Document:

exv10w2

 

EXHIBIT 10.2

CORE LABORATORIES N.V.

1995 LONG-TERM INCENTIVE PLAN

(As Amended and Restated Effective as of May 29, 1997)

Performance Share Award

Restricted Share Agreement

(ROE Based)

          THIS
AGREEMENT is made as of this 1st day of September, 2004, between Core
Laboratories N.V., a Dutch limited liability company (the “Company”), and
Richard L. Bergmark (“Participant”) in order to carry out the purposes of the
Core Laboratories N.V. 1995 Long-Term Incentive Plan, as amended (the “Plan”),
by issuing Participant unfunded and unsecured rights to acquire shares of
common stock of the Company, subject to certain restrictions, and in
consideration of the mutual agreements and other matters set forth herein and
in the Plan, the Company and Participant hereby agree as follows:

I.

Definitions

          1.1 Definitions. Wherever used in this Agreement, the following words and
phrases when capitalized will have the meanings ascribed below, unless the
context clearly indicates to the contrary, and all other capitalized terms used
in this Agreement, which are not defined below, will have the meanings set
forth in the Plan.

	(1)	 	“Agreement” means this Performance Share Award Restricted Share Agreement
(ROE Based) between Participant and the Company.
	 
	(2)	 	“Date of Grant” means, with respect to each grant of Restricted
Performance Shares, the applicable Date of Grant set forth on Appendix A
of this Agreement.
	 
	(3)	 	“Disability” means a determination by the Committee, based on a written
medical opinion (unless waived by the Committee as unnecessary), that
Participant is permanently incapable of continuing his usual and customary
employment with the Company or any Subsidiary for physical or mental
reasons.
	 
	(4)	 	“EBIT” means, with respect to a Performance Period, the aggregate
operating earnings from continuing operations of the Company and its
consolidated subsidiaries during such Performance Period, determined prior
to the charges, costs, and expenses associated with interest and income
taxes. EBIT shall be determined based on the regularly prepared and
publicly available consolidated statements of operations of the Company
prepared in accordance with GAAP.
	 
	(5)	 	“Ending Shareholders’ Equity” means, with respect to a Performance
Period, the total shareholders’ equity in the Company as of the last day
of such Performance Period. Ending Shareholders’ Equity shall be
determined based on the regularly prepared and
publicly available consolidated balance sheet of the Company and its
consolidated subsidiaries prepared in accordance with GAAP.

 

 

	(6)	 	“Forfeiture Restrictions” means the Forfeiture Restrictions as set forth
in Section 3.1 herein.
	 
	(7)	 	“Full Vesting ROE Percentage” means, with respect to each grant of
Restricted Performance Shares, the Return on Equity set forth on Appendix
A of this Agreement with respect to such grant that must be achieved in
order for Participant to Vest 100% in such Restricted Performance Shares
in accordance with the schedule set forth in Section 4.1(a) herein.
	 
	(8)	 	“GAAP” means United States generally accepted accounting principles,
consistently applied.
	 
	(9)	 	“Incremental Percentage” means, with respect to each grant of Restricted
Performance Shares, the amount (expressed as a percentage) equal to A divided by B, where:

	A	 	equals 80%;
	 
	B	 	equals 10 multiplied by C; and
	 
	C	 	equals (i) the Full Vesting ROE Percentage applicable to such Restricted Performance
Shares minus (ii) the Threshold Vesting ROE Percentage applicable to such Restricted
Performance Shares.

	(10)	 	“Performance Period” means, with respect to each grant of Restricted
Performance Shares, the three-year period ending on the date set forth on
Appendix A of this Agreement that commences on the Date of Grant.
	 
	(11)	 	“Restricted Performance Shares” means the right to acquire Common Shares
issued in Participant’s name pursuant to this Agreement, subject to the
Forfeiture Restrictions, and as the context may require, any such Common
Shares so issued in Participant’s name.
	 
	(12)	 	“Return on Equity” means, with respect to a Performance Period, the
amount (expressed as a percentage rounded to one decimal place) determined
by dividing (i) the EBIT for such Performance Period by (ii) the Ending
Shareholders’ Equity for such Performance Period.
	 
	(13)	 	“Service” means Participant’s status as an employee of the Company or a
Subsidiary or a corporation or parent or subsidiary of such corporation
assuming or substituting the Restricted Performance Shares.
	 
