
agency is required to be obtained by the Company for the
performance by the Company of its obligations under this
Agreement, the Registration Rights Agreement and the Bonds or
for the consummation by the Company of the transactions
contemplated by this Agreement;
	 
	 	(d)	 	The issuance of the Bonds hereunder, in
accordance with the terms and subject to the conditions of
this Agreement, outside of France does not require any
decision, publication, notice or authorization to or by the
Company or any administrative authority, other than such as
have been obtained or shall be obtained by the Company by the
Issue Date; and
	 
	 	(e)	 	All the Shares that are to be delivered
pursuant to the Terms and Conditions shall be capable of
being immediately listed on Euronext Paris S.A. and shall be
so listed when delivered.

	 	6.1.8	 	Default; Compliance

	 	(a)	 	Since 1 January 2004, no event has occurred or
circumstance arisen that, had the Bonds already been issued,
would (whether or not with the giving of notice and/or the
passage of time and/or the fulfilment of any other

 

 

	 	 	 	requirement) constitute an event described under section 3.6
or 3.7 of the Terms and Conditions;
	 
	 	(b)	 	Neither the Company nor any of its Subsidiaries
is in default in the performance of or observance of any
obligation, agreement, covenant or condition contained in any
indenture, mortgage, deed of trust, loan agreement (including
but not limited to the Senior Credit Facility and the
Indenture), lease or other agreement or instrument to which
it is a party or by which it may be bound or to which any of
its properties may be subject, for which the failure to
perform or observe (i) has had or would be likely to have a
material adverse effect on the business, affairs, assets,
financial performance or condition, or prospects of the
Company or of the Group, taken as a whole, or (ii) materially
adversely affects or would be likely to materially adversely
affect the capacity of the Company to perform its obligations
under the Bonds and this Agreement (both (i) and (ii), a
“Material Adverse Effect”);

	 	6.1.9	 	Financial Statements
	 
	 	 	 	The audited consolidated and statutory financial statements of the
Company for the fiscal years ended 31 December 2003, 2002 and 2001
(the “Annual Accounts”) as certified by the statutory auditors of
the Company as they appear (or are incorporated by reference) in
the Document de Référence and the audited consolidated financial
statements for the fiscal years ended 31 December 2003, 2002 and
2001 (the “20-F Annual Accounts”) as they appear in the CGG 20-F
give a true and fair view of the financial position of the Company
and its consolidated Subsidiaries and of their financial results
as at the dates on which such accounts were closed; the Annual
Accounts and the 20-F Annual Accounts have been prepared in
conformity with generally accepted accounting principles in
France; the Annual Accounts and the 20-F Annual Accounts have been
certified by the Company’s statutory auditors as required under
French and U.S. law, respectively.
	 
	 	6.1.10	 	No Material Change
	 
	 	 	 	Since 1 January 2004 (or in the case of subclause (5) below, 1
September 2004), and except as set forth in the Document de
Référence and the CGG 20-F, (1) there has been no variation in the
total amount of the share capital and the premiums related to the
share capital of the Company nor have the reserves been
distributed except as may occur as a result of the exercise of a
stock option issued pursuant to the stock option plans described
in the Document de Référence; (2) no securities or options
exercisable either presently or in the future for shares of the
Company have been granted other than with respect to the issuance
of the Bonds; (3) except, with respect to this subclause (3) only,
for any transaction or agreement entered into or action taken with
respect to Petroleum Geo-Services ASA after the date of this
Agreement but on or before the Issue Date, neither the Company nor
any of its Subsidiaries has entered into any transactions, other
than those entered into in the ordinary course of

 

 

	 	 	 	business, which, individually or in the aggregate, would be
material for the Company or the Group; (4) neither the Company nor
any of its Subsidiaries has sustained any loss or interference
with its business from fire, explosion, flood or other calamity,
whether or not covered by insurance, or from any labor dispute or
court or governmental action, order or decree which has or would
reasonably be expected to have a Material Adverse Effect; (5)
there has not occurred any Material Adverse Event; and (6) there
has been no significant change in the methods used by the Company
to establish its audited consolidated and statutory financial
statements.
	 
	 	6.1.11	 	Indebtedness
	 
	 	 	 	The total “net debt” of the Company, as defined and set forth on
page 35 of the CGG 20-F, has not materially changed since 31
December 2003, except for the increase linked to the financing
necessary to the acquisitions made by Sercel described in Section
7.1.a of the Document de Référence filed with the AMF on 10 May
2004, the aggregate amount of such financing being 33.9 million
euros.
	 
	 	6.1.12	 	Litigation
	 
	 	 	 	Except as set forth in the Document de Référence and the CGG 20-F,
neither the Company nor any of its Subsidiaries is involved in,
has received written notice of or, to the best of the Company’s
knowledge, has been threatened to become involved in, any
administrative or arbitration proceeding that has, or is likely to
have, taken alone or together with other proceedings, a Material
Adverse Effect.
	 
	 	6.1.13	 	Note d’Opération, Document de Référence and CGG 20-F
	 
	 	 	 	As of their respective dates, the information contained in the
Note d’Opération and the Document de Référence is true and
accurate and includes, to the extent required by applicable laws
and regulations, all the information required for investors to
form a judgement on the value of the assets and liabilities, the
business, the financial situation, the financial results and the
future prospects of the Company and its Subsidiaries and nothing
has been omitted which would affect the reliability of this
information. As of 1 June 2004, the information contained in the
CGG 20-F was true and complete in all material respects and did
not contain any untrue statement of a material fact and did not
omit to state a material fact required by applicable law or
regulation to be stated therein or necessary in order to make the
statements therein not misleading in light of the circumstances
under which they were made.
	 
