8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

October 20, 2005

Date of Report (Date of Earliest Event Reported)

BUSINESS OBJECTS S.A.

(Exact name of Registrant as specified in its charter)

Republic of France	0-24720	98-0355777
(State or other jurisdiction of	(Commission File Number)	(I.R.S. Employer
incorporation)		Identification Number)

157-159 rue Anatole France, 92300 Levallois-Perret,
France

(Address of principal executive offices)

(408) 953-6000

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EXHIBIT 3.1

EXHIBIT 10.1

Item 1.01 Entry into or Amendment of a Material Definitive Agreement.

     On October 20, 2005, the board of directors of Business Objects S.A. (the “Company”), approved an amendment and restatement to Section 3.1 of the Company 2001 Stock Incentive Plan (the “2001 Plan ) to increase the number of shares authorized for issuance under the 2001 Plan to 8,087,729 shares from 6,662,729 shares.

     The preceding summary is not intended to be complete, and is qualified in its entirety by reference to the full text of the amended 2001 Plan included as Exhibit 10.1 hereto and incorporated herein by reference.

Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

     On October 20, 2005, the board of directors of the Company approved an amendment and restatement to Article 6 of the Company’s Amended and Restated Bylaws (the “Amended Bylaws”). The Amended Bylaws became effective October 20, 2005. The Amended Bylaws decrease the stated share capital of the Company to €9,363,278.90 from a stated share capital of €9,657,576.60. This decrease is a result of the cancellation of treasury shares as authorized by the Company’s shareholders at the annual shareholders’ meeting on June 14, 2005 pursuant to the tenth resolution of the Company’s shareholders. Pursuant to French law, changes in a company’s stated capital must be reflected in such company’s bylaws.

     The preceding summary is not intended to be complete, and is qualified in its entirety by reference to the full text of the Amended Bylaws attached hereto as Exhibit 3.1 hereto and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

Exhibit Number	Description
3.1	Amended and Restated Bylaws of Business Objects S.A, as amended October 20, 2005 (English translation).
10.1	Business Objects S.A. 2001 Stock Incentive Plan, as amended October 20, 2005.

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SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 26, 2005

BUSINESS OBJECTS S.A.
By:	/s/ James R. Tolonen
	James R. Tolonen
	Chief Financial Officer

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EXHIBIT INDEX

Exhibit Number	Description
3.1	Amended and Restated Bylaws of Business Objects S.A, as amended October 20, 2005 (English translation).
10.1	Business Objects S.A. 2001 Stock Incentive Plan, as amended October 20, 2005.

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EX-3.1

EXHIBIT 3.1

BUSINESS OBJECTS S.A.
A French société anonyme
with a share capital of 9,363,278.90 euros
Registered office : 157-159 rue Anatole France
92300 Levallois-Perret
Register of Commerce and Companies Nanterre B 379 821 994

MEMORANDUM AND ARTICLES OF ASSOCIATION

UP-DATED BY LAWS

October 20, 2005

/s/ John Schwarz

Certified true copy

John Schwarz

Chief Executive Officer of Business

Objects S.A

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TITLE I

FORM — NAME — OBJECTS — REGISTERED OFFICE — DURATION

Article 1 — FORM

          There is, between the owners of the shares hereinafter issued and of those which could be subsequently issued, a corporation (société anonyme), governed by Part II of the Commercial Code and by the present Memorandum and Articles of Association.

Article 2 — NAME

          The name of the company is :

BUSINESS OBJECTS

          In all deeds and documents emanating from the company and addressed to third parties, this name must always be immediately preceded or followed by the words “Société anonyme” or the initials “S.A.” and by the mention of the amount of the capital.

Article 3 — OBJECTS

          The objects of the company are, directly and indirectly, in France and abroad :

          - all operations relating to the design and the sale of products and the rendering of services in the computer industries and in connected industries ;

          - and generally, any financial, commercial, industrial, civil, real estate or chattels operations related directly or indirectly to the above activities and to any similar or connected activities as well as to any social properties.

          Directly and indirectly on its behalf or on behalf of third parties, either alone, or with third parties, by way of creation of new companies, contributions, partnership, subscription, purchase of securities or of social rights, merger, association, or by way of subleasing of any properties or rights.

Article 4 — REGISTERED OFFICE

          The registered office of the company is at :

157-159 Rue Anatole France
92300 Levallois-Perret

          It may be transferred to any other place within the same district (département) or any adjacent district by decision of the board of directors subject to the ratification of this decision by the next ordinary general meeting of the shareholders.

          It may be transferred to any other place pursuant to a resolution of the extraordinary general meeting of the shareholders.

Article 5 — DURATION

          The duration of the company shall be of ninety nine (99) years from the date of registration with the Register of Commerce and Companies, except in the event of early dissolution or extension decided by the extraordinary meeting of the shareholders.

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TITLE II

CAPITAL AND SHARES

Article 6 — CAPITAL

          The share capital of the Company is 9,363,278.90 euros.

          It is divided into 93,632,789 shares of 0.10 euro each.

          Mr. Albert Eisenstat is a recipient of special advantages resulting from the grant of 24,000 warrants entitling to the subscription of 36,000 shares, by the shareholder meeting held on June 21, 1995. The special advantages consist in (i) the granting of such warrants without payment as consideration and (ii) the implementing of a fixed exercise price of 3.70 euros per share corresponding to the estimated value of a share as of April 25, 1995.

          Mr. Albert Eisenstat is a recipient of special advantages resulting from the grant of 24,000 warrants entitling to the subscription of 36,000 shares, by the shareholder meeting held on June 19, 1997. The special advantages consist in (i) the granting of such warrants without payment as consideration and (ii) the implementing of a fixed exercise price of 2.81 euros per share corresponding to the estimated value of a share as of April 25, 1997.

          Mr. Vincent Worms is a recipient of special advantages resulting from the grant of 24,000 warrants entitling to the subscription of 36,000 shares, by the shareholder meeting held on June 19, 1997. The special advantages consist in (i) the granting of such warrants without payment as consideration and (ii) the implementing of a fixed exercise price of 2.81 euros per share corresponding to the estimated value of a share as of April 25, 1997.

          Mr. Philippe Claude is a recipient of special advantages resulting from the grant of 24,000 warrants entitling to the subscription of 36,000 shares, by the shareholder meeting held on June 19, 1997. The special advantages consist in (i) the granting of such warrants without payment as consideration and (ii) the implementing of a fixed exercise price of 2.81 euros per share corresponding to the estimated value of a share as of April 25, 1997.

          Mr. Arnold Silverman is a recipient of special advantages resulting from the grant of 24,000 warrants entitling to the subscription of 36,000 shares, by the shareholder meeting held on June 19, 1997. The special advantages consist in (i) the granting of such warrants without payment as consideration and (ii) the implementing of a fixed exercise price of 2.81 euros per share corresponding to the estimated value of a share as of April 25, 1997.

          Mr. Arnold Silverman is a recipient of special advantages resulting from the grant of 60,000 warrants entitling to the subscription of 90,000 shares, by the shareholder meeting held on April 6, 1994. The special advantages consist in (i) the granting of such warrants without payment as consideration and (ii) the implementing of a fixed exercise price of X euros per share corresponding to the estimated value of a share as of January 31, 1993.

          Mr. Bernard Charlès is a recipient of special advantages resulting from the grant of 50,000 warrants entitling to the subscription of 75,000 shares, by the shareholder meeting held on June 18, 1998. The special advantages consist in (i) the granting of such warrants without payment as consideration and (ii) the implementing of a fixed exercise price of 4.91 euros per share corresponding to the estimated value of a share as of June 18, 1998.

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          Mr. Albert Einsenstat is a recipient of special advantages resulting from the grant of 30,000 warrants entitling to the subscription of 45,000 shares, by the shareholder meeting held on June 18, 1998. The special advantages consist in (i) the granting of such warrants without payment as consideration and (ii) the implementing of a fixed exercise price of 4.91 euros per share corresponding to the estimated value of a share as of June 18, 1998.

          Mr. Arnold Silverman is a recipient of special advantages resulting from the grant of 30,000 warrants entitling to the subscription of 45,000 shares, by the shareholder meeting held on June 18, 1998. The special advantages consist in (i) the granting of such warrants without payment as consideration and (ii) the implementing of a fixed exercise price of 4.91 euros per share corresponding to the estimated value of a share as of June 18, 1998.

          Mr. Philippe Claude is a recipient of special advantages resulting from the grant of 20,000 warrants entitling to the subscription of 30,000 shares, by the shareholder meeting held on June 18, 1998. The special advantages consist in (i) the granting of such warrants without payment as consideration and (ii) the implementing of a fixed exercise price of 4.91 euros per share corresponding to the estimated value of a share as of June 18, 1998.

          Mr. Vincent Worms is a recipient of special advantages resulting from the grant of 10,000 warrants entitling to the subscription of 15,000 shares, by the shareholder meeting held on June 18, 1998. The special advantages consist in (i) the granting of such warrants without payment as consideration and (ii) the implementing of a fixed exercise price of 4.91 euros per share corresponding to the estimated value of a share as of June 18, 1998.

