Document:

EXHIBIT  4.3

THIS  WARRANT  AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
NOT  BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT").
THIS  WARRANT  MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
ABSENCE  OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER THE ACT
OR  AN  OPINION  OF  COUNSEL  REASONABLY  SATISFACTORY  TO  SBE,  INC. THAT SUCH
REGISTRATION  IS  NOT  REQUIRED.
                                    SBE, INC.

                        WARRANT TO PURCHASE COMMON STOCK

NO.  2002-2                                                     APRIL  30,  2002

     THIS  CERTIFIES  THAT,  for  value received, VINTAGE PARTNERS LLC, with its
residence  at  50  Rockefeller  Plaza,  Suite 1038, New York, New York 10020, or
assigns  (the  "Holder"),  is  entitled  to  subscribe  for  and purchase at the
Exercise  Price (defined below) from SBE, Inc., a Delaware corporation, with its
principal  office  at  2305 Camino Ramon, Suite 200, San Ramon, California 94583
(the  "Company")  up to eleven thousand four hundred twenty-nine (11,429) shares
of  the  Common  Stock  of  the  Company  (the  "Common  Stock").

1.     DEFINITIONS.  As  used  herein,  the  following  terms  shall  have  the
following  respective  meanings:

     (a) "Exercise Period" shall mean the period commencing with the date hereof
and  ending  three  years  from  the  date  hereof,  unless sooner terminated as
provided  below.

     (b)  "Exercise  Price"  shall  mean  $3.50 per share, subject to adjustment
pursuant  to  Section  5  below.

     (c)  "Exercise  Shares" shall mean the shares of the Company's Common Stock
issuable  upon  exercise  of  this  Warrant.

2.     EXERCISE  OF  WARRANT.  The  rights  represented  by  this Warrant may be
exercised  in  whole  or  in  part  at  any  time during the Exercise Period, by
delivery  of  the following to the Company at its address set forth above (or at
such  other  address  as  it  may designate by notice in writing to the Holder):

     (a)  An  executed  Notice  of  Exercise  in  the  form  attached  here to;

     (b)  Payment  of the Exercise Price either (i) in cash or by check, or (ii)
by  cancellation  of  indebtedness;  and

     (c)  This  Warrant.

<PAGE>
     Upon  the exercise of the rights represented by this Warrant, a certificate
or  certificates for the Exercise Shares so purchased, registered in the name of
the  Holder  or persons affiliated with the Holder, if the Holder so designates,
shall  be  issued and delivered to the Holder within a reasonable time after the
rights  represented  by  this  Warrant  shall  have  been  so  exercised.

     The  person  in  whose  name  any  certificate or certificates for Exercise
Shares  are  to  be issued upon exercise of this Warrant shall be deemed to have
become the holder of record of such shares on the date on which this Warrant was
surrendered and payment of the Exercise Price was made, irrespective of the date
of  delivery  of  such  certificate or certificates, except that, if the date of
such  surrender  and  payment  is  a  date  when the stock transfer books of the
Company  are  closed,  such  person shall be deemed to have become the holder of
such  shares  at  the close of business on the next succeeding date on which the
stock  transfer  books  are  open.

     2.1 NET EXERCISE. Notwithstanding any provisions herein to the contrary and
except  as  may be limited by the Board of Directors of the Company as set forth
below,  if  the  fair market value of one share of the Company's Common Stock is
greater than the Exercise Price (at the date of calculation as set forth below),
in  lieu  of exercising this Warrant by payment of cash, the Holder may elect to
receive  shares equal to the value (as determined below) of this Warrant (or the
portion  thereof  being  canceled) by surrendering this Warrant at the principal
office  of the Company together with the properly endorsed Notice of Exercise in
which  event  the Company shall issue to the Holder a number of shares of Common
Stock  computed  using  the  following  formula:

      X  =  Y  (A-B)
            --------
                A

   Where  X  =  the number of shares of Common Stock to be issued to the Holder

          Y  =  the  number of shares of Common Stock purchasable under the
          Warrant  or,  if only a portion of the Warrant is being exercised, the
          portion  of  the  Warrant  being  canceled  (at  the  date  of  such
          calculation)

          A  =  the fair market value of one share of the Company's Common
          Stock (at the date  of  such  calculation)

          B  =  Exercise  Price  (as  adjusted  to  the  date  of  such
          calculation);

     For  purposes  of  the  above calculation, if the Company's Common Stock is
listed on any established stock exchange or traded on the Nasdaq National Market
or  the  Nasdaq  SmallCap  Market,  the fair market value of one share of Common
Stock  shall  be the closing sales price for such stock (or the mid-point of the
bid  and  ask price at the closing, if no sales were reported) as quoted on such
exchange  or  market  (or  the  exchange  or  market with the greatest volume of
trading  in the Common Stock) on the last market trading day prior to the day of
determination,  as  reported  in the Wall Street Journal or such other source as
the  Company's  Board  of  Directors  deems  reliable.