	(14)	 	“Threshold Vesting ROE Percentage” means, with respect to each grant of
Restricted Performance Shares, the Return on Equity set forth on Appendix
A of this Agreement with respect to such grant that must be achieved in
order for Participant to Vest 20% in such Restricted Performance Shares in
accordance with the schedule set forth in Section 4.1(a) herein.
	 
	(15)	 	“Vest” means the lapse of the Forfeiture Restrictions with respect to all
or a portion of the Restricted Performance Shares.

2

 

          1.2 Number and Gender. Wherever appropriate herein, words used in the singular
will be considered to include the plural, and words used in the plural will be
considered to include the singular. The masculine gender, where appearing
herein, will be deemed to include the feminine gender where appropriate.

          1.3 Headings of Articles and Sections. The headings of Articles and Sections
herein are included solely for convenience. If there is any conflict between
such headings and the text of this Agreement, the text will control. All
references to Articles, Sections, and Paragraphs are to this document unless
otherwise indicated.

II.

Award of Restricted Performance Shares

          2.1 Award of Restricted Performance Shares. Effective as of the Date of Grant,
the Company awards to Participant the right to receive, after and to the extent
the Forfeiture Restrictions lapse, the number of Common Shares set forth on
Appendix A of this Agreement, subject to certain restrictions and shall be
herein referred to as the “Restricted Performance Shares.” The rights awarded
to Participant pursuant to this Agreement are unsecured and unfunded rights to
receive the Restricted Performance Shares, which rights shall be subject to the
terms, conditions, and restrictions set forth in this Agreement and the Plan.
Participant hereby accepts the Restricted Performance Shares and agrees with
respect thereto to the terms and conditions set forth in this Agreement and the
Plan.

          2.2 Subsequent Awards. In the sole discretion of the Company, subsequent
grants of Restricted Performance Shares to Participant, if any, may be
evidenced by amending Appendix A of this Agreement to reflect such subsequent
grant. Any such subsequent grant of Restricted Performance Shares shall be
issued upon acceptance by Participant and upon satisfaction of the conditions
of this Agreement and the Plan. Participant shall accept any such subsequent
grant of Restricted Performance Shares when issued and agrees with respect
thereto to the terms and conditions set forth in this Agreement and the Plan.
Regardless of the number of subsequent grants of Restricted Performance Shares,
if any, evidenced by this Agreement, this Agreement shall be interpreted to
apply separately to each grant of Restricted Performance Shares.

III.

Forfeiture Restrictions

          3.1 Forfeiture Restrictions.

          (a) The Restricted Performance Shares may not be sold, assigned, pledged,
exchanged, hypothecated or otherwise transferred, encumbered or disposed of to
the extent then subject to the Forfeiture Restrictions (as hereinafter defined). In the
event of termination of Participant’s Service for reasons other than death or
Disability, Participant shall, for no consideration, forfeit to the Company all
Restricted Performance Shares to the extent then subject to the Forfeiture
Restrictions. In addition, in the event the Return on Equity for the
Performance Period does not equal or exceed the Full Vesting ROE Percentage,
Participant shall, for no consideration, forfeit to the Company the number of
Restricted Performance Shares that do not Vest pursuant to the provisions of
Section 4.1. The prohibition against transfer and the

3

 

obligation to forfeit
and surrender Restricted Performance Shares to the Company upon (i) termination
of Service for reasons other than death or Disability or (ii) the Return on
Equity for the Performance Period being less than the Full Vesting ROE
Percentage are herein referred to as the “Forfeiture Restrictions.”

          (b) The Forfeiture Restrictions shall be binding upon and enforceable
against any transferee of Restricted Performance Shares. The prohibitions of
this Section 3.1 shall not apply to the transfer of Restricted Performance
Shares pursuant to a plan of reorganization of the Company, but the stock,
securities or other property received in exchange therefor shall also become
subject to the Forfeiture Restrictions and provisions governing the lapsing of
such Forfeiture Restrictions applicable to the original Restricted Performance
Shares for all purposes of this Agreement.

IV.