          Mr. Vincent Worms is a recipient of special advantages resulting from the grant of 30,000 warrants entitling to the subscription of 45,000 shares, by the shareholder meeting held on May 4, 1999. The special advantages consist in (i) the granting of such warrants without payment as consideration and (ii) the implementing of a fixed exercise price of 7.58 euros per share corresponding to the estimated value of a share as of May 3, 1999.

          Mr. Bernard Charlès is a recipient of special advantages resulting from the grant of 15,000 warrants entitling to the subscription of 15,000 shares approved by the shareholders meeting held on June 12, 2001. The special advantages consist of (i) the grant of such warrants without payment as consideration and (ii) the implementing of a fixed exercise price of 36.13 euros per share corresponding to the estimated market value of one share on June 11, 2001.

          Mr. Arnold Silverman is a recipient of special advantages resulting from the grant of 15,000 warrants entitling to the subscription of 15,000 shares approved by the shareholders meeting held on June 12, 2001. The special advantages consist of (i) the grant of such warrants without payment as consideration and (ii) the implementing of a fixed exercise price of 36.13 euros per share corresponding to the estimated market value of one share on June 11, 2001.

          Mr. Gerald Held is a recipient of special advantages resulting from the grant by the Board meeting held on July 22, 2003 in compliance with the authorization of the Fourteenth Resolution of the Extraordinary General Meeting of shareholders held on May 15, 2003, of 15,000 warrants giving the right to subscribe to one share each; The special advantages consist of (i) the grant of such warrants without payment as consideration and (ii) the benefit from a fixed exercise price per share of 19.45 euros, equal to the estimated market value of one share, corresponding of the closing price of one share as quoted on the Premier Marché of Euronext Paris S.A. on May 14, 2003.”

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          Mr. Jean-François Heitz is a recipient of special advantages resulting from the grant by the Board meeting held on July 22, 2003 in compliance with the authorization of the Fifteenth Resolution of the Extraordinary General Meeting of shareholders held on May 15, 2003, of 15,000 warrants giving the right to subscribe to one share each; The special advantages consist of (i) the grant of such warrants without payment as consideration and (ii) the benefit from a fixed exercise price per share of 19.45 euros, equal to the estimated market value of one share, corresponding of the closing price of one share as quoted on the Premier Marché of Euronext Paris S.A. on May 14, 2003.

          Mr. David Peterschmidt is a recipient of special advantages resulting from the grant by the Board meeting held on July 22, 2003 in compliance with the authorization of the Sixteenth Resolution of the Extraordinary General Meeting of shareholders held on May 15, 2003, of 15,000 warrants giving the right to subscribe to one share each; The special advantages consist of (i) the grant of such warrants without payment as consideration and (ii) the benefit from a fixed exercise price per share of 19.45 euros, equal to the estimated market value of one share, corresponding of the closing price of one share as quoted on the Premier Marché of Euronext Paris S.A. on May 14, 2003.

          Mr. David Roux is a recipient of special advantages resulting from the grant by the Board meeting held on January 27, 2004 in compliance with the authorization of the Third Resolution of the Extraordinary General Meeting of shareholders held on December 11, 2003, of 15,000 warrants giving the right to subscribe to one share each; The special advantages consist of (i) the grant of such warrants without payment as consideration and (ii) the benefit from a fixed exercise price per share of 26.95 euros, equal to the estimated market value of one share, corresponding of the closing price of one share as quoted on the Premier Marché of Euronext Paris S.A. on December 10, 2003.

          Mr. Arnold Silverman is a recipient of special advantages resulting from the grant by the Board meeting held on June 15, 2004 in compliance with the authorization of the Twelfth Resolution of the Extraordinary General Meeting of shareholders held on June 10, 2004, of 45,000 warrants giving the right to subscribe to one share each; The special advantages consist of (i) the grant of such warrants without payment as consideration and (ii) the benefit from a fixed exercise price per share equal to 17.04 euros, being the closing price of the Company’s shares on the Premier Marché of Euronext Paris S.A. on June 9, 2004.

          Mr. Bernard Charlès is a recipient of special advantages resulting from the grant by the Board meeting held on June 15, 2004 in compliance with the authorization of the Fourteenth Resolution of the Extraordinary General Meeting of shareholders held on June 10, 2004, of 45,000 warrants giving the right to subscribe to one share each; The special advantages consist of (i) the grant of such warrants without payment as consideration and (ii) the benefit from a fixed exercise price per share equal to 17.04 euros, being the closing price of the Company’s shares on the Premier Marché of Euronext Paris S.A. on June 9, 2004.

          Mr. Kurt Lauk is a recipient of special advantages resulting from the grant by the Board meeting held on June 15, 2004 in compliance with the authorization of the Fifteenth Resolution of the Extraordinary General Meeting of shareholders held on June 10, 2004, of 45,000 warrants giving the right to subscribe to one share each; The special advantages consist of (i) the grant of such warrants without payment as consideration and (ii) the benefit from a fixed exercise price per share equal to 17.04 euros, being the closing price of the Company’s shares on the Premier Marché of Euronext Paris S.A. on June 9, 2004.

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          Mr. Gerald Held is a recipient of special advantages resulting from the grant by the Board meeting held on June 15, 2004 in compliance with the authorization of the Sixteenth Resolution of the Extraordinary General Meeting of shareholders held on June 10, 2004, of 30,000 warrants giving the right to subscribe to one share each; The special advantages consist of (i) the grant of such warrants without payment as consideration and (ii) the benefit from a fixed exercise price per share equal to 17.04 euros, being the closing price of the Company’s shares on the Premier Marché of Euronext Paris S.A. on June 9, 2004.

          Mr. Jean-François Heitz is a recipient of special advantages resulting from the grant by the Board meeting held on June 15, 2004 in compliance with the authorization of the Seventeenth Resolution of the Extraordinary General Meeting of shareholders held on June 10, 2004, of 30,000 warrants giving the right to subscribe to one share each; The special advantages consist of (i) the grant of such warrants without payment as consideration and (ii) the benefit from a fixed exercise price per share equal to 17.04 euros, being the closing price of the Company’s shares on the Premier Marché of Euronext Paris S.A. on June 9, 2004.

          Mr. David Peterchmidt is a recipient of special advantages resulting from the grant by the Board meeting held on June 15, 2004 in compliance with the authorization of the Eighteenth Resolution of the Extraordinary General Meeting of shareholders held on June 10, 2004, of 30,000 warrants giving the right to subscribe to one share each; The special advantages consist of (i) the grant of such warrants without payment as consideration and (ii) the benefit from a fixed exercise price per share equal to 17.04 euros, being the closing price of the Company’s shares on the Premier Marché of Euronext Paris S.A. on June 9, 2004.

          Mr. David Roux is a recipient of special advantages resulting from the grant by the Board meeting held on June 15, 2004 in compliance with the authorization of the Nineteenth Resolution of the Extraordinary General Meeting of shareholders held on June 10, 2004, of 30,000 warrants giving the right to subscribe to one share each; The special advantages consist of (i) the grant of such warrants without payment as consideration and (ii) the benefit from a fixed exercise price per share equal to 17.04 euros, being the closing price of the Company’s shares on the Premier Marché of Euronext Paris S.A. on June 9, 2004.

          Mr. Gerald Held is a recipient of special advantages resulting from the grant by the Board meeting held on July 21, 2005 in compliance with the authorization of the Twelfth Resolution of the Extraordinary General Meeting of shareholders held on June 14, 2005, of 45,000 warrants giving the right to subscribe to one share each; The special advantages consist of (i) the grant of such warrants without payment as consideration and (ii) the benefit from a fixed exercise price per share equal to 23.13 euros, being the closing price of the Company’s shares on the Eurolist by Euronext ^TM. on June 13, 2005.

          Mr. Carl Pascarella is a recipient of special advantages resulting from the grant by the Board meeting held on July 21, 2005 in compliance with the authorization of the Eleventh Resolution of the Extraordinary General Meeting of shareholders held on June 14, 2005, of 45,000 warrants giving the right to subscribe to one share each; The special advantages consist of (i) the grant of such warrants without payment as consideration and (ii) the benefit from a fixed exercise price per share equal to 23.13 euros, being the closing price of the Company’s shares on the Eurolist by Euronext ^TM. on June 13, 2005.

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Article 7 — FORM OF THE SHARES — TRANSFER OF SHARES

          7.1 The shares may be held in registered or bearer form, at the shareholder’s discretion, in accordance with regulations applicable to companies listed on a regulated market.

          The shares are entered into accounts according to the provisions provided by law and regulations.

          The ownership of the registered shares is evidenced by their registration in registered accounts.

          The shares entered into accounts are freely transferred by transfer from one account to another.

          Prior approval of the transferee is required only for partly paid-up shares.

          All costs resulting from the transfer shall be borne by the transferee.

          Shares with payments in arrears are not admitted to transfer.

