Document:

exv4w1

 

Exhibit 4.1

EXTRACT FROM THE NOTE D’OPERATION CONTAINING THE TERMS AND CONDITIONS

OF THE BONDS AS FILED WITH THE AUTORITÉ DES MARCHÉS FINANCIERS ON

MAY 3, 2007 (UNOFFICIAL ENGLISH TRANSLATION)

The following is a summary of the material terms and conditions of the 2.25% net share settled
convertible notes due 2027 issued by Business Objects in May 2007:

	1	 	INFORMATION CONCERNING SECURITIES TO BE OFFERED AND LISTED ON THE EUROLIST BY
EURONEXTTM MARKET

     1.1 Nature, form and delivery of the Bonds

The bonds to be issued by Business Objects S.A. (the “Company”) constitute securities giving access
to capital within the meaning of Articles L. 228-91 et seq. of the French Commercial Code (the
“Bonds”).

The Bonds will be in either registered or bearer form, at the option of the holders. They will be
mandatorily held in dematerialized book-entry form by, as the case may be:

	 	–	 	BNP Paribas Securities Services acting on behalf of the Company in respect of
fully registered Bonds (nominatifs purs);
	 
	 	–	 	an authorized financial intermediary of the holder’s choice and BNP Paribas
Securities Services acting on behalf of the Company, in respect of Bonds in
administered, registered form (nominatifs administrés);
	 
	 	–	 	an authorized financial intermediary of the holders’ choice in respect of
Bonds in bearer form (au porteur).

Settlement and delivery of the Bonds upon issuance will take place through the Euroclear France
RELIT-SLAB settlement and delivery system (ISIN Code FR0010470245).

All of the Bonds will be accepted for clearance through Euroclear France, which will ensure the
settlement of Bonds between account holders. The Bonds will also be accepted for clearance through
Euroclear Bank S.A./N.V. and Clearstream Banking, S.A..

The Bonds will be held in dematerialized book-entry form and be tradable beginning on May 11, 2007,
the settlement date of the Bonds.

     1.2 Nominal Value per Bond

The nominal value of each Bond, i.e. 42.15 euros, equates to a conversion premium of 50% over the
reference price of the Company’s shares, i.e. 28.10 euros (the “Reference Price”), defined as the
volume-weighted average share price of the Company’s shares traded on Eurolist by
EuronextTM, from the opening of trading on May 3, 2007 until 2:00 p.m., corresponding to
the time of the pricing of the offering.

     1.3 Issue Price of the Bonds

The Bonds will be issued at par, i.e. 42.15 euros, payable in full on the settlement date of the
Bonds.

     1.4 Issue date

May 11, 2007.

 

 

  

     1.5 Settlement date

May 11, 2007.

     1.6 Annual interest

The Bonds will bear interest at the rate of 2.25% per annum (expressed as a percentage of the
nominal value of the Bonds), payable in arrears on January 1 of each year (or the following
Business Day if that day is not a Business Day) and for the first time on January 1, 2008 (or the
following Business Day if such day is not a Business Day) (each such date being an “Interest
Payment Date”).

All interest payments relating to an interest period of less than one full year will be calculated
on the basis of the above-mentioned annual interest rate calculated on the basis of the number of
days elapsed in the relevant period on the basis of a 365-day year (or a 366-day year for a leap
year).

A “Business Day” shall mean any day (other than a Saturday or Sunday) on which banks are open in
Paris and on which Euroclear France operates.

Subject to the provisions of paragraph 1.22.7 “Rights of Bondholders to interest on the Bonds and
to dividends with respect to shares delivered”, interest will cease to accrue from the redemption
date of the Bonds.

Claims in respect of interest will become forfeited after a period of five years from such
interest’s due date.

     1.7 Redemption, early redemption

     1.7.1 Redemption at maturity

Unless the Bonds have been subject to early redemption or to the exercise of the Conversion Right
as described in paragraph 1.22 “Exercise of the Conversion Right”, under the conditions set out
below, they will be redeemed in full on January 1, 2027 (or the following Business Day if that day
is not a Business Day) at par in cash.

Claims in respect of principal will become void after a period of 30 years from the date of redemption.

     1.7.2 Early redemption by repurchase or public tender offers

The Company reserves the right to redeem the Bonds at any time, without limitation as to price or
quantity, through purchases on the market or over-the-counter or by means of public tender or
exchange offers. Any such transaction shall not affect the normal redemption timetable for other
Bonds remaining outstanding.

     1.7.3 Early redemption at the option of the Company

	1.	 	The Company may at its sole option and at any time from May 11, 2012 until
the end of the seventh Business Day preceding the maturity date of the Bonds, redeem
in cash all of the Bonds outstanding, in cash, at par plus interest accrued from the
last Interest Payment Date preceding the early redemption date through the effective
date of redemption, by giving not more than 60 days and not less than 30 days notice
in the manner provided in paragraph 1.7.5 “Publication of information in the event of
redemption at maturity or early redemption of Bonds”, provided that any such early
redemption will be permitted only if the product of:

	 	•	 	the applicable Conversion Ratio (as defined in paragraph 1.22.4 “Exercise
Period and Conversion Ratio”); and
	 
	 	•	 	the VWAP Price of the Company’s shares;

 

 

 

	 	 	 	exceeds 125% of the nominal value of the Bonds on each of 10 consecutive Trading Days
during which the Business Objects shares are quoted, as selected by the Company amongst
a 20 consecutive Trading Days period preceding the date of publication of the notice
announcing such early redemption (as described in paragraph 1.7.5 “Publication of
information in the event of redemption at maturity or early redemption of the Bonds”).
	 
	 	 	 	A “Trading Day” shall mean any Business Day on which Euronext Paris quotes shares on
Eurolist by EuronextTM, other than a day on which such quotes cease prior to
the usual closing time (or if the Company’s shares are no longer quoted on such market
but are quoted on another regulated or similar market, a “Trading Day” shall be any
Business Day on which such other market quotes shares).
	 
	 	 	 	A “Business Day” shall mean any day (other than a Saturday or Sunday) on which the
banks are open in Paris and on which Euroclear France operates.
	 
	 	 	 	“VWAP Price” means, with respect to a Trading Day, (x) the volume-weighted average
price of the Company’s shares (or any other relevant securities of the Company) for
such trading day on Eurolist by EuronextTM as published on Bloomberg’s “VAP”
page (or if such service no longer publishes the relevant information, another
commercially available service regularly used by market participants for purposes of
ascertaining the relevant information), or (y) if no such price is published, the price
for such shares (or other relevant securities of the Company) at the opening of such
trading day on Eurolist by EuronextTM. If the shares (or other relevant
securities of the Company) are no longer quoted on Eurolist by EuronextTM,
the VWAP Price will be the volume-weighted average price of the Company’s shares on
such other regulated or similar market on which the shares (or other relevant
securities of the Company) are quoted on such trading day, or, if no such
volume-weighted average price is published, the opening price on such other market on
such trading day. If the shares (or other relevant securities of the Company) are
quoted in a currency other than the euro or any currency with an irrevocably fixed
conversion rate to the euro, the conversion to euros of the relevant VWAP Price will be
made at the exchange rate set by the European Central Bank (the “ECB Rate”) in effect
on the relevant Trading Day.
	 
	 	2.	 	The Company may, at its sole option, redeem in cash at any time all of the
Bonds outstanding at a price equal to par plus interest accrued from the last Interest
Payment Date preceding the early redemption date until the effective date of the
redemption, if less than 10% of the Bonds originally issued remain outstanding.
	 
	 	3.	 	In each of the cases specified in paragraphs (1) and (2) above, the
Bondholders shall remain entitled to exercise their Conversion Right in accordance
with the provisions of paragraph 1.22.4 “Exercise Period and Conversion Ratio”.
	 
	 	4.	 	In each case specified in paragraphs (1) and (2) above, interest shall cease
to accrue from the effective date of redemption of the Bonds by the Company.

     1.7.4 Redemption at the option of Bondholders

     1.7.4.1 Redemption upon a Change of Control

In the event that (i) the Company is a party to any completed merger, consolidation, amalgamation
or other similar event or circumstance, or (ii) any party or group of parties acting together
acquires a majority of the outstanding voting securities of the Company, and that such event in (i)
or (ii) has resulted in the transfer of control (within the meaning of Article 233-3 of the French
Commercial Code) of the Company to one or several legal entities or individuals (other than a legal
entity in which the shareholders who held a majority
of the voting securities of the Company before the event or circumstance hold a majority of the
voting securities), acting alone or in concert, that did not control the Company before the
occurrence of such event (any such event, a “Change of Control Event”) the Company shall, upon
becoming aware of such event, promptly give notice of such event by publishing a notice in the
Bulletin des Annonces Légales

 

 

 

Obligatoires (“BALO”), as well as in a financial newspaper with
national circulation in France, and also by notice to EuronextTM and through the
facilities of Euroclear France S.A., Euroclear Bank S.A./N.V. and Clearstream Luxembourg, so long
as the Bonds clear through such agencies.

Each Bondholder may, at its option, require the Company (or its successor) to redeem in cash any or
all of the Bonds held by such Bondholder at par plus interest accrued from the last Interest
Payment Date preceding the early redemption date until the effective date of redemption, by
delivering a notice (the “Put Notice”) to the specified office of the Paying Agent (referred to in
paragraph 1.21.1 “Paying Agent and Depositary”) not more than 30 calendar days after the giving of
the notice of the occurrence of the Change of Control by the Company. Once given, a Put Notice
shall be irrevocable. The Company shall, on the tenth business day following the expiration of such
30 day period, redeem all Bonds in relation to which such a Put Notice has been timely and properly
delivered, at the price set forth in the preceding sentence. The Bonds redeemed pursuant to this
paragraph shall not be subject to any Conversion Right adjustments pursuant to paragraph 1.22.9.3
“Adjustments to the Conversion Ratio in the event of financial transactions” resulting from the
occurrence of any event giving rise to the Bondholder’s redemption option in accordance with this
paragraph.

     1.7.4.2 Redemption on specified dates

Each Bondholder may, at its option, require the Company (or its successor) to redeem any or all of
the Bonds held by such Bondholder in cash at par plus interest accrued from the last Interest
Payment Date preceding the early redemption date to the effective redemption date, on any of May
11, 2012, May 11, 2017 or May 11, 2022 (or the following Business Day if any of these days is not a
Business Day) by delivering Put Notice to the Paying Agent (set forth in paragraph 1.21.1 “Paying
Agent and Depositary”) not more than 60 calendar days or less than 30 days prior to the relevant
optional redemption date.

     1.7.5 Publication of information in the event of redemption at maturity or early
redemption of Bonds

Information relating to the number of Bonds redeemed, to the number of Bonds whose Conversion Right
described in paragraph 1.22 “Exercise of the Conversion Right” above, has been exercised and to the
number of Bonds remaining outstanding shall be provided each year to EuronextTM for
publication and may be obtained from the Company or from the Paying Agent referred to in paragraph
1.21.1 “Paying Agent and Depositary”.

In the event that the Company decides to redeem all of the Bonds upon or prior to maturity pursuant
to paragraph 1.7.3 “Early redemption at the Company’s option”, a notice to that effect shall be
published in the Journal Officiel (for so long as required by French regulations), in a financial
newspaper with general distribution in France, in a notice issued by EuronextTM, and in
a notice submitted through Euroclear France S.A., Euroclear Bank S.A./N.V. and Clearstream
Luxembourg, so long as the Bonds clear through such agencies, in each case no later than 30
calendar days before the effective or possible redemption date.