Vesting

          4.1 Vesting/Lapse of Forfeiture Restrictions.

          (a) As soon as administratively practicable after the last day of the
Performance Period, the Committee shall determine the EBIT, Ending
Shareholders’ Equity and Return on Equity for the Performance Period. The
Committee’s determinations pursuant to the preceding sentence shall be
certified by the Committee in writing and delivered to the Secretary of the
Company. For purposes of the preceding sentence, approved minutes of the
Committee meeting in which the certification is made shall be treated as a
written certification. At the time of such certification and based on the
Return on Equity for the Performance Period, the Restricted Performance Shares
shall Vest in accordance with the following schedule (rounded to the nearest
whole share):

	 	 	 	 	 
	Return on Equity for the	 	Percentage of Restricted
	 Performance Period
	 	Performance Shares Vesting

	At or above the Full Vesting ROE Percentage

	 	 	100	%
	 
	 	 	 	 
	Above the Threshold Vesting ROE Percentage but less than the Full Vesting ROE Percentage

	 	Interpolated
percentage between 20% and 100%

	 
	 	 	 	 
	At the Threshold Vesting ROE Percentage

	 	 	20	%
	 
	 	 	 	 
	Below the Threshold Vesting ROE Percentage

	 	 	0	%

The interpolated percentage referred to in the schedule above shall be
determined by increasing the 20% Vesting percentage for a Return on Equity
equal to the Threshold Vesting ROE Percentage by the Incremental Percentage for
each one-tenth of one percent (0.1%) by which the Return on Equity exceeds the
Threshold Vesting ROE Percentage. To illustrate, if, for the Performance
Period, the Full Vesting ROE Percentage is 18.0%, the Threshold Vesting ROE
Percentage is 12.0%, and the Return on Equity is 15.6%, then the Incremental
Percentage is 1 1/3% (80% divided by (10 multiplied by (18.0% minus 12.0%))).
Since the Return on Equity exceeds the Threshold Vesting ROE Percentage in this
example by 3.6% (or 36 one-tenth of one percent increments), the Vesting
percentage shall be 68% (20% plus (1 1/3% multiplied by 36)).

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          (b) Notwithstanding any provision of Section 4.1(a) to the contrary and
except as provided in Section 4.2 and Section 4.3, no Restricted Performance
Shares shall Vest if Participant’s Service is terminated prior to the last day
of the Performance Period for reasons other than death or Disability.

          4.2 Acceleration of Vesting. In the event of a Change in Control prior to the
last day of a Performance Period and while Participant is in the Service of the
Company or a Subsidiary (or in the event of a termination of Participant’s
Service for any reason whatsoever prior to the last day of a Performance Period
and upon the date upon which a Change in Control occurs), all of the Restricted
Performance Shares with respect to such Performance Period shall Vest as of the
effective date of such Change in Control.

          4.3 Effect of Termination of Service on Vesting.

          (a) Upon termination of Participant’s Service for any reason other than
death or Disability, the Restricted Performance Shares shall be immediately
forfeited to the extent not then Vested.

          (b) Upon termination of Participant’s Service by reason of death or
Disability, the Restricted Performance Shares shall not be immediately
forfeited, but rather may become Vested as provided in Section 4.1 based on the
Return on Equity for the Performance Period.

V.

Delivery of Restricted Performance Shares

          5.1 Delivery of Restricted Performance Shares. As soon as practicable after
the Restricted Performance Shares become Vested, and subject to the tax
withholding referred to in Section 7.4, the Company shall deliver to
Participant stock certificates issued in Participant’s name for the number of
such Vested Restricted Performance Shares.

VI.

Status of Restricted Performance Shares and Restrictions

          6.1 Status of Restricted Performance Shares. With respect to the status of the Restricted Performance Shares, at the time
of execution of this Agreement Participant understands and agrees to all of the
following:

          (a) Participant agrees that the Restricted Performance Shares will not be
sold or otherwise disposed of in any manner that would constitute a violation
of any applicable securities laws, whether federal or state.

          (b) Participant agrees that (i) the Company may refuse to register the
Restricted Performance Shares on the stock transfer records of the Company if
such proposed transfer would in the opinion of counsel satisfactory to the
Company constitute a violation of any applicable securities law, and (ii) the
Company may give related instructions to its transfer agent, if any, to stop
registration of the Restricted Performance Shares.