	 	6.1.14	 	No Manipulation of Securities Prices
	 
	 	 	 	Neither the Company nor any of its Subsidiaries has taken or will
take, directly or indirectly, any action designed to, or that
constitutes or might reasonably be expected to, cause or result in
manipulation of the price of any security of the Company to
facilitate the issuance, or resale of the Bonds.

 

 

	 	6.1.15	 	Investment Company Act
	 
	 	 	 	The Company is not and, after giving effect to the issuance of the
Bonds and applying the net proceeds thereof, will not be an
“investment company”, or an entity “controlled” by an “investment
company”, as such terms are defined in the United States
Investment Company Act of 1940, as amended.
	 
	 	6.1.16	 	PFIC
	 
	 	 	 	The Company was not a “passive foreign investment company”
(“PFIC”) within the meaning of Section 1297 of the U.S. Internal
Revenue Code of 1986 as amended, for the year ended 31 December
2003, and taking into account the proceeds from the issuance of
Bonds believes that it will not become a PFIC for the year ended
31 December 2004 and does not expect to become a PFIC for any
future taxable year.
	 
	 	6.1.17	 	No General Solicitation in the U.S.
	 
	 	 	 	Neither the Company, nor any affiliate of the Company (as defined
in Rule 501(b) of the U.S. Securities Act of 1933, as amended (the
“Securities Act”)), nor any person acting on its or their behalf
has offered or sold the Bonds or the Shares to be issued upon
Conversion of Bonds, Redemption of Bonds or Share Interest Payment
by means of any general solicitation or general advertising as
those terms are used in Regulation D under the Securities Act or
in any manner involving a public offering within the meaning of
Section 4(2) of the Securities Act.
	 
	 	6.1.18	 	Directed Selling Efforts
	 
	 	 	 	Neither the Company nor any affiliate (as defined in Rule 405
under the Securities Act) has engaged or will engage in any
directed selling efforts (within the meaning of Regulation S of
the Securities Act) with respect to the Bonds or the Shares to be
issued or delivered upon Conversion of Bonds, Redemption of Bonds
or Share Interest Payment.
	 
	 	6.1.19	 	Foreign Issuer
	 
	 	 	 	The Company is a “foreign issuer” as such term is defined in Rule
902(e) of Regulation S of the Securities Act.
	 
	 	6.1.20	 	No Substantial U.S. Market Interest
	 
	 	 	 	The Company reasonably believes that there is no “Substantial U.S.
market interest” within the meaning of Rule 902(j) of Regulation S
of the Securities Act in the Company’s debt securities or Shares.
	 
	 	6.1.21	 	No Integration with Other Offerings
	 
	 	 	 	Within the preceding six months neither the Company, nor any of
its affiliates (as defined in Rule 501(b) of the Securities Act),
nor any other person acting on its or their behalf has offered or
sold to any person any bonds, or any securities

 

 

	 	 	 	of the same or a similar class as the Bonds or Shares, other than
Bonds offered or sold to the Subscribers hereunder. The Company
will take reasonable precautions designed to ensure that any offer
or sale, direct or indirect, in the United States or to any U.S.
person (as defined in Rule 902 of Regulation S of the Securities
Act) of any Bonds, Shares or any substantially similar security
issued by the Company, within six months subsequent to the date on
which the distribution of the Bonds has been completed, is made
under restrictions and other circumstances reasonably designed not
to affect the status of the offer of the Bonds and the Shares to
be issued upon Conversion of Bonds, Redemption of Bonds or Share
Interest Payment as transactions exempt from the registration
provisions of the Securities Act, other than such actions as are
contemplated by the Registration Rights Agreement.
	 
	 	6.1.22	 	Registration under the Securities Act

	 	(a)	 	Except as provided for in the registration
rights agreements dated as of (x) 10 December 1999 between
The Beacon Group Energy Investment Fund II, L.P. and the
Company, (y) 22 November 2000 between the Company, RBC
Dominion Securities Corporation, Salomon Brothers
International Limited, Credit Lyonnais and CIBC World Markets
Corp. and (z) 8 February 2002 between the Company and RBC
Dominion Securities Corporation and Salomon Smith Barney,
Inc., there are no contracts, agreements or understandings
between the Company and any person granting such person the
right to require the Company (i) to offer or sell Shares to
or for such person or (ii) to file a registration statement
under the Securities Act, or a prospectus or similar document
under the securities laws of any country other than the U.S.,
with respect to any securities of the Company;
	 
	 	(b)	 	Subject to the accuracy of the representations
and warranties of the Subscribers contained in sections
6.2.4, 6.2.8, 6.2.9, 6.2.10, 6.2.11, 9.6 and 9.7, the
Securities Act does not require that the Bonds be registered
thereunder to permit the offer, sale and delivery of the
Bonds in the manner contemplated by this Agreement and the
Terms and Conditions; and
	 
	 	(c)	 	Subject to the accuracy of the representations
and warranties of the Subscribers contained in sections
6.2.4, 6.2.8, 6.2.9, 6.2.10, 6.2.11, 9.6 and 9.7, the
Securities Act does not require that the Shares issuable upon
a Conversion of Bonds, Redemption of Bonds or Share Interest
Payment be registered under the Securities Act.

	 	6.1.23	 	Stamp Taxes
	 
	 	 	 	No registration, stamp, documentary, issue, transfer, stock
exchange or other tax or duty (other than fixed duties and stamp
taxes, the amount of which is nominal) is payable in France in
connection with the creation, issue or delivery of the Bonds or
the execution, performance and enforcement of this Agreement

 

 

	 	 	 	or the Terms and Conditions and with the creation, issue or
delivery of the Shares (including upon the payment of interests on
the Bonds by way of the delivery or issuance of Shares).
	 	 	 	 