          7.2 In addition to the legal obligation to inform to the Company the holding of certain fractions of the capital or voting rights, any natural or legal person acting alone or in concert who becomes the acquirer of a number of shares equal to or greater than 2%, of the share capital or voting rights or a multiple of this percentage, shall within five trading days of crossing the holding threshold, inform the Company of the total number of shares or voting rights which this person holds by a registered letter incorporating a proof of delivery slip addressed to Company headquarters or by an equivalent means in accordance with foreign law. When the threshold is crossed as a result of a purchase or sale on the stock market, the period of five trading days allowed for disclosure begins to toll on the trading date of the securities and not their delivery date.

          This notification obligation also applies as set forth hereinabove whenever a new threshold of 2% is reached or has been crossed on the upper or lower limit, for whatever reason, up to and including the threshold of 50%.

          In determining the threshold stipulated hereinabove, both shares and/or voting rights held indirectly and shares and/or voting rights assimilated with shares and/or voting rights owned as defined in Articles L. 233-7 et seq. of the French Commercial Code.

          In each notification referred to above, the declaring shareholder must certify that the notification includes all shares held or owned as defined in the preceding paragraph and must also indicate the acquisition date(s).

          Investment fund management companies are required to provide such notification for the whole voting rights attached to all the Company’s shares held by the funds that they manage.

Should this obligation to inform not be fulfilled and should one or more shareholders holding at least 2% of the share capital or voting rights so require, shares in excess of the fraction which should have been declared are deprived of the voting rights at any shareholders’ meeting held within the term of two years following the date of regularizing the notification. Request of the shareholders shall be recorded in the minutes and will be subject to the legal penalty referred to above.

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          7.3 The Company may request, in accordance with applicable law and regulations, at any time, at its own expense, from the central depositary that manages its securities accounts, as the case may be, the name, or the company name, the nationality, the year of birth or year of incorporation, and the address of the holder of securities having immediate or deferred access to the right to vote at its shareholders meeting, as well as the number of securities held by each of them, and, as the case may be, the restrictions attached to such securities.

Article 8 — RIGHTS AND OBLIGATIONS ATTACHED TO THE SHARES

          The rights and obligations attached to a share follow the share to any transferee to whom it may be transferred and the transfer includes all the payable and unpaid dividends and dividends to be payable, as well as, as the case may be, the corresponding share in the reserve funds and provisions.

          The ownership of a share shall imply ipso facto the acceptance of the present Memorandum and Articles of Association and of the decision of the general meetings.

          In addition to the right to vote which is attached by law to the shares, each share carries a right to a share of corporate assets, of profits, and of liquidation surplus, proportional to the number and nominal value of the existing shares.

          Each time it shall be necessary to hold a certain number of shares in order to exercise a right, it will be up to the shareholder(s) missing such number to take the necessary actions to group a sufficient number of shares.

          The heirs, creditors, eligible parties or other representatives of a shareholder cannot, for any reason whatsoever, request the affixing of the assets of the company, or ask for their sharing or auction sale, or to interfere in any manner in the management of the company ; they have, in order to exercise their rights, to refer themselves to the inventories and to the resolutions of the shareholders meetings.

Article 9 — PAYING UP OF THE SHARES

          The amount to be paid in cash for the subscription of the shares issued with respect to an increase of capital shall be payable according to the terms stipulated by the extraordinary general meeting of the shareholders.

          The initial payment shall not be less than one half of the nominal value of the shares at the time of the subscription ; it shall include the whole issuing premium, if any.

          The remainder, which shall be paid-up in one or several times within a period of five years as from the date of completion of such increase of capital, shall be called upon by the board of directors.

          Each shareholder shall be notified of the amount to be paid and of the date at which this amount shall fall due fifteen days at least before that date.

          The shareholder who will not have paid at due date the amounts due on his share(s) shall, automatically and without formal notice, owe to the company an interest calculated day per day commencing on due date at the legal rate in commercial matters increased by three points, without prejudice to the personal proceedings that the company may institute against the defaulting shareholder and to the acts of enforcement provided by law.

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TITLE III

MANAGEMENT OF THE COMPANY

Article 10 — BOARD OF DIRECTORS

          The company is managed by a board of directors composed of individuals or legal entities, the number of which is determined by the ordinary general meeting of the shareholders within the limits of the law.

          A legal entity must, at the time of its appointment, designate an individual who will be its permanent representative on the board of directors. The term of office of a permanent representative is the same as that of the director he represents. When a legal entity dismisses its permanent representative, it must at the same time provide for its replacement. The same applies in case of death or resignation of the permanent representative.

          Each director must own at least one share during his term of office.

          If, at the time of his appointment, a director does not own the required number of shares or if, during his term of office, he ceases to be the owner thereof, he shall have a period of three months to purchase such number of shares, in default of which he shall be automatically deemed to have resigned.

          The directors are appointed for a term of three years. A year corresponds to the period of time between two successive annual ordinary general meetings of shareholders. The duties of a director shall terminate at the close of the ordinary general meeting of shareholders which acts on the accounts of the preceding financial year and is held in the year during which the term of office of said director comes to an end.

          The directors may always be re-elected ; they may be revoked at any time by decision of the general meeting of the shareholders.

          In case of death or resignation of one or several directors, the board of directors may make provisional appointments between two meetings of shareholders.

          The appointment(s) so made have to be ratified by the next general meeting of shareholders.

          Should the meeting of the shareholders not ratify these provisional appointments, this shall not affect the validity of the prior resolutions and acts of the board of directors.

          When the number of directors falls below the minimum required by law, the remaining director(s) must immediately convene the ordinary general meeting of the shareholders, in order to complete the membership of the board of directors.

          The director appointed in replacement of another director, whose term of office has not come to its end shall remain in office only for the remaining term of office of his predecessor.

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          A salaried employee of the company may be appointed as a director. His employment contract shall correspond to a position actually held. In such case, he shall not lose the benefit of his employment contract.

          The number of directors bound to the company by an employment contract may not exceed one third of the directors in office.

          The number of directors who are more than seventy (70) years old may not exceed one third of the directors in office. Should such quota be reached during the director’s term of office, the appointment of the oldest director would be automatically terminated at the close of the nearest general meeting of the shareholders.

Article 11 — MEETING OF THE BOARD

          11.1. The board of directors shall meet as often as required for the interest of the company.

          11.2. The meetings of the Board of Directors are convened by the Chairman. Notices of meetings may be made by any means, in verbal or written form.

          When no meeting of the Board of Directors has taken place for a period of two months, Directors representing at least one third of the members of the Board may request the Chairman to call a Board meeting on a specific agenda. The Chief Executive Officer may also request the Chairman to call a Board of Directors meeting on a specific agenda.

          When a workers committee (comité d’entreprise) has been formed, the representatives of such committee, appointed in accordance with the provisions of the Labor Code, shall be invited to attend all meetings of the Board of Directors.

          The meetings of the Board of Directors are held at the registered office or at any other place, in France or abroad.

          The Statutory Auditors are convened to all meetings of the Board of Directors that examine or fix the annual or intermediary financial statements, as well as to all shareholders’ meetings.

          11.3. The board of directors may not transact business validly unless at least half of its members attend the meeting. A quorum shall be deemed to exist when at least half of the directors are present at the meeting or participate in the meeting via video-conference, subject to the conditions determined by applicable laws and regulations then in effect.

          The resolutions of the board of directors shall be carried out at the majority of the directors, present or represented.

          It is specified that any and all decisions to grant options to subscribe or to buy stock to a director holding an employment contract, to the Chairman or to the general manager of the Company, if this latter is a director, pursuant to authority granted by the extraordinary general meeting, pursuant to the provisions set forth in articles L.225-177 et seq of the Commercial Code shall be adopted by the affirmative vote of the majority of the directors present or represented at the Board meeting, the interested director, and any other director to whom options to subscribe or to buy stock may be granted, being conclusively refrained from voting.

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          11.4. Any director may give to another director, by letter, cable or telex, a proxy to be represented at a meeting of the board. However, each director may only dispose of one proxy during each meeting.

          11.5. The minutes or extracts of the minutes of the Board of Directors are certified by the Chairman of the board, the Directeur Général (Chief Executive Officer), the Directeurs Généraux Délégués, the director appointed to act as Chairman temporarily or an agent with power of attorney.

Article 12 — POWERS OF THE BOARD

          The Board of Directors determines the directions of the Company’s activities and oversees their implementation. Within the limits of the company’s corporate purpose and the powers expressly reserved by law to shareholders, the Board addresses and resolves through its deliberations all questions relating to the Company’s good standing.

          The Board of Directors implements all controls and verifications that it deems appropriate. The Chairman of the Board of Directors or the Chief Executive Officer shall disclose to each Director all documents and information necessary for the fulfillment of his duties.

ARTICLE 13 — CHAIRMAN OF THE BOARD

          The Board of Directors elects among its members a Chairman of the Board who must be a natural person. The Board determines the term of office of the Chairman, which may not exceed his or her term of office as a Director. The Board sets the Chairman’s compensation.

          In the absence of the Chairman at a given meeting, the Board elects a Director to chair that meeting.