          6.2 Certificates and Shareholder Rights. Restricted Performance Shares shall
not constitute issued and outstanding shares of Common Shares until issued and
delivered in

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accordance with this Agreement and the Plan. Prior to the time
the Restricted Performance Shares are issued and delivered, Participant will
not have the right to vote any Restricted Performance Shares, to receive or
retain any dividends or distributions paid or distributed on issued and
outstanding shares of Common Shares or to exercise any other rights, powers and
privileges of a shareholder with respect to any Restricted Performance Shares.
In accordance with the provisions of Article V, the Company shall deliver to
Participant stock certificates issued in Participant’s name for the number of
Restricted Performance Shares that have become Vested.

VII.

Miscellaneous

          7.1 Service Relationship. For purposes of this Agreement, any question as to
whether and when there has been a termination of Participant’s Service, and the
cause of such termination, shall be determined by the Committee, and its
determination will be final. Without limiting the scope of the preceding
sentence, it is expressly provided that Participant shall be considered to have
terminated Service at the time of the termination of the “Subsidiary” status
under the Plan of the entity or other organization that employs Participant.

          7.2 Notices. For purposes of this Agreement, notices and all other
communications provided for herein will be in writing and will be deemed to
have been duly given when personally delivered or (i) if Participant is outside
of the United States at the time of transmission of such notice, when sent by
courier, facsimile, or electronic mail, and (ii) if Participant is within the
United States at the time of transmission of such notice, when mailed by United
States registered or certified mail, return receipt requested, postage prepaid,
addressed to the Company at its principal executive office and to Participant
at the last address filed with the Company or to such other address as either
party may furnish to the other in writing in accordance herewith, except that
notices of changes of address will be effective only upon receipt.

          7.3 Restrictions on Transfer of Shares. No Restricted Performance Shares may
be sold, exchanged, transferred (including, without limitation, any transfer to
a nominee or agent of Participant), assigned, pledged, hypothecated, or
otherwise disposed of, including by operation of law, in any manner that
violates the Forfeiture Restrictions and any other provisions of this
Agreement, and, until the date on which such Forfeiture Restrictions lapse, any
such attempted disposition shall be void. The Company shall not be required
(i) to transfer on its books any shares that will have been transferred in
violation of this Agreement or (ii) to treat as owner of such shares, to accord
the right to vote as such owner, or to pay dividends to any transferee to whom
such shares will have been so transferred.

6

 

          7.4 Withholding of Tax. To the extent that the receipt of Restricted
Performance Shares or the lapse of any Forfeiture Restriction results in
compensation income to Participant for federal or state income tax purposes,
Participant shall deliver to the Company at the time of such event such amount
of money or Common Shares as the Company may require to meet all obligations
under applicable tax laws or regulations, and, if Participant fails to do so,
the Company is authorized to withhold or cause to be withheld from any cash or
Common Shares remuneration then or thereafter payable to Participant any tax
required to be withheld by reason of such resulting compensation income.

          7.5 No Employment Rights Conferred. No provision of this Agreement shall
confer any right upon Participant to continued employment with the Company or
any Subsidiary.

          7.6 Limitation of Rights. No provision of this Agreement shall be construed to
give Participant or any other person any interest in any fund or in any
specified asset or assets of the Company or a Subsidiary.

          7.7 Binding Effect. This Agreement shall be binding upon and inure to the
benefit of any successors to the Company and all persons lawfully claiming
under Participant.

          7.8 Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the state of Texas.

          IN WITNESS WHEREOF, the Company has caused this Agreement to be duly
executed by its officer thereunto duly authorized, and Participant has executed
this Agreement, all effective as of the Date of Grant.

	 	 	 	 	 
	 	CORE LABORATORIES N.V., by its sole managing director,

Core Laboratories International B.V.

 	 
	 	By:  	 	 
	 	Name:
Title:  	 Jacobus Schouten

Managing Director of Core Laboratories International B.V. 	 
	 

	 	 	 	 	 
	 	PARTICIPANT

 	 
	 	By:  	 	 
	 	Name: Richard L. Bergmark 	 

7

 

	 	 	 	 	 

APPENDIX A

Performance Share Award

Restricted Share Agreement

(ROE Based)

AWARD OF RESTRICTED PERFORMANCE SHARES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Number of	 	 	 	 	 	 	 	 	 	 
	 	 	Restricted	 	Performance	 	 	 	 	 	 	 	 
	Date of	 	Performance	 	Period	 	Performance	 	Full Vesting ROE	 	Threshold Vesting	 	 
	Grant
	 	Shares
	 	Begins
	 	Period Ends
	 	Percentage
	 	ROE Percentage
	 	Initial

	January 1, 2004

	 	 	10,000	 	 	January 1, 2004
	 	December 31, 2006
	 	 	18.0	%	 	 	12.0	%	 	

	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

A-1exv10w3

 

EXHIBIT 10.3

CORE LABORATORIES N.V.