<PAGE>
3.     COVENANTS  OF  THE  COMPANY.

     3.1  COVENANTS AS TO EXERCISE SHARES. The Company covenants and agrees that
all  Exercise  Shares  that  may  be  issued  upon  the  exercise  of the rights
represented  by  this  Warrant  will,  upon  issuance,  be  validly  issued  and
outstanding,  fully  paid  and nonassessable, and free from all taxes, liens and
charges  with respect to the issuance thereof. The Company further covenants and
agrees  that  the  Company  will  at  all times during the Exercise Period, have
authorized  and  reserved,  free  from preemptive rights, a sufficient number of
shares of its Common Stock to provide for the exercise of the rights represented
by  this  Warrant.  If  at  any  time  during  the Exercise Period the number of
authorized but unissued shares of Common Stock shall not be sufficient to permit
exercise of this Warrant, the Company will take such corporate action as may, in
the opinion of its counsel, be necessary to increase its authorized but unissued
shares  of Common Stock to such number of shares as shall be sufficient for such
purposes.

     3.2  NO  IMPAIRMENT.  Except and to the extent as waived or consented to by
the  Holder,  the  Company  will  not,  by  amendment  of  its  Certificate  of
Incorporation  or through any reorganization, transfer of assets, consolidation,
merger,  dissolution, issue or sale of securities or any other voluntary action,
avoid  or  seek to avoid the observance or performance of any of the terms to be
observed  or  performed  hereunder by the Company, but will at all times in good
faith  assist  in  the carrying out of all the provisions of this Warrant and in
the  taking  of  all  such action as may be necessary or appropriate in order to
protect  the  exercise  rights  of  the  Holder  against  impairment.

     3.3  NOTICES OF RECORD DATE. In the event of any taking by the Company of a
record  of the holders of any class of securities for the purpose of determining
the  holders thereof who are entitled to receive any dividend (other than a cash
dividend which is the same as cash dividends paid in previous quarters) or other
distribution,  the  Company shall mail to the Holder, at least fifteen (15) days
prior  to  the  date specified herein, a notice specifying the date on which any
such  record  is  to  be taken for the purpose of such dividend or distribution.

4.     REPRESENTATIONS  OF  HOLDER.

     4.1  ACQUISITION OF WARRANT FOR PERSONAL ACCOUNT. The Holder represents and
warrants  that it is acquiring the Warrant solely for its account for investment
and  not  with a view to or for sale or distribution of said Warrant or any part
thereof.  The  Holder  also  represents  that  the  entire  legal and beneficial
interests  of  the  Warrant and Exercise Shares the Holder is acquiring is being
acquired  for,  and  will  be  held  for,  its  account  only.

     4.2  SECURITIES  ARE  NOT  REGISTERED.

     (a)  The  Holder  understands that the Warrant and the Exercise Shares have
not  been registered under the Securities Act of 1933, as amended (the "Act") on
the  basis that no distribution or public offering of the Exercise Shares of the
Company  is to be effected. The Holder realizes that the basis for the exemption
may  not  be  present  if, notwithstanding its representations, the Holder has a
present intention of acquiring the securities for a fixed or determinable period
in  the  future,  selling  (in  connection  with  a  distribution or otherwise),
granting  any  participation  in,  or otherwise distributing the securities. The
Holder  has  no  such  present  intention.
<PAGE>
     (b)  The Holder recognizes that the Warrant and the Exercise Shares must be
held  indefinitely  unless  they are subsequently registered under the Act or an
exemption  from  such  registration  is  available.

     (c)  The  Holder  is aware that neither the Warrant nor the Exercise Shares
may be sold pursuant to Rule 144 adopted under the Act unless certain conditions
are met, including, among other things, the existence of a public market for the
shares,  the  availability  of  certain  current  public  information  about the
Company, the resale following the required holding period under Rule 144 and the
number  of  shares  being  sold  during  any  three  month  period not exceeding
specified  limitations.  Holder  is  aware  that,  while a public market for the
shares  currently  exists  and  the  required  public  information  is currently
available,  the Holder must meet the holding period requirement for resale under
Rule  144  and  the  conditions  for  resale  set  forth  in Rule 144 may not be
satisfied  in  the  future.