          The Chairman directs and organizes the activities of the Board of Directors and reports to the shareholders on such activities. The Chairman sees that the various bodies of the Company operate correctly and, in particular, that Directors are each able to fulfill their duties.

          The Chairman of the Board cannot be more than sixty five (65) years old. Should the Chairman reach that age limit during his term of office as Chairman, his or her office would automatically terminate. Subject to this provision, the Chairman of the Board may always be reelected.

ARTICLE 14 — GENERAL MANAGEMENT OF THE COMPANY

          The general management of the Company is carried out, under the responsibility of and at the election of the Board of Directors, by either the Chairman of the Board or by another natural person named Chief Executive Officer (“CEO” or “Directeur Général”) by the Board of Directors. The Board selects between these two alternatives at each election or renewal of the Chairman of the Board, or at each election or renewal of the CEO if the office of the Chairman and the office of the CEO are separate.

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          The CEO, or the Chairman if he or she assumes the duties of the CEO, is vested with the most extensive powers to act under all circumstances on behalf of the Company within the limits of the corporate purpose of the Company, except for those powers expressly granted by law to the meetings of shareholders and those specially reserved to the Board of Directors. The CEO represents the Company vis-a-vis third parties. Any limitation of the CEO’s powers imposed by the Board of Directors is not enforceable vis-a-vis third parties.

          The Board determines the term of office and the compensation of the CEO.

          The Board of Directors, upon the proposal made by the CEO or the Chairman of the Board if he or she assumes the duties of the CEO, may appoint one or more persons, subject to limitations set forth by the law, to assist the office of the CEO. Such persons may be Directors or non Directors, must be natural persons, and have the title of “Directeur Général Délégué”.

          Each Directeur Général Délégué can be dismissed at any time by the Board of Directors, upon proposal made by the CEO or the Chairman of the Board if he or she assumes the duties of the CEO.

          In the event of death, resignation or dismissal of the CEO or the Chairman of the Board if he or she assumes the duties of the CEO, each Directeur Général Délégué stays in office, unless the Board of Directors resolves otherwise, until a new CEO is appointed.

          With the agreement of the CEO or the Chairman of the Board if he or she assumes the duties of the CEO, the Board of Directors determines the powers and duration of such powers delegated to each Directeur Général Délégué. The Board sets his remuneration. When a Directeur Général Délégué is a director, his term of office may not exceed that of his directorship.

          Vis-a-vis third parties, each Directeur Général Délégué has the same powers as the CEO or the Chairman of the Board if he or she assumes the duties of the CEO.

          The CEO and the Directeur Général Délégué cannot be more than sixty five (65) years old. Should the CEO or the Directeur Général Délégué reach that age limit during his term of office as CEO or as Directeur Général Délégué, his or her office would automatically terminate. This term may be prolonged however until the next meeting of the Board during which the new CEO or Directeur Général Délégué will be appointed. Subject to this provision, the CEO and the Directeur Général Délégué may always be reelected.

ARTICLE 15 — AGREEMENTS SUBJECT TO PRIOR AUTHORIZATION OR DISCLOSURE

          15.1. Any sureties, endorsements and guarantees granted by the company must be authorized by the board of directors as provided by law.

          15.2. Any agreement to be entered into, directly or indirectly, between the Company and its Directors, Chief Executive Officer, Directeur Général Délégué, a shareholder owning more than 10% of the voting rights, or if such shareholder is a company, the company controlling such shareholder within the meaning of article L.233-3 of the French Commercial Code, must be submitted to the prior authorization of the Board of Directors.

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Such prior authorization is also required for transactions in which one of the persons listed in the first paragraph above has an indirect interest.

Such prior authorization is also required for agreement between the Company and another company, should one of the Company’s Directors, Chief Executive Officer, or Directeur Général Délégué own such other company or be an unlimited liability partner, director, general manager, member of the supervisory board or, more generally, a member of the management of the other company.

Agreements which are entered into in the ordinary course of business and with terms and conditions which are not out of the ordinary are not subject to the prior authorization of the Board of Directors. Nevertheless, such agreements, except if by reason of their purpose or their financial implications are not significant for both parties, must be disclosed by the interested party to the Chairman of the Board. The list and purpose of such agreements must be communicated by the Chairman of the Board to the Board of Directors and to the Statutory Auditors”

Article 16 — PROHIBITED AGREEMENTS

          Directors, other than legal entities, are forbidden to contract, in any form whatsoever, loans from the company, to secure an overdraft from it, as a current account or otherwise, and to have the company guarantee or secure their commitments toward third parties.

          The same interdiction applies to the CEO, the Directeurs Généraux Délégués and the representatives of corporate bodies. It also applies to spouses, ascendants and descendants of the persons referred to in this article, as well as to all interposed persons.

Article 17 — STATUTORY AUDITORS (Commissaires aux comptes)

          Audits of the company shall be carried out, as provided by law, by one or more statutory auditors legally entitled to be elected as such. When the conditions provided by law are met, the company must appoint at least two supervisory auditors.

          Each statutory auditor shall be appointed by the ordinary general meeting.

          One or more deputy statutory auditors, who may be called to replace the regular statutory auditors in the case of death, disability, resignation or refusal to act of the latter, shall be appointed by an ordinary general meeting.

          Should the general ordinary meeting of the shareholders fail to elect a statutory auditor, any shareholder can claim in court that one be appointed, provided that the Chairman of the board of directors be duly informed. The term of office of the statutory auditor appointed in court will end upon the appointment of the statutory auditor(s) by the general ordinary meeting of the shareholders.

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TITLE IV

MEETINGS OF SHAREHOLDERS

Article 18

          The general meetings of shareholders shall be convened and held as provided by law.

          The meetings of shareholders are held at the registered office or at any other place mentioned in the convening notices.

          The right to take part in a general meeting of shareholders:

          For holders of registered shares is subject to the registration of the shareholder in the books of the company, at least one business day prior to the date of the meeting.

          For holders of bearer Ordinary Shares is subject to the filing, at least one business day prior to such shareholders’ meeting, of a certificate stating that shares are not transferable until the date of such shareholders’ meeting.

          A shareholder who cannot attend the meeting in person may choose either :

          - to give a proxy to another shareholder or to his/her spouse, or

          - to vote by mail, or

          - to send to the company a proxy without any indication of the name of the representative;

within the terms and conditions provided by law and these by-laws.

          Upon the decision of the board of directors published in the notice of any shareholders meeting, shareholders may, subject to the provisions of and procedures under applicable laws, send their proxy or voting instructions either on paper or using a teletransmission mean.

          To be taken into account, the proxies and the forms of vote by mail must be deposited with the company at least one business day prior to the date of the meeting.

          Meetings of shareholders are presided over by the Chairman of the board of directors or in his absence, by a director specially authorized for that purpose by the board. If no Chairman has been appointed, the meeting elects its Chairman.

          The two members of the meeting having the greatest number of votes and who accept that role, are appointed as scrutineers. The officers of the meeting appoint a secretary, who may be a non-shareholder.

          An attendance sheet is drawn up, in accordance with the law.

          The ordinary general meeting of the shareholders, upon first convening notice, may transact business validly only if the shareholders present, or represented, hold at least one fourth of the voting shares. Upon second convening notice, the general meeting may transact business validly whatever the number of shareholders present or represented.

          The resolutions of the ordinary general meeting shall be carried out at the majority vote of the shareholders, present or represented.

          The extraordinary general meetings of the shareholders, upon first convening notice, may transact business validly only if the shareholders present, or represented by proxy, hold at least one third of the voting shares. Upon second convening notice, the extraordinary general meeting may transact business validly only if the shareholders present or represented by proxy hold at least one fourth of the voting shares.

          The resolutions of the extraordinary general meeting shall be carried out at a two third majority vote of the shareholders, present or represented.

          The copies or extracts of the minutes of the meeting are certified by the Chairman of the Board, by the Chief Executive Officer, by a Director acting as Directeur Général Délégué, or by the Secretary of the meeting.

          The ordinary and extraordinary meetings of shareholders exercise their respective powers as provided by law.

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TITLE V

RESULTS OF THE COMPANY

Article 19 — FINANCIAL YEAR

          Each fiscal year is of one year beginning on January 1 and ending on December 31.

Article 20 — PROFITS — LEGAL RESERVE FUNDS

          Out of the profit of a fiscal year, reduced by prior losses if any, an amount equal to at least 5 % thereof is first deducted in order to form the legal reserve fund provided by law. This deduction is no longer required when the legal reserve fund amounts to one tenth of the capital of the company.

          Distributable profit is the profit of a fiscal year, reduced by prior losses and by the deduction provided for in the preceding paragraph and increased by the profits carried forward.

Article 21 — DIVIDENDS

          If there results a distributable profit from the accounts of the fiscal year, as approved by the general meeting, the general meeting may decide to allocate it to one or several reserve funds, the appropriation or use of which it shall determine, or to carry it forward or to distribute it as dividends.

          Furthermore, after having established the existence of reserves which it may dispose of, the general meeting may decide the distribution of amounts paid out of such reserves. In such case, the payments shall be made. However, the dividends shall be set off by priority on the distributable profit of the financial year.