1995 LONG-TERM INCENTIVE PLAN

(As Amended and Restated Effective as of May 29, 1997)

Performance Share Award

Restricted Share Agreement

[RESTATED]

     THIS
AGREEMENT is made as of this 1st day of September, 2004, between Core
Laboratories N.V., a Dutch limited liability company (the “Company”), and
Richard L. Bergmark (“Participant”) in order to carry out the purposes of the
Core Laboratories N.V. 1995 Long-Term Incentive Plan, as amended (the “Plan”),
by issuing Participant unfunded and unsecured rights to acquire shares of
common stock of the Company, subject to certain restrictions, and in
consideration of the mutual agreements and other matters set forth herein and
in the Plan, the Company and Participant hereby agree as follows:

I.

Definitions

     1.1 Definitions. Wherever used in this Agreement, the following words and
phrases when capitalized will have the meanings ascribed below, unless the
context clearly indicates to the contrary, and all other capitalized terms used
in this Agreement, which are not defined below, will have the meanings set
forth in the Plan.

	(1)	 	“Agreement” means this Performance Share Award Restricted Share Agreement
between Participant and the Company.
	 
	(2)	 	“Base Share Value” means the trailing 20-day average closing share price
for the Common Shares or Peer Company Shares, as the case may be,
determined as of the December 31 immediately prior to the first day of the
Performance Period; provided, however, that with respect to the first
Performance Period beginning January 1, 2002, Base Share Value means the
closing share price for the Common Shares or Peer Company Shares, as the
case may be, on December 31, 2001.
	 
	(3)	 	“Change in Control” means “Change in Control” as defined in the Plan.
	 
	(4)	 	“Date of Grant” means, with respect to each grant of Restricted
Performance Shares, the applicable Date of Grant set forth on Appendix A
of this Agreement.
	 
	(5)	 	“Disability” means a determination by the Committee, based on a written
medical opinion (unless waived by the Committee as unnecessary), that
Participant is permanently incapable of continuing his usual and customary
employment with the Company or any Subsidiary for physical or mental
reasons.
	 
	(6)	 	“Ending Share Value” means the trailing 20-day average closing share
price of the Common Shares or the Peer Company Shares, as the case may be,
determined as of the last day of the Performance Period.

 

 

	(7)	 	“Forfeiture Restrictions” means the Forfeiture Restrictions as set forth
in Section 3.1 herein.
	 
	(8)	 	“Participant” means the individual to whom the Restricted Performance
Shares are granted as specified above.
	 
	(9)	 	“Peer Company” means each of the 15 companies comprising the Oil Service
Sector Index (OSX).
	 
	(10)	 	“Peer Company Shares” means the common shares of a Peer Company.
	 
	(11)	 	“Performance Period” means, with respect to each grant of Restricted
Performance Shares, the three-year period ending on the date set forth on
Appendix A of this Agreement that commences on the Date of Grant.
	 
	(12)	 	“Restricted Performance Shares” means the right to acquire Common Shares
issued in Participant’s name pursuant to this Agreement, subject to the
Forfeiture Restrictions, and as the context may require, any such Common
Shares so issued in Participant’s name.
	 
	(13)	 	“Service” means Participant’s status as an employee of the Company or a
Subsidiary or a corporation or parent or subsidiary of such corporation
assuming or substituting the Restricted Performance Shares.
	 