     4.3  DISPOSITION  OF  WARRANT  AND  EXERCISE  SHARES.

     (a)  The  Holder  further  agrees not to make any disposition of all or any
part  of  the  Warrant  or  Exercise  Shares  in  any  event  unless  and until:

     (i) There is then in effect a registration statement under the Act covering
such  proposed  disposition and such disposition is made in accordance with said
registration  statement;  or

     (ii)  (A)  the  Holder  shall  have  notified  the  Company of the proposed
disposition  and  shall  have furnished the Company with a detailed statement of
the  circumstances  surrounding  the  proposed  disposition,  and  if reasonably
requested  by  the  Company  and (B) the Holder shall have furnished the Company
with  an  opinion  of  counsel,  reasonably satisfactory to the Company, for the
Holder to the effect that such disposition will not require registration of such
Warrant  or  Exercise  Shares  under  the Act or any applicable state securities
laws,  provided however, it is agreed that the Company will not require opinions
of  counsel  for  transactions  made  pursuant  to  Rule  144  except in unusual
circumstances;  or

     (iii)  Notwithstanding  the  provisions of paragraphs (i) or (ii) above, no
such letter from the SEC, registration statement, or opinion of counsel shall be
necessary  for a transfer by a Holder which is (A) a partnership to its partners
or  former  partners  in  accordance  with  partnership interests, (B) a limited
liability  company  to  its  members  or former members in accordance with their
interest  in the limited liability company, or (C) to the Holder's family member
or trust for the benefit of an individual Holder; provided that in each case the
Holder  shall  have notified the Company of the proposed transfer or disposition
at  least  10  days prior to such transfer and the transferee will be subject to
the  terms of this Agreement to the same extent as if he were an original Holder
hereunder.
<PAGE>
     (b)  The Holder understands and agrees that all certificates evidencing the
shares  to  be  issued  to  the  Holder  may  bear  the  following  legends:

          THE  SHARES  REPRESENTED  BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
          UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THESE SHARES
          MAY  NOT  BE  SOLD,  OFFERED  FOR SALE, PLEDGED OR HYPOTHECATED IN THE
          ABSENCE  OF  AN  EFFECTIVE  REGISTRATION STATEMENT UNDER THE ACT OR AN
          OPINION  OF  COUNSEL  REASONABLY  SATISFACTORY  TO SBE, INC. THAT SUCH
          REGISTRATION  IS  NOT  REQUIRED.

          THIS  WARRANT  AND  THE  COMMON  SHARES ISSUABLE UPON EXERCISE OF THIS
          WARRANT  HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
          AMENDED  (THE  "ACT"). THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE,
          PLEDGED  OR  HYPOTHECATED  IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
          STATEMENT  AS  TO  THIS WARRANT UNDER THE ACT OR AN OPINION OF COUNSEL
          REASONABLY  SATISFACTORY  TO  SBE,  INC. THAT SUCH REGISTRATION IS NOT
          REQUIRED.

     5. ADJUSTMENT OF EXERCISE PRICE. In the event of changes in the outstanding
Common  Stock  of  the  Company  by  reason  of  stock  dividends,  split-ups,
recapitalizations,  reclassifications,  combinations  or  exchanges  of  shares,
separations, reorganizations, liquidations, or the like, the number and class of
shares available under the Warrant in the aggregate and the Exercise Price shall
be  correspondingly  adjusted to give the Holder of the Warrant, on exercise for
the  same  aggregate Exercise Price, the total number, class, and kind of shares
as the Holder would have owned had the Warrant been exercised prior to the event
and had the Holder continued to hold such shares until after the event requiring
adjustments.  The  form  of  this  Warrant  need  not  be changed because of any
adjustment  in  the  number  of  Exercise  Shares  subject  to  this  Warrant.

     6.  FRACTIONAL  SHARES.  No  fractional  shares  shall  be  issued upon the
exercise of this Warrant as a consequence of any adjustment pursuant hereto. All
Exercise Shares (including fractions) issuable upon exercise of this Warrant may
be  aggregated  for purposes of determining whether the exercise would result in
the  issuance of any fractional share. If, after aggregation, the exercise would
result  in  the  issuance  of  a fractional share, the Company shall, in lieu of
issuance  of  any  fractional  share,  pay the Holder otherwise entitled to such
fraction  a sum in cash equal to the product resulting from multiplying the then
current  fair  market  value  of  an  Exercise  Share  by  such  fraction.