     1.7.6 Cancellation of Bonds

Bonds redeemed at or prior to maturity, Bonds repurchased on the market or over-the-counter or by
way of public tender offers, and Bonds whose option described in paragraph 1.22 “Exercise of the
Conversion Right” was exercised, shall cease to be considered outstanding and shall be cancelled in
accordance with French law.

     1.7.7 Early redemption of the Bonds upon an event of default

The representatives of the Group of Bondholders (as defined in paragraph 1.15 “Representation of
Bondholders” above) may, pursuant to a decision of the general Bondholders’ meeting in accordance
with the applicable quorum and majority requirements of the law, by written notice sent to the
Company with a
copy to the Paying Agent (see paragraph 1.21.1 “Paying Agent and Depositary”), require that all of
the Bonds be redeemed in cash at par plus interest accrued from the last Interest Payment Date, if
any of the following events of default occurs, to the extent that such event of default has not
been remedied at the time that the Bondholders’ meeting is held:

 

 

 

	 	(a)	 	the Company shall default on payment of the principal, unpaid accrued
interest or premium, if any, in respect of any Bond and such default continues for a
period of 15 Business Days from the due date;
	 
	 	(b)	 	the Company shall fail to satisfy its obligations upon the exercise of the
Conversion Right and such failure shall not have been remedied within 15 Business Days
of the applicable delivery date;
	 
	 	(c)	 	the Company shall fail to comply with any of its other covenants or
agreements contained in the Bonds or the agreement between the Company and the Paying
Agent and Depositary referred to in paragraph 1.21.1 “Paying Agent and Depositary”,
and such failure shall not have been remedied within 30 Business Days from the date
the representatives of the Group of Bondholders, acting at the direction of the holder
or holders of not less than 33.33% in aggregate nominal value of the Bonds then
outstanding, shall have given notice thereof to the Company;
	 
	 	(d)	 	the Company or any of its subsidiaries that represents at least 10% of its
consolidated total assets or consolidated revenues for the most recent fiscal year
shall fail to pay when due (beyond the expiration of any applicable cure period), in
any case, in excess of €35 million principal amount (or the equivalent in another
currency) in respect of any Indebtedness of the Company or any such subsidiary,
whether due at maturity, upon acceleration as a result of an event of default or
otherwise, and such failure shall not be remedied (unless such amount ceases to be due
and payable or is paid); or
	 
	 	(e)	 	the Company or any of its subsidiaries that represents at least 10% of its
consolidated total assets or consolidated revenues for the most recent fiscal year (i)
is subject to any declared or undeclared cessation des paiements or any analogous
state under the principles of any applicable law or (ii) has filed for or become
subject to any pre-insolvency or insolvency proceedings (procédure de sauvegarde,
redressement judiciaire or other) or is in liquidation (liquidation judiciaire or
other).

Notwithstanding anything to the contrary above, if an event of default specified in clause (e)
above occurs as a result of an event relating to the Company (but not a subsidiary), the Bonds will
be immediately due and payable without the necessity of any declaration or other act on the part of
any Bondholder.

For purposes of this paragraph, and, more generally in these terms and conditions,
“Indebtedness” means any indebtedness for all borrowed money (excluding debt to suppliers and
intra-group indebtedness), as well as any guarantee of any such indebtedness.

     1.8 Annual gross yield to maturity

The gross yield to maturity will be equal to 2.25% as at the settlement date of the Bonds (in the
absence of the exercise of the Conversion Right and in the absence of early redemption).

In the French bond market, the yield to maturity of a bond is the annual rate which, at a given
date, at such rate and on a compound interest basis, equals the present values of all amounts
payable and all amounts receivable (as defined by the Bond Standardization Committee (Comité de
normalisation obligataire)).

     1.9 Maturity and average life

Approximately 19 years and 8 months from the settlement date of the Bonds to the date of redemption
at maturity (the average life is identical to the maturity of the Bonds in the absence of the
exercise of the Conversion Right and in the absence of early redemption).

 

 

 

     1.10 Subsequent issuances of fungible bonds

If the Company subsequently issues new bonds which have the same rights as the Bonds in all
respects (other than as to the first interest payment), the Company may, without the consent of
Bondholders and provided that the terms and conditions of such bonds so permit, consolidate the
Bonds with the bonds of any such subsequent issuances, thereby treating such bonds as the same
issuance for the purposes of trading and agency services.

     1.11 Rank and negative pledge

     1.11.1 Rank

The Bonds and the interest thereon constitute direct, general, unconditional, unsubordinated and
unsecured obligations of the Company, and rank equally amongst themselves and pari passu with all
other present and future unsecured and unsubordinated debts and guarantees of the Company (except
for those which have a preference provided for by law).

     1.11.2 Negative pledge

For so long as any of the Bonds remain outstanding, the Company will not grant any mortgage
(hypothèque) on any of its present or future real property interests, nor any pledge (nantissement)
on its goodwill (fonds de commerce), in each case for the benefit of any other bonds that are
quoted, or capable of being quoted, on a regulated or similar market, without granting the same
security to the Bondholders and ensuring that the Bonds have the same ranking.

     1.12 Guarantee

Payment of interest, redemptions, principal, taxes, expenses and ancillary amounts due have not
been guaranteed.

     1.13 Subscription Agreement

UBS Limited will subscribe for the issuance of the Bonds pursuant to the terms of a subscription
agreement, which has been entered into with the Company on May 3, 2007.

Under the terms of the subscription agreement between UBS Limited and the Company, UBS Limited (or
any person acting on its behalf) may, on behalf of the managers, and as permitted by applicable
legislation and regulations, effect transactions with a view to supporting the market price of the
Bonds and/or the underlying shares. Any such stabilization, if commenced, would principally be
intended to support the market price for the Bonds and/or the underlying shares. It may commence
any time beginning on the date of this note d’opération and may be discontinued at any time, and
must be discontinued no later than 30 calendar days beginning from May 3, 2007.

Pursuant to the subscription agreement, the Company has agreed (for itself and its subsidiaries),
for a period of 90 days after the date of the signature of the subscription agreement, not to
offer, dispose of or issue, directly or indirectly, any shares or other financial instruments that
carry a right, by conversion, exchange, redemption, presentation of a warrant, exercise or any
other manner, to receive, immediately or at a later time, a portion of the capital of the Company;
not to engage in any derivative transaction with
underlying shares or financial instruments that carry a right to receive, directly or indirectly, a
portion of the capital of the Company; not to provide any options for shares or financial
instruments that carry a right to receive, directly or indirectly, a portion of the capital of the
Company; not to issue or dispose of warrants to subscribe to or acquire shares of the Company; and
not to enter into financial transactions having an effect substantially equivalent to those
precluded by this clause, in each case without the prior written consent of UBS Limited, which will
not be unreasonably withheld. Furthermore, this agreement is subject to certain customary
exceptions, including the following:

 

 

 

	 	•	 	warrants (bons de souscription d’actions) to be granted pursuant to existing
authorizations or authorized at the Company’s next annual general and extraordinary
meeting of shareholders as announced in the BALO on April 4, 2007;
	 
	 	•	 	options to purchase or shares of the Company issued pursuant to stock options
granted to employees and to officers (mandataires sociaux) of the Company and its
subsidiaries granted in accordance with stock option units adopted before the date of
the subscription agreement or approved or amended at the Company’s next annual general
and extraordinary meeting of shareholders as announced in the BALO on April 4, 2007,
or held by Business Objects Option LLC;
	 
	 	•	 	shares of the Company issued by the Company and delivered by or on behalf of the
Company’s subsidiaries pursuant to employee option plans and restricted stock units
(the right to receive a free share under certain conditions) to the benefit of
employees adopted before the date of the underwriting agreement or approved or amended
at the Company’s annual general and extraordinary meeting of shareholders as announced
in the BALO on April 4, 2007;
	 
	 	•	 	shares issued by the Company to Business Objects Employee Benefit Sub-Plan Trust in
connection with restricted stock units held by employees that are or were issued
pursuant to the 2001 Stock Incentive Sub-Plan adopted before the date of the
underwriting agreement or approved or modified at the Company’s next annual general
and extraordinary meeting of shareholders as announced in the BALO on April 4, 2007;
	 
	 	•	 	shares granted pursuant to the Company’s Employee Savings Plan and/or the 2004
International Employee Stock Purchase Plan;
	 
	 	•	 	shares issued by the Company for allocation, free of charge, to employees according
to Article L. 225-197-1 of the French Commercial Code and the authorizations of the
Company’s extraordinary meeting of shareholders;
	 
	 	•	 	shares issued by the Company in payment of dividends or interim dividends; and
	 
	 	•	 	disposals of shares repurchased by the Company pursuant to the Company’s share
repurchase program, in accordance with applicable law and the authorizations granted
by the Company’s general shareholders’ meeting.

     1.14 Rating

The Company has not requested that the Bonds be rated.

     1.15 Representation of Bondholders

In accordance with Article L. 228-103 of the French Commercial Code, Bondholders will be grouped
together in a collective group or masse (the “Group”), which shall have legal personality. General
Bondholders’ meetings may be called to deliberate on all measures meant to protect Bondholders’
rights or
execute the Issuance Contract of the Bonds, and to authorize all modifications of the terms and
conditions of the Bonds. A general Bondholders’ meeting may also deliberate on merger or
divestment proposals by the Company pursuant to Articles L. 228-65, I, 3°, L. 236-13 and L. 236-18
of the French Commercial Code, the provisions of which, in addition to those of Article L. 228-73
of the French Commercial Code, will apply.

(a) Lead representative of the Group

 

 

 

In accordance with Articles L. 228-103 and L. 228-47 of the French Commercial Code, the lead
representative of the Group will be Laurent Richer, residing at 65, rue de Levis, 75017 Paris.

The lead representative will have the power and without restriction or reservation, to carry out on
behalf of the Group all actions of an administrative nature that may be necessary to protect the
common interests of the Bondholders.

He will exercise such duties until his death, his resignation, the termination of his duties by a
general meeting of Bondholders or he has become incapacitated or conflicted. His appointment shall
automatically cease on the date of final redemption of the Bonds, whether at or prior to maturity.
This appointment will be automatically extended, where applicable, until the final resolution of
any legal proceedings in which the representative is involved and the enforcement of any judgments
rendered or settlements made pursuant thereto.

The representative of the Group shall be entitled to remuneration of €500 per year, payable by the
Company on December 31 of each year (or the following Business Day if such day is not a Business
Day) for each of the years from 2007 to 2027 inclusive, and for the first time on December 31, 2007
(or the following Business Day if such day is not a business day), insofar as there are still Bonds
outstanding at such dates and he continues to serve as representative at such dates.

(b) Substitute representatives of the Group

The substitute representative of the Group will be Mr. Renaud-Thomas Ruer, residing at 25, rue
Dauphine, 75006 Paris.