	 	6.1.24	 	Withholding
	 
	 	 	 	Provided that the Subscribers do not hold any Shares in the
Company, the Company is not required under the laws of France to
make any deduction for or on account of any tax, levy, impost,
duty, withholding, assessment or governmental charge of whatever
nature levied, imposed, collected, withheld, deducted or assessed
by the Republic of France or a political subdivision or other
authority thereof or therein having power to tax (a “Tax”) from
any payment of principal or interest under the Bonds regardless of
whether these payments are made in cash or in Shares.
	 
	 	6.1.25	 	Payment of Taxes
	 
	 	 	 	Except in each case as would not have a Material Adverse Effect,
each of the Company and its Subsidiaries have filed all tax
returns which have been required to be filed and have paid all
taxes shown thereon and all assessments received by them or any of
them to the extent that such taxes have become due and are not
being contested in good faith, and there is no tax deficiency
which has been or is expected to be asserted or threatened against
the Company or any of its Subsidiaries.

	6.2	 	Representations and Warranties of the Subscribers

The Subscribers represent and warrant to the Company that:

	 	6.2.1	 	Onex Partners LP and Onex US Principals LP are limited
partnerships duly organised and validly existing under the laws of
Delaware and Onex American Holdings II LLC and CGG Executive
Investco, LLC are limited liability companies organised under the
laws of Delaware.
	 
	 	6.2.2	 	This Agreement has been duly authorized, executed and
delivered by or on behalf of each of the Subscribers and shall be
binding on and enforceable against the Subscribers in accordance with
its terms.
	 
	 	6.2.3	 	The execution and delivery by the Subscribers of, and the
performance by the Subscribers of their obligations under, this
Agreement will not contravene (i) any applicable law, (ii) the
constating documents or limited partnership agreement governing the
affairs of the relevant Subscriber, or (iii) any agreement or other
instrument binding upon any of the Subscribers or any judgment, order
or decree of any governmental body, agency or court having
jurisdiction over any of the Subscribers.
	 
	 	6.2.4	 	Neither the Subscribers nor any of their affiliates (as
defined in Rule 405 under the Securities Act) or any person acting on
behalf of any of them has engaged or will engage in any directed
selling efforts (within the meaning of Regulation S

 

 

	 	 	 	of the Securities Act) with respect to the Bonds or the Shares to
be issued upon Conversion of Bonds, Redemption of Bonds or Share
Interest Payment.
	 	 	 	 
	 	6.2.5	 	No Subscriber is a French resident for French taxation
purposes or has its effective seat of management in France and no
Subscriber has or will allocate the Bonds (and/or the returns
thereon) to a French branch or subsidiary it may have.
	 
	 	6.2.6	 	No Subscriber is holding any shares of the Company.
	 
	 	6.2.7	 	The Subscribers have, or have access to, the necessary
financial means in order to fully subscribe and pay for the Bonds.
	 
	 	6.2.8	 	The Subscribers are each “accredited investors” as defined in
Rule 501(a) of Regulation D under the Securities Act and the
Subscribers are also knowledgeable, sophisticated and experienced in
making, and are qualified to make, decisions with respect to an
investment decision like that involved in the purchase of the Bonds
and are not acquiring the Bonds, the Shares to be issued upon
Conversion of Bonds, Redemption of Bonds or Share Interest Payment
with a view to their distribution.
	 
	 	6.2.9	 	The Subscribers understand that (i) their acquisition of the
Bonds pursuant to this Agreement and, subject to the provisions of
the Registration Rights Agreement, the Shares to be issued upon
Conversion of Bonds, Redemption of Bonds or Share Interest Payment,
have not been registered under the Securities Act or registered or
qualified under any state securities law, (ii) the Bonds and, subject
to the provisions of the Registration Rights Agreement, the Shares to
be issued on Conversion of Bonds, Redemption of Bonds or Share
Interest Payment are “restricted securities” under the federal
securities laws inasmuch as they are being acquired or will be
acquired from the Company in transactions not involving a public
offering and (iii) the Bonds, the Shares to be issued on Conversion
of the Bonds, Redemption of Bonds or Share Interest Payment,
therefore cannot be resold, and agrees that it will not resell the
Bonds, the Shares to be issued on Conversion of the Bonds Redemption
of Bonds or Share Interest Payment, unless they are registered under
the Securities Act or pursuant to an exemption from registration. In
connection herewith, the Subscribers represent that they are familiar
with SEC Rule 144, as presently in effect, and understand the resale
limitations imposed thereby and by the Securities Act.
	 
	 	6.2.10	 	Each Subscriber represents and agrees that neither it nor any of
its affiliates (as defined in Rule 501(b) of the Securities Act) nor
any person acting on its or their behalf has engaged or will engage
in any form of general solicitation or general advertising (within
the meaning of Regulation D under the Securities Act) in connection
with the offer and sale of the Bonds, or the Shares to be issued upon
Conversion of Bonds, Redemption of Bonds or Share Interest Payment in
the United States.
	 
	 	6.2.11	 	Each Subscriber undertakes that, insofar as the Shares to be issued
or delivered on Conversion of Bonds, Redemption of Bonds or Share
Interest Payment are

 

 

	 	 	 	“restricted securities” as defined in Rule 144(a)(3) under the
Securities Act, it will not deposit any such Shares in any
unrestricted American depositary receipt facility of the Company,
including, without limitation, the Company’s American Depositary
Receipt Facility maintained by The Bank New York.
	 