     7.  EARLY  TERMINATION  OR SALE, MERGER OR CONSOLIDATION OF THE COMPANY. In
the  event  of,  at  any  time  during  the  Exercise  Period,  any  capital
reorganization,  or  any  reclassification  of  the capital stock of the Company
(other  than  a  change in par value or from par value to no par value or no par
value  to  par value or as a result of a stock dividend or subdivision, split-up
or  combination  of shares) ("Recapitalization"), or the consolidation or merger
of  the  Company  with  or  into  another  where  the  holders  of the Company's
securities  before  the  transaction  beneficially  own  less  than  50%  of the
outstanding  voting  securities  of  the  surviving entity after the transaction
("Acquisition"),  or  the  sale or other disposition of all or substantially all
the  properties  and  assets  of the Company in its entirety to any other person
("Asset  Sale"),  the  Company  shall  provide  to  the Holder fifteen (15) days

<PAGE>
advance  written notice of such Recapitalization, Acquisition or Asset Sale.  If
this  Warrant  is not exercised prior to the occurrence of such Asset Sale, then
this  Warrant  shall  terminate.  If  this Warrant is not exercised prior to the
occurrence  of  such  Recapitalization or Acquisition, then it shall survive the
closing of such Recapitalization or Acquisition and shall be exercisable for the
same  securities,  cash  and  property  as would be payable for the Common Stock
issuable  upon  exercise  of  the unexercised portion of this Warrant as if such
shares  of  Common  Stock  were  outstanding  on  the  record  date  for  the
Recapitalization  or  Acquisition.  The  Exercise  Price  shall  be  adjusted
accordingly.

     8.  NO  STOCKHOLDER RIGHTS. This Warrant in and of itself shall not entitle
the Holder to any voting rights or other rights as a stockholder of the Company.

     9.  TRANSFER  OF WARRANT. Subject to applicable laws and the restriction on
transfer  set  forth  on  the  first  page of this Warrant, this Warrant and all
rights hereunder are transferable, by the Holder in person or by duly authorized
attorney,  upon  delivery  of  this  Warrant and the form of assignment attached
hereto  to  any  transferee  designated  by Holder. The transferee shall sign an
investment  letter  in  form  and  substance  satisfactory  to  the  Company.

     10.  LOST, STOLEN, MUTILATED OR DESTROYED WARRANT. If this Warrant is lost,
stolen,  mutilated  or destroyed, the Company may, on such terms as to indemnity
or  otherwise  as  it  may  reasonably  impose  (which  shall,  in the case of a
mutilated  Warrant,  include the surrender thereof), issue a new Warrant of like
denomination  and  tenor as the Warrant so lost, stolen, mutilated or destroyed.
Any  such new Warrant shall constitute an original contractual obligation of the
Company,  whether  or  not  the  allegedly  lost, stolen, mutilated or destroyed
Warrant  shall  be  at  any  time  enforceable  by  anyone.

     11.  NOTICES,  ETC. All notices required or permitted hereunder shall be in
writing and shall be deemed effectively given: (a) upon personal delivery to the
party  to  be  notified,  (b)  when sent by confirmed telex or facsimile if sent
during normal business hours of the recipient, if not, then on the next business
day,  (c)  five (5) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid, or (d) one (1) day after deposit with
a  nationally  recognized  overnight courier, specifying next day delivery, with
written verification of receipt. All communications shall be sent to the Company
at  2305  Camino Ramon, Suite 200, San Ramon, California 94583, Attention: Chief
Financial  Officer  (fax: (925) 355-2033) with a copy to Laura Randall Woodhead,
Cooley Godward LLP, One Maritime Plaza, 20th Floor, San Francisco, CA 94111, and
to  Holder  at  50 Rockefeller Plaza, Suite 1038, New York, New York 10020 or at
such  other  address  as  the  Company  or Holder may designate by ten (10) days
advance  written  notice  to  the  other  parties  hereto.

     12.  ACCEPTANCE.  Receipt  of  this  Warrant by the Holder shall constitute
acceptance of and agreement to all of the terms and conditions contained herein.

     13. GOVERNING LAW. This Warrant and all rights, obligations and liabilities
hereunder  shall  be  governed  by  the  laws  of  the  State  of  Delaware.
<PAGE>
     IN  WITNESS  WHEREOF, the Company has caused this Warrant to be executed by
its  duly  authorized  officer  as  of  April  30,  2002.

                            SBE,  INC.

