Document:

Exhibit 4.3.2

                                 ACTIVCARD S.A.

                          1998 FRENCH STOCK OPTION PLAN
                     (As Amended and Restated July 24, 2000)

Pursuant to articles 208-1 to 208-2 of the Law of 24 July 1966 (hereinafter to
be referred to as the "Commercial Enterprises Law"), the General Shareholders
Meeting of ACTIVCARD (hereinafter to be referred to as "ACTIVCARD S.A."),
meeting on June 4, 1998, approved the creation of a stock option plan
(hereinafter to be referred to as the "1998 Plan") intended for employees of
ACTIVCARD S.A. and its subsidiaries, specifically the French subsidiaries
ACTIVCARD EUROPE SA and ADV Technologies (hereinafter referred to as the
"ActivCard Group"). The purpose of this document is to define the conditions for
allocating the Options to the employees of the ActivCard Group within the
framework of the 1998 Plan, in accordance with the resolutions of the Board of
Directors of ACTIVCARD S.A.:

1.   Definitions. The following terms shall have the definitions assigned below:

     (a)  The term "Administrator" shall refer to the Board or any Committee
          appointed to manage the Plan.

     (b)  The expression "Applicable law" shall refer to any legal conditions
          relating to management of the stock option plans, in accordance with
          the current provisions of the Commercial Enterprises Law, the General
          Tax Code, the applicable rules of the Stock Exchange and French legal
          provisions applying to Options allocated by corporations subject to
          French law.

     (c)  The term "Board" shall refer to the Corporation's Board of Directors.

     (d)  The term "Code" shall refer to the General Tax Code.

     (e)  The term "Committee" shall refer to any committee established by the
          Board to manage the Plan.

     (f)  The term "Corporation" shall refer to ACTIVCARD S.A.

     (g)  The expression "Employment contract" shall mean that the
          employer-to-employee ties involving the Corporation, a parent company
          or a Subsidiary have been neither suspended nor terminated.

     (h)  The term "Employee" shall mean any individual, including an officer or
          a corporate representative, employed by the Corporation, a Parent
          company or a Subsidiary.

     (i)  The expression "Transactions Law" shall refer to the amended version
          of the 1934 U.S. "Securities Exchange Act."

     (j)  The expression "Market Value" shall mean the value of a Share,
          regardless of the date; this value shall be converted, if necessary,
          using as the exchange rate the

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          purchase rate at noon, as reported by the Federal Reserve Bank of New
          York for the currency in question. This value shall be set as follows:

          (i)    If the shares are traded on a Stock Exchange or on an
                 established national market, including the EASDAQ, the NASDAQ
                 National Market (trading of over-the-counter shares) or the
                 NASDAQ Small Cap Market on the NASDAQ exchange, the market
                 value of a share shall be the closing sale price of such Share
                 (or the ask price at the close, if no sale has been recorded)
                 quoted on this system or on this stock exchange on the day the
                 value is set, as published by The Wall Street Journal or any
                 other source which the Board deems reliable.

          (ii)   In the event that the Shares are regularly traded by an
                 approved broker but that the sale price is not published, the
                 Share's Market Value shall be the average between the Share's
                 bid and ask prices on the day the value is set, as published by
                 The Wall Street Journal or any other source which the Board
                 deems reliable.

          (iii)  In the absence of an established market for the Shares or
                 Common Stock, the Market Value shall be set in good faith by
                 the Board of Directors.

     (k)  The term "Option" shall refer to a stock option allocated in
          accordance with the Plan.

     (l)  The expression "Stock Option Agreement" shall mean an agreement
          entered into in writing or electronically, attesting to the allocation
          of an Option, signed by the Corporation and the Beneficiary, as well
          as any addenda corresponding thereto.

     (m)  The expression "Shares covered by the Option" shall refer to the
          Shares covered by an Option.

     (n)  The term "Beneficiary" shall refer to an Employee who benefitted from
          an Option within the framework of the Plan.

     (o)  The expression "Parent company" shall refer to a current or future
          parent company, as defined by Article 208-4 of Law No. 66-537 of July
          24, 1966.

     (p)  The term "Plan" shall refer to the 1998 French Stock Option Plan.

     (q)  The term "Share" shall refer to a common Share of the Corporation.

     (r)  The term "Subsidiary" shall refer to a current or future subsidiary as
          defined by Article 208-4 of Law No. 66-537 of July 24, 1966.

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2.   Shares covered by the Plan.

     (a)  Subject to the provisions of article 9 below, the maximum total number
          of Shares that may be covered by an Option and be subscribed within
          the framework of the Plan is 1,200,000 Shares.