	 	6.2.12	 	No consent, approval, authorization or order of, or qualification
with, any governmental body or agency is required to be obtained by
the Subscribers for the performance by the Subscribers of their
obligations under this Agreement, the Registration Rights Agreement
and the Bonds or for the consummation by the Subscribers of the
transactions contemplated by this Agreement

	7.	 	COVENANTS OF THE COMPANY

The Company covenants with the Subscribers as follows:

	7.1	 	The Company will convene the Shareholders’ Meeting within the time
contemplated in this section 7.1, shall use its reasonable best efforts to
obtain a quorum of shareholders on first call, and shall propose and
recommend to the Shareholders’ Meeting, inter alia, the following:

	 	7.1.1	 	the approval by shareholders of the Company at the
Shareholders’ Meeting of (a) the issuance of the Bonds to the
Subscribers and the issuance of Shares pursuant to the Bonds, (b) the
creation and reservation of the Shares into which the Bonds may be
converted, redeemed or issued as payment of interest, in favour of
the holders of the Bonds, (c) the corresponding suppression of
shareholders’ preferential subscription rights on the Bonds and the
Shares into which the Bonds may be converted, redeemed or issued as
payment of interest, (d) the corresponding delegation to the Board of
Directors to complete the issuance of Bonds to the Subscribers, and
(e) the amendment of the by-laws (statuts) of the Company to permit
the appointment of observers (censeurs);
	 
	 	7.1.2	 	the election of Mr. Andrew J. Sheiner to the Board of
Directors of the Company;
	 
	 	7.1.3	 	The agenda of the Shareholders’ Meeting shall also contain a
proposal for the approval of an offering of Shares in accordance with
Art. L. 443-5 of the French Labor Code.

	 	 	The Shareholders’ Meeting shall be held on 29 October 2004 (on first call)
or such later date (i) on or before 15 November 2004 (on second call) as
may be required by either the Subscribers or the Company due solely to a
failure to achieve quorum at the Shareholders’ Meeting convened on first
call on a date not later than 29 October 2004, (ii) on or before 30
November 2004 as may be required by either the Subscribers or the Company
due solely to a delay by the AMF in issuing its approval (visa) on the
Note d’Opération or (iii) on or before 31 December 2004 as the Subscribers
may agree in writing in their sole and absolute discretion. The date by
which the Shareholders’ Meeting is required by this section 7.1 to be held
is herein referred to as the “Latest Approval Date”.

 

 

	7.2	 	The Company shall prepare and file the Note d’Opération (including an
update of the Document de Référence) provided for in section 3.1.1 and use
its reasonable best efforts to obtain the registration (visa) of the AMF
needed to issue the Bonds in accordance with the Terms and Conditions by
no later than 28 October 2004.
	 
	7.3	 	If, following publication of the Note d’Opération and the Document de
Référence and prior to the Issue Date, any event shall occur or condition
exist as a result of which it is required as a matter of French law to
amend or supplement the Note d’Opération and the Document de Référence, in
order to make the statements therein not misleading or in order for the
Note d’Opération and Document de Référence to comply with applicable law,
the Company shall promptly notify the Subscribers and prepare and furnish,
at its own expense, to the Subscribers, an amended Note d’Opération and
Document de Référence.
	 
	7.4	 	Between the date of this Agreement and 22 October 2004, for the purposes
of due diligence of the Subscribers, the Company shall permit the
Subscribers and the advisors of the Subscribers whose identity shall be
notified to the Company reasonable access during business hours to such
members of the Company’s management team and to such business, financial,
legal, human resources, marketing and other information, and such
facilities and assets of the Company, as the Subscribers may reasonably
request and is reasonably necessary and customary in this type of
transaction. This obligation is subject to (i) any confidentiality
undertaking entered into by the Company with unrelated third parties,
provided that the Company shall use its reasonable best efforts to
promptly obtain any required consent to permit the disclosure of
information that is subject to such undertaking and (ii) applicable laws
and regulations (including guidelines from the AMF) regarding the
disclosure of material information.
	 
	7.5	 	The Company shall use the proceeds of the Subscription Price for general
corporate purposes as determined in its sole discretion.
	 
	7.6	 	The Company shall seek and use its reasonable best efforts to obtain, on
terms satisfactory to the Subscribers in their sole and absolute
discretion, (i) all third-party approvals required under any credit
facility, indenture, contractual or other obligation binding or affecting
the Company in connection with the issuance of the Bonds to the
Subscribers and the issuance of Shares upon conversion of the Bonds and
(ii) all regulatory approvals required to be obtained by the Company in
connection with the issuance of the Bonds to the Subscribers and the
issuance of Shares upon conversion of the Bonds.
	 
	7.7	 	The Company shall use its reasonable best efforts to obtain the approval
of the AMF to issue the Bonds on the Terms of Conditions that would result
in the satisfaction of the conditions set forth in sections 3.2.2 and
3.3.12;
	 
	7.8	 	The Company will not, and will not cause or permit any of its
Subsidiaries to enter into or approve any transaction or matter or take
any other action that would cause any of the representations and
warranties of the Company hereunder to be untrue or any of the conditions
herein to be unsatisfied as at the Issue Date or that would render the
transactions contemplated hereby incapable of completion on the terms set
forth.

 

 

	7.9	 	Transferability of Shares

	 	7.9.1	 	All of the Shares to be delivered upon a Conversion of Bonds,
Redemption of Bonds or Share Interest Payment will be, when
delivered, fully paid, free and clear of any charges, liens or
encumbrances and freely transferable;
	 
	 	7.9.2	 	At the time of the delivery of Shares, upon a Conversion of
Bonds, Redemption of Bonds or Share Interest Payment, as the case may
be, there will exist no options, commitments, warrants or other
subscription, purchase or third-party rights with regard to such
Shares; and
	 
	 	7.9.3	 	The Company will be, immediately prior to any Redemption of
Bonds or Share Interest Payment pursuant to which the Company will
deliver existing Shares to the holder of the Bonds, the sole owner
of, with full legal title to, all the existing Shares that will be
delivered upon Redemption of Bonds or Share Interest Payment.