                            By:/s/  William  B.  Heye
                               ----------------------
                            Title:  President  &  CEO
                                    -----------------

ATTEST:

/s/ David  W.  Brunton
-----------------------
    Secretary

<PAGE>
                               NOTICE OF EXERCISE

TO:  SBE,  INC.

     (1)  ____    The  undersigned  hereby elects to purchase ________ shares of
the  Common  Stock  of  SBE,  Inc.  (the "Company") pursuant to the terms of the
attached  Warrant,  and  tenders herewith payment of the exercise price in full,
together  with  all  applicable  transfer  taxes,  if  any.

          ____    The undersigned hereby elects to purchase ______ shares of the
Common  Stock  of  SBE,  Inc.  (the  "Company") pursuant to the terms of the net
exercise  provisions set forth in Section 2.1 of the attached Warrant, and shall
tender  payment  of  all  applicable  transfer  taxes,  if  any.

     (2)     Please issue a certificate or certificates representing said shares
of  Common  Stock  in  the  name  of the undersigned or in such other name as is
specified  below:
                            ________________________
                                     (Name)
                            ________________________
                            ________________________
                                    (Address)

     (3)     The  undersigned represents that (i) the aforesaid shares of Common
Stock  are  being acquired for the account of the undersigned for investment and
not  with  a view to, or for resale in connection with, the distribution thereof
in violation of applicable securities laws; (ii) the undersigned is aware of the
Company's  business  affairs and financial condition and has acquired sufficient
information  about  the  Company to reach an informed and knowledgeable decision
regarding its investment in the Company; (iii) the undersigned is experienced in
making  investments  of  this  type  and  has  such  knowledge and background in
financial and business matters that the undersigned is capable of evaluating the
merits  and  risks  of  this  investment  and  protecting  the undersigned's own
interests;  (iv) other than rights that may have been granted to the undersigned
pursuant  to the Registration Rights Agreement dated between the undersigned and
the  Company,  the undersigned understands that the Company has no obligation to
register the shares of Common Stock issuable upon exercise of this Warrant under
the  Securities  Act  of 1933, as amended (the "Securities Act"), and unless the
shares  are  registered under the Securities Act, they must be held indefinitely
unless  subsequently  registered  under  the Securities Act or an exemption from
such  registration is available; (v) the undersigned is aware that the aforesaid
shares  of  Common  Stock may not be sold pursuant to Rule 144 adopted under the
Securities  Act  unless certain conditions are met and until the undersigned has
held  the  shares  for  the number of years prescribed by Rule 144; and (vi) the
undersigned  agrees  not  to  make  any  disposition  of  all or any part of the
aforesaid  shares  of  Common  Stock  unless and until there is then in effect a
registration  statement  under  the  Securities  Act  covering  such  proposed
disposition  and  such  disposition is made in accordance with said registration
statement,  or  the Company is otherwise satisfied that such registration is not
required.

                                          _______________________________
____________________________              (Signature)
(Date)
                                          _______________________________
                                          (Print  name)

<PAGE>
                                 ASSIGNMENT FORM

                (To  assign  the  foregoing  Warrant, execute this
                form  and  supply required information. Do not use
                this  form  to  purchase  shares.)

     FOR  VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby
are  hereby  assigned  to

Name: _____________________________________________________
                                 (Please Print)
Address: __________________________________________________
                                 (Please Print)
Dated:  __________,  20__

Holder's
Signature: ___________________________

Holder's
Address:   ___________________________

NOTE:  The signature to this Assignment Form must correspond with the name as it
appears  on  the  face  of the Warrant, without alteration or enlargement or any
change  whatever.  Officers  of  corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign
the  foregoing  Warrant.ex4-21

Table of Contents

Exhibit 4.21

	 	 	 	 	 
	
		 	
	COMPAGNIE GENERALE DE GEOPHYSIQUE	 	 

STOCK OPTION PLAN

MARCH 14 2001

REGULATIONS

TABLE OF CONTENTS

									
	I -- Definition of the stock option plan
	II -- The option price
	III -- Vesting period and exercise period
	IV -- Obligation to keep the stocks
	V -- Conditions of employment
	VI -- Exercise of the option
	VII -- Suspension period
	VIII -- Quotation of the new stocks
	IX -- Order for sale
	X -- The financial advantages of the stock option plan
	XI -- Taxation of the advantages
	English Translation of the By-Laws
	Registration Rights Agreement Feb 8, 2002
	2001 Stock Option Plan
	Purchase Agreement
	Statement Re Computation of Ratios
	Subsidiaries of the Registrant
	Letter of CGG to the SEC