     (b)  In the event that an Option expires or can no longer be exercised
          because it was not completely exercised or if it has been returned
          within the context of an Option exchange program, the Shares not
          issued may be allocated later within the Plan framework. Shares
          actually issued within the Plan framework may not be distributed later
          within the Plan framework.

3.   Plan Management.

     (a)  Plan Administrator. The Plan shall be managed (A) by the Board or (B)
          by a Committee (or a sub-committee of such Committee) appointed by the
          Board and under its direction; once appointed, the Committee shall
          remain in operation for the stipulated purposes until such time as the
          Board resolves otherwise. The Board shall be advised at regular
          intervals, of at least once per year, as to the Committee's decisions.

     (b)  Authority of the Administrator. Subject to applicable law and the
          provisions of the Plan (including any other authority granted to the
          Administrator by this Agreement) and unless stipulated to the contrary
          by the Board, the Administrator may:

          (i)    select the employees to which to distribute any Options
                 provided for by this Plan;

          (ii)   determine whether, and to what extent, the Options shall be
                 allocated;

          (iii)  determine the number of Shares covered by each Option granted
                 pursuant to the Plan;

          (iv)   approve the form of the Option Agreements used within the Plan
                 framework;

          (v)    determine the conditions of any Option allocated within the
                 framework of such Plan;

          (vi)   define the additional conditions, rules or procedures in order
                 to conform to French regulation or law and offer the
                 Beneficiaries favorable treatment within the framework of such
                 Law, provided, however, that no Option distributed pursuant to
                 such conditions, rules or procedures contain conditions
                 contrary to the provisions of the Plan;

          (vii)  interpret the conditions of the Plan and the Options allocated
                 in accordance with the Plan; and

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          (viii) take any measures that it deems appropriate, provided that they
                 not be inconsistent with the provisions of this Plan.

     (c)  Consequence of the Administrator's decisions. All decisions and
          interpretations of the Administrator shall be final and binding on all
          parties involved.

4.   Allocation conditions. Options may only be allocated to Employees of the
     Corporation subject to French tax law. An employee benefitting from an
     Option may be granted additional Options. Pursuant to article 208-2 of the
     Commercial Enterprises Law, no option may be approved for an employee that
     directly or indirectly holds over 10% of the capital of ACTIVCARD S.A.

5.   Conditions of the Option.

     (a)  Conditions of the Option. Subject to the Plan conditions, the
          Administrator shall set the terms and conditions of each Option. If
          the employment contract is suspended, the schedule for exercising the
          Options shall be successively carried forward.

     (b)  Validity of the Option. The validity of each Option shall be the
          duration specified in the Option Agreement and shall not extend beyond
          seven (7) years after the allocation date of the Option.

     (c)  Non-transferability of the Options and Share subscription rights.
          Unless the Administrator resolves otherwise, no Option may be sold,
          pledged, assigned, encumbered with a mortgage, transferred or
          transmitted in any fashion whatsoever other than through a will or by
          virtue of the right of transfer or distribution of assets; the Option
          may only be exercised by the Beneficiary so long as he is alive.

     (d)  Options Allocation Date. For all due purposes, the Allocation Date of
          an Option shall be the date on which the Board allocates the Option. A
          notification of allocation of such Option shall be issued to each
          Employee benefitting from such Option within a reasonable period after
          the Allocation Date.

6.   Share Price and payment conditions; taxes.

     (a)  Share Price. The price per Share shall not be less than 100% of the
          Market Value per Share on the Allocation Date, nor less than the
          average price quoted on a stock exchange regulated by a member State
          of the OECD during the course of the twenty trading sessions prior to
          the Option Allocation Date.

     (b)  Payment conditions. Subject to current law, the payment conditions for
          Shares issued following the exercise of an Option shall be set by the
          Administrator.

     (c)  Taxes. Shares subject to the Plan shall not be issued to the
          Beneficiary or to a third party unless the Beneficiary or such third
          party takes every measure, in concert with the Administrator, to
          discharge all foreign, domestic and local tax

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          obligations as well as any social charges. After the exercise of an
          Option, the Corporation may withhold or receive from the Beneficiary
          an amount sufficient to discharge its tax obligations.

          The Corporation has made its best efforts to ensure that this Option
          Agreement and the Plan are consistent with current French tax law. The
          Corporation refuses any liability if it is found not to apply for any
          reason whatsoever, specifically a change in the law.

     (d)  Registered form and information. Shares acquired within the Option
          framework shall be kept in registered form by the Corporate Transfer
          Agent (currently Paribas) until their sale by the Beneficiary. The
          latter shall inform the Corporation of the detailed conditions for the
          sale of the Shares in order to allow it to complete the corresponding
          tax returns.