This substitute representative can be called upon to replace the lead representative if the latter
is unable to act. The substitute representative’s appointment will take effect upon his receipt of
a registered letter, in which the lead representative, the Company or any other interested party
notifies him of the lead representative’s temporary or permanent inability to act. If applicable,
the same notification will also be given to the Company. In the event of a temporary or permanent
replacement, the substitute representative will have the same powers as the lead representative.
He will only be entitled to the annual remuneration of €500 if he exercises the duties of a
representative on a permanent basis. Such remuneration will begin to accrue from the day on which
he assumes such duties on a permanent basis.

(c) General information

The Company will bear the cost of remuneration of the representatives of the Group and the expenses
of calling and holding general meetings of Bondholders, publishing the decisions thereof, any fees
related to the appointment of the representatives of the Group under Article L. 228-103 of the
French Commercial Code and, more generally, all duly incurred and documented costs of the
administration and management of the Group.

General Bondholders’ meetings shall be held at the registered office of the Company or such other
place as shall be specified in the notice convening the meeting. Each Bondholder or his
representative shall have the right, during the period of 15 days preceding the general meeting of
the Group, to examine or to make copies of the text of the resolutions to be proposed as well as
any reports to be presented at the meeting, at
the registered office or administrative headquarters of the Company, or at such other place as may
be specified in the notice convening such meeting.

In the event that future issuances of bonds give purchasers identical rights to those under the
Bonds and if the terms and conditions of such future bonds so permit, the holders of all of such
bonds shall be grouped together in a single Group.

 

 

 

     1.16 Public offers

Based on current French regulation, in instances where a third party conducts a public tender or an
exchange offer for the Company’s shares, such offer must also extend to any securities that may
confer an interest in the share capital or voting rights of the Company, therefore including the
Bonds described herein. Any such offer by a third party will be subject to a preliminary review by
the AMF, which will grant any approval based on the terms of the offer, in particular the value
thereof. An information document (note d’information) describing the terms of the offer must also
be submitted to the AMF for a visa prior to its publication.

     1.17 Transactions undertaken by the Company

The Company may not modify its corporate form or purpose without consulting the general
Bondholders’ meeting. In the event of a negative vote of the general Bondholders’ meeting, the
Company may not proceed without offering to redeem the Bonds in accordance with the provisions of
Article L.228-72 of the French Commercial Code, in cash, at par plus interest accrued from the last
Interest Payment Date preceding the effective date of redemption until the effective date of
redemption.

     1.18 Taxation of the Bonds

Please refer to the French Note d’Opération which is available on the websites of the Company
(www.france.businessobjects.com) and the AMF (www.amf-france.org).

     1.19 Accounting Treatment of the Bonds

Please refer to the French Note d’Opération which is available on the websites of the Company
(www.france.businessobjects.com) and the AMF (www.amf-france.org).

     1.20 Admission to listing and trading of the Bonds

     1.20.1 Listing

Application has been made to list the Bonds on Eurolist by EuronextTM. Listing is
expected to take place on May 11, 2007 under ISIN Code FR0010470245. No application for listing on
another market is expected.

     1.20.2 Restrictions on the transferability of the Bonds

No restrictions have been imposed by the terms and conditions of the issuance in order to enable
the transferability of the Bonds.

     1.20.3 Listing of similar securities

Not applicable.

     1.21 General information concerning the Bonds

     1.21.1 Paying Agent and Depositary

BNP Paribas Securities Services, 3 rue d’Antin, 75002 Paris (the “Paying Agent”) will act as paying
agent (payment of interest, redemption of matured Bonds, exercise of the Conversion Right, etc.)
and depositary agent in respect of the Bonds.

 

 

 

     1.21.2 Jurisdiction

The Commercial Court of Nanterre will have jurisdiction in any dispute where the Company is the
defendant, and, in all other cases, competent courts will be determined by the type of litigation
to be conducted, unless otherwise provided for by the French Code of Civil Procedure (Nouveau code
de procédure civile).

     1.22 Exercise of the Conversion Right

     1.22.1 Conversion Right Exercise Period

Bondholders shall have the right, at any time from the Initial Exercise Date (as defined below) or
during any Year Two Exercise Period (as defined below), and until the end of the seventh Business
Day immediately preceding May 11, 2022, to exercise the option to have their bonds redeemed for
cash and new and existing shares, upon the occurrence of any of the events specified in paragraph
1.22.2 “Conditional Exercise”. On or after May 11, 2022 (included), Bondholders shall have the
right to exercise such option until the end of the seventh Business Day preceding their redemption
date at maturity (or earlier in the case of early redemption), independently of whether any of the
events specified in paragraph 1.22.2 “Conditional Exercise” occurs. In any such case, the right of
Bondholders to exercise such option is referred to as the “Conversion Right”.

The “Initial Exercise Date” means the second anniversary of the date of issuance of the Bonds (i.e.
May 11, 2009).

The “Year Two Exercise Period” means the period during which a Registration Statement (as defined
in paragraph 1.23.6 “U.S. Registration Rights”) becomes or is declared effective by the United
States Securities and Exchange Commission (“SEC”) and remains effective and available for use in
connection with the exercise of the Conversion Right.

Upon conversion or exchange of a Bond, settlement of the exercise of the Conversion Right will be
effected in the manner set forth in paragraph 1.22.6 “Settlement of exercise of the Conversion
Right”. To the extent that the Conversion Right is settled in shares, the Company may, at its
option, deliver new and/or existing shares, if any.

By decision of the ordinary general shareholders’ meeting held on June 7, 2006, the Company was
authorized, pursuant to Articles L.225-209 et seq. of the French Commercial Code, to purchase its
own shares in an amount of up to 10% of its share capital. The authorization is valid for an
18-month period expiring on December 7, 2007. This repurchase program was the subject of an
explanatory leaflet included in the document de référence of the Company registered with the AMF
under Visa Number R. 06-0038 on April 24, 2006.

The Board of directors of the Company held on April 24, 2007 has authorized the Company to
repurchase up to 2 million of its own shares for a total amount of up to $100 million (€75 million)
under the share repurchase program authorized by its shareholders at the Company’s shareholders
meeting held on June 7, 2006.

As of April 27, 2007, the Company directly or indirectly held 2,667,748 of its own shares
representing 27% of the total number of shares that may be repurchased.

     1.22.2 Conditional Exercise

During any Year Two Exercise Period, and during the period from the Initial Exercise Date to 5:00
p.m. Paris time on the Business Day immediately preceding May 11, 2022 (collectively, the
“Conditional Exercise Period”), the Conversion Right may only be exercised upon the occurrence of
one of the events specified in paragraphs 1.22.2.1 to 1.22.2.6.

 

 

 

     1.22.2.1 Exercise Based on VWAP Price

A Bondholder may exercise the Conversion Right during the Initial Exercise Period at any time
during any calendar quarter if, on each of the 20 or more Trading Days in the period of 30
consecutive Trading Days ending on the last Trading Day of the immediately preceding calendar
quarter, the VWAP Price for each of the 20 Trading Days concerned is greater than 120% of the
quotient obtained by dividing (i) the nominal value per Bond, by (ii) the Conversion Ratio
applicable on such Trading Day.

     1.22.2.2 Exercise upon satisfaction of Trading Price Condition

A Bondholder may exercise the Conversion Right during the Conditional Exercise Period during the
five Business Day period after any five consecutive Trading Day period (the “measurement period”)
in which the “Trading Price” of the Bonds (expressed as a number of euros per Bond), as determined
following a request by a Bondholder in accordance with the procedures described below, for each day
of such measurement period was less than 97% of the product of the VWAP Price and the Conversion
Ratio (the “Trading Price Condition”).

The “Trading Price” of the Bonds on any date of determination means the product of (i) the nominal
value of one Bond, and (ii) the secondary market bid quotation (expressed as a percentage of the
nominal value without taking into account the interest accrued from the last Interest Payment Date
preceding such determination date) at 5:00 p.m. Paris time on such determination date, as published
by Bloomberg on the UCBP page. If this page no longer exists (and does not have a successor), then
the trading price will be deemed to be less than 97% of the product of the VWAP Price of the
Company’s shares and the applicable Conversion Ratio.

The Paying Agent shall have no obligation to determine the trading price of the Bonds unless the
Company has requested such determination; and the Company shall have no obligation to make such
request unless a Bondholder provides it with reasonable evidence that the trading price of the
Bonds is less than 97% of the product of the VWAP Price of the Company’s shares and the applicable
Conversion Ratio (the “Notification”). At such time, the Company shall instruct the Paying Agent to
determine the trading price of the Bonds beginning on the Trading Day immediately following the day
of the Notification by the Bondholder to the Company and on each successive Trading Day until the
Trading Price of the Bonds is greater than or equal to 97% of the product of the VWAP Price of the
Company’s shares and the applicable Conversion Ratio.

If the Trading Price Condition has been met following such determination, the Company shall so
notify Bondholders. If, at any point after the Trading Price Condition has been met, the trading
price is greater than 97% of the product of the VWAP Price of the Company’s shares and the
applicable Conversion Ratio, the Company shall so notify the Bondholders. In either case, a notice
containing this information will be published promptly in a financial newspaper with general
circulation in France, submitted to Euronext ParisTM to be published by it in a notice
and submitted to Euroclear France S.A., Euroclear Bank S.A./N.V. and Clearstream Luxembourg for
publication as a notice, so long as the Bonds clear through such agencies.

     1.22.2.3 Exercise upon specified corporate transactions

A Bondholder may exercise the Conversion Right during the Conditional Exercise Period, if the
Company elects to distribute to all holders of its shares its assets, debt securities or rights or
warrants giving rights to purchase its securities (other than shares), with such distribution
having a per share value (as determined by the Company’s board of directors) exceeding 10% of the
VWAP Price of the Company’s shares on the Trading Day immediately preceding the declaration date
for such distribution. In such event, the Company must notify the Bondholders at least 35 Business
Days prior to the ex-rights or ex-distribution date. Such
notice containing this information will be published promptly in a financial newspaper with general
circulation in France, submitted to EuronextTM to be published by it in a notice and
submitted to Euroclear France S.A., Euroclear Bank S.A./N.V. and Clearstream Luxembourg for
publication as a notice, so long as the Bonds clear through such agencies.

 

 

 

Once the Company has published such notice, Bondholders may surrender their Bonds to exercise
the Conversion Right at any time until the earlier of (x) 5:00 p.m., Paris time, on the Business
Day immediately prior to the ex-rights or ex-distribution date, and (y) the date of the Company’s
announcement that such distribution will not take place.

     1.22.2.4 Exercise upon Public Announcement of a Change of Control Event

A Bondholder may exercise the Conversion Right during the Conditional Exercise Period on or after
the date of the public announcement of a prospective Change of Control Event (as defined in
paragraph 1.7.4.1 “Redemption upon a Change of Control”). The public announcement of a Change of
Control, for the purposes of this paragraph, will be (x) in the case of a tender offer for the
Company’s securities which may be reopened after the publication of a notice of positive results
(avis de résultat), such notice, (y) in all other cases, the notice of admissibility (avis de
recevabilité) of such tender offer, or (z) the publication in the Bulletin des Annonces Légales
Obligatoires of the notice of the meeting of the Company’s general shareholders’ meeting convened
to decide on the transaction leading to a Change of Control. Once such a public announcement has
occurred, Bondholders may surrender their Bonds for the exercise of the Conversion Right (x) in the
case of a tender offer for the Company’s securities which may be reopened after the publication of
a notice of positive results, up until 5:00 p.m. , Paris time, on the third day of the new tender
period, and (y) in other cases, at any time until the earlier of (a) 5:00 p.m., Paris time, on the
Business Day immediately prior to the last date on which tenders of the Company’s shares may be
made or the date of the Company’s general shareholders meeting called to approve the transaction
(as applicable), and (b) the announcement by the Company or the relevant potential acquirer that
such transaction will not take place.