Table of Contents

CONTENTS

	 	 	 	 	 	 
			Page
			

	
	
	I.     Definition of
	the stock option plan

		 	 	A-2	 
	 
	
	
	II.    The option
	price

		 	 	A-2	 
	 
	
	
	III.   Vesting period and
	exercise period

		 	 	A-2	 
	 
	
	
	IV.    Obligation to keep
	the stocks

		 	 	A-3	 
	 
	
	
	V.     Conditions of
	employment

		 	 	A-4	 
	 
	
	
	VI.    Exercise of the
	option

		 	 	A-5	 
	 
	
	
	VII.   Suspension
	period

		 	 	A-5	 
	 
	
	
	VIII.  Quotation of the new
	stocks

		 	 	A-6	 
	 
	
	
	IX.    Order for
	sale

		 	 	A-6	 
	 
	
	
	X.     The financial
	advantages of the stock option plan

		 	 	A-7	 
	 
	 	
	
	•   gain on the purchase
	price

		 	 	A-7	 
	 	
	
	•   gain on the sale
	price

		 	 	A-7	 
	 
	
	
	XI.    Taxation of the
	advantages

		 	 	A-7	 
	 
	
	
	Appendices :

		 	 	 	 
	 
	 	
	
	Form no. 1 = Exercise of
	option

		 	 	 	 
	 
	 	
	
	Form no. 2 = Subscription
	form

		 	 	 	 
	 
	 	
	
	Form no.
	3 = Undertaking

		 	 	 	 
	 
	 	
	
	Form no. 4 = Authorization to
	deduct charges from gross proceeds

		 	 	 	 
	 
	 	
	
	Form no. 5 = Sale
	Order

		 	 	 	 

A-1

Table of Contents

I — Definition of the stock option
plan

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

     
The Extraordinary General Meeting dated
May 17, 2000 authorized the Board of Directors to issue
stock options.

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

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

     
The Board of Directors of the Company designated
you on March 14, 2001 as a beneficiary of this plan and you
have already received a letter informing you of the number of
stocks offered to you and of the price at which you may
subscribe them.

     
Theses regulations details the various clauses,
governing the stock option plan, as it concerns you.

II — The option price

     
The price of the option has been determined on
the basis of the average opening rates quoted at the twenty
sessions of the Paris Stock Exchange preceding March 14, 2001.
After rounding, this amounts to 71,2 Euros.

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

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

III — Vesting period and exercise
period

III.1 — Vesting period

     
Options accrue rights by fifth every year during
a five year period starting from March 14, 2001. The rights
so accrued are definitively acquired and may not be lost for any
reason whatsoever, included in case of departure from the Group.

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

		
	 	
	As an example, a beneficiary of an option
	giving right to acquire 1000 shares who would leave the Group in
	June 2001 will have no accrued rights and would not be entitled
	to acquire any stock. In June 2002, he would be able to acquire
	200 shares, the remaining 800 options being expired.

III.2 — Duration of the
options

     
Attribution of the options was decreed by the
Board of Directors of the Company on March 14, 2001,
so beneficiaries will be able to exercise their options at any
time up to and including March 17, 2008, subject to
the freeze period and to accrued rights.

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

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III.3 — Freeze period

     
A three year freeze period has been instituted
until March 13, 2004.

     
Any portion of the accrued and vested part of the
option may consequently be exercised at any time between
March 14, 2004 and March 13, 2009 included.

     
Taking into account the vesting period, a
beneficiary at the end of the Freeze period will be allowed to
exercise three-fifth of its option. The two remaining fifth may
only be exercised from respectively March 2005 and March 2006
until March, 13, 2009.

III.3 — Exceptions

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

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

			
	 	—	
	In this case, exercise of option will be allowed
	only until the end of the take over and will be limited to 75%
	of the total amount of the stocks allocated to each beneficiary
	(whether or not accrued).
	
	 
	 	—	
	In consequence thereof, after the termination of
	the take over, the beneficiaries will not be authorized to
	exercise their options before March 14, 2004.
	

IV — Obligation to keep the
stocks

IV.1 — Obligation to keep

     
Beneficiaries who have an option giving right to
acquire 1000 stocks or more are committed to keep their stocks
under the registered form from the acquisition date until
March 14, 2006 included.

		
	 	
	 As an example, a beneficiary who exercises
	his option on March 15, 2004, i.e immediately after the end
	of the freeze period, would not be entitled to sell or transfer
	his stocks to the bearer form before March 15, 2006. A
	beneficiary who exercises his option on March 15, 2006
	would be free to sell the stocks on the same day.
	

