Document:

EX-4.7

 

Exhibit
4.7

COMPAGNIE GÉNÉRALE DE GÉOPHYSIQUE-VERITAS

STOCK OPTION PLAN

March 14, 2008

REGULATIONS

 

 

CONTENTS

	I.	 	The stock option plan
	 
	II.	 	The price of the option
	 
	III.	 	Vesting period and exercise period
	 
	IV.	 	Obligation to keep the stocks
	 
	V.	 	Conditions of Employment
	 
	VI.	 	Conditions of exercise
	 
	VII.	 	Suspension Period
	 
	VIII.	 	Quotation of the new stocks
	 
	IX.	 	Order for sale
	 
	X.	 	Financial advantages of the stock option plan

	 	•	 	gain on the purchase price
	 
	 	•	 	gain on the sale price

	XI.	 	Taxation of the advantages

2

 

Exhibits:

Exhibit 1:

	 	•	 	Request for the irrevocable exercise of options (Form N°1);
	 
	 	•	 	Request for the irrevocable exercise of options and sale (Form N°2);
	 
	 	•	 	Authorization given to the BNP PARIBAS Securities Services to deduct from the sale
proceeds an amount equal to the amount of the social security contributions (Form N°3);
	 
	 	•	 	Undertaking to keep the shares under the registered form
(Form N°4).

Exhibit 2:

	 	•	 	Request for the transfer of the shares to bearer form for
immediate sale (Form N°1)

3

 

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 General Meeting dated May 10, 2007 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 shares, which are purchased at a predetermined price.

The Board of Directors of the Company designated you on March 14, 2008 as a beneficiary under this
plan and you have already received a letter informing you of the number of stock-options offered to
you and of the price at which you may subscribe them.

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

II — The option price

The price of the option has been determined on the basis of the average opening market prices
listed at the twenty (20) sessions of Euronext Paris preceding March 14, 2008. It is set at
€162.82.

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 shares 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
shares to which they are entitled to subscribe.

III — Vesting period and exercise period

III.1 — Vesting period

Options accrue rights by third every year during a three-year period starting from March 14, 2008.
All rights will be accrued as of March 15, 2016.

The accrued rights are calculated for each ended 12-month period.

As an example, a beneficiary of an option giving right to acquire 1,000 shares who
would leave the Group in December 2008 will have no accrued rights and would not be
entitled to acquire any stock. In December 2009, he would be able to acquire 333
shares, the remaining 667 options being expired.

III.2 — Duration of the options

Allocation of the options was decided by the Board of Directors of the Company on March 14, 2008,
so beneficiaries will be able to exercise their options at any time up to and including March 14,
2016, subject 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

4

 

resources and movements of the market price of CGG Veritas share, however subject always
to insiders rules.

IV — Obligation to keep the stocks for French tax residents

IV.1 — Obligation to keep

During the first four (4) years of the Plan, beneficiaries who are French tax residents are
committed to keep under the registered form the shares they receive as a result of the exercise of
their stock options, (such exercise cannot take place before March 15, 2009) from the acquisition
date until March 14, 2012 included.

As an example, a beneficiary who exercises his option on March 14, 2010 would not
be entitled to sell or transfer his shares to the bearer form before March 15,
2012. A beneficiary who exercises his option on March 15, 2012 would be free to
sell the shares on the same day.

IV.2 — Exceptions

However, the above obligation for French tax residents to keep shares under the registered form
until March 15, 2012 included will not apply in the following events:

	•	 	lay off or redundancy (corresponding to the French concept of “Licenciement Economique”);
	 
	•	 	death;
	 
	•	 	in the event of take over bid or public offer of exchange, the beneficiaries will not be obligated to keep the shares
acquired before or during the take over.

V — Conditions of employment

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

Consequently, the accrued rights will be lost in case of departure from the Group except in
the cases listed as “Exceptions” hereunder.

Beneficiaries shall be deemed to have lost the status of employee of CGG Veritas or an affiliate (a
company in which CGG Veritas holds directly or indirectly at least 30% of the capital) on the date
of termination of the service contract, i.e. at the end of the required notice period, regardless
the cause or the author of the termination. Such beneficiaries will be able to exercise their
accrued rights before the end of their notice period. If applicable, they will remain subject to
the obligations to keep their shares set forth in paragraph IV.1.