	(14)	 	“Total Shareholder Return” means the compound annual rate of return over
the Performance Period for the Company or a Peer Company, as the case may
be, from changes in the trading price of such entity’s common stock and
any dividends and other distributions paid by such entity on its common
stock during the Performance Period, calculated by (i) assuming one share
of such entity’s common stock is purchased on the first day of the
Performance Period at the Base Share Value, (ii) assuming that additional
 shares (or portion of shares) of such entity’s common stock are purchased
with any dividends paid on the initial share and on shares accumulated
through the assumed reinvestment of dividends and other distributions,
with such purchase being made on the dividend or distribution payment date
at a price equal to the closing price of such entity’s common stock on
such payment or distribution date, (iii) calculating the aggregate number
of shares of such entity’s common stock that would be accumulated over the
Performance Period, (iv) multiplying the number of shares calculated in
clause (iii) by the Ending Share Value, and (v) determining the annual
compound rate of return over the Performance Period between the Base Share
Value set forth in clause (i) and the value resulting from the computation
in clause (iv).
	 
	(15)	 	“Vest” means the lapse of the Forfeiture Restrictions with respect to all
or a portion of the Restricted Performance Shares.

     1.2 Number and Gender. Wherever appropriate herein, words used in the singular will be considered
to include the plural, and words used in the plural will be considered to
include the singular. The masculine gender, where appearing herein, will be
deemed to include the feminine gender where appropriate.

2

 

     1.3 Headings of Articles and Sections. The headings of Articles and Sections
herein are included solely for convenience. If there is any conflict between
such headings and the text of this Agreement, the text will control. All
references to Articles, Sections, and Paragraphs are to this document unless
otherwise indicated.

II.

Award of Restricted Performance Shares

     2.1 Award of Restricted Performance Shares. Effective as of the Date of Grant,
the Company awards to Participant the right to receive, after and to the extent
the Forfeiture Restrictions lapse, the number of Common Shares set forth on
Appendix A of this Agreement, subject to certain restrictions and shall be
herein referred to as the “Restricted Performance Shares.” The rights awarded
to Participant pursuant to this Agreement are unsecured and unfunded rights to
receive the Restricted Performance Shares, which rights shall be subject to the
terms, conditions, and restrictions set forth in this Agreement and the Plan.
Participant hereby accepts the Restricted Performance Shares and agrees with
respect thereto to the terms and conditions set forth in this Agreement and the
Plan.

     2.2 Subsequent Awards. In the sole discretion of the Company, subsequent
grants of Restricted Performance Shares to Participant, if any, may be
evidenced by amending Appendix A of this Agreement to reflect such subsequent
grant. Any such subsequent grant of Restricted Performance Shares shall be
issued upon acceptance by Participant and upon satisfaction of the conditions
of this Agreement and the Plan. Participant shall accept any such subsequent
grant of Restricted Performance Shares when issued and agrees with respect
thereto to the terms and conditions set forth in this Agreement and the Plan.
Regardless of the number of subsequent grants of Restricted Performance Shares,
if any, evidenced by this Agreement, this Agreement shall be interpreted to
apply separately to each grant of Restricted Performance Shares.

III.

Forfeiture Restrictions

     3.1 Forfeiture Restrictions.

     (a) The Restricted Performance Shares may not be sold, assigned, pledged,
exchanged, hypothecated or otherwise transferred, encumbered or disposed of to
the extent then subject to the Forfeiture Restrictions (as hereinafter
defined). In the event of termination of Participant’s Service for reasons
other than death or Disability, Participant shall, for no consideration,
forfeit to the Company all Restricted Performance Shares to the extent then
subject to the Forfeiture Restrictions. In addition, in the event the
Company’s Total Shareholder Return over the Performance Period does not equal
or exceed the 75th percentile ranking
compared to the Total Shareholder Return of the Peer Companies,
Participant shall, for no consideration, forfeit to the Company the number of
Restricted Performance Shares that do not Vest pursuant to the provisions of
Section 4.1. The prohibition against transfer and the obligation to forfeit
and surrender Restricted Performance Shares to the Company upon (i) termination
of Service for reasons other than death or Disability or (ii) the Company’s
Total Shareholder Return over the Performance Period being less than the 75th
percentile ranking

3

 

compared to the Total Shareholder Return of the Peer
Companies are herein referred to as the “Forfeiture Restrictions.”

     (b) The Forfeiture Restrictions shall be binding upon and enforceable
against any transferee of Restricted Performance Shares. The prohibitions of
this Section 3.1 shall not apply to the transfer of Restricted Performance
Shares pursuant to a plan of reorganization of the Company, but the stock,
securities or other property received in exchange therefor shall also become
subject to the Forfeiture Restrictions and provisions governing the lapsing of
such Forfeiture Restrictions applicable to the original Restricted Performance
Shares for all purposes of this Agreement.