In the case of a tender offer for the Company’s securities which may be reopened after the
publication of a notice of positive results, the Company will notify the Bondholders, at the latest
on the first Business Day immediately following the date of publication of such notice of positive
results, of a Change of Control via a notice published in the Journal Officiel (as long as the
regulation in force requires it). This information will also be published in a financial newspaper
with general distribution in France, in a notice issued by EuronextTM and in a notice
given through the facilities of Euroclear France S.A., Euroclear Bank S.A./N.V. and Clearstream
Luxembourg, so long as the Bonds clear through such agencies.

     1.22.2.5 Exercise upon Notice of Early Redemption

During the Conditional Exercise Period a Bondholder may exercise the Conversion Right on or after
the date on which the Company gives notice of an early redemption of the Bonds prior to their
maturity pursuant to paragraph 1.7.3 “Early Redemption at the Company’s Conversion Right,” until
the end of the seventh Business Day preceding the date set for redemption in such notice.

     1.22.2.6 Exercise during the period between March 2, 2012 and May 2, 2012

Notwithstanding the provisions of paragraphs 1.22.2.1 to 1.22.2.5 above, a Bondholder may exercise
the Conversion Right between March 2, 2012 and May 2, 2012 (inclusive).

     1.22.3 Suspension of Conversion Rights

In the event of an increase in share capital, an issuance of new capital stock or securities
conferring rights to receive shares of the Company, a merger (fusion), spin-off (scission) or other
financial transaction conferring preferential subscription rights or reserving a priority
subscription period for the benefit of Company shareholders, the Company shall be entitled to
suspend the Conversion Right for a period not exceeding three months or such other period of time
as may be set by applicable regulations; provided, however, that no such suspension may occur as a
result of a merger or spin-off during the Conditional Exercise Period. In addition, such
suspension will also not affect Bondholders’ Conversion Right relating to bonds called for
redemption or the exercise period set forth in paragraph 1.22.4 “Exercise Period and Conversion
Ratio”.

The Company’s decision to suspend the Conversion Right will be published in a notice in the
Bulletin des Annonces Légales Obligatoires. This notice will be published at least 7 calendar days
before the date on

 

 

 

which such suspension comes into effect and will mention both the date on which the suspension
comes into effect and the date the suspension will end. This information will also be published in
a financial newspaper with general distribution in France, in a notice issued by
EuronextTM and in a notice given through the facilities of Euroclear France S.A.,
Euroclear Bank S.A./N.V. and Clearstream Luxembourg, so long as the Bonds clear through such
agencies.

     1.22.4 Exercise Period and Conversion Ratio

Any Bondholder may exercise the Conversion Right at any time from the Initial Exercise Date or
during any Year Two Exercise Period (in each case, subject to paragraph 1.22.2 “Conditional
Exercise” above, if the request is made on or prior to the seventh Business Day preceding May 11,
2022, except between March 2, 2012 and May 2, 2012 in which case conversion will be subject to
paragraph 1.22.2.6 above), and during such periods shall have the right to exercise freely the
Conversion Right for each of their Bonds, subject to the next sentence. In the event of exercise,
the rights of each Bondholder to receive a cash amount and, as the case may be, new or existing
shares in accordance with paragraph 1.22.6 “Settlement of exercise of the Conversion Right”, will
be determined on the basis of a ratio of ONE Company share for ONE Bond (hereafter the “Conversion
Ratio”), subject to the provisions of paragraph 1.22.9 “Maintenance of Bondholders’ Rights”.

With respect to Bonds redeemed at or prior to maturity, the Conversion Right shall expire at the
end of the seventh Business Day prior to the date of redemption.

Any Bondholder who has not exercised its Conversion Right prior to such date will receive an amount
in cash equal to the redemption price calculated in accordance with the provisions of paragraph
1.7.1 “Redemption at maturity” or paragraph 1.7.3 “Early redemption at the Company’s option”.

     1.22.5 Terms of exercise of the Conversion Right

To exercise the Conversion Right, Bondholders must make a request to the intermediary with whom
their Bonds are registered. The Paying Agent will coordinate all such requests. All such requests
will be irrevocable.

Any request for exercise of the Conversion Right received by the Paying Agent during a calendar
month (an “Exercise Period”) will take effect on the earlier of the following two dates (each an
“Exercise Date”):

	(i)	 	the last Business Day of such calendar month; or
	 
	(ii)	 	the seventh Business Day preceding the date set for redemption.

In order to be considered as received on a given Business Day, the corresponding request must have
reached the Paying Agent at the latest by 5:00 p.m. Paris time on such day. All requests received
after 5:00 p.m. Paris time will be recorded as received on the following Business Day.

However, notwithstanding the preceding dispositions, in the event of a tender offer for the
Company’s securities which may be reopened after the publication of a notice of positive results,
any request to exercise the Conversion Right received by BNP Paribas Securities Services between
(and including) the date of the publication of the aforementioned notice of positive results and on
or prior to 5:00 p.m. Paris time on the third day of the new offering period (the “Early Exercise
Period”), will take effect on the third day of the new offering period (the “Early Exercise Date”).

     1.22.6 Settlement of exercise of the Conversion Right

(a) In the event of the exercise of the Conversion Right, the Company will pay an amount in cash
and, as required, by delivery of new and/or existing shares as set forth more fully in this
paragraph 1.22.6. Upon exercise of the Conversion Right, the Company will deliver to Bondholders
with respect to each Bond for which the Conversion Right is exercised a “Settlement Amount” equal
to the sum (rounded to the nearest cent of a euro (with 0.005 euros rounded as 0.01 euro), of the
Daily Settlement Amounts (as defined below)

 

 

 

for each of the 10 Trading Days during the Settlement Calculation Period (as defined below). The
Company will deliver the Settlement Amount on the fifth Business Day immediately following the
relevant Exercise Date, and such amount shall be payable in cash, as required, and new and/or
existing shares.

The “Settlement Calculation Period” with respect to any Bond for which the Conversion Right has
been exercised shall be the 10 consecutive Trading Days of which the last is the third Trading Day
prior to the relevant Exercise Date.

The “Daily Settlement Amount” for each of the Trading Days during the Settlement Calculation
Period, shall consist of:

	 	•	 	cash equal to the lesser of one-tenth (1/10th) of the nominal value of
one Bond, or the Daily Exercise Value relating to such day; and
	 
	 	•	 	to the extent such Daily Exercise Value exceeds one-tenth (1/10th) of
the nominal value of one Bond, a number of shares equal to (A) the difference between
such Daily Exercise Value and one-tenth (1/10th) of the nominal value of
one Bond, divided by (B) the VWAP Price of the Company’s shares for such day.

The “Daily Exercise Value” means, for each of the Trading Days during the Settlement Calculation
Period, one tenth (1/10th) of the product of (1) the Conversion Ratio and (2) the VWAP
Price of the Company’s shares for such day.

In the event that there is no 10 consecutive Trading Days period during the Exercise Period, the
Settlement Calculation Period will be the last 10 consecutive Trading Days period before the
relevant Exercise Date.

Sensitivity to the share price during the Settlement Calculation Period 1

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Amount paid in	 	 	Shares delivered	 	Shares delivered	 	 	 
	 	 	 	cash per Bond	 	 	per Bond	 	per Bond	 	 	Settlement Amount
	Share Price1	 	 	(euro) (A)	 	 	(number)	 	(euro) (B)	 	 	(euro) (A) + (B)
	 	 	 	 	 	 	 	 	 	 
	Share price = SP<
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	42.15
	 	 	SP	 	 	 	0.000	 	 	 	0.00	 	 	 	SP
	42.15
	 	 	 	42.15	 	 	 	 	0.000	 	 	 	0.00	 	 	 	 	42.15	 
	45.00
	 	 	 	42.15	 	 	 	 	0.063	 	 	 	2.85	 	 	 	 	45.00	 
	50.00
	 	 	 	42.15	 	 	 	 	0.157	 	 	 	7.85	 	 	 	 	50.00	 
	55.00
	 	 	 	42.15	 	 	 	 	0.234	 	 	 	12.85	 	 	 	 	55.00	 
	60.00
	 	 	 	42.15	 	 	 	 	0.297	 	 	 	17.85	 	 	 	 	60.00	 
	65.00
	 	 	 	42.15	 	 	 	 	0.351	 	 	 	22.85	 	 	 	 	65.00	 
	70.00
	 	 	 	42.15	 	 	 	 	0.398	 	 	 	27.85	 	 	 	 	70.00	 
	75.00
	 	 	 	42.15	 	 	 	 	0.438	 	 	 	32.85	 	 	 	 	75.00	 
	80.00
	 	 	 	42.15	 	 	 	 	0.473	 	 	 	37.85	 	 	 	 	80.00	 
	85.00
	 	 	 	42.15	 	 	 	 	0.504	 	 	 	42.85	 	 	 	 	85.00	 
	90.00
	 	 	 	42.15	 	 	 	 	0.532	 	 	 	47.85	 	 	 	 	90.00	 
	95.00
	 	 	 	42.15	 	 	 	 	0.556	 	 	 	52.85	 	 	 	 	95.00	 
	100.00
	 	 	 	42.15	 	 	 	 	0.578	 	 	 	57.85	 	 	 	 	100.00	 

 

			
	(1)	 	Assuming that the share price remains unchanged during the Settlement Calculation Period.

 

 

 

Example of implementation of the settlement mechanism following the exercise of the Conversion
Right

	 	 	 	 	 
	Nominal Value per Bond (euro)
	 	 	42.15	 
	Conversion Ratio
	 	 	1.000	 
	Average share price during the Settlement Calculation Period (euro)
	 	 	50.00	 
	 
	 	 	 	 
	Calculation of the average Daily Settlement Amount
	 	 	 	 
	Daily Exercise Value (euro)
	 	 	5.00	 
	Portion of the Daily Settlement Amount to be paid in cash (euro)
	 	 	4.22	 
	Portion of the Daily Settlement Amount to be settled in shares (euro)
	 	 	0.78	 
	Number of shares equating to the portion of the Daily Settlement
Amount to be settled in shares (shares)
	 	 	0.015691	 
	Sum of the Daily Settlement Amounts to be paid in cash (euro)
	 	 	42.15	 
	Sum of the Daily Settlement Amounts to be settled in shares (euro)
	 	 	7.85	 
	Number of shares equating to the portion of the Daily Settlement
Amount to be settled in shares (shares)
	 	 	0.15691	 
	Total (Settlement Amount)
	 	 	50.00	 

(b) Notwithstanding the foregoing, in the event of a tender offer for the Company’s securities
which may be reopened after the publication of a notice of positive results, in the event of the
exercise of the Conversion Right, the Company will pay Bondholders, for each Bond for which the
Conversion Right is exercised, an “Early Settlement Amount” consisting of:

	 	•	 	an amount in cash equal to the lesser of the nominal value per Bond or the Delivery
Amount per Bond; and
	 
	 	•	 	in the event that the Delivery Amount exceeds the nominal value per Bond, a number of
shares equal to (A) the difference between the Delivery Amount and the nominal value per
Bond, divided by (B) the Offer Price, as defined in paragraph 1.22.9.3 (7) below.