Exceptions

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

	•	 	Death: the heirs of a deceased beneficiary will be entitled to
exercise all or part of the option within a six month period from
the date of beneficiary’s death. At the end of this six-month
period, the option will expire.
	 
	•	 	Lay off (French concept of “licenciement économique”): options may
be exercised entirely at any time from the date of the lay off
until March 14, 2016 without obligation to comply with the
obligation to keep the shares.

5

 

	•	 	Retirement, early retirement (“pré-retraite” as such term is
construed under French Law): beneficiaries will continue to
benefit from their options until March 14, 2016 but remain subject
to all the terms and conditions of the plan such as but not
limited to the vesting period and obligation to keep the shares.
	 
	•	 	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 or the
obligation to keep the shares.

As mentioned above, only death and redundancy (lay off) will allow the exercise of the option
without complying with the obligation to keep the shares; beneficiaries leaving the group for the
other reasons listed above will have to comply with such obligation.

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.

VI — Exercise of the option

VI.1 — In order to exercise an option, you should use the forms included in Exhibit 1 as follows:

	 	1.	 	Request for the irrevocable exercise of options (Form N°1):

The original of this form (corresponding to an exercise of option financed by the beneficiary) must
be sent to the Company, Corporate Legal Affairs at CGG Veritas, Tour Maine Montparnasse, BP 191, 33
avenue du Maine, 75755 Paris Cedex (Béatrice PLACE-FAGET/Corinne CHEVALLET), along with a check to
the order of BNP PARIBAS Securities Services for the full subscription price.

	 	2.	 	Request for the irrevocable exercise of options and sale (Form N°2)

This form (corresponding to an exercise of option financed directly on the proceeds of the sale of
the shares issued as a result of such exercise and sold immediately afterwards) can be sent to the
Company either at the address mentioned in paragraph 1, or by fax at the following number 33 1 64
47 34 29 or by e-mail at the following address: beatrice.place-faget@cggveritas.com or
corinne.chevallet@cggveritas.com.

	 	3.	 	Authorization given by French tax residents to BNP PARIBAS Securities Services to
deduct from the sale proceeds an amount equal to the amount of the social security
contributions (Form N°3)

This form shall be sent to the Company by French tax residents (at the address or fax or e-mail
addresses indicated in paragraph 1 above) for any sale of shares resulting from the exercise of
options before March 15, 2012 in the restricted cases enumerated in paragraph IV.2

6

 

	 	4.	 	Undertaking to keep the shares under the registered form
(Form N°4)

In the event the options are exercised before March 15, 2012 included, beneficiaries who are French
tax residents shall include an undertaking to keep the stocks under the registered form with its
exercise form.

VI.2 — Within eight (8) days from the date of receipt of the all documents listed in VI.1 above,
CGG Veritas will execute all formalities in order for you to acquire the status of CGG Veritas’
shareholder.

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

Your shares will be issued as registered shares in your name. Shares will be registered in an
account opened with the Bank entrusted with the management of the registered shares (BNP-PARIBAS
Securities Services).

VII — Suspension period

VII.1 — Conditions

CGG Veritas’ Board of Directors or, upon delegation from the Board, the Chairman and CEO may
suspend for a period which shall not exceed three (3) months, any exercise of option in case of:

	•	 	Financial operation requiring a prior and strict knowledge of the number of CGG Veritas’ 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
CEO, beneficiaries will be informed by internal memorandum and/or by e-mail, general or individual:

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

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

VII.3 — Transitory Period

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

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

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

VII.4 — Confidentiality

7

 

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

VIII — Listing of new shares

New CGG Veritas shares 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.

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 shares acquired are assimilated to existing shares

From the date on which dividend is paid or the date of the Annual Ordinary Meeting of Shareholders,
until 31 December of that year, the new shares will be listed on the regular line of Euronext at
the same rate as existing shares (ISIN : FR0000120164).

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

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 Shareholders, the new shares will not be listed at the same rate
as existing shares, 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 Shareholders, the
shares will be transferred to the regular line (ISIN: FR0000120164) and assimilated to existing
shares.