          The general meeting shall determine the terms of payment of dividends ; failing such determination, these terms shall be determined by the board of directors.

          However, the dividends must be declared payable no more than nine months following the close of the financial year.

          The general meeting deciding upon the accounts of a fiscal year will be entitled to grant to each shareholder, for all or part of the distributed dividends, an option between payment in cash or in shares.

          Similarly, should the ordinary general meeting resolve the distribution of interim dividends pursuant to article L.232-12 of the Commercial Code, it will be entitled to grant to each shareholder an interim dividend and, for all or part of the said interim dividend, an option between payment in cash or in shares.

          The offer of payment in shares, the price and the conditions as to the issuing of such shares, together with the request for payment in shares and the conditions of the completion of the capital increase will be governed by the law and regulations.

          When a balance sheet, drawn up during, or at the end of the fiscal year, and certified by the statutory auditor(s), shows that the company, since the close of the preceding fiscal year, after having made the necessary depreciations and provisions and after deduction of the prior losses, if any, as well as of the amounts which are to be allocated to the reserve fund provided by law or by the by-laws, has made profits, the board of directors may resolve the distribution of interim dividends prior to the approval of the accounts of the fiscal year, and may determine the amount thereof and the date of such distribution. The amount of such interim dividends cannot exceed the amount of the profits as defined in this paragraph. In this case, the option described in the preceding paragraph shall not be available.

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TITLE VI

DISSOLUTION — LIQUIDATION

Article 22 — PREMATURE DISSOLUTION

          The extraordinary general meeting may at any time declare the dissolution of the company before the expiration of its stated duration under the present Memorandum and Articles of Association.

Article 23 — LOSS OF ONE HALF OF THE CAPITAL OF THE COMPANY

          If, as a consequence of losses showed by the company’s accounts, the net assets (capitaux propres) of the company are reduced below one half of the capital of the company, the board of directors must, within four months from the approval of the accounts showing this loss, convene an extraordinary general meeting of shareholders in order to decide whether the company ought to be dissolved before its statutory term.

          If the dissolution is not declared, the capital must, at the latest at the end of the second fiscal year following the fiscal year during which the losses were established and subject to the legal provisions concerning the minimum capital of sociétés anonymes, be reduced by an amount at least equal to the losses which could not be charged on reserves, if during that period the net assets have not been restored up to an amount at least equal to one half of the capital.

          In the absence of the meeting of shareholders, or in the case where this meeting has not been able to validly act, any interested party may institute legal proceedings to dissolve the company.

Article 24 — EFFECT OF THE DISSOLUTION OF THE COMPANY

          The company is in liquidation as soon as it is dissolved for any reason whatsover. It continues to exist as a legal entity for the needs of this liquidation until the liquidation is completed.

          During the period of the liquidation, the general meeting shall retain the same powers it exercised during the life of the company.

          The shares shall remain transferable until the completion of the liquidation proceedings.

          The dissolution of the company is only valid vis a vis third parties as from the date at which it is published at the register of commerce.

Article 25 — APPOINTMENT OF LIQUIDATORS — POWERS

          Upon the expiration of the term of existence of the company or in the case of its premature dissolution, the meeting of the shareholders shall decide the method of liquidation and appoint one or several liquidators whose powers it will determine. The liquidators will exercise their duties according to the law. The appointment of the liquidator(s) terminates the offices of the directors.

Article 26 — LIQUIDATION — CLOSING

          After payment of the liabilities, the remaining assets shall be used first for the payment to the shareholders of the amount paid for their shares and not amortized.

          The balance, if any, shall be divided among all the shareholders.

          The shareholders shall be convened at the end of the liquidation in order to decide on the final accounts, to discharge the liquidator from liability for his acts of management and the performance of his office, and to take notice of the closing of the liquidation.

          The closing of the liquidation is published as provided by law.

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TITLE VII

NOTIFICATIONS

Article 27 — NOTIFICATIONS

          All notifications provided for in the present Memorandum and Articles of Associations shall be made either by registered mail with acknowledgment of receipt or by process server. Simultaneously a copy of the notification shall be sent to the recipient by ordinary mail.

EX-10.1

Exhibit 10.1

BUSINESS OBJECTS S.A.

2001 STOCK INCENTIVE PLAN

Adopted on February 6, 2001 and amended on August 26, 2003, on December 11, 2003, on June 10,
2004, on August 20, 2004, on August 12, 2005 and on October 20, 2005

UNOFFICIAL TRANSLATION INTO ENGLISH FOR CONVENIENCE PURPOSES

     In conformity with the provisions of Articles L 225-177 et. seq. of the Law as defined herein, Business Objects S.A. adopted a plan for the grant to Beneficiaries (defined below) of options giving right by exercise to subscribe newly-issued shares of the Company or purchase existing shares of the Company. In furtherance of such decision the board of directors has adopted the Business Objects S.A. 2001 Stock Option Plan which was approved by the shareholders of the Company on February 6, 2001.

     Minor amendments to the Plan were made in connection with the adoption of the Subsidiary Stock Incentive Sub-Plan which were approved by the shareholders of the Company on June 10, 2004, including renaming the Plan as the “2001 Stock Incentive Plan.”

     The terms and conditions of the Plan are set out below.

1. PURPOSES OF THE PLAN

     The purposes of this Plan are to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to Beneficiaries and to promote the success of the Company’s business.

     Options granted under the Plan to U.S. Beneficiaries are intended to be Incentive Stock Options or Non-Statutory Stock Options, as determined by the Administrator at the time of grant of an Option, and shall comply in all respects with Applicable U.S. Laws in order that they may benefit from available fiscal advantages.

2. DEFINITIONS

     As used herein, the following definitions shall apply:

     (a) “Share” means an ordinary share of the Company.

     (b) “Director” means a member of the Board.

     (c) “ADR” means an American Depositary Receipt evidencing an American Depositary Share corresponding to one Share.

     (d) “Shareholder Authorization” means the authorization given by the shareholders of the Company in an extraordinary general meeting held on February 6, 2001 permitting the Board to grant Options.

     (e) “Optionee” means a Beneficiary who holds at least one outstanding Option.

     (f) “Change in Control” shall mean, and shall be deemed to have occurred if:

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          (i) any person or entity, other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company acting in such capacity or a corporation owned directly or indirectly by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company, becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company’s then outstanding voting securities, or

          (ii) the shareholders of the Company approve a merger or consolidation of the Company with any other corporation other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or

          (iii) the shareholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of (in one transaction or a series of related transactions) all or substantially all of the Company’s assets to an entity other than an Affiliated Company.

     (g) “Code” means the United States Internal Revenue Code of 1986, as amended.

     (h) “Board” means the board of directors of the Company.

     (i) “Option Agreement” means a written agreement between the Company and an Optionee evidencing the terms and conditions of an individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan.

     (j) “Notice of Grant” means a written notice evidencing certain terms and conditions of an individual Option grant, subject to the terms and conditions of the Plan. The Notice of Grant is part of the Option Agreement.

     (k) “Beneficiary” means the Chairman of the Board (Président du Conseil d’administration), the Managing director (Directeur général), the Deputy managing directors (Directeurs Généraux Délégués), and any Officers or other person employed by the Company or any Affiliated Company. Neither service as a Director nor payment of a director’s fee by the Company or an Affiliated Company shall be sufficient to constitute “employment” by the Company or an Affiliated Company.

     (l) “U.S. Beneficiary” means a Beneficiary of the Company or an Affiliated Company residing in the United States or otherwise subject to United States’ laws and regulations.

     (m) “Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

     (n) “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined in Section 424(f) of the Code.

     (o) “Administrator” means the Board, as shall administer the Plan in accordance with Section 4 of the Plan, it being specified that pursuant to Article 11.3 of the by-laws of the Company, any board member who is eligible to receive Options is prohibited from voting on decisions to grant Options if such board member is the Beneficiary of such Options;

     (p) “Disability” means total and permanent disability.

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     (q) “Incentive Stock Option” means any option granted only to U.S. Beneficiaries that intends to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

     (r) “Law” means the French Commercial Code.

     (s) “Applicable U.S. Laws” means the legal requirements relating to the administration of stock option plans under state corporate and securities laws and the Code in force in the United States of America.

     (t) “Non-statutory Stock Option” means an Option which does not qualify as an Incentive Stock Option.

     (u) “Officer” means a Beneficiary who is an officer of an Affiliated Company, which is not incorporated under laws of France, within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

     (v) “Option” means a stock option granted pursuant to the Plan as adjusted from time to time in accordance with Section 11 of the Plan.

     (w) “Plan” means this 2001 Stock Incentive Plan, as amended from time to time.

     (x) “Option Exchange Program” means a program whereby outstanding Options are surrendered in exchange for options with a lower exercise price.