     
Taking into account a law under discussion in
France which contemplates the diminution of the fiscal period of
“unavailability” from 5 to 4 years, beneficiaries
of option giving right to acquire 1000 shares or more will have
the opportunity, notwithstanding the above, to sell their shares
from March 14, 2005. This faculty will be opened to the
beneficiary if and only if the law, as it will be promulgated
and applicable to this stock option plan, does not submit the
capital gains with respect to a sale made after the four year
fiscal period to social security charges ( either due by the
employee or the employer).

IV.2 — Exceptions

     
However, the above obligation to keep stock will
not apply to beneficiaries who have an employment agreement
governed by a law other than French law and who work outside
France, these two conditions being cumulative. A beneficiary
who, on March 14, 2001 meets these two conditions but who
on the date of option exercise and/or on the date of the
contemplated sale or transfer no longer meets them must keep the
stocks until March 14, 2006 or March 2005 if the above
mentioned law is promulgated.

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Furthermore, would no be subject to the
obligation to keep the stock under the registered form
beneficiaries who may exercise their whole option during the
freeze period for one of the occurrence listed i.e:

			
	 	•	
	lay off or redundancy
	
	 
	 	•	
	death
	
	 
	 	•	
	in the event of take over bid or public offer of
	exchange, any beneficiary of an option giving right to acquire
	1000 stocks or more will not be obligated to keep the stocks
	acquired before or during the take over.
	

		
	 	
	 In case of a take over bid during the freeze
	period, a beneficiary of an option to acquire 1000 stocks or
	more and who would acquire 500 stocks from the 750
	exercisable during the take over period shall be allowed to sell
	only the 500 stocks, the remaining 250 must not be sold
	before March 14, 2006.

V — Conditions of
employment

     
The option which is herein granted is strictly
linked to your status of employee of the Group. Employee is
defined as any person having a long term service contract.

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

		
	 	
	 A beneficiary of an option giving right to
	acquire 1000 stocks who will leave the Group in June 2003 will
	keep his right to acquire 400 stock but will be entitled to
	acquire them only from March 2004 and will not be allowed to
	sell them before March 2006. A beneficiary who leave the Group
	in February 2002 will have no accrued rights and can not
	purchase any stock.

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

Exceptions

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

			
	 	•	
	Death: the heirs of
	a deceased beneficiary will be entitled to exercise all or part
	of the option within a six months period from the date of
	beneficiary’s death. At the end of this six months period,
	the option will expire.
	
	 
	 	•	
	Lay off: Options may
	be exercised entirely at any time from the date of the lay off
	until March 13, 2009 without obligation to comply with the
	freeze period and/or the obligation to keep the stocks.
	
	 
	 	•	
	retirement, early
	retirement (“pre retraite”
	as such term is construed under French Law): Beneficiaries will
	continue to benefit from their options but remain subject to all
	the terms and conditions of the plan such as but not limited to
	the vesting period and accrual of rights, the freeze period or
	obligation to keep.
	
	 
	 	•	
	Affiliate leaving the
	Group: the beneficiaries, employees of
	such affiliate, will continue to benefit from their options but
	remain subject to all the terms and conditions of the plan such
	as but not limited to the vesting period and accrual of rights,
	the freeze period or obligation to keep.
	

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

     
Furthermore, in the case of a beneficiary leaving
the Group under a mutual arrangement with the employer, the
Company may contemplate, on a case by case basis, maintaining
the beneficiary’s right to the stock options. Such
pursuance of the rights will follow the rules applicable for a
retirement.

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VI — Exercise of the
option

     
VI.1 — In
order to exercise an option, the following documents must be
sent to the Legal Division at CGG (Valérie FERY/ Anick
DUCHEMIN):

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

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

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

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

VII — Suspension period

VII.1 — Conditions

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

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

VII.2 — Notice

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

			
	 	•	
	that a Suspension period has been instituted in
	accordance with point VII.1 above;
	
	 
	 	•	
	the duration of the Suspension; If applicable,
	beneficiaries will be informed of the new subscription price and
	new number of stock to which they are entitled to subscribe.
	