For example: The last Annual Ordinary Meeting of Shareholders took place on May
10, 2007. All shares acquired by the exercise of stock options between January 1,
2007 and May 10, 2007 were listed on a separate line until May 10, 2007, at which
date they were transferred to Index 0000120164 and assimilated to existing shares.
On the other hand, shares acquired by the exercise of stock options between May
10, 2007 and December 31, 2007 were listed directly on the 0000120164 line.

Finally, it should be noted that non-assimilated new shares usually have a below par rating
compared with shares sold on the 0000120164 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 transferring the shares from registered form to
bearer form for immediate sale (Exhibit 2 —
Form N°1) shall be sent to:

	 	(i)	 	the Company (at the postal address or fax number of e-mail address indicated in
paragraph 1.4.2. in the event of such an order being given before March 14, 2012 included,
	 
	 	(ii)	 	directly to the Bank at the following fax number 33 1 55 77 95 33 after March 15,
2012.

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

8

 

	•	 	order at best. This order bears no instructions. It is carried out at the opening of the next
trading day of Euronext Paris (which is generally when the greatest number of stocks are
exchanged).
	 
	•	 	order at a minimum price of. This order sets a minimum rate at which the seller agrees to
transfer his stocks. It will therefore be carried out only if the listed rate is equal or
superior to this minimum. CGG Veritas shares are listed continuously and there may be fairly
substantial differences between the rates applied to various transactions carried out during
the same session. Limited orders tend therefore to be more reliable than discretionary orders.
Such order shall remain valid until the end of the calendar month and shall thereafter be
renewed for the next month.

X — The financial advantages of the stock option plan

In being associated with the expansion of the Group and the evolution of the CGG Veritas share
market price, 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 listed 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 listed on the Stock Exchange the day the option is exercised.
	Examples	 	 

	 	 	 	 	 
	(On the basis of a subscription price of €162)	 	Hypothesis
	Stock subscription price (a)
	 	€	162	 
	Value on the Stock market of the CGG Veritas Stock on the date
of option exercise (b)
	 	€	180	 
	Gain on the purchase price (b — a)
	 	€	18	 
	Sale price (c)
	 	€	200	 
	Gain on the sale price (c — b)
	 	€	20	 

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 beneficiaries should revert to their tax advisor.

XI.1 — Taxation on gains on the purchase price

Taxation on gains on the purchase price varies depending on whether or not the beneficiary sells
his shares before the end of a four-year period starting from the date of allocation of the option,
i.e. from March 14, 2008 to March 14, 2012 included and depending on the time period during which
the beneficiary continues to hold the shares.

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

9

 

	•	 	Failure to comply with the four-year fiscal period (in practice, pursuant to the obligation to
keep the shares imposed on each beneficiary by section IV, sale of shares during this four-year
period is only allowed in the cases specified in section IV.2).

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 four-year fiscal period, the acquired shares are simply
transferred from registered shares to bearer shares, 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 shares are sold or
transferred from registered shares to bearer shares before the expiry of the four-year fiscal
period in the following cases:

	•	 	dismissal
	 
	•	 	retirement imposed by the employer
	 
	 	 	In the above two cases, the options must have been acquired by the beneficiary at
least three (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.
	 
	•	 	Compliance with the four-year fiscal period and of the two-year period of holding
	 
	•	 	The gain on the purchase price, up to €152,500, is taxed at the rate of 30% plus
13.5% with respect to social contributions(1) (i.e. 43.5%).
	 
	•	 	The gain on the purchase price above €152,500 is taxed at the rate of 40% plus 13.5%
for social contributions (*) (i.e. 53.5%).

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

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

	•	 	In that case, the gain on the purchase price up to €152,500 will
be taxed at the rate of 18% plus 13.5% for social
contributions(*) i.e. 31.5%.
	 
	•	 	The part of the gain exceeding €152,500 will be taxed at the rate
of 30% plus 13.5% for social contributions(*) (i.e.
43.5%).

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

 

			
	(1)	 	Which include the 2.5% employee’s contribution.