	7.10	 	In connection with the issuance of Shares to be issued upon Conversion of
Bonds, neither the Company nor any person acting on its behalf will take
any action which would result in the Shares to be issued upon Conversion
of Bonds being exchanged by the Company other than with the Company’s
existing security holders exclusively where no commission or other
remuneration is paid or given directly or indirectly for soliciting such
exchange.
	 
	8.	 	MUTUAL COVENANTS
	 
	8.1	 	If the Company intends to make all or any part of any payment due upon a
Redemption of Bonds or Share Interest Payment by the delivery of Shares,
then each of the Company and its Subsidiaries, the Subscribers and Onex
shall, and Onex and the Subscribers shall cause their Affiliates (as
defined in section 10.4) to, refrain from trading the Shares from the next
Business Day after the date of notice that Shares will be delivered until
the date on which calculation of the payment amount is to be determined.
It is specified for the avoidance of doubt that this provision will not
apply to any market making activity carried out on a discretionary basis
by an investment service provider acting on behalf of the Company or any
of its Subsidiaries.
	 
	9.	 	COVENANTS OF THE SUBSCRIBERS
	 
	9.1	 	Prior to the second anniversary of the Issue Date, the Subscribers
together with their Affiliates will not acquire Shares such that they
would be required under applicable French law to make an offer for all of
the Shares that they do not then own. This provision shall lapse if a
public offer is filed by an acquirer not affiliated nor acting in concert
with the Subscribers with a view to acquiring all of the Shares and all
equity related securities of the Company.
	 
	9.2	 	Upon and after the Issue Date, the Subscribers together with their
Affiliates undertake not to transfer any Bonds to an entity which holds
Shares in the Company and further undertake not to hold Shares and Bonds
for a period of more than five (5) Business Days.

 

 

	9.3	 	The Subscribers shall deliver to the Company on the Issue Date a
certificate of limited partnership with respect to Onex Partners LP and
Onex US Principals LP and a certificate of formation with respect to Onex
American Holdings II LLC and CGG Executive Investco, LLC.
	 
	9.4	 	The Subscribers shall deliver to the Company on the Issue Date a
certificate confirming that the Subscribers do not hold any shares in the
Company as of the Issue Date.
	 
	9.5	 	The Subscribers shall deliver to the Company on the date hereof and on
the Issue Date the certificate set out in schedule J confirming the power
of the signatories to the Agreement and the Registration Rights Agreement
acting on behalf of the Subscribers.
	 
	9.6	 	Each Subscriber undertakes that if, at some future time, it wishes to
offer, sell, pledge, transfer or otherwise dispose of any of the Bonds or
Shares to be issued on Conversion of Bonds, Redemption of Bonds or Share
Interest Payment, it will not, directly or indirectly, offer, sell,
pledge, transfer or otherwise dispose of any of the Bonds or such Shares
except in compliance with the Securities Act, applicable state securities
laws and the respective rules and regulations promulgated thereunder and
if:

	 	(a)	 	the Bonds or such Shares are sold in accordance with Regulation
S under the Securities Act;
	 
	 	(b)	 	the Bonds or such Shares, if sold in the United States, are
sold another “accredited investor” as defined in Rule 501(a) of
Regulation D under the Securities Act or a “qualified institutional
buyer” as defined in Rule 144A under the Securities Act, in a
transaction not involving a public offering under the Securities Act;
	 
	 	(c)	 	the Bonds or such Shares, if sold in the United States, are
sold pursuant to the exemption provided by Rule 144 under the
Securities Act; or
	 
	 	(d)	 	the Bonds or such Shares, if sold in the United States, are
sold pursuant to an effective registration statement under the
Securities Act.

	9.7	 	Each Subscriber undertakes that in connection with any transfer referred
to in clause 9.6(b), it shall obtain from the transferee an executed
letter in the form of Annex A to the Terms and Conditions and deliver the
same to the Fiscal Agent prior to any such transfer, and that any such
transfer shall be in a minimum of US$ 500,000 nominal value of Bonds (or
the equivalent amount in Shares).
	 
	10.	 	GOVERNANCE
	 
	10.1	 	The Subscribers are entitled to propose the appointment of one member of
the Board of Directors of the Company (subject to proportional increase if
the Board of Directors of the Company increases in size beyond 11
members). The Subscribers have proposed the appointment of Mr. Andrew J.
Sheiner as member of the Board of Directors of the Company (the
“Subscriber Board Member”). The Board of Directors of the Company has
approved such proposal and undertakes to propose and recommend the
appointment of Mr. Andrew J. Sheiner for approval at the Shareholders’
Meeting. The Subscriber Board Member will be entitled to a seat on the
strategy committee and to remain on such

 

 

	 	 	committee, or any committee with similar duties and responsibilities
subject to the provisions of sections 10.3 and 10.4.
	 
	10.2	 	In the event that the Subscriber Board Member is incapacitated, dies,
resigns, retires or is removed by the Subscribers during his mandate, the
Subscribers shall be entitled to propose at a shareholders’ meeting of the
Company or, if practically possible, at a meeting of the Board of
Directors, the appointment of a new Subscriber Board Member. For this
purpose, the Subscribers shall advise the identity of the new Subscriber
Board Member to the Company five (5) Business Days before the meeting of
the Board of Directors convening the shareholders’ meeting (or the meeting
of the Board of Directors, as the case may be) at which it wishes to
propose the appointment of the new Subscriber Board Member. Subject to
sections 10.3 and 10.4, the Subscribers shall further be entitled to
propose the renewal of the mandate of the Subscriber Board Member(s) or
the appointment of a new Subscriber Board Member.
	 