The “Delivery Amount” is equal to the product of (1) the Conversion Ratio adjusted pursuant to
paragraph 1.22.9.3 (7) and (2) the Offer Price (as defined in paragraph 1.22.9.3 (7) above).

The Company will pay the Early Settlement Amount on the fifth Business Day immediately following
the Early Exercise Date, and this amount will be payable in cash and in new and/or existing shares,
as applicable.

(c) With respect to Bonds with the same Exercise Date or Early Exercise Date requiring shares to be
delivered, the Company shall be entitled, at its sole option, to choose between:

	 	–	 	delivering new shares;
	 
	 	–	 	delivering existing shares; or
	 
	 	–	 	delivering a combination of new shares and existing shares.

All Bondholders holding Bonds with the same Exercise Date or Early Exercise Date will be treated
equally and will receive, as applicable, the same proportion of new and/or existing shares, subject
to rounding.

The Company will not issue fractional shares. Instead, if the provision described above would
otherwise result in the delivery of fractional shares to a Bondholder, the provisions set forth in
paragraph 1.22.11 “Treatment of fractional entitlements” will apply.

 

 

 

	 	1.22.7	 	Rights of Bondholders to receive interests on the Bonds and to receive dividends on
to the shares delivered on settlement of the option

In the event of exercise of the Conversion Right, no interest shall be payable to Bondholders with
respect to the period from the last Interest Payment Date preceding the Exercise Date to the date
on which the cash and shares, if any, are delivered. Such settlement following an exercise of the
Conversion Right (per the mechanics described above) will be deemed to satisfy the Company’s
obligation to pay (i) the nominal value of the Bond, and (ii) accrued and unpaid interest from the
last Interest Payment Date, including additional interest, if any, to, and including, the Exercise
Date.

The rights attached to new shares issued upon the exercise of the Conversion Right, if any, are set
out in paragraph 1.23.1.1 “New shares to be issued upon exercise of the Conversion Right”, below.

The rights attached to existing shares delivered upon exercise of the Conversion Right, if any, are
set out in paragraph 1.23.1.2 “Existing shares delivered upon exercise of the Conversion Right”,
below.

     1.22.8 Taxation on exercise of the Conversion Right

Please refer to the French Note d’Opération which is available on the websites of the Company
(www.france.businessobjects.com) and the AMF (www.amf-france.org).

     1.22.9 Maintenance of Bondholders’ rights

     1.22.9.1 Undertakings of the Company

While any of the Bonds remain outstanding, the Company is authorized to modify its rules governing
allocation of profits, to create preferred shares, and to redeem its share capital in accordance
with the terms and conditions of the Bonds or the provisions of Article L. 228-103 of the French
Commercial Code, so long as it acts to preserve the rights of Bondholders under the provisions set
forth in Article L. 228-99 of the French Commercial Code.

     1.22.9.2 In the event of a reduction of share capital resulting from losses

In the event of a reduction of share capital resulting from losses, whether by way of a reduction
of the nominal value or the number of shares, the rights of Bondholders to receive shares will be
reduced accordingly as if such Bondholders had been shareholders as of the date of issuance of the
Bonds.

     1.22.9.3 Adjustments to the Conversion Ratio in the event of financial transactions

As a result of the following transactions:

	 	1.	 	an issuance of securities with listed preferential subscription rights,
	 
	 	2.	 	an increase in share capital by capitalization of reserves, profits or share
premiums and distribution of free shares, or the subdivision or consolidation of
shares,
	 
	 	3.	 	the capitalization of reserves, profits or share premiums by increasing the
nominal value of the shares,
	 
	 	4.	 	the distribution of reserves or premiums in cash or in securities,
	 
	 	5.	 	the distribution to shareholders of any bonus financial instruments other
than Company shares,

 

 

 

	 	6.	 	takeover, merger, or spin-off,
	 
	 	7.	 	a Change of Control,
	 
	 	8.	 	the repurchase by the Company of its own shares at a price higher than the
market price, or
	 
	 	9.	 	a change in the allocation of profits through the creation of preferred
shares,

which the Company may carry out after the issuance of the Bonds, the maintenance of the rights of
Bondholders will be ensured by means of an adjustment to the Conversion Ratio, up to the maturity
date or early redemption date of the Bonds in accordance with the provisions set out below.

In the event of adjustments carried out in accordance with paragraphs 1 to 8 below, the new
Conversion Ratio will be rounded with three decimals to the nearest one-thousandth (with 0.0005
being rounded up to the nearest one-thousandth, i.e. 0.001). Any subsequent adjustments will be
carried out on the basis of such new Conversion Ratio as adjusted and rounded.

In case of several of the below-described events occurring successively, the Conversion Ratio will
be successively adjusted for each transaction.

	1.	 	In the event of a financial transaction conferring listed preferential subscription rights,
the new Conversion Ratio will be determined by multiplying the Conversion Ratio in effect
prior to the relevant transaction by the following formula:

	 	 	 	 	 
	 

	 	Share price ex-preferential subscription right + value of the preferential subscription right
 

Share price ex-subscription right
	 	 

For the purposes of calculating this formula, the share price ex-preferential subscription right
and the value of the preferential subscription right will be determined on the basis of the
average of the first quoted prices on each Trading Day falling in the subscription period during
which the shares ex-preferential subscription rights and the preferential subscription right are
simultaneously quoted.

	2.	 	If the Company increases its share capital by capitalization of reserves, profits or share
premiums and distributes bonus shares, or subdivides or consolidates its shares, the new
Conversion Ratio will be determined by multiplying the Conversion Ratio in effect prior to the
relevant transaction by the following formula:

	 	 	 	 	 
	 

	 	Number of shares comprising the share capital outstanding after the transaction
 

Number of shares comprising the share capital outstanding before the transaction
	 	 

	3.	 	If the Company increases its share capital by means of a capitalization of reserves, profits
or share premiums by increasing the nominal value of the shares, the Conversion Ratio will not
be adjusted but the nominal value of the shares which may be delivered to Bondholders upon
exercise of their Conversion Right will be increased accordingly.
	 
	4.	 	If the Company distributes reserves or premiums in the form of cash or securities, or
distributes a dividend in cash or in kind (securities in portfolio, etc...), the new Conversion
Ratio will be determined by multiplying the Conversion Ratio in effect prior to the relevant
transaction by the following formula:

	 	 	 	 	 
	 

	 	Share price before distribution
 

Share price before distribution less the cash amount distributed per share
	 	 

 

 

 

	 		 	or the value of the securities or assets distributed in relation to each share

For the purposes of calculating this formula:

	 	•	 	the share price before the distribution will be calculated on the basis of
the average of the VWAP Prices for the 3 Trading Days immediately preceding the date
of distribution;
	 
	 	•	 	if the securities are quoted on a regulated or similar market during the
relevant period, the value of securities distributed will be calculated as described
above for the share;
	 
	 	•	 	if the securities are not quoted on a regulated or similar market before the
date of distribution, such value will be determined according to the average of the
VWAP Prices for the first 3 consecutive Trading Days on which the security is quoted
following the date of distribution, if the securities are so quoted at any time during
the 20 Trading Days following the distribution, and in any other case, as determined
by an independent expert of international repute selected by the Company.

	5.	 	If the Company carries out a distribution of bonus financial instruments other than shares of
the Company, the new Conversion Ratio will be determined as follows:

	 	(a)	 	if the right to receive the free distribution of the financial instruments is
listed on Euronext or another regulated or similar market, the Conversion Ratio in
effect prior to the relevant transaction will be multiplied by the following formula:

	 	 	 	 	 
	 

	 	Share price ex-free distribution right + price of the right to receive bonus securities
 

Share price ex-free distribution right
	 	 

	 	 	 	For the purposes of calculating this formula, the share price ex-free distribution
right and the price of the right to receive bonus securities will be determined
respectively on the basis of the average VWAP Prices of the share and the right
during (i) the first 3 Trading Days on which the share price ex-free distribution
right and the price of the right to receive bonus securities are simultaneously
quoted or (ii) the number of Trading Days on which the share price ex-free
distribution right and the price of the right to receive bonus securities are
simultaneously quoted, if this number is less than 10. In the event that this
average is calculated on the basis of less than five separate quoted prices, the
calculation must be evaluated or made by an independent expert of international
repute selected by the Company;
	 
	 	(b)	 	if the right to receive the distribution of the financial instruments is not
listed on Euronext or another regulated or similar market, the Conversion
Ratio in effect prior to the relevant transaction will be multiplied by the following
formula:

	 	 	 	 	 
	 

	 	Share price ex-free distribution right + value of the financial instruments allotted with respect to each share
 

Share price ex-free distribution right
	 	 

	 	 	 	For the purposes of calculating this formula, the Share price ex-free distribution
right and the price of the financial instruments allotted with respect to each
share, if the latter are quoted on a regulated or similar market, will be
determined on the basis of the average of the VWAP Prices quoted during 3
consecutive Trading Days following the date of distribution of such financial
instruments during which the ex-free distribution right shares and the allotted
financial instruments are simultaneously listed. If the financial instruments are
not listed on a regulated or similar market, its or their value will be determined
by an independent expert of international repute selected by the Company.

 

 

 

6. Takeover (absorption), merger (fusion), or spin-off (scission)

In the event of absorption of the Company by another company or in the event of a merger of the
Company with one or more companies to create a new company, or in the event of a demerger or
spin-off of the Company, shares to be issued upon exercise of the Conversion Right will be shares
(“Substitute Shares”) of the absorbing or new company, or the companies resulting from any demerger
or spin-off, or the acquiring company, as the case may be, based on the Conversion Ratio adjusted
as set forth below, subject to the Company’s early redemption option as set forth in paragraphs
1.7.2 and 1.7.3.

The new Conversion Ratio will be determined by multiplying the Conversion Ratio in force before the
beginning of this transaction by the exchange ratio of Company shares for Substitute Shares. The
absorbing company or the new company will be substituted for the Company for the application of the
above provisions relating to the preservation of Bondholders’ rights in the event of financial
transactions or transactions on securities, and, generally, to ensure the respect of Bondholders’
rights in accordance with the applicable legal, regulatory and contractual terms.

7. Adjustment for Change of Control Event

(a) If a public announcement is made regarding a prospective Change of Control Event (as defined in
paragraph 1.7.4.1 “Redemption upon a Change of Control”), other than a Change of Control Event (i)
for which an adjustment is to be made pursuant to paragraph 6 above, or (ii) is discussed in
paragraph (b) below, and if such public announcement occurs prior to May 11, 2012, then the
Conversion Ratio shall be adjusted for any exercise of the Conversion Right in respect of which the
Exercise Date falls after the Relevant Date and during the 60 calendar day period (60th
day included) starting on the first Business Day following the Relevant Date, so that, for each
Bond in respect of which the Conversion Right is exercised, the number of shares resulting from the
application of the Conversion Ratio (i.e. initially ONE share for ONE Bond) will be increased by
the Additional Number of Shares (as defined below). For the avoidance of doubt, the exercise of
the Conversion Right will continue to be settled in accordance with paragraph 1.22.6 “Settlement of
Exercise of the Conversion Right”.