10

 

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

The above taxation will apply only if the total value of sales (including shares’ sales unrelated
to the present stock option plan) made by the beneficiary during the year of the sale exceeds the
threshold determined on an annual basis by the French Tax authorities (€25,000 for fiscal 2008).

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

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

The gain made on the sale of shares is taxed at the regular rate for capital gains. The tax rate is
therefore 18% (for fiscal 2008) plus around 11% with respect to social security contributions, if
the total value of sales (including shares’ 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 (€25,000 for fiscal 2008).

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 shares acquired and the subscription price.

Each year until the expiry of the four-year tax period during which shares are sold or transferred
from registered shares to bearer shares, the Company has to declare, dates of sale or of
transfer to bearer shares, date of attribution and the date of the option exercise, the number
of shares, the subscription price and the price listed 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 four-year tax period, the beneficiary will state on his tax
declaration:

	•	 	the difference between the share market price on the day the option is exercised and the
subscription price,
	 
	•	 	the gain made on the sale of shares, equal to the difference between the price at which the
shares are sold and the market price of the share on the day the option is exercised, only if
the total annual value of stocks sales (including shares’ sales unrelated to the present stock
option plan) exceeds the annual threshold determined by the taxation authorities (€25,000 for
fiscal 2008).

11EX-4.8

 

Exhibit 4.8.

COMPAGNIE GÉNÉRALE DE GÉOPHYSIQUE- VERITAS

Société Anonyme with a share capital of 54,935,280 euros

Registered office: Tour Maine Montparnasse, 33 avenue du Maine, 75015 Paris

ParisTrade and Company Register No.: 969 202 241

Prospectus

2006 Performance Share Allocation Plan

THIS DOCUMENT CONSTITUTES PART OF A SECTION 10(a) PROSPECTUS COVERING SECURITIES THAT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON
THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

Dated as of April 23, 2008

 

 

Table of Contents

	 	 	 	 	 
	Contents	 	Page	 
	1 Introduction
	 	 	2	 
	 
	 	 	 	 
	2 Plan Summary
	 	 	2	 
	 
	 	 	 	 
	2.1 Administration of the Plan
	 	 	2	 
	2.2 Preservation of Your Rights in Case of Financial Transactions
	 	 	3	 
	2.3 Selection of Participants
	 	 	3	 
	2.4 Securities Offered Under the Plan
	 	 	3	 
	2.5 Grant of Awards
	 	 	3	 
	2.6 Final Allocation
	 	 	4	 
	2.7 Non-transferability of Awards
	 	 	4	 
	2.8 Delivery of CGG Veritas Shares
	 	 	4	 
	2.9 Rights and Obligations Attached to the CGG Veritas Shares During the Retention Period
	 	 	5	 
	2.10 Non-transferability of CGG Veritas Shares during the Retention Period
	 	 	5	 
	2.11 Listing of the CGG Veritas Shares
	 	 	5	 
	2.12 CGG Veritas Shares after the Retention Period
	 	 	6	 
	2.13 Operation of the Plan
	 	 	6	 
	 
	 	 	 	 
	3 US Tax Effects of Plan Participation
	 	 	6	 
	 
	 	 	 	 
	3.1 Grant of the Award
	 	 	6	 
	3.2 Final Allocation
	 	 	7	 
	3.3 Withholding taxes
	 	 	7	 
	3.4 Further Tax Planning
	 	 	7	 
	 
	 	 	 	 
	4 Incorporation of Certain Documents by reference
	 	 	7	 
	 
	 	 	 	 
	5 Available Information
	 	 	8	 

i

 

	1	 	Introduction
	 
	 	 	This guide summarizes the main provisions of the Compagnie Générale de Géophysique — Veritas
(“CGG Veritas” or the “Company”) Performance Share Allocation Plan (the “Plan”) and
highlights the general US taxation consequences of participation. The Plan is intended to
provide certain staff members and executive managers of CGG Veritas (the “Beneficiaries”)
one or several performance ordinary shares (par value €2) of CGG Veritas, which is currently
listed on the Euronext-Paris, compartment A (the “CGG Veritas Shares” or the “Shares”) and
on the New York Stock Exchange (in the form of American Depositary Shares), and to align the
interests of Beneficiaries with the Company’s performance (the “Award”).
	 