VII.3 — Transitory Period

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

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

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

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VII.4 — Confidentiality

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

VIII — Quotation of the new
stocks

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

     
The new stocks are issued with the right to
dividend on 1st January of the year in progress. However, there
is no right to dividend with respect to profit from the previous
financial year. For this reason, two cases may be envisaged
during the year of exercise:

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

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

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

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

		
	 	
	 For example: The last Annual Ordinary Meeting
	of Stockholders took place on May 17, 2000. All stocks
	purchased by the exercise of stock options between
	January 1,2000 and May 17, 2000 were quoted on a
	separate line until May 17, 2000, at which date they were
	transferred to Index 12016 and assimilated to existing stocks.
	On the other hand, stocks subscribed by the exercise of stock
	options between May 17, 2000 and December 31, 2000
	were quoted directly on the 12016 line.
	

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

IX — Order for sale

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

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

			
	 	•	
	discretionary order.
	This order bears no instructions. It is carried out at the
	opening of the next session of the Paris Stock Exchange (which
	is generally when the greatest number of stocks are exchanged).
	
	 
	 	•	
	limited price order.
	This order sets a minimum rate at which the seller agrees to
	transfer his stocks. It will therefore be carried out only if
	the quoted rate is equal or superior to this minimum. CGG stocks
	are quoted continuously and there may be fairly substantial
	differences between the rates applied to various transactions
	carried out during the same session. Limited price orders tend
	therefore to be more reliable than discretionary orders.
	

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X — The financial advantages of the
stock option plan

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

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

Examples

	 	 	 	 	 	 	 	 	 
			
			Hypothesis
			

			T1		T2
	(On the basis of a subscription price of 70 €)		
		

	
	
	Stock subscription price (a)
	

		 	 	70	 	 	 	70	 
	
	
	Value on the Stock market of the the CGG Stock on
	the date of option exercise (b)
	

		 	 	80	 	 	 	91	 
	
	
	Gain on the purchase price (b –
	a)
	

		 	 	10	 	 	 	21	 
	
	
	Sale price (c)
	

		 	 	83	 	 	 	95	 
	
	
	Gain on the sale price (c –
	b)
	

		 	 	3	 	 	 	4	 

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

T2: Exercise of the
option on March 14, 2004 and sale of the stock on
May 6, 2006.

XI — Taxation of the
advantages

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

XI.1 — Taxation on gains on the
purchase price

     
Taxation on gains on the purchase price varies
depending on whether or not the beneficiary sell his stocks
before the end of a five-year period starting from the date of
attribution of the option, i.e. not before March 14,
2006 (included).

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

 

		
	     •	
	Failure to respect the fiscal five year
	period

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

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

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

Exceptions:

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

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	 	—	
	dismissal
	
	 
	 	—	
	retirement
	

		
	 	
	In the above two cases, the options must have
	been acquired by the beneficiary at least 3 months before
	date of the event in question.

			
	 	—	
	invalidity corresponding to classification in the
	second or third category defined in Article 310 of the
	French “Code de la Sécurité Sociale”.
	
	 
	 	—	
	death.
	

 

		
	     •	
	Respect of the fiscal five year
	period

     
In this case, gain on the purchase price is, at
the Beneficiary’s option, either taxed on the basis of
income tax or taxed under the common law concerning capital
gains at the special rate of 30% (for fiscal 2000) plus 10% with
respect to social security contributions.

     
The gain on purchase price is taxed in the year
during which the stocks are sold.

     
Furthermore, the beneficiary must enclose a
statement with his tax declaration for the year during which the
option was exercised, which specifies:

			
	 	—	
	the corporate name and headquarters of the Company
	
	 
	 	—	
	the date of attribution and the date of exercise
	of the option
	
	 
	 	—	
	the number of stocks acquired.
	

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

     
The gain made on the sale of stocks is taxed at
the regular rate for capital gains. The tax rate is therefore
16.0% (for fiscal 2000) plus around 10% with respect to social
security contributions, if the total value of sales (including
stock sales unrelated to the present stock option plan) made by
the beneficiary during the year of the sale or transfer exceeds
the threshold determined on an annual basis by the taxation
authorities (50 000 French Francs for fiscal 2000).

XI.3 — Declaration
commitments

Company’s obligations

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

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

Beneficiary’s obligation

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

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

			
	 	—	
	the difference between the price quoted on the
	Stock Exchange the day the option is exercised and the
	subscription price,
	

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	 	—	
	the gain made on the sale of stocks, equal to the
	difference between the price at which the stocks are sold and
	the price quoted on the Stock Exchange the day the option is
	exercised, only if the total annual value of stocks sales
	(including stock sales unrelated to the present stock option
	plan) exceeds the threshold determined by the taxation
	authorities (50 000 French Francs for fiscal 2000).
	

A-9

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