     (y) “Continuous Status as a Beneficiary” means that the employment relationship with the Company or any Affiliated Company is not interrupted or terminated. Continuous Status as a Beneficiary shall not be considered interrupted in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company or any Affiliated Company, or any successor. A leave of absence approved by the Company shall include sick leave, military leave, or any other personal leave. For purposes of U.S. Beneficiaries and Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon expiration of such leave is guaranteed by statute or contract, including Company policies. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, on the 91^st day of such leave any Incentive Stock Option held by a U.S. Beneficiary shall cease to be treated as an Incentive Stock Option and shall be treated for U.S. tax purposes as a Non-statutory Stock Option.

     (z) “Company” means Business Objects S.A., a corporation organized under the laws of the Republic of France.

     (aa) “Affiliated Company” means a company related to the Company in accordance with the provisions set forth in L 225-180 of the Law. As a reminder, as of the day of the adoption of the Plan:

- companies of which at least one tenth (1/10) of the share capital or voting rights is held directly or indirectly by the Company;

- companies which own directly or indirectly at least one tenth (1/10) of the share capital or voting rights of the Company; and

- companies of which at least fifty percent (50%) of the share capital or voting rights is held directly or indirectly by a company which owns directly or indirectly at least fifty percent (50%) of the share capital or voting rights of the Company.

     (bb) “Parent” means a “parent corporation”, whether now or hereafter existing, as defined in Section 424(e) of the Code.

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     (cc) “Fair Market Value” The Fair Market Value shall be the closing sale price in euros for such Share (or the closing bid, if no sales were reported) as quoted on the Eurolist by Euronext ^TM or on such other Regulated Market on which the Shares are traded, on the last market trading day prior to the day of grant, as reported by Euronext Paris S.A., or such other source as the Administrator deems reliable. For the purpose of calculation under Section 5.1 of the Plan, Fair Market Value shall be also the closing price (as determined here above) for a share subject to an Incentive Stock Option;

     (dd) “Regulated Market” shall mean, as of any date, a stock exchange or system on which the Shares are traded which is a regulated market (“marché règlementé”) under Article L. 421-1 of the French Monetary and Financial Code.

     (ee) “Election” shall mean agreement regarding the United Kingdom National Insurance Liability.

     (ff) “Notification Date” shall mean the date at which the Company notifies to the Optionees through its local representative the Option Agreement and, as the case may be, its exhibits, Election, acceptance form, information form and any other exhibit or form attached to the Option Agreement.

3. STOCK SUBJECT TO THE PLAN AND THE SUBSIDIARY STOCK INCENTIVE SUB-PLAN

     3.1. Stocks subject to the Plan. Subject to the provisions of Section 11 of the Plan, the maximum aggregate number of Shares which may be optioned and issued under the Plan is 8,087,729 Shares of € 0.10 nominal value each. Moreover the Board of Directors of the Company is authorized to increase annually, on one or more occasions, the number of Shares which may be subscribed for or purchased upon the exercise of Options, within the limit of the lowest of the following amounts: (i) 6,500,000 Shares with a nominal value of €0.10 each, (ii) the number of Shares corresponding to 5% of the total number Shares outstanding as of June 30, (iii) any lesser amount as determined by the Board of Directors.

     Notwithstanding the above, and pursuant to the Law, options issued and outstanding under all option plans of the Company may not give the right to subscribe to a total number of Company’ shares in excess of one-third of the Company’s share capital.

     If an Option should expire or become unexercisable for any reason, the unsubscribed or unpurchased Share which was subject thereto shall, unless the Plan shall have been terminated, become available for future grant under the Plan.

     The pool of share mentioned above shall not be used for the purposed and under the Subsidiary Stock Incentive Sub-Plan.

     3.2. Stocks subject to the Subsidiary Stock Incentive Sub-Plan. The maximum aggregate number of Shares reserved under the Plan is 2,500,000 Shares of € 0.10 nominal value each. These Shares in form or American Depositary Shares are held by the Business Objects Employee Benefits Sub-Plan Trust.

4. ADMINISTRATION OF THE PLAN

4.1 Procedure. The Plan shall be administered by the Administrator.

4.2 Powers of the Administrator. Subject to the provisions of the Law, the Shareholder Authorization, the Plan and U.S. Applicable Laws, the Administrator shall have the authority, in its discretion:

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- to determine the Fair Market Value of the Shares, in accordance with Section 2(cc) of the Plan;

- to select the Beneficiaries to whom Options may be granted hereunder;

- to determine whether and to what extent Options are granted hereunder;

- to determine the number of Shares to be covered by each Option granted hereunder;

- to approve forms of agreement for use under the Plan, if any;

- to determine the terms and conditions, not inconsistent with the terms and conditions of the Plan, of any Options granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Option or the Shares relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine;

- to construe and interpret the terms of the Plan and Options granted pursuant to the Plan;

- to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to stock options sub-plans established for the purpose of qualifying for preferred tax treatment under foreign tax laws;

- to modify or amend the conditions and terms of each Option (subject to Section 13.3 of the Plan), including the discretionary authority to extend the post-termination exercisability period of Options longer than is otherwise provided for in the Plan;

- to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Option previously granted by the Administrator;

- to decide and institute an Option Exchange Program;

- to determine the terms and restrictions applicable to Options, including without limitation to limit or prohibit the exercise of an Option as well as the sale or conversion into bearer form of Shares acquired pursuant to the exercise of an Option, during certain periods or upon certain events which the Administrator shall determine in its sole discretion; and

- to make all other determinations deemed necessary or advisable for administering the Plan.

4.3 Effect of Administrator’s Decision. The Administrator’s decisions, determinations and interpretations shall be final and binding on all Optionees, subject to the provisions of Article 13.3 of the Plan.

5. LIMITATIONS

5.1 In the case of U.S. Beneficiaries, each Option shall be designated in the Notice of Grant either as an Incentive Stock Option or as a Non-Statutory Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value:

                              (i) of shares subject to an Optionee’s Incentive Stock Options granted by the Company or any Affiliated Company, which

                              (ii) become exercisable for the first time during any calendar year (under all plans of the Company or any Affiliated Company)

exceeds $100,000, such excess options shall be treated as Non-statutory Stock Options. For purposes of this Section 5.1, Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value shall be determined as of the time of the grant.

5.2 Neither the Plan nor any Option shall confer upon an Optionee any right with respect to continuing the Optionee’s employment with the Company or any Affiliated Company, nor shall they interfere in any way with the Optionee’s right or the Company’s or Affiliated Company’s right, as the case may be, to terminate such employment at any time, with or without cause.

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5.3 The following limitations shall apply to grants of Options to Beneficiaries:

               (i) No Beneficiary shall be granted, in any fiscal year of the Company, Options to subscribe or purchase more than 225,000 Shares.

               (ii) Notwithstanding the foregoing, the Company may also make additional grants of up to 450,000 Shares to newly-hired Beneficiaries.

               (iii) The foregoing limitations shall be adjusted proportionately in connection with any change in the Company’s capitalization as described in Section 11.

               (iv) No Options may be granted to a shareholder who holds more than 10% of the Company’s share capital at the time of grant.

5.4 Each Option granted under the Plan in respect of UK Beneficiaries, who are subject to UK Income Tax and Social Security withholding, shall only be granted provided that the Beneficiary enters into an Election with the Company or any Affiliated Company. The Election shall be in such form and contain such provision as the Board shall from time to time approved and as shall have been agreed with the Board of the Inland Revenue.

5.5 Other than as expressly provided hereunder, including Section 2(k) above, no member of the Board of Directors shall be eligible, in this sole position, to receive an Option under the Plan.

6. TERM OF PLAN

     The Plan is effective and Options may be granted as of February 6, 2001 the date of the Plan’s adoption by the shareholders for the purpose of certain local laws. It shall continue in effect until February 11, 2007 unless terminated earlier under Section 13 of the Plan.

7. TERM OF OPTION

     The term of each Option shall be stated in the Notice of Grant, as ten (10) years from the date of grant in accordance with the Shareholder Authorization. Notwithstanding the foregoing, Options granted to Beneficiaries of the United Kingdom Affiliated Company or Beneficiaries who are otherwise residents of the United Kingdom or who are subject to the laws of the United Kingdom and Options granted to Beneficiaries of the Ireland Affiliated Company or Beneficiaries who are otherwise residents of Ireland or who are subject to the laws of Ireland shall have a term of seven (7) years less one (1) day from the day of grant.

8. OPTION EXERCISE PRICE AND CONSIDERATION

8.1 Exercise Price

8.1.1 In the case of an Option to subscribe to new shares, the per Share exercise price shall be determined in accordance with the following:

               (i) In the case of an Incentive Stock Option granted to a U.S. Beneficiary who, at the time the Incentive Stock Option is granted, owns stock representing more than 10% of the voting rights of all classes of stock of the Company or any Parent or Subsidiary, to the extent such U.S. Beneficiary is permitted by the Law to receive Incentive Stock Option grants, the per Share exercise price shall be no less than the higher of (a) 110% of the Fair Market Value per Share or (b) 80% of the average Fair Market Values on the twenty trading days preceding the grant date.