	 	 	You have been granted an Award under the Plan. The CGG Veritas Shares underlying your Award
will be allocated at the later of two dates: either May 11, 2008 or the date of the general
meeting of shareholders convened to approve the 2007 financial statements (the “Allocation
Period”), provided that the allocation conditions and criteria established by the Board of
Directors are met at the end of the Allocation Period. During the Allocation Period, you are
not the owner of the CGG Veritas Shares. You may become the owner of the CGG Veritas Shares
only after the final allocation thereof, at the end of the Allocation Period (the “Final
Allocation”). The date of the Final Allocation marks the starting point of the two-year
retention period, during which you are forbidden to sell the CGG Veritas Shares allocated to
you (the “Retention Period”).
	 
	 	 	The Plan is subject to the French legal and regulatory provisions that govern performance
share allocation plans, namely articles L.225-197-1 et seq. of the French Commercial Code
and 212-5 of the General Regulation of the French financial market regulator, the Autorité
des Marchés Financiers.
	 
	 	 	The Plan is not regarded as a qualified plan under Section 401(a) of the Internal Revenue
Code of 1986 (the “Code”). Further, the Plan is not subject to any of the provisions of the
Employee Retirement Income Security Act of 1974 (“ERISA”).
	 
	 	 	Please note that the information provided below is a summary of the Plan rules for general
guidance only. In case of conflict between the contents of this document and the Plan rules,
the Plan rules will govern. You should carefully read the rules of the Plan, a copy of which
may be obtained as specified in section 5.
	 
	2	 	Plan Summary
	 
	 	 	This section briefly summarizes the main provisions of the Plan relating to Awards.
	 
	 	 	You should refer to section 3 below, which provides a summary of the US tax consequences of
receiving an Award.
	 
	2.1	 	Administration of the Plan
	 
	 	 	The Plan is jointly administered by the Company and BNP PARIBAS SECURITIES SERVICES
(together, the “Administrators”). The Administrators will be responsible for the general
operation and administration of the Plan and for carrying out provisions. The
Administrators will (i) administer the Plan in accordance with its terms and (ii) have all

2

 

	 	 	powers necessary to carry out the provisions of the Plan. BNP PARIBAS SECURITIES SERVICES
has been appointed, and can be removed, by the Company.
	 
	 	 	The Plan may be amended by the board of directors of the Company (the “Board of Directors”)
if new legislation would have an unfavorable impact on the Company or on the Company’s
financial statements or would increase the cost of such a plan for the Company. Subject to
the foregoing scenarios, no amendment that could affect your rights may be made to the Plan.
The Board of Directors may interpret the Plan and will determine all questions arising in
the administration, interpretation, and application of the Plan.
	 
	 	 	If you would like more information about the Plan or its Administrators, contact: Béatrice
Place-Faget, Corporate General Counsel, Corporate Legal Affairs, Tour Maine Montparnasse, 33
Avenue du Maine, BP 391, 75755 Paris Cedex 15, France, +33 1 64 47 37 42.
	 
	2.2	 	Preservation of Your Rights in Case of Financial Transactions
	 
	 	 	Whenever the Company wishes to engage, in the course of the Allocation Period, in any
financial transactions affecting the number and value of the CGG Veritas Shares, it will
take all necessary measures in order to preserve your rights under the Plan by adjusting, in
compliance with the adjustments mechanisms provided in the Plan, the number of CGG Veritas
Shares that could be allocated to you at the conclusion of the Allocation Period.
	 
	2.3	 	Selection of Participants
	 
	 	 	The Board of Directors may grant an Award to any staff member or executive manager of CGG
Veritas or any of its Affiliated Companies.1
	 
	2.4	 	Securities Offered Under the Plan
	 
	 	 	A maximum of 53,200 CGG Veritas Shares can be awarded under the Plan. CGG Veritas Shares
trade on the Euronext-Paris, compartment A and on the New York Stock Exchange (in the form
of American Depositary Shares). CGG Veritas Shares will not be delivered in the form of
American Depositary Shares upon the exercise of Stock Options. Holders of CGG Veritas Shares
who wish to receive American Depositary Shares must deposit their shares with the Bank of
New York, as depositary of the American Depositary Share facility.
	 