	10.3	 	In the event the Company appoints additional directors so that the number
of members composing the Board of Directors exceeds 11 members (including
the Subscriber Board Member), then the Subscribers shall be entitled to
nominate a total number of members equal to the greater of one and the
number (F) determined in accordance with the following formula (rounded
down if F includes a fractional amount that is less than 0.5 and rounded
up if F includes a fractional amount that is 0.5 or greater):
	 
	 	 	          F = [*]
	 
	10.4	 	In the event that the aggregate of (a) the nominal amount of Bonds then
held by the Subscribers and each of the corporations, partnerships,
trusts, or unincorporated organizations of each Subscriber that such
Subscriber, directly or indirectly, controls, or is controlled by or is
under common control with such entity (“control” for the foregoing
purposes being defined as the power derived from holding, directly or
indirectly, a majority of the voting rights of an entity other than a
limited partnership or, in the case of a limited partnership, a majority
of the voting rights of the general partner thereof) (collectively
hereinafter the “Affiliates”), (b) the product of the number of Shares
then held by the Subscribers and their Affiliates that were received upon
a Redemption of Bonds or Share Interest Payment and the Current Market
Value as determined for purposes of each such payment, (c) the product of
the number of Shares then held by the Subscribers and their Affiliates
that were received upon a Conversion of Bonds and the effective conversion
price per Share at which they were issued and (d) the product of the
number of any other Shares then held by the Subscribers and their
Affiliates and by their respective gross purchases prices is less than US$
30 million, then the entitlement referred to in sections 10.1 and 10.3
will lapse and the Subscriber shall cause the Subscriber Board Member(s)
to consent to removal.
	 
	10.5	 	To the extent that the Subscribers do not exercise their common right to
propose the appointment of one or, if applicable, more members of the
Board of Directors of the Company, the Subscribers shall nevertheless be
entitled to appoint one observer (“censeur”) who shall have the right to
attend all meetings of the Board of Directors of the Company. The
observer shall be entitled to receive all the same materials and
information as the members of the Board of Directors receive in respect of
a particular

 

 

	 	 	meeting of the Board of Directors. The provisions of sections 10.2 to
10.4 above shall apply mutatis mutandis to the Subscribers’ entitlement to
appoint an observer.
	 
	11.	 	TAX

The Company shall pay and, within five (5) Business Days of demand, indemnify
the Subscribers against, any duly evidenced cost, loss or liability that the
Subscribers incur in relation to any stamp duty, registration or other similar
Tax payable in connection with the issue of the Bonds, the conversion or
reimbursement of the Bonds or the payment of interest thereon, the entry into,
performance and enforcement of this Agreement and the issue and/or delivery of
Shares resulting from a Conversion of Bonds, Redemption of Bonds or Share
Interest Payment.

	12.	 	INDEMNIFICATION
	 
	12.1	 	The Subscribers will indemnify and hold harmless the Company against any
and all loss, liability, claim, damage and expense (including, without
limitation, reasonable legal fees and other expenses incurred in
connection with any suit, action, proceeding or investigation or any claim
asserted, as such fees and expenses are incurred) whatsoever, as incurred,
arising out of or relating to or resulting from any breach of the
Subscribers’ representations, warranties and covenants under this
Agreement.
	 
	12.2	 	The Company will indemnify and hold harmless the Subscribers against any
and all loss, liability, claim, damage and expense (including, without
limitation, reasonable legal fees and other expenses incurred in
connection with any suit, action, proceeding or investigation or any claim
asserted, as such fees and expenses are incurred) whatsoever, as incurred,
arising out of or relating to or resulting from:

	 	12.2.1	 	any breach of any of the Company’s representations, warranties and
covenants under this Agreement; or
	 
	 	12.2.2	 	any untrue statement of a material fact contained or alleged to be
contained in the CGG 20-F or the Note d’Opération or the Document de
Référence or caused by any omission or alleged omission to state
therein a material fact required by applicable law or regulation 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.

	12.3	 	Promptly after (x) receipt by an indemnified party under section 12.1 or
12.2 above of notice of the commencement by a third party of any action in
respect of which a claim is to be made against an indemnifying party under
such section or (y) the indemnified party becoming aware of any fact that
the indemnified party reasonably expects may give rise to a claim by the
indemnified party under section 12.1 or 12.2 above (whether in respect of
a third party claim or otherwise), such indemnified party shall notify the
indemnifying party in writing; provided that the omission so to notify the
indemnifying party or any delay in so notifying shall not relieve the
indemnifying party from liability hereunder, except to the extent that
the indemnifying party is materially prejudiced by such omission or delay.
In case any such action shall be brought against any indemnified party
and it shall notify the indemnifying party of the commencement thereof,
the indemnifying party shall be entitled to participate in the defence of
such action and, to

 

 

	 	 	the extent that it shall wish, jointly with any other indemnifying party
similarly notified, to assume the defense thereof provided that (i) it
proceeds with such defense on a timely basis, (ii) the assumption of
defense does not conflict with the interests of the indemnified party,
(iii) counsel selected by the indemnifying party is reasonably
satisfactory to such indemnified party (which shall not, except with the
consent of the indemnified party, be counsel to the indemnifying party).
After notice from the indemnifying party to such indemnified party of its
election so to assume the defense of any such action (and for such time as
the conditions set forth in clauses (i), (ii) and (iii) above continue to
be satisfied), the indemnifying party shall not be liable to such
indemnified party for any legal expenses of other counsel or any other
expenses, in each case subsequently incurred by such indemnified party, in
connection with the defense thereof other than reasonable costs of
investigation and the reasonable costs of complying with its discovery and
other continuing obligations in respect of such action. No indemnifying
party shall, without the written consent of the relevant indemnified
party, such consent not to 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 (i) includes an
unconditional release of the indemnified party from all liability arising
out of such action or claim and (ii) 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.
	 
