Document:

EX-4.9

 

Exhibit 4.9.

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

2007 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 March 23, 2009 or the date of the
general meeting of shareholders convened to approve the 2008 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 81,750 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 March 23, 2007.

 

			
	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 June 15,
2007, 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., March
23, 2009, 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 that are 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 March 23, 2009 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 must 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, dated April 23, 2008; 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 38 10 (in France). Some of these documents are also available for viewing in the
Investor section of the Company’s website at www.cggveritas.com.

8EX-4.10

 

Exhibit 4.10

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

2008 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 March 14, 2010 or the date of the
general meeting of shareholders convened to approve the 2009 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 91,850 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 March 14, 2008.

 

			
	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 have a right to
accept or refuse the performance Award of CGG Veritas Shares through a receipt confirmation
form or a receipt refusal form that is required to be returned to the Company by June 13,
2008, and to which a second form is 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., March
14, 2010, 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.

	 	(i)	 	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 March 14, 2010) 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.

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	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, dated April 23, 2008; 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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