	2.5	 	Grant of Awards
	 
	 	 	Within the limits of the authorization granted to it by the Company’s Extraordinary
Shareholders’ Meeting, the grant of an Award is made at the discretion of the Board of
Directors, at a date set by the Board of Directors. The Board of Directors decided to grant
Awards under the Plan on May 11, 2006.

 

			
	1	 	“Affiliated Companies” means any company or economic
interest group which has a direct or indirect affiliation with the
Company:
	 
	-	 	a company or economic interest group in which the Company owns, directly or
indirectly, at least 10% of the capital or voting rights;
	 
	-	 	a company or economic interest group which owns, directly or indirectly, at
least 10% of the capital or voting rights of the Company;
	 
	-	 	a company or economic interest group in which at least 50% of the capital or
voting rights are owned, directly or indirectly, by a company that owns,
directly or indirectly, at least 50% of the capital or voting rights of
the Company.

3

 

	 	 	A letter that sets out the terms of the Award is sent to participants along with a copy of
the rules of the Plan as soon as practicable after the date of grant. You had a right to
accept or refuse the performance Award of CGG Veritas Shares through a receipt confirmation
form or a receipt refusal form that was required to be returned to the Company by July 30,
2006, and to which a second form was attached containing a commitment to observe the
Retention Period. You are not required to make any payment for the grant of an Award.
	 
	2.6	 	Final Allocation
	 
	 	 	You must be an employee or officer of the Company on the Final Allocation date, i.e., May
11, 2008, in order for the CGG Veritas Shares underlying your Award to be allocated to you.
There are certain exceptions to this requirement, including for retirement, death,
disability and for employees or officers of an Affiliated Company that leave the CGG Veritas
group. For further details on the treatment of the Award and underlying CGG Veritas Shares
in such circumstances, please refer to the Plan rules.
	 
	 	 	Further, the allocation of the CGG Veritas Shares underlying your Award is subject to
performance conditions fully described in the rules of the Plan.
	 
	 	 	The fulfillment of such conditions will be determined on the basis of the consolidated
financial statements of each fiscal year of the Period as approved by the Annual General
Meeting of Shareholders. The fulfillment of each of the two performance conditions will
entitle you to be allocated half of the number of Shares initially allocated to you in your
Award.
	 
	 	 	If either performance condition is not 100% or more fulfilled but is fulfilled by at least
two-thirds, you will be entitled to a pro-rata corresponding portion of the CGG Veritas
Shares in your Award for each performance condition.
	 
	 	 	If one of the performance conditions is not two-thirds fulfilled, the corresponding portion
of the CGG Veritas Shares subject to the performance condition (50%) will not be allocated,
and the remaining 50% will be allocated as described above, subject to any required
pro-rating. Should both performance conditions not be two-thirds fulfilled, no CGG Veritas
Shares will be allocated.
	 
	2.7	 	Non-transferability of Awards
	 
	 	 	Each Award is personal to you and you may not sell, transfer, pledge, assign or otherwise
dispose of an Award or the underlying CGG Veritas Shares or any interest or rights in such
shares until such shares have been allocated to you and until the end of the Allocation
Period.
	 
	2.8	 	Delivery of CGG Veritas Shares
	 
	 	 	At the end of the Allocation Period, (i.e., on May 11, 2008 or on such date as described in
Section 1), the Company, subject to the satisfaction of the performance conditions and your
continued employment or services to the Company or an Affiliated Company, will transfer the
CGG Veritas Shares to you.
	 
	 	 	You will become the owner of the CGG Veritas Shares and thus become a shareholder, but you
are obliged to keep the CGG Veritas Shares during the Retention Period established by the
Board of Directors.

4

 

	2.9	 	Rights and Obligations Attached to the CGG Veritas Shares During the Retention Period

	 	2.9.1	 	Type and category of CGG Veritas Shares
	 
	 	 	 	The CGG Veritas Shares will entitle you, as of the Final Allocation, to all the
rights attached to the common stock that comprises the share capital of CGG Veritas
on the date the Plan is established.
	 