	 	 	The indemnifying party shall not be liable for any settlement of any
proceeding effected without its written consent, such consent not to be
unreasonably withheld, but if settled with such consent or if there shall
be a final judgment for the plaintiff, the indemnifying party shall
continue to be obliged hereunder to indemnify the indemnified party from
and against any loss or liability by reason of such settlement or
judgment. If the indemnifying party shall not have provided its written
consent to any settlement proposed to be accepted by the indemnified
party, the indemnifying party shall, at the option of the indemnified
party upon written notice and to the extent that it has not already done
so, assume the defense of any such action.
	 
	12.4	 	Upon payment of the Breakage Fee by the Company to Onex in
accordance with section 5.3, neither the Subscriber nor the Company will be entitled
to any right to indemnification pursuant to this section 12 other than (a)
in respect of claims made or actions or proceedings commenced by any third
party and (b) in respect of claims arising from any breach on or after the
payment of the Breakage Fee by (x) the Company or the Subscriber of their
respective obligations under section 16, or (y) the Company of its
obligations under section 17 hereof.

 

 

	13.	 	NOTICES
	 
	13.1	 	Any notices or other communications required or permitted hereunder shall
be sufficiently given if in writing and personally delivered or sent by
registered or certified mail, return receipt requested, postage prepaid,
overnight delivery service such as DHL or if sent by facsimile
transmission with confirmation of receipt addressed as follows or to such
other address as the relevant party shall have given notice of pursuant
hereto:

	 	 	 
	If to the Subscribers, to :

	 	c/o Onex Partners LP

c/o Onex Advisors Partners LP

161, Bay Street, P.O. Box 700

Toronto, Ontario, Canada M5J 2S1

Attention: Nigel Wright/Andrew Sheiner

Tel: + 1 (416) 362 7711

Fax: + 1 (416) 362 5765
	 
	 	 
	With a copy to:

	 	Shearman & Sterling LLP

114 avenue des Champs Elysées

75008 Paris, France

Attention: Sami Toutounji

Tel: + 33 1 53 89 70 00

Fax: + 33 1 53 89 70 70
	 
	 	 
	If to the Company, to:

	 	Compagnie Générale de Géophysique

Tour Maine-Montparnasse

33, avenue du Maine

75755 Paris Cedex 15 France

Attention: Michel Ponthus/Béatrice Place-Faget

Tel: + 33 1 64 47 45 00

Fax: + 33 1 64 47 34 29
	 
	 	 
	With a copy to:

	 	Linklaters

25, rue de Marignan

75008 Paris, France

Attention: Thomas N. O’Neill III

Tel: + 33 1 56 43 56 43

Fax: + 33 1 43 59 41 96

All such notices and other communications shall be deemed to have been given
(w) if by personal delivery, on the day of such delivery; (x) if by registered
or certified mail, on the seventh day after the mailing thereof; (y) if by
overnight delivery service such as DHL, on the next business day after the
mailing thereof; and (z) if by fax, on the next day following the day on which
such fax was sent with receipt thereof confirmed by answer back.

 

 

	14.	 	MISCELLANEOUS
	 
	14.1	 	Should any clause or section of this Agreement be void, unenforceable,
illegal or inapplicable, all other clauses or sections shall remain valid
and binding on the parties. The parties further agree to replace such void
or unenforceable provision of this Agreement with a valid and enforceable
provision that will achieve, to the extent possible, the economic,
business and other purposes of such void or unenforceable provision.
	 
	14.2	 	The schedules to this Agreement form an integral part of this Agreement.
	 
	14.3	 	The fact that the Subscribers or the Company have not exercised any right
to which they are entitled under this Agreement, as well as any delay by
the Subscribers or the Company in the exercise of the said rights, does
not amount to a waiver of such rights, even where such omission or delay
is the fault of the party who is entitled to such right. Similarly, the
partial exercise of any right or the use of only one of the proceedings
available to the Subscribers or the Company shall not prevent the
Subscribers or the Company from fully exercising that right or exhausting
all available proceedings. The remedies envisaged in this Agreement do not
exclude recourse to legal proceedings (except as provided for in section
5.3).
	 
	14.4	 	The provisions of this Agreement shall remain in full force and effect
after the signing thereof and the completion of the issue and delivery of
the Bonds to the Subscribers on the Issue Date. In case of termination of
this Agreement in accordance with its terms, sections 5.3, 6
(Representations and Warranties), 12 (Indemnification), 13 (Notices), 16
(Confidentiality), 17 (Exclusivity) and 18 (Governing Law and
Jurisdiction) in this Agreement shall remain in full force and effect (it
being understood that the representations and warranties in section 6 are
given only as of the date of this Agreement and the Issue Date), provided
that upon payment of the Breakage Fee by the Company to Onex in accordance
with section 5.3, the provisions of section 5.3 will prevail to the extent
of any inconsistency with this section 14.4.
	 
	14.5	 	This Agreement shall not confer any rights or remedies upon any party
other than the parties to this Agreement and their respective successors
and permitted assignees or transferees.