(b) In the event of a tender offer of the type described in paragraph 1.22.6.(b) that results in
the publication of a notice of positive results, the Conversion Ratio will be adjusted for any
request to exercise the Conversion Right received by BNP Paribas Securities Services during the
Early Exercise Period such that, for each Bond to which the Conversion Right is exercised, the
number of shares resulting from the application of the Conversion Ratio (i.e. initially ONE share
for ONE Bond) will be increased by the Additional Number of Shares (as defined below).

(c) The “Relevant Date” with respect to a Change of Control Event means (i) in the event of a
public tender or exchange offer except in the case discussed in paragraph (b) above, the first day
on which the Company’s shareholders may tender their shares in such offer, (ii) in the case
discussed in paragraph (b) above, the publication date of the notice of the results discussed in
paragraph (b), and (iii) in any other event, the date on which a general shareholders’ meeting is
called for purposes of approving such Change of Control Event.

The “Additional Number of Shares” will be determined by reference to the table below, based on the
date of the day immediately following the Relevant Date, and the price per share offered or
proposed to the Company shareholders in connection with the Change of Control Event (the “Offer
Price”), it being specified that:

	•	 	If holders of the Company’s shares are to receive only cash in
connection with the Change of Control Event, the Offer Price shall
be the cash amount per share (converted if necessary to euros at
the rate in effect on the Relevant Date as published by the
European Central Bank).

 

 

 

	•	 	Otherwise, the Offer Price shall be the average of the VWAP Prices
of the Company’s shares over the five Trading Day period ending on
the Relevant Date (or the next preceding Trading Day, if the
Relevant Date is not a Trading Day).

The Offer Prices set forth in the first row of the table below will be adjusted as of any date on
which the Conversion Ratio is otherwise adjusted. The adjusted Offer Prices will be equal to (A)
the Offer Price applicable immediately prior to such adjustment, multiplied by (B) a fraction, the
numerator of which will be the Conversion Ratio in force immediately prior to the adjustment and
the denominator of which will be the Conversion Ratio as adjusted. The Additional Number of Shares
will be adjusted in the same manner as the Conversion Ratio.

The following table sets forth the hypothetical Offer Price and the Additional Number of Shares to
be added to the applicable Conversion Ratio in force immediately prior to the adjustment based on
the day immediately following the Relevant Date:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Offer Price	 	 	 	 	 	 	 	 	 	 	 	 	 
	(euros)	 	 	May 3, 2007	 	May 11, 2008	 	May 11, 2009	 	May 11, 2010	 	May 11, 2011	 	May 11, 2012
	 	 	 	 
	<= 27
	 	 	 	0.5103	 	 	 	0.5217	 	 	 	0.5194	 	 	 	0.5178	 	 	 	0.5189	 	 	 	0.5296	 
	30.00
	 	 	 	0.4162	 	 	 	0.4215	 	 	 	0.4134	 	 	 	0.4040	 	 	 	0.3939	 	 	 	0.3767	 
	35.00
	 	 	 	0.3050	 	 	 	0.3039	 	 	 	0.2899	 	 	 	0.2723	 	 	 	0.2501	 	 	 	0.2252	 
	40.00
	 	 	 	0.2302	 	 	 	0.2258	 	 	 	0.2092	 	 	 	0.1878	 	 	 	0.1595	 	 	 	0.1325	 
	45.00
	 	 	 	0.1781	 	 	 	0.1721	 	 	 	0.1548	 	 	 	0.1325	 	 	 	0.1025	 	 	 	0.0642	 
	50.00
	 	 	 	0.1407	 	 	 	0.1342	 	 	 	0.1172	 	 	 	0.0957	 	 	 	0.0667	 	 	 	0.0131	 
	55.00
	 	 	 	0.1131	 	 	 	0.1067	 	 	 	0.0908	 	 	 	0.0708	 	 	 	0.0444	 	 	 	0.0000	 
	60.00
	 	 	 	0.0924	 	 	 	0.0863	 	 	 	0.0717	 	 	 	0.0537	 	 	 	0.0306	 	 	 	0.0000	 
	65.00
	 	 	 	0.0764	 	 	 	0.0709	 	 	 	0.0577	 	 	 	0.0417	 	 	 	0.0220	 	 	 	0.0000	 
	70.00
	 	 	 	0.0640	 	 	 	0.0591	 	 	 	0.0473	 	 	 	0.0332	 	 	 	0.0166	 	 	 	0.0000	 
	75.00
	 	 	 	0.0541	 	 	 	0.0499	 	 	 	0.0393	 	 	 	0.0271	 	 	 	0.0132	 	 	 	0.0000	 
	80.00
	 	 	 	0.0461	 	 	 	0.0425	 	 	 	0.0332	 	 	 	0.0225	 	 	 	0.0110	 	 	 	0.0000	 
	85.00
	 	 	 	0.0396	 	 	 	0.0366	 	 	 	0.0283	 	 	 	0.0191	 	 	 	0.0094	 	 	 	0.0000	 
	90.00
	 	 	 	0.0343	 	 	 	0.0318	 	 	 	0.0245	 	 	 	0.0164	 	 	 	0.0083	 	 	 	0.0000	 
	95.00
	 	 	 	0.0298	 	 	 	0.0278	 	 	 	0.0213	 	 	 	0.0143	 	 	 	0.0075	 	 	 	0.0000	 
	>= 100
	 	 	 	0.0260	 	 	 	0.0244	 	 	 	0.0187	 	 	 	0.0127	 	 	 	0.0068	 	 	 	0.0000	 

If the Offer Price or the day immediately following a Relevant Date is not set forth in the
above table, then:

	 	•	 	if the Offer Price is between two Offer Price amounts in the table or the day
immediately following a Relevant Date is between two days in the table, the Additional
Number of Shares will be determined by straight line interpolation between the
Additional Number of Shares set forth for the higher and lower Offer Prices and the
two nearest dates, based on a 365-day year;
	 
	 	•	 	if the Offer Price is greater than €100 per share (as adjusted on the same basis
as the adjustment to the figures in the table, as provided above), there will be no
Additional Number of Shares;
	 
	 	•	 	if the Offer Price is less than €27 per share (as adjusted on the same basis as
the adjustment to the figures in the table, as provided above), there will be no
Additional Number of Shares.

For the avoidance of doubt, the Conversion Ratio shall be automatically restored to its original
value upon the expiration of such 60-day period (in the cases discussed in paragraph (a) above) and
the Early Exercise Period (in the case discussed in paragraph (b) above). However:

	 	•	 	in the cases discussed in paragraph (a) above, if the 30th day of such 60-day
period occurs prior to the Initial Exercise Date or the commencement of the Year Two
Exercise Period, or

 

 

 

	 	•	 	in the cases discussed in paragraph (b) above, if the last day of the Early
Exercise Period occurs prior to the Initial Exercise Date or the commencement of the
Year Two Exercise Period,

the Conversion Ratio as adjusted pursuant to the above formula shall be maintained until 30 days
after the earlier of the initial Exercise Date or the commencement of the Year Two Exercise Period.

	8.	 	In the event of a purchase by the Company of its own shares at a price higher than the market
price, the new Conversion Ratio shall be determined by multiplying the Conversion Ratio in
effect before the commencement of such purchase by the following ratio, rounded to the nearest
hundredth of a share:

	 	 	 	 	 
	 

	 	Share price + Pc % x (Purchase price – Share price)
 

Share price
	 	 

Where:

	 	•	 	“Share price” means the average of the VWAP Prices for the 3 Trading Days preceding the
purchase (or the possibility to purchase);
	 
	 	•	 	“Pc %” means the percentage of share capital purchased;
	 
	 	•	 	“Purchase price” means the price at which the share is effectively purchased (which, by
definition, will be higher than the Price of the share as defined above).

	9.	 	In the event of the Company’s modification of the allocation of its profits through the
creation of preferred shares, the new Conversion Ratio will be equal to the product of the
Conversion Ratio in force before the beginning of this transaction multiplied by:

	 	 	 	 	 
	 

	 	Share price before modification of the allocation of profits
 

Share price before modification of the allocation of profits –

Amount of the reduction per share of the right to profits
	 	 

For the purposes of calculating this formula, (i) the share price before modification of the
allocation of the Company’s profits will be determined by reference to the VWAP Price of the
Company’s shares during the three Trading Days preceding the date of modification and (ii) the
amount of the reduction per share of the right to profits will be determined by an independent
expert of international repute chosen by the Company.

Notwithstanding any of the foregoing, if the application of any of the adjustments under
paragraphs 1 to 9 above would result in the Company issuing more shares than it is authorized
to issue (before application of this paragraph), and if the Company is not then authorized to
repurchase existing shares for delivery upon exercise of the Conversion Right, then the Company
shall not be required to issue the shares that would cause its authorization to be exceeded.
Therefore, the maximum amount of the capital increase that may be implemented shall not exceed
€2,000,000 nominal value (i.e., a maximum number of 20,000,000 shares on the basis of the
current €0.10 nominal value of each share), as set forth by the twenty-second resolution of
the extraordinary general meeting of June 7, 2006, subject to any adjustments which may be made
in compliance with applicable French law and regulations. The

 

 

 

adjustments that may result in a capital increase exceeding the maximum amount of €2,000,000
nominal value are those indicated in paragraphs 1 to 5, 8 and 9 above and are under the
Company’s control.

Any resulting reduction in respect of an Exercise Date shall be applied on a pro rata basis in
respect of all Bonds for which the Conversion Right has been exercised.

If the Company carries out transactions in respect of which an adjustment under paragraphs 1 to
9 above has not been provided for, and where subsequent French law or regulations would require
an adjustment, the Company will carry out such adjustment in accordance with the applicable
laws and regulations and relevant French market practices in effect in France at such time.

The Company’s Board of Directors shall report on the components of the calculation and on the
results of any adjustment in the annual report following any such adjustment.

     1.22.10 Notice to Bondholders in the event of adjustments

In the event of an adjustment, Bondholders will be notified of the new Conversion Ratio by a notice
published in the Bulletin des Annonces Légales Obligatoires, in a financial newspaper with general
distribution in France, in a notice issued by EuronextTM and in a notice given through
the facilities of Euroclear France S.A., Euroclear Bank S.A./N.V. and Clearstream Luxembourg, so
long as the Bonds clear through such agencies.

     1.22.11 Treatment of fractional entitlements

If the number of shares that would be deliverable to a Bondholder in accordance with paragraph
1.22.6 “Settlement of Exercise of the Conversion Right” is not a whole number, the Bondholder may
request delivery of either:

	 	–	 	the next lower whole number of shares, in which case the Bondholder will
receive a cash payment (with 0.0005 being rounded up to the nearest one-thousandth,
i.e. 0.001) equal to the value of the remaining fractional share, calculated on the
basis of the opening share price quoted on Eurolist by Euronext ParisTM on
the Trading Day preceding the date on which the request for the exercise of the
Conversion Right request is made; or
	 
	 	–	 	the next greater whole number of shares, provided that in such case the
Bondholder pays the Company an amount (with 0.0005 being rounded up to the nearest
one-thousandth, i.e. 0.001) equal to the value of the additional fraction of a share
requested, calculated on the basis set out in the preceding paragraph.