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               (ii) In the case of an Option granted to any Beneficiary other than a U.S. Beneficiary described in paragraph (i) immediately above, the per Share exercise price shall be no less than the higher of (a) 100% of the Fair Market Value per Share, or (b) 80% of the average Fair Market Values on the twenty trading days preceding the grant date.

The exercise price shall be not be less than 80% of the average of the first quoted prices of the Share on Eurolist by Euronext ^TM over 20 trading days immediately preceding the date of grant.

8.1.2 When an Option entitles the holder to purchase shares previously repurchased by the Company, the exercise price may neither be less than 80% of the average purchase price paid for all Shares or ADRs previously repurchased by the Company, nor than 80% of the average of the first quoted prices of the Share on Eurolist by Euronext ^TM over 20 trading days immediately preceding the date of grant.

8.2 Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator shall fix the period within which the Option may be exercised and shall determine any conditions which must be satisfied before the Option may be exercised. In so doing, the Administrator may specify that an Option may not be exercised until the completion of a service period.

8.3 Form of Consideration. The consideration to be paid for the Shares upon exercise of Options, including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant) and shall consist entirely of an amount in Euros corresponding to the exercise price which may be paid namely by:

- wire transfer;

- check;

- delivery of a properly executed notice together with such other documentation as the Administrator and the broker, if applicable, shall require to effect exercise of the Option and delivery to the Company of the sale or loan proceeds required to pay the exercise price;

- proceeds from the resale of shares in case of cash-less exercise; or

- any combination of the foregoing methods of payment.

9. EXERCISE OF OPTION

9.1 Procedure for Exercise; Rights as a Shareholder

     Any Option granted hereunder shall be exercisable,

               (i) subject to the signature by the Optionee of his/her Option Agreement and, as the case may be, its exhibits, Election, acceptance form, information form and any other exhibit or form attached to the Option Agreement on or before the 90^th day from the Notification Date.

(ii) according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Option Agreement.

     An Option may not be exercised for a fraction of a Share.

     An Option shall be deemed exercised when the Company receives: (i) written notice of exercise (in accordance with the Option Agreement) together with a share subscription or purchase form (bulletin d’achat ou de souscription) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised. Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse.

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     Upon exercise of any Option in accordance herewith, the Shares issued to the Optionee shall be assimilated with all other Shares of the Company and shall be entitled to dividends for the fiscal year in course during which the Option is exercised.

     Granting of an Option in any manner shall result in a decrease in the number of Shares which thereafter may be available for purposes of the Plan, by the number of Shares as to which the Option is outstanding.

9.2 Termination of Employment. Upon termination of an Optionee’s Continuous Status as a Beneficiary during the term of the Option, other than upon the Optionee’s death or Disability, the Optionee may exercise his or her Option, but only within such period of time as is specified in the Notice of Grant, and only to the extent that the Optionee was entitled to exercise it at the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Notice of Grant). In the absence of a specified time in the Notice of Grant, the Option shall remain exercisable for ninety (90) days following the Optionee’s termination of Continuous Status as a Beneficiary. In the case of an Incentive Stock Option, such period of time shall not exceed ninety (90) days from the date of termination. If, at the date of termination, the Optionee is not entitled to exercise his or her entire Option, the Shares covered by the unexercisable portion of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

9.3 Disability of Optionee. In the event that an Optionee’s Continuous Status as a Beneficiary terminates, during the term of the Option, as a result of the Optionee’s Disability, the Optionee may exercise his or her Option at any time within six (6) months from the date of such termination, and only to the extent that the Optionee was entitled to exercise it at the date of such termination (but in no event later than the expiration of the term of such Option as set forth in the Notice of Grant). If, at the date of termination, the Optionee is not entitled to exercise his or her entire Option, the Shares covered by the unexercised portion of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

9.4 Death of Optionee. In the event of the death of an Optionee during the term of the Option, the Option may be exercised at any time within six (6) months following the date of death, by the Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent that the Optionee was entitled to exercise the Option at the date of death (and in no event later than the expiration of the term of such Option as set forth in the Notice of Grant). If, at the time of death, the Optionee was not entitled to exercise his or her entire Option, the Shares covered by the unexercised portion of the Option shall immediately revert to the Plan. If, after death, the Optionee’s estate or a person who acquired the right to exercise the Option by bequest or inheritance does not exercise the Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

10. NON-TRANSFERABILITY OF OPTIONS AND SHARES

     An Option may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will or by laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee.

     The Administrator may restrict the right of an Optionee to sell, convert into bearer form, or otherwise dispose of the Shares acquired upon exercise of the Option. In accordance with the Law, such restriction may not exceed three (3) years from the exercise date.

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11. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, DISSOLUTION, MERGER OR ASSET SALE

11.1 Changes in capitalization. In the event of the carrying out by the Company of any of the financial operations pursuant to Article L
225-181 of the Law such as:

- issuance of shares to be subscribed for in cash offered exclusively to the shareholders,

- capitalization of reserves, profits, issuance premiums and distribution of free shares,

- issuance of bonds convertible or exchangeable into shares offered exclusively to shareholders,

- distribution of reserves in cash or portfolio securities,

- capital reduction motivated by losses, and

- repurchase of its own Shares at a price higher than market value, pursuant to Article 174-9A of the decree no. 67-236 of March 23, 1967,

the Administrator shall, in accordance with the conditions provided for in Articles 174-8 et seq. of the decree no. 67-236 of March 23, 1967 concerning commercial companies, effect an adjustment of the number and the price of the Shares subject to Option grants.

     The number of Shares which have been authorized for issuance under the Plan as to which no Options have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Option shall be proportionately adjusted in the event the Company effects a share capital increase by way of incorporation of reserves, premiums or profits, resulting either in an increase of the nominal value of the shares or in a free allocation of shares, or effects a reverse or forward stock split or a combination of shares.

11.2 Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, to the extent that an Option has not been previously exercised, it will terminate immediately prior to the consummation of such proposed action. The Administrator may, in the exercise of its sole discretion in such instances, declare that any Option shall terminate as of a date fixed by the Administrator and give each Optionee the right to exercise his or her Option as to which the Option would not otherwise be exercisable. The possibility to exercise Options will be notified by the Administrator to the Beneficiary. Such notification shall provide the Beneficiary with information regarding the dissolution or liquidation process.

11.3 Change in Control. In the event of a Change in Control of the Company, each outstanding Option shall be assumed or an equivalent option or right shall be granted by the successor corporation or an affiliated company of the successor corporation. The Administrator may, in lieu of such assumption or new grant, provide for the Optionee the right to exercise the Option as to the corresponding Shares as to which it would not otherwise be exercisable. If the Administrator makes an Option exercisable in lieu of assumption or new grant in the event of a Change in Control, the Administrator shall notify the Optionee that the Option shall be fully exercisable for a period of fifteen (15) days from the date of such notice, and the Option will terminate upon the expiration of such period. For the purposes of this paragraph, the Option shall be considered assumed if, following the Change in Control, the Participant receives, with respect to each Option, the right to purchase, for each Share of Optioned Stock subject to the Option immediately prior to the Change in Control, the consideration (whether stock, cash, or other securities or property) received in the Change in Control by holders of Shares or ADRs for each Share or ADR held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received was not solely common stock of the successor corporation, or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of options or rights granted with respect to each Share of Option Stock subject to the Option, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Shares or ADRs in the merger or sale of assets within the limits set forth by the applicable laws and regulations.

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11.4 Shares subject to the Subsidiary Stock Incentive Sub-Plan. The article 11.1 is not applicable to the shares mentioned in article 3.2 of this Plan, for which provisions of the Non-French Subsidiaries Stock Incentive Sub-Plan shall be applicable.

12. DATE OF GRANT

     The date of grant of an Option shall be, for all purposes, the date on which the Administrator makes the determination granting such Option. A Notice of Grant shall be provided to each Optionee within a reasonable time after the date of such grant.

13. AMENDMENT AND TERMINATION OF THE PLAN

13.1 Amendment and Termination. The Administrator may at any time amend, alter, suspend or terminate the Plan.

13.2 Shareholder Approval. For the purpose of certain local laws, the Company shall obtain shareholder approval of any Plan amendment to the extent necessary and desirable to comply with Section 422 of the Code (or any successor rule or statute or other applicable law, rule or regulation, including the requirements of any exchange or quotation system on which the Shares or ADRs is listed or quoted). Such shareholder approval, if required, shall be obtained in such a manner and to such a degree as is required by the applicable law, rule or regulation.

13.3 Effect of Amendment or Termination. No amendment, alteration or suspension of the Plan shall impair the rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Administrator, which agreement must be in writing and signed by the Optionee and the Company. In addition, the termination of the Plan will only have consequences in the future, and will have no impact on the outstanding Options granted under the Plan.

14. CONDITIONS UPON ISSUANCE OF SHARES

14.1 Legal Compliance. Shares shall not be issued pursuant to the exercise of Options unless the exercise of such Options and the issuance and delivery of such Shares shall comply with all relevant provisions of law including, without limitation, the Law, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, Applicable U.S. Laws and the requirements of any stock exchange or quotation system upon which the Shares may then be listed or quoted.