 

 

	15.	 	SUBSTITUTION OF SUBSCRIBERS

At any time after the Issue Date, the Subscribers shall have the right to
nominate, by written notice to the Company, an Affiliate of the Subscribers or
a related co-investor acquiring Bonds from any Subscriber or any subsequent
transferee contemplated by this section 15 to succeed to and be substituted for
the continuing rights and obligations of the Subscribers under this Agreement
(a “Substitution”) with such effect as if such nominated Affiliate or related
co-investor of the Subscribers had been named as a Subscriber herein, provided
that sections 9.1, 6.2 (Representations and Warranties of the Subscribers), 12
(Indemnification), 13 (Notices), 16 (Confidentiality) and 18 (Governing Law and
Jurisdiction) shall remain in full force and effect with respect to any
Subscriber after a Substitution (but for the avoidance of doubt, shall also
bind the successor Affiliate or related co-investor). As from the date of such
Substitution, subject to the preceding sentence, any Subscriber that ceases to
hold any Bonds shall be relieved of its obligations hereunder to the extent
included in such Substitution, and such obligations shall be fully vested in
the successor Affiliate or related co-investor.

	16.	 	CONFIDENTIALITY

Except (x) with the prior written consent of the other parties hereto or (y) if
the information is otherwise publicly available, including in any filing
required by law or otherwise made with any governmental or regulatory authority
or stock exchange, unless such information was made publicly available by
either the Company or the Subscribers in breach of this Agreement, the Company
and the Subscribers shall not disclose the content of this Agreement, nor the
transactions contemplated in this Agreement and the information received in
this context to any third party except to their Affiliates, business partners,
consultants, financial and legal advisors, members of their respective boards
of directors and of their Affiliates and except insofar as is required by
applicable law, regulations, legal process or the rules or requirements of any
relevant securities, regulatory authority or stock exchange (each, a “Required
Disclosure”). Prior to any Required Disclosure, the party that is required to
make the disclosure shall inform the other party to the extent reasonably
possible and permissible. The parties will use their reasonable best efforts
to coordinate any disclosure, including any Required Disclosure, such that the
information being provided is consistent as to scope and content. This
Agreement and the terms of this Agreement may be disclosed by the Company to
any financial institution lending monies to the Company or with a view to
obtain such financing so long as such financial institutions agree in writing
and on similar terms as contained in this section 16 to maintain the content of
this Agreement confidential.

 

 

	17.	 	EXCLUSIVITY

For the period commencing on the date hereof and ending 26 November 2004, the
Company shall not, directly or indirectly, (i) effect or offer, propose or
agree to effect any sale of equity or equity-linked securities in connection
with financing a transaction involving the Company and Petroleum Geo-Services,
(ii) solicit or respond to inquiries, offers, requests or proposals in respect
of any such potential transaction or matter or (iii) take any step in
furtherance of or assist or encourage any person in respect of or in connection
with any of the foregoing, in each case, without first informing the
Subscribers.

	18.	 	GOVERNING LAW AND JURISDICTION

This Agreement shall be governed by and construed in accordance with the laws
of the French Republic, and the parties irrevocably submit to the Commercial
Court of Paris (Tribunal de Commerce de Paris), which shall have exclusive
jurisdiction to hear and decide any suit, action, dispute or proceeding
relating to this Agreement (“Proceedings”), and for this purpose each party
irrevocably submits to the jurisdiction of the Tribunal de Commerce de Paris.
Each party waives any objection it might at any time have to the Tribunal de
Commerce de Paris being nominated as the forum to hear and decide Proceedings,
and agrees not to claim that the Tribunal de Commerce de Paris is not an
appropriate or convenient forum.

	19.	 	OTHER AGREEMENTS

This Agreement supersedes any previous agreement between the Company and the
Subscribers in relation to its subject matter, and in particular the term sheet
executed on 1 September 2004.

IN WITNESS of which this Agreement has been duly executed in Paris in two (2)
originals and two (2) sets of schedules on the date first above written.

 

 

IN WITNESS of which this Agreement has been duly executed in Paris in two (2)
originals and two (2) sets of schedules on the date first above written.

	 	 	 
	COMPAGNIE
GÉNÉRALE DE GÉOPHYSIQUE

By: /s/ Robert Brunck

Title: Chairman and Chief Executive Officer

	 	CGG EXECUTIVE INVESTCO, LLC

By:   /s/ Robert M. Le
Blanc   

Name: Robert M. Le Blanc

Title: Director

By:   /s/ Donald West   

Name: Donald West

Title: Director
	 
	 	 
	ONEX PARTNERS LP,

by Onex Partners GP LP, its general partner

by Onex Partners Manager GP LP, its agent,

by Onex Partners Manager GP Inc., its general partner

By:   /s/ Robert M. Le Blanc   

Name: Robert M. Le Blanc

Title: Managing Director

By:   /s/ Eric J. Rosen    

Name: Eric J. Rosen

Title: Managing Director

	 	ONEX AMERICAN HOLDINGS II LLC

By:   /s/ Eric J. Rosen   

Name: Eric J. Rosen

Title: Director

By:   /s/ Donald West   

Name: Donald West

Title: Director
	 
	 	 
	ONEX CORPORATION

By:   /s/ Nigel S. Wright   

Name: Nigel S. Wright

Title: Managing Director

By:   /s/ Andrew J. Sheiner   

Name: Andrew J. Sheiner

Title: Managing Director

(solely with respect to sections 5.1, 5.3, 5.4 and 8.1)

	 	ONEX US PRINCIPALS LP

by Onex American Holdings GP LLC,

its general partner

By:   /s/ Eric J. Rosen   

Name: Eric J. Rosen

Title: Director

By:   /s/ Donald West   

Name: Donald West

Title: Director

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