If the Bondholder does not state which choice it wishes to make, it shall receive a number of the
Company shares rounded down to the nearest whole number, and the remainder in cash as described
above.

     1.23 Shares delivered upon exercise of the Conversion Right

     1.23.1 Rights attached to the shares to be delivered, if any

     1.23.1.1 New shares to be issued upon exercise of the Conversion Right

New shares issued upon exercise of the Conversion Right, if any, shall be subject to all provisions
of the Company’s by-laws (statuts) and will give holders the right to receive all dividends paid by
the Company on or after their date of issue, other than dividends that have previously been
detached from the Company’s

 

 

 

existing shares for purposes of being traded on Eurolist by EuronextTM (or any other
regulated or similar market on which the shares are quoted). As a result, they will be fully
fungible with such shares from their date of issue.

     1.23.1.2 Existing shares delivered upon exercise of the Conversion Right

Existing shares delivered upon the exercise of the Conversion Right, if any, shall be existing
ordinary shares carrying dividend rights and conferring upon their holders, from the date of
delivery, all the rights attached to ordinary shares, provided that in the event that rights to a
dividend are detached from the shares between the Exercise Date and the delivery date, Bondholders
shall not be entitled to the dividend nor to any compensation therefor.

     1.23.1.3 General provisions

Each new or existing share confers the right to an interest in the Company’s assets, profits and in
any liquidation surplus prorata to the percentage of share capital represented by such share,
taking into account whether any share capital has been redeemed, whether shares have been fully
paid up, the nominal value of the shares and the rights of different classes of shares.

Such shares are also subject to the provisions of the Company’s by-laws.

Dividends which have not been claimed within five years after their payment are forfeited (in
accordance with the law) and become the property of the French State.

     1.23.2 Transferability of the shares

No provision in the Company’s by-laws limits the transferability of the shares comprising the
Company’s share capital.

     1.23.3 Nature and form of the shares

The shares shall be either in registered or bearer form, at the option of the shareholder.

Shares held in either form are required to be entered in book-entry form in accounts (inscrites en
compte) maintained by the Company or its agent and/or an authorized intermediary, as the case may
be. The shares are required to be entered in book-entry form in accounts held, as the case may be:

	 	–	 	by BNP Paribas Securities Services acting on behalf of the Company, in
respect of fully registered shares (nominatifs purs);
	 
	 	–	 	by an authorized financial intermediary selected by the shareholder, and by
BNP Paribas Securities Services acting on behalf of the Company, in respect of shares
in administered, registered form (nominatifs administrés); or
	 
	 	–	 	by an authorized financial intermediary selected by the shareholder in
respect of shares in bearer form (au porteur).

     1.23.4 Taxation of French Residents

Please refer to the French Note d’Opération which is available on the websites of the Company
(www.france.businessobjects.com) and the AMF (www.amf-france.org).

     1.23.5 Listing of new shares

The Company’s shares are listed on Eurolist by EuronextTM (ISIN Code: FR 0004026250).
Application shall be made to list new shares resulting from an exercise of the Conversion Right on
Eurolist by EuronextTM from their date of issue.

 

 

 

The new shares resulting from the exercise of the Conversion Right will also be listed in the
United States on the Nasdaq Global Select Market in the form of American Depositary Shares from
their date of issue.

     1.23.6 U.S. Registration Rights

The Company will, at its expense:

	 	•	 	use reasonable efforts to file, within 270 days after the issue date of the Bonds,
a shelf registration statement (a “Registration Statement”) with the United States
Securities and Exchange Commission (“SEC”) covering new or existing shares remitted
upon the exercise of the Conversion Right, provided that in the event the
Company reasonably determines that (i) it is a well-known seasoned issuer (within the
meaning of Rule 405 under the Securities Act (as defined below)) and will continue to
be a well-known seasoned issuer until at least the first anniversary of the date of
initial issuance of the Bonds, (ii) it is entitled to file such Registration Statement
on Form S-3, and (iii) such Registration Statement will become effective immediately
upon filing pursuant to Rule 462(e) under the Securities Act, then the Company may
defer such filing until not later than the end of the seventh day prior to such first
anniversary date;
	 
	 	•	 	use reasonable efforts to cause such Registration Statement to become or be
declared effective under the U.S. Securities Act of 1933, as amended (the “Securities
Act”) on or prior to the first anniversary of the date of the initial date of issuance
of the Bonds ; and
	 
	 	•	 	subject to the Company’s rights to suspend use of the Registration Statement and
the related prospectus under the circumstances described below, use reasonable efforts
to keep the Registration Statement continuously effective, supplemented and amended as
required under the Securities Act until the second anniversary of the date of the
initial issuance of the Bonds.

If a Registration Statement with respect to new or existing shares granted after the exercise of
the Conversion Right:

	•	 	is not filed with the SEC on or prior to 270 days after the date
of the initial issuance of the Bonds (or such later date as is
permitted pursuant to the proviso set forth above), or has not
become or been declared effective by the SEC on or prior to the
first anniversary of the date of the initial issuance of the
Bonds; or
	 
	•	 	is filed and becomes or is declared effective but shall thereafter
cease to be effective (without being succeeded immediately by a
replacement shelf registration statement filed and declared
effective) or usable for the shares remitted upon the exercise of
the Conversion Right (other than as a result of the Company’s
suspension of the use of the Registration Statement under the
circumstances described below);
	 
	 	 	(both of which circumstances are hereafter referred to as a “registration default”), the
Company will pay registration default damages to each Bondholder.

The amount of registration default damages payable during any period in which a registration
default has occurred and is continuing is as follows:

	•	 	the interest rate payable on the Bonds shall be increased by 0.25
percent (or 25 basis points) per annum after the 90-day period
mentioned above;
	 
	•	 	the interest rate payable on the Bonds shall be increased by an
additional 0.25 percent (or 25 additional basis points) per annum
after the 90-day period mentioned above.

The payment of registration default damages shall be the sole monetary remedy for a registration
default. This shall not preclude any action for specific performance of the Company’s registration
obligations.

 

 

 

If a Registration Statement has not become or been declared effective by the SEC on or prior to the
first anniversary of the initial date of issuance of the Bonds, then

	 	•	 	the Conversion Right may not be exercised until the earlier of such time as (i) a
Registration Statement has become or is declared effective by the SEC or (ii) the second
anniversary of the initial date of issuance of the Bonds; and
	 
	 	•	 	the Company will publish a notice to this effect in the manner described below at least
one Business Day up to a first anniversary date (absent which Bondholders may assume that the
Registration Statement will become effective on such anniversary date).

The Company will be permitted to suspend the use of the Registration Statement for shares remitted
upon the exercise of the Conversion Right for a period not to exceed 45 days in any 90-day period
or an aggregate of 90 days in any 365-day period if the Registration Statement:

	 	•	 	would, in the Company’s judgment, contain a material misstatement or significant omission
as a result of an event that has occurred after its initial effective date and is continuing;
and
	 
	 	•	 	the Company cannot correct the misstatement or significant omission without unreasonable
effort, or the Company reasonably determines that the disclosure of this material non-public
information would have a material adverse effect on the Company and its subsidiaries taken as
a whole.

The Company’s decision to suspend the use of the Registration Statement will be published in a
notice issued in the manner described below as promptly as practicable and will be effective when
given, which notice will mention both the date on which the suspension comes into effect and the
date the suspension will end (if known).

Any notice that the Registration Statement is not effective on the first anniversary of the initial
date of issuance of the Bonds, or of the Company’s suspension of the use of the Registration
Statement, will be published in a financial newspaper with general circulation in France, submitted
to EuronextTM to be published by it in a notice and submitted to Euroclear France S.A.,
Euroclear Bank S.A./N.V. and Clearstream Luxembourg for publication as a notice, so long as the
Bonds clear through such agencies.exv10w82

 

Exhibit 10.82

April 2, 2007

David Kennedy

By email

Dear David:

On behalf of Business Objects Americas, I am pleased to offer you a position as Senior Vice
President and General Counsel, based principally in our San Jose, California, office. This
position reports to John Schwarz, Chief Executive Officer. Your effective start date is April 30,
2007. We believe that you have a unique combination of skills, knowledge, work ethic and attitude
that could make you an outstanding contributor to the overall success of the company. We trust you
will keep the details of this offer confidential.

Your starting annual base salary for this position will be $335,000, paid in 24 semi-monthly
installments. In addition to your base salary, you will be eligible to receive an annual incentive
target of $167,500 (50% of base salary), based on company performance and meeting your assigned
objectives. The amount of variable compensation can vary from 0-150% and will be contingent upon
the achievement of specific targets by the company. Your payout will also be based on meeting your
annual individual and executive team objectives.

The Company will recommend that a stock option grant of 133,000 shares be made available to you.
All option grants are subject to Board of Directors approval. (Note: Business Objects S.A.
ordinary shares currently trade on Premier Marché and as American Depositary Receipts on NASDAQ.)
As long as you remain continuously employed by Business Objects, you will vest twenty-five (25%)
percent of the option shares following twelve (12) months of employment and 1/36th of
the remainder per month thereafter. The price for the options will be set in Euros equal to the
higher of: (i) 100% of the closing price per share as quoted on the Eurolist by Euronext on
the last trading day prior to the grant date, or (ii) 100% of the average opening price
over the 20 trading days prior to the grant date. Such options shall be subject to the terms and
conditions of the Company’s Stock Option Plan and Stock Option Agreement.

In addition, the Company will recommend that a restricted stock grant (“RSU”) of 22,000 ordinary
shares of the company be made available to you at the next Board meeting where restricted shares
can be granted. The Restricted Stock Grant will be granted in the form of units under the
Subsidiary Stock Incentive Sub-Plan (the “Sub-Plan”) to the 2001 Stock Option Plan. As long as you
remain continuously employed by Business Objects, your Restricted Stock Grant will vest as follows:

	 	§	 	3,500 shares will vest after three months (i.e., on the 90th day following your date of hire)
	 
	 	§	 	3,500 shares will vest after six months (180 days following your date of hire)
	 
	 	§	 	All remaining shares (15,000) will vest over a three year period, with 1/3 of the shares
vesting annually on each anniversary of the Effective Date, so that the Restricted Stock
Grant will be fully vested on the third anniversary of the Effective Date.

Business Objects Americas . 3030 Orchard Parkway . San Jose . CA 95134

Tel: 408-953-6000 . Fax: 415-953-6001 . www.businessobjects.com

 

 

Offer Letter — Page 2

The Restricted Stock Grants will be subject to the terms and conditions of the Sub-Plan and
the standard form of restricted stock agreement.

Per our discussion, Business Objects Americas will assist you with your relocation to the San Jose,
CA area as detailed in Addendum A. You will be eligible to receive reimbursement for your
relocation expenses in accordance with the company’s policy, assuming that you relocate by August
31, 2007. To assist you in successfully relocating, our representative from Prudential will
contact you upon your acceptance of our offer.

Pending Board approval you will be eligible for the standard Executive Change in Control agreement.

You will be eligible to participate in Company-sponsored benefits and participation in Business
Objects Stock Purchase and 401(k) plans. A summary of benefits, outlining these plans and
eligibility requirement, is enclosed for your information.

As an executive of Business Objects you are eligible to participate in the Non-Qualified Deferred
Compensation Plan. A summary of this program will be sent to you within thirty (30) days of hire.