	 	2.9.2	 	Rights attached to the CGG Veritas Shares
	 
	 	 	 	CGG Veritas Shares will be subject to all the provisions of the by-laws and to the
decisions of the Shareholders’ Meeting.
	 
	 	 	 	Despite the restriction on transfer of the CGG Veritas Shares (as indicated in
Section 2.10), you can, during the Retention Period, exercise, like any other
shareholder, the rights attached to the Shares, and in particular:

	 	—	 	 the pre-emptive subscription right;
	 
	 	—	 	the information right;
	 
	 	—	 	the right to participate in shareholders’ meetings;
	 
	 	—	 	the right to vote; and
	 
	 	—	 	the right to dividends and potential non-appropriated reserves, if any.

	2.10	 	Non-transferability of CGG Veritas Shares during the Retention Period
	 
	 	 	The CGG Veritas Shares will be non-transferable prior to the expiration of the Retention
Period.
	 
	 	 	You must retain the shares and may not convert them to bearer form for a period of two years
after the CGG Veritas Shares have been allocated to you on the Final Allocation date.
	 
	 	 	Therefore, you may not transfer or assign (by any means, including in case of public
offering, contribution, donation, company contribution, etc.) or convert to bearer shares
the allocated CGG Veritas Shares until after the expiration of the Retention Period set
forth above. The new CGG Veritas Shares will be registered in an account opened, in your
name, in the registers of the Company held by BNP PARIBAS SECURITIES SERVICES with a
specific indication of their non-transferability.
	 
	2.11	 	Listing of the CGG Veritas Shares
	 
	 	 	The CGG Veritas Shares freely allocated to the Beneficiaries may be either newly issued
 shares or existing shares owned by the Company.
	 
	 	 	The new CGG Veritas Shares issued for the purposes of the Plan will be included in a
combined application for admission to trading on the Euronext Paris. They will be traded on
the same line as the existing CGG Veritas Shares at the conclusion of the Retention Period.
Application will also be made for the shares to be traded, in the form of American
Depositary Shares, on the New York Stock Exchange.

5

 

	2.12	 	CGG Veritas Shares after the Retention Period
	 
	 	 	After the Retention period, the CGG Veritas Shares will become available and you will be
able to transfer them freely.
	 
	 	 	However, because shares are publicly traded and in order to avoid any insider trading risk,
the CGG Veritas Shares cannot be transferred during the following “blackout periods”:

	 	(i)	 	Within ten trading sessions preceding and following the date on
which the Company’s annual consolidated financial statements are published;
	 
	 	(ii)	 	During the period from the date on which the corporate bodies
of the Company became aware of information that, if it were disclosed, could
have a negative effect on the price of the stock of the Company, and the date
ten stock exchange trading sessions following the disclosure of such
information.

	2.13	 	Operation of the Plan
	 
	 	 	Participation in the Plan is subject to the rules of the Plan. You can get a copy of the
rules from Béatrice Place-Faget, Corporate General Counsel, Corporate Legal Affairs (see
contact details above). If there is any conflict between the terms of this document and the
Plan rules, then the Plan rules will govern.
	 
	 	 	Participation in, and the operation of, the Plan will not form part of or affect your
contract of employment or your employment relationship, nor will they give you the right to
continued employment. Participation in one grant of Awards under the Plan does not indicate
that you will participate, or be considered for participation, in any later grants. You are
not entitled to any compensation or other benefit in respect of the Plan.
	 
	 	 	You should remember that the value of CGG Veritas Shares can go down as well as up and past
performance of the Company’s shares is no indication of actual future performance.
	 
	3	 	US Tax Effects of Plan Participation
	 
	 	 	US IRS Circular 230 Disclosure: Any US tax advice contained herein and in any attachments is
not intended or written by us to be used, and it cannot be used by any person, for the
purpose of avoiding US tax penalties that may be imposed on any person. Any such US tax
advice was written to support the promotion or marketing of the transaction(s) or matter(s)
addressed by it. You should seek US tax advice based on your particular circumstances from
an independent tax advisor.
	 