IV.

Vesting

     4.1 Vesting/Lapse of Forfeiture Restrictions. As soon as administratively
practicable after the last day of the Performance Period, the Committee shall
calculate the Total Shareholder Return for the Company and each Peer Company.
The Committee’s determinations pursuant to the preceding sentence shall be
certified by the Committee in writing and delivered to the Secretary of the
Company. For purposes of the preceding sentence, approved minutes of the
Committee meeting in which the certification is made shall be treated as a
written certification. At the time of such certification and based on the
percentile ranking of the Company’s Total Shareholder Return over the
Performance Period compared to the Total Shareholder Return of the Peer
Companies, the Restricted Performance Shares shall Vest in accordance with the
following schedule (rounded to the nearest whole share):

	 	 	 	 	 
	 	 	Percentage of
	Percentile Ranking of Company’s Total Shareholder	 	Restricted Performance
	Return Compared to Peer Companies
	 	Shares Vesting

	At or above 75th

	 	 	100	%
	At or
above 50th but less than 75th

	 	Interpolated
percentage between 20%
and 100%

	Below 50th

	 	 	0	%

The interpolated percentage referred to in the schedule above shall be
determined by increasing the 20% Vesting percentage for a median percentile
ranking by 3.2% for each whole percentile ranking above the 50th percentile and
rounding the result up to the nearest whole percentage. To illustrate, if the
Company’s Total Shareholder Return over the Performance Period ranks in the
52nd percentile compared to the Total Shareholder Return of the Peer Companies,
the Vesting
percentage shall be 27%, which is 26.4% (20% plus 6.4%) rounded up to the
nearest whole percentage.

Notwithstanding any provision of this Section 4.1 to the contrary and except as
provided in Section 4.2 and Section 4.3, no Restricted Performance Shares shall
Vest if Participant’s Service is terminated prior to the last day of the
Performance Period for reasons other than death or Disability.

4

 

     4.2 Acceleration of Vesting. In the event of a Change in Control prior to the
last day of a Performance Period and while Participant is in the Service of the
Company or a Subsidiary (or in the event of a termination of Participant’s
Service for any reason whatsoever prior to the last day of a Performance Period
and upon the date upon which a Change in Control occurs), all of the Restricted
Performance Shares with respect to such Performance Period shall Vest as of the
effective date of such Change in Control.

     4.3 Effect of Termination of Service on Vesting.

     (a) Upon termination of Participant’s Service for any reason other than
death or Disability, the Restricted Performance Shares shall be immediately
forfeited to the extent not then Vested.

     (b) Upon termination of Participant’s Service by reason of death or
Disability, the Restricted Performance Shares shall not be immediately
forfeited, but rather may become Vested as provided in Section 4.1 based on the
Company’s Total Shareholder Return over the Performance Period.

V.

Delivery of Restricted Performance Shares

     5.1 Delivery of Restricted Performance Shares. As soon as practicable after
the Restricted Performance Shares become Vested, and subject to the tax
withholding referred to in Section 7.4, the Company shall deliver to
Participant stock certificates issued in Participant’s name for the number of
such Vested Restricted Performance Shares.

VI.

Status of Restricted Performance Shares and Restrictions

     6.1 Status of Restricted Performance Shares. With respect to the status of the
Restricted Performance Shares, at the time of execution of this Agreement
Participant understands and agrees to all of the following:

     (a) Participant agrees that the Restricted Performance Shares will not be
sold or otherwise disposed of in any manner that would constitute a violation
of any applicable securities laws, whether federal or state.

     (b) Participant agrees that (i) the Company may refuse to register the
Restricted Performance Shares on the stock transfer records of the Company if
such proposed transfer would in the opinion of counsel satisfactory to the
Company constitute a violation of any applicable securities law, and (ii) the
Company may give related instructions to its transfer agent, if any, to stop
registration of the Restricted Performance Shares.

     6.2 Certificates and Shareholder Rights. Restricted Performance Shares shall
not constitute issued and outstanding shares of Common Shares until issued and
delivered in accordance with this Agreement and the Plan. Prior to the time
the Restricted Performance Shares are issued and delivered, Participant will
not have the right to vote any Restricted Performance Shares, to receive or
retain any dividends or distributions paid or distributed on issued and
outstanding shares of Common Shares or to exercise any other rights, powers and

5

 

privileges of a shareholder with respect to any Restricted Performance Shares.
In accordance with the provisions of Article V, the Company shall deliver to
Participant stock certificates issued in Participant’s name for the number of
Restricted Performance Shares that have become Vested.