14.2 Investment Representations. As a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Share is being subscribed only for investment and without any present intention to sell or distribute such Share if, in the opinion of counsel for the Company, such a representation is required.

15. LIABILITY OF COMPANY

     The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue such Shares as to which such requisite authority shall not have been obtained.

16. INFORMATION OF THE OPTIONEE OF THE GRANT OF THE OPTIONS

     The Company informs the Optionee of the grant of Options by sending him/her the Notice of Grant to which a copy of the present Plan is attached. As of the time of receipt, the Optionee reviews all the

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documents sent by the Company and returns to it an acknowledgement of receipt provided by the Company for this purpose.

     In addition, the Company shall inform the Optionee within a reasonable time limit of any modifications of the conditions of the Options granted under the present Plan.

17. LAW AND JURISDICTION AND LANGUAGE

     This Plan shall be governed by and construed in accordance with the laws of the Republic of France. The Tribunal de Grande Instance of Nanterre, or the court otherwise competent, shall have jurisdiction to determine any claim or dispute arising in connection herewith.

     The Plan has been adopted in the French language. As a result, only the French version shall prevail. Any version hereof drafted in another language is for information purposes only.

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BUSINESS OBJECTS S.A.

2001 STOCK INCENTIVE PLAN
EXHIBIT A

BUSINESS OBJECTS S.A.

2001 STOCK OPTION GRANT AGREEMENT
Part I
NOTICE OF STOCK OPTION GRANT

Name:

Address:

You have been granted options to subscribe for Shares of the Company, subject to the terms and conditions of the 2001 Stock Incentive Plan, as amended (the Plan) and this Option Agreement, as follows. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Option Agreement.

Grant Number:

Date of Grant:

Vesting Commencement Date:

Total Number of Options Granted:

Exercise Price per Option:

Total Exercise Price:

Term/Expiration Date:

     Type of Option (for US Beneficiaries only): These Options are intended to be Incentive Stock Options (“ISOs”). However, in accordance with Section 422(d) of the Internal Revenue Code of 1986 as amended, to the extent that the aggregate fair market value of Shares subject to ISOs which become exercisable for the first time during any calendar year (under all plans of the Company or any Affiliated Company) exceeds $100,000, such excess Options is treated as Non-statutory Stock Options (“NSO”).

     Vesting Schedule: These Options may be exercised, in whole or in part, in accordance with the following schedule:

provided that the Beneficiary remains in Continuous Status as a Beneficiary, as defined in section 2 (y) of the Plan, on such dates.

     Termination Period: These Options may be exercised for ninety (90) days after termination of the Optionee’s employment with the Company or the Affiliated Company as the case may be. Upon the death or Disability of the Optionee, these Options may be exercised for such longer period as provided in the Plan. Save as provided in the Plan, in no event shall these Options be exercised later than the Term/Expiration Date as provided above.

     By your signature and the signature of the Company’s representative below, you and the Company agree that these Options are granted under and governed by the terms and conditions of the Plan and this Option Agreement. Moreover, by signing this document you acknowledge receipt of the rules of the Plan and of this Option Agreement, you represent that you have reviewed the Plan and this Option Agreement in their entirety, had the opportunity to obtain the advice of counsel prior to executing this Option Agreement and fully understand all provisions of the Plan and Option Agreement. You hereby agree to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions relating to the Plan and Option Agreement. You further agree to notify the Company upon any change in the residence address indicated above. You acknowledge and agree that this Option and its vesting schedule does not constitute an express or implied promise of continued employment and shall not interfere in any way with your right or the Company’s right to terminate your employment at any time. Further, the benefits, if any, arising from your Option, shall not form any part of your wages, pay or remuneration or count as wages, pay or remuneration for pension fund or other purposes. In no circumstances shall you on ceasing to hold your office or employment be entitled to any compensation for any loss of any right or benefit or

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prospective right or benefit under the Plan, which you might otherwise have enjoyed, whether such compensation is claimed by way of damages for wrongful dismissal or other breach of contract or by way of compensation for loss of office or otherwise.

     The Company and the Optionee recognize that the Plan has been adopted in the French language. As a result, only the French version shall prevail. The translation in English is provided for information purposes only.

OPTIONEE: FOR BUSINESS OBJECTS S.A.

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BUSINESS OBJECTS S.A.

2001 STOCK OPTION GRANT AGREEMENT
Part II
TERMS AND CONDITION

     1. Grant of Options. The Plan Administrator of the Company hereby grants to the Optionee named in the Notice of Grant attached as Part I of this Agreement (the “Optionee”), number of options (“Options”) as set forth in the Notice of Grant each giving right by exercise to subscribe one Share, at the exercise price per Option set forth in the Notice of Grant (the “Exercise Price”), subject to the terms and conditions of the 2001 Stock Incentive Plan, which is incorporated herein by reference. Subject to Section 13.3 of the Plan, in the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Option Agreement, the terms and conditions of the Plan shall prevail.

If designated in the Notice of Grant as an ISO, this Option is intended to qualify as an ISO under Section 422 of the Code. However, if this Option is intended to be an ISO, to the extent that it exceeds the $100,000 rule of Code Section 422(d) it shall be treated as a Non-statutory Stock Option.

     2. Exercise of Options

     (a) Right to Exercise. These Options are exercisable subject to the signature by the Optionee of his/her Option Agreement and, as the case may be, its exhibits, Election, acceptance form, information form and any other exhibit or form attached to the Option Agreement on or before the 90^th date from the Notification Date. These Options are exercisable during the term in accordance with the Vesting Schedule set out in the Notice of Grant and the applicable provisions of the Plan and this Option Agreement. In the event of Optionee’s death, Disability or other termination of Optionee’s employment, the exercisability of the Options is governed by the applicable provisions of the Plan and this Option Agreement.

     (b) Method of Exercise. These Options are exercisable by delivery of an exercise notice, in the form attached hereto (the “Exercise Notice”), comprising a share subscription form (bulletin de souscription) which shall state the election to exercise the number of Options indicated in such Exercise Notice (the “Exercised Options”), and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan. The Exercise Notice shall be signed by the Optionee and shall be delivered in person or by certified mail to the Company or its designated representative or by facsimile message to be immediately confirmed by certified mail to the Company. The Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all Exercised Options. These Options shall be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by such aggregate Exercise Price.

     No Shares shall be issued pursuant to the exercise of these Options unless such issuance and exercise complies with all relevant provisions of law and the requirements of any stock exchange or quotation service upon which the Shares are then listed. Assuming such compliance, for income tax purposes the Shares acquired by exercise of Options shall be considered transferred to the Optionee on the date Options are exercised with respect to such Shares.

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     3. Method of Payment. Payment of the aggregate Exercise Price shall be by any of the following method, or a combination thereof, at the election of the Optionee: (i) wire transfer; (ii) check; (iii) delivery of a properly executed notice together with such other documentation as the Administrator and the broker, if applicable, shall require to effect exercise of the Option and delivery to the Company of the sale or loan proceeds required to pay the exercise price; (iv) proceeds from the resale of shares in case of cash-less exercise, or (v) any combination of the foregoing methods of payment.

     In accordance with Article 4.2.4 of the Company French Savings Plan, the beneficiary may use holdings under the Company Savings Plan for the exercise of the Options. In such case, the obtained shares are contributed to the Company Savings Plan and are subject to a five-year lock-up period.

     4. Non-Transferability of Options. These Options may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of the Optionee only by the Optionee. The terms of the Plan and this Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

     5. Terms of Options. Except as provided in the Plan, these Options may be exercised only within the term set out in the Notice of Grant, and may be exercised during such term only in accordance with the Plan and the terms of this Option Agreement.

     6. UK National Insurance Liability. By virtue of your acceptance of the rules of the Plan, you are required to enter into an Election with the Company or Affiliated Company in the form attached to this Agreement marked attachment C. In the event that the Optionee fails to enter into the Election as required by the terms of this Agreement, by signing and returning Attachment C to the Company within a period of 28 days of the date of receipt of this Agreement, then these Options shall terminate and shall there upon become null and void.

     7. Entire Agreement; Governing Law. The Plan is incorporated herein by reference. The Plan and this Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest except by means of a writing signed by the Company and Optionee. This Agreement is governed by the laws of the Republic of France.

     Any claim or dispute arising under the Plan or this Agreement shall be subject to the jurisdiction of the Tribunal de Grande Instance of Nanterre or the court otherwise competent.

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CONSENT OF SPOUSE

(to be signed by residents of
California and other community property states)

     The undersigned spouse of Optionee has read and hereby approves the terms and conditions of the Plan and this Option Agreement. In consideration of the Company’s granting his or her spouse the right to subscribe Shares as set forth in the Plan and this Option Agreement, the undersigned hereby agrees to be irrevocably bound by the terms and conditions of the Plan and this Option Agreement and further agrees that any community property interest shall be similarly bound. The undersigned hereby appoints the undersigned’s spouse as attorney-in-fact for the undersigned with respect to any amendment or exercise of rights under the Plan or this Option Agreement.

Consent of spouse