	 	 	Please note that the taxation information provided below is a summary of the US Federal tax
implications for you on the basis that you are, and have at all relevant times been a US
citizen residing in the US. It reflects our understanding of the law as at April 1, 2008 and
is for general guidance only. Tax law and tax rates are subject to change.
	 
	3.1	 	Grant of the Award
	 
	 	 	The grant of your Award does not give rise to any income or social security tax liability.

6

 

	3.2	 	Final Allocation
	 
	 	 	The Final Allocation of your Award will give rise to a Federal, State and FICA tax
liability. The liability will be based on the market value of the CGG Veritas Shares you
receive in respect of your Award.
	 
	 	 	Income tax is collected via withholding taxes (see below).
	 
	 	 	The maximum Federal tax rate is 35%. The FICA tax is composed of a Medicare tax (at the
current rate of 1.45%) and an old-age, survivors and disability insurance (OASDI) tax. The
OASDI portion of the FICA tax is currently payable only on the first $102,000 (2008) of your
annual compensation received. Provided that, on the Final Allocation date, you have received
as wages in the current taxable year an amount in excess of this threshold, you will not be
liable to pay OASDI tax at that time.
	 
	3.3	 	Withholding taxes
	 
	 	 	Any applicable taxes will need to be paid by you via withholding.
	 
	 	 	Therefore, income and Medicare tax (and, if applicable, OASDI tax) will be deducted from
your normal payroll at the time the liability arises.
	 
	3.4	 	Further Tax Planning
	 
	 	 	When you sell your CGG Veritas Shares after the expiration of the Retention Period, you may
have to pay capital gains tax at the long-term capital gains tax rate if you sell your
shares for a gain. You are advised to consult an independent tax adviser on the tax
treatment of the sale of your CGG Veritas Shares.
	 
	4	 	Incorporation of Certain Documents by reference
	 
	 	 	The Company has filed a Registration Statement on Form S-8 with the SEC covering the
ordinary shares to be delivered pursuant to the Awards.
	 
	 	 	The SEC allows us to “incorporate by reference” the information filed with them, which means
that we can disclose important information to you by referring you to those documents. The
information incorporated by reference is an important part of this prospectus. Information
that we file later with the SEC will automatically update and supersede information
pertaining to the same subject in this prospectus or in earlier filings with the SEC. We
incorporate the documents listed below by reference in this prospectus:

	 	(i)	 	The Company’s Annual Report on Form 20-F for the year ended
December 31, 2007 filed with the Commission on April 23, 2008;
	 
	 	(ii)	 	The description of the Company’s Ordinary Shares and American
Depositary Shares contained in the Registration Statement on Form 8-A filed by
the Company with the Commission under the Exchange Act [date?];
	 
	 	(iii)	 	The description of the Company’s Ordinary Shares is amended
and updated by the information set forth in “Item 10: Additional Information”
of the Company’s Annual Report on Form 20-F for the fiscal year ended December
31, 2007; and

7

 

	 	(iv)	 	The description of the Company’s American Depositary Shares is
amended and updated by the information set forth under the heading “Description
of the CGG American Depositary Shares” in the Company’s prospectus filed with
the Commission on January 12, 2007 pursuant to Rule 424(b) of the Securities
Act.

	 	 	To the extent designated therein, certain current reports of the Company on Form 6-K, and
all documents filed by the Company under Sections 13(a), 13(c), 14 or 15(d) of the Exchange
Act after the date of this prospectus, but prior to the filing of a post-effective amendment
which indicates that all securities offered hereby have been sold or which deregisters all
securities then remaining unsold, will be deemed to be incorporated by reference in this
prospectus and to be part hereof from the date of filing of such documents.
	 
	5	 	Available Information
	 
	 	 	You may receive copies of the documents described above and any of the documents that we are
required to deliver to employees pursuant to Rule 428(b) of the Securities Act free of
charge by submitting a request to: CGG Veritas, Corporate Legal Affairs, Tour Maine
Montparnasse, 33 Avenue du Maine, BP 391, 75755 Paris Cedex 15, France, or by calling +33 1
64 47 37 42 (in France). Some of these documents are also available for viewing in the
Investor section of the Company’s website at www.cggveritas.com.

8

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