VII.

Miscellaneous

     7.1 Service Relationship. For purposes of this Agreement, any question as to
whether and when there has been a termination of Participant’s Service, and the
cause of such termination, shall be determined by the Committee, and its
determination will be final. Without limiting the scope of the preceding
sentence, it is expressly provided that Participant shall be considered to have
terminated Service at the time of the termination of the “Subsidiary” status
under the Plan of the entity or other organization that employs Participant.

     7.2 Notices. For purposes of this Agreement, notices and all other
communications provided for herein will be in writing and will be deemed to
have been duly given when personally delivered or (i) if Participant is outside
of the United States at the time of transmission of such notice, when sent by
courier, facsimile, or electronic mail, and (ii) if Participant is within the
United States at the time of transmission of such notice, when mailed by United
States registered or certified mail, return receipt requested, postage prepaid,
addressed to the Company at its principal executive office and to Participant
at the last address filed with the Company or to such other address as either
party may furnish to the other in writing in accordance herewith, except that
notices of changes of address will be effective only upon receipt.

     7.3 Restrictions on Transfer of Shares. No Restricted Performance Shares may
be sold, exchanged, transferred (including, without limitation, any transfer to
a nominee or agent of Participant), assigned, pledged, hypothecated, or
otherwise disposed of, including by operation of law, in any manner that
violates the Forfeiture Restrictions and any other provisions of this
Agreement, and, until the date on which such Forfeiture Restrictions lapse, any
such attempted disposition shall be void. The Company shall not be required (i) to transfer on its books any shares that will have been
transferred in violation of this Agreement or (ii) to treat as owner of such
shares, to accord the right to vote as such owner, or to pay dividends to any
transferee to whom such shares will have been so transferred.

     7.4 Withholding of Tax. To the extent that the receipt of Restricted
Performance Shares or the lapse of any Forfeiture Restriction results in
compensation income to Participant for federal or state income tax purposes,
Participant shall deliver to the Company at the time of such event such amount
of money or Common Shares as the Company may require to meet all obligations
under applicable tax laws or regulations, and, if Participant fails to do so,
the Company is authorized to withhold or cause to be withheld from any cash or
Common Shares remuneration then or thereafter payable to Participant any tax
required to be withheld by reason of such resulting compensation income.

     7.5 No Employment Rights Conferred. No provision of this Agreement shall
confer any right upon Participant to continued employment with the Company or
any Subsidiary.

6

 

     7.6 Limitation of Rights. No provision of this Agreement shall be construed to
give Participant or any other person any interest in any fund or in any
specified asset or assets of the Company or a Subsidiary.

     7.7 Binding Effect. This Agreement shall be binding upon and inure to the
benefit of any successors to the Company and all persons lawfully claiming
under Participant.

     7.8 Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the state of Texas.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be duly
executed by its officer thereunto duly authorized, and Participant has executed
this Agreement, all effective as of the Date of Grant.

	 	 	 
	

	CORE LABORATORIES N.V., by its sole managing
director, Core Laboratories International B.V.
	 
	 	 
	

	By:	 
	

	 	
 
	

	Name: Jacobus Schouten
	

	Title: Managing Director of Core Laboratories International B.V.
	 
	 	 
	

	PARTICIPANT
	 
	 	 
	

	By:	 
	

	 	
 
	

	Name: Richard L. Bergmark

7

 

APPENDIX A

Performance Share Award

Restricted Share Agreement

AWARD OF RESTRICTED PERFORMANCE SHARES

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Number of	 	 	 	 	 	 
	 	 	Restricted	 	Performance	 	Performance	 	 
	Date of Grant
	 	Performance Shares
	 	Period Begins
	 	Period Ends
	 	Initial

	January 1, 2002
	 	20,000	 	January 1, 2002	 	December 31, 2004	 	

	January 1, 2003
	 	20,000	 	January 1, 2003	 	December 31, 2005	 	

	January 1, 2004
	 	10,000	 	January 1, 2004	 	December 31, 2006	 	

A-1

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