Business Objects Americas will provide you with the necessary equipment to successfully complete
your job responsibilities. This equipment will be held as property of the company and must be
returned to the company when your employment with Business Objects Americas terminates.

Business Objects Americas is committed to providing a drug/alcohol and smoke free working
environment for its employees. Additionally, in accordance with the Americans with Disabilities
Act (ADA) Business Objects Americas will provide disabled employees with reasonable accommodations
that are requested by the employee. If you require any accommodations, please discuss them with
our VP, North American Human Resources, David Swanson, as soon as possible.

The offer described in this letter will remain open until April 13, 2007; we have successfully
completed your background and reference checks.

Employment with Business Objects is not for a specified term and is at the mutual consent of you
and the Company. Accordingly, either you or the Company may terminate the employment relationship
at will, with or without cause, at any time. It is agreed that this is a complete agreement
regarding your employment status and supersedes all prior agreements, and that it can only be
amended in writing signed by you and an officer of the Company.

Business Objects’ proprietary rights and confidential information are the company’s most important
assets. We will therefore ask that you sign, as a condition to your employment, the Company’s
Proprietary Information Agreement. We impress upon you that we do not wish you to bring with you
any confidential or proprietary material of any former employer or to violate any other obligations
to your former employers.

For purposes of federal immigration law, you will be required to provide to the Company documentary
evidence of your identity and eligibility for employment within the United States. Such
documentation must be provided to us within three (3) business days of your date of hire. For your
convenience, we

Business Objects Americas . 3030 Orchard Parkway . San Jose . CA 95134

Tel: 408-953-6000 . Fax: 415-953-6001 . www.businessobjects.com

 

 

Offer Letter — Page 3

request that you provide original evidence of your identity and eligibility during
orientation on your first day of employment.

In addition, as a condition of your continued employment, you must successfully complete a Code of
Business Conduct and Ethics training program and pass with a score of at least 80% within 30 days
of your start date. Completion of this program is a condition of continued employment at Business
Objects. Details on how to access this important program will be provided to you on your first day
of work.

David, we look forward to having you join us. Please confirm your acceptance by signing a copy of
this letter, remembering to indicate your start date at the bottom of this letter. Congratulations
and welcome aboard!

Sincerely,

/s/ Deborah Byron

Deborah Byron

Senior Vice President

Worldwide Human Resources

I accept the offer of employment and terms stated in this letter, and expect to commence employment
on April 30, 2007.

	 	 	 	 	 	 	 
	Signed:

	 	/s/ David Kennedy
	 	 
	 	Date: 4/4/2007
	 

	 	 	 	 	 	 

Business Objects Americas . 3030 Orchard Parkway . San Jose . CA 95134

Tel: 408-953-6000 . Fax: 415-953-6001 . www.businessobjects.com

 

 

Addendum A

Relocation Agreement

Permanent Relocation

	 	 	 
	Employee Name:

	 	David Kennedy
	 
	 	 
	Date of Agreement:

	 	April 20, 2007
	 
	 	 
	Anticipated Start Date:

	 	April 30, 2007
	 
	 	 
	Position:

	 	Senior Vice President, General Counsel &

Corporate Secretary
	 
	 	 
	Current Location:

	 	Greenwich, CT
	 
	 	 
	New Location:

	 	San Jose, CA

Policy Administration

Objective

Business Objects, Corp. (“the Company”) provides relocation assistance to eligible newly
hired employees as well as eligible current employees who are transferred at the Company’s
request from one facility to another. The benefits in this relocation agreement are intended to
assist relocating employees and their families with their move to the new location. It is
expected that the employee will make all reasonable efforts to keep relocation costs to a
minimum. The specific categories of assistance included in the agreement are:

	 	Ø	 	Miscellaneous Allowance ($10,000)
	 
	 	Ø	 	Home Finding Trip
	 
	 	Ø	 	Shipment of Household goods
	 
	 	Ø	 	Auto shipment (2 vehicles)
	 
	 	Ø	 	Temporary Storage (90 days)
	 
	 	Ø	 	Temporary Living (90 days)
	 
	 	Ø	 	Temporary Automobile Rental (90 days)
	 
	 	Ø	 	Travel to new location
	 
	 	Ø	 	Home Sale Assistance

Upon receipt of the accepted offer letter and Relocation Assistance Agreement, Business
Objects will notify our relocation vendor, Prudential Relocation who will initiate contact
with you, discuss the process, and arrange for all approved services.

Note that all relocation provisions outlined in this agreement are quoted in USD,
unless otherwise stated.

					
	 	 	 	 	 
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Exceptions

Any exception to this agreement requires the pre-approval of the Hiring Manager, Hiring VP
and Human Resources.

Eligibility

The benefits included in this relocation agreement are available to employees who meet the
following eligibility requirements:

	 	Ø	 	You are a newly hired employee, or you are a current employee
transferring from one Company location to another at the Company’s request.
	 
	 	Ø	 	Your new workplace is at least 50 miles farther from your current
residence than your old workplace was from your current residence.
	 
	 	Ø	 	Any dependents receiving relocation benefits outlined in this agreement
currently reside with you in your current residence, will reside with you at
your new residence, and are considered eligible for coverage under the
Company’s Health Benefits program.

Administration

Your hiring Manager and Human Resources have approved this relocation agreement. The HR
Department and Prudential Relocation will administer details of this agreement. All requests
for information or services should be directed to Prudential Relocation. No arrangements
regarding any relocation details should be made without the advance involvement of the HR
Department/Prudential Relocation.

Your HR Relocation contact is, Charles Mah, who can be reached at:

(E-mail)      Cmah@businessobjects.com

(Phone)       408-953-6160

Tax Implications of Relocation Expenses

Some of the relocation expenses outlined in this document may be taxable. Please speak to
your tax services provider for further information. Please provide a copy of this agreement to
your tax services provider for reference when assessing tax implications to this move.

Employment Requirements

The reimbursement of relocation expenses is conditional upon your remaining an employee of
Business Objects, Corp. for twelve (12) months after the date of relocation. If you receive
relocation reimbursement and subsequently terminate employment with the Company within twelve
(12) months of the effective date of transfer/employment, for any reason other than a Company
initiated reduction-in-force or transfer, you must pay back to the Company all relocation
reimbursement funds. Business Objects, Corp. will notify you of the full amount to be refunded
at the time of termination or as soon thereafter as reasonably possible.

					
	 	 	 	 	 
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Booking Arrangements & Cost Administration

All arrangements should be made via Business Objects designated travel vendor,
American Express. Please contact Charles Mah for assistance when contacting this
vendor. If arrangements cannot be made through a Business Objects vendor, you will pay
these costs directly and submit a completed expense report with accompanying receipts for
reimbursement. These expenses must be submitted within 60 days of incurring the cost.

Expense Reimbursements

All requests for authorized relocation expenses will be submitted to Prudential for processing
and reimbursement. Your Relocation Counselor will provide you with instructions during your
initiation call.

Approved Provisions:

Miscellaneous Allowance

To help pay for incidental costs incurred during the move that are not specifically
referred to in this policy, you will be paid a miscellaneous moving allowance.

Incidental expenses may include:

Charges for cleaning current residence
Utility hookups and telephone installation charges
Purchase, installation and reconnection services for appliances
Other incidental expenses not covered by The Company.

You will receive a miscellaneous moving allowance of $10,000 USD. The allowance is paid as a
lump sum payment, less any applicable taxes, and no receipts are required. Payment of the
allowance will occur no sooner than the first available payday upon your employment at the new
location.

Home Finding Assistance Trip

The purpose of the residence search trip is to assist you in locating your permanent
accommodations in the new location. If required, the Company will provide reimbursement for one
trip for you and your spouse to search for accommodation in the new location. For reimbursement,
please submit all expenses for the Homefinding trip to Prudential Relocation. Contact your
Prudential Relocation Counselor for details.

Specifically, the following expenses will be covered:

	 	Ø	 	Actual cost of return advanced purchase economy class airfare for you and your spouse
	 
	 	Ø	 	Lodging at an agreed price with Business Objects
	 
	 	Ø	 	Rental costs for an economy class rental car
	 
	 	Ø	 	Reasonable car-related costs for parking fees and gas

					
	 	 	 	 	 
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Shipment of Household Goods/Personal Effects and Temporary Storage

The Company will assist you in transporting any personal belongings and household goods
from your current location to your new location. Specifically, the Company will pay for
following:

	 	Ø	 	Packing, loading, moving, unloading, and temporary storage, if needed, for a period
not to exceed 90 days, including handling fees and charges for delivery from storage to the
new residence.
	 
	 	Ø	 	Shipment of 2 vehicles via land transport. Insurance coverage for full replacement
value of the transported household goods. Additional insurance coverage is your
responsibility. You should prepare a detailed inventory prior to shipment of items of
extraordinary value.

Ineligible Items

The following items are not authorized for shipment by the carrier at the Company’s
expense:

	 	Ø	 	Recreational Vehicles such as Campers, Boats, Horse trailers
	 
	 	Ø	 	High value items, including, antiques, artwork and wine collections
	 
	 	Ø	 	Aquariums
	 
	 	Ø	 	Firewood
	 
	 	Ø	 	Building Materials

Travel (En-route) Expenses

To assist in transporting you from your current location to the new location, Business
Objects will provide transportation assistance as follows:

	 	Ø	 	Actual cost of a direct advanced purchase one-way economy class airfare for you and
each authorized accompanying dependent from your old location to the new location.
Please contact American Express Travel to make arrangements.

Temporary Living

	 	Ø	 	To assist you in the transition to your permanent accommodation, the following
benefits will be covered by the Company if required (should you move into your
permanent accommodations upon arrival to your new destination this service will not be
available to you):

	 	Ø	 	Temporary lodging (as per current Company guidelines) for you and your authorized
accompanying dependents for a maximum of 90 days.
	 
	 	Ø	 	Utility bills and reasonable phone bills (excluding long-distance charges)
	 
	 	Ø	 	Economy size rental car for a maximum of 90 days or until your vehicle arrives, whichever is sooner.

Home Sale

Home Sale Assistance will only be available if you currently have a home in your
existing location, which is your principal place of residence and is currently owned and
occupied by you and any eligible dependents. Appropriate ownership documentation will be
required. The following assistance, will be provided by the Company:

					
	 	 	 	 	 
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Buyer Value Option Program – Home sale Assistance:

Prudential will provide you with overview of the Buyer Value Option Program for the
sale of your principle residence. Prudential will order broker price opinions from a real
estate broker in the area where your home is located. In your particular case, Prudential
will contact the real estate broker that you have selected to discuss the process going
forward.

Prudential will order such inspections and reports as deemed appropriate in order to issue a
contract for the purchase of your home from you. Prudential and Business Objects will
require you to complete a homeowners’ disclosure statement and any other disclosure
documents required by applicable law. Prudential may provide inspections, reports, and
disclosure statements to potential buyers.

	 	 	 
	/s/ David Kennedy

	 	 
	 

Employee Signature

	 	 

	 	 	 
	4/24/2007

	 	 
	 

Date

	 	 

	 	 	 
	Distribution:

	 	Charles Mah
	 

	 	John Schwarz
	 

	 	Michelle Crist

					
	 	 	 	 	 
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