7.   Exercise of the Option.

     (a)  Procedures; Shareholder Rights.

          (i)    All Options allocated within the framework of this Agreement
                 shall be deemed as having been acquired and may be exercised in
                 the following fashion: Fifty percent (50%) of the Options shall
                 be exercisable two years after the Allocation Date (as
                 specified in the Allocation Notice addressed to the
                 Beneficiary) and one-forth-eighth (1/48) of the additional
                 Options shall then be exercisable every month for 24 months,
                 provided that the Beneficiary remain a Member of the
                 Corporation's personnel on those dates. Personnel subject to
                 French Law may not sell any Option prior to the end of a
                 three-year period beginning two years after the Allocation Date
                 (or 5 years in all) except pursuant to article 91-ter Ann 2 of
                 the CGI and unless stipulated to the contrary by the Board
                 following a change in the laws.

          (ii)   An Option shall be deemed as exercised when a written
                 notification to this effect has been provided to the
                 Corporation in accordance with the conditions of the Option by
                 such individual as may exercise it and the Corporation has
                 received complete payment for the Shares covered by the Option.
                 Until issuance of the Shares (as attested to by the
                 corresponding registration in the Corporation's books or as
                 confirmed by its Transfer Agent), the Shares subject to the
                 Option shall confer no voting right, right to receive dividends
                 or any other right corresponding to the shareholders,
                 notwithstanding the exercise of the Option. The Corporation
                 shall issue (or cause to issue) its Shares immediately after
                 the exercise of the Option. No adjustment shall be made
                 concerning a dividend or any other right involving a
                 registration date prior to the issuance date of the Shares,
                 unless stipulated otherwise in the Option Agreement or in
                 Section 9(a) below.

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     (b)  Exercise of the Option Following Expiration of Status as Permanent
          Employee of the Corporation. In the event of a Beneficiary's cessation
          of employment (other than for reasons of disability), he may, for
          three (3) months only following the date of cessation of his
          employment (but in no case beyond the expiration date of the Option's
          validity as set forth in the Option Agreement), exercise his Option to
          the extent that he was entitled to exercise it on the date of
          cessation of his employment or any other period set by the
          Administrator. In the event that the Beneficiary dies within three (3)
          months following the cessation of his employment, his heirs or such
          party as acquires the right to exercise the Option by legacy or
          inheritance may exercise the Option, to the extent that the
          Beneficiary could have exercised it on the date of cessation of his
          employment, within six (6) months after the date of the latter's
          death, but in no case after the validity expiration date specified in
          the Option Agreement.

     (c)  Death of the Beneficiary. In the event of a Beneficiary's death, the
          Option may be exercised at any time within twelve (12) months after
          the date of death (but in no case after the validity expiration date
          specified in the Option Agreement), by his heirs or any third parties
          having received by legacy or inheritance the right to exercise the
          Option, only to the extent that the Beneficiary could have exercised
          the Option on the date of his death. If, at the time of death, the
          Beneficiary could not have completely exercised his Option, the Shares
          forming part of the portion of the Option still not capable of being
          exercised shall immediately revert to the Plan. If, after the death,
          the heirs of the Beneficiary or any third party having acquired by
          legacy or inheritance the right to exercise the Option fail to
          exercise it within the specified periods, the Option shall be
          cancelled.

8.   Conditions Deriving from Issuance of the Shares.

     (a)  Shares shall not be issued following the exercise of an Option unless
          the exercise of such Option and the issuance and delivery of the
          Shares subject thereto are consistent with current law; moreover, in
          order to verify such consistency, they may be subject to approval by
          the Corporation's attorney.

     (b)  The Corporation may make exercise of the Option contingent upon the
          obligation, by such party as exercises the Option, to declare and
          attest that it did not subscribe the Shares except for purposes of
          placement and without intending to sell or distribute them if the
          Corporation's attorney believes that current law requires such a
          statement.

9.   Adjustments made in the event of a change in capital, merger or sale of
     assets.

     (a)  In the event that the Corporation undertakes any of the financial
          transactions mentioned in article 195, paragraphs 5 and 6 and article
          196, paragraphs 1 and 3 of the Commercial Enterprises Law, the Board
          shall review, under the conditions provided for by Law, the current
          number and Exercise Price of the Options, in order to take into
          account the effects of the financial transaction in question. At the
          time of such transaction, the Board may temporarily suspend the rights
          to

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          exercise the Option for the period during which the capital stock must
          remain unchanged.

     (b)  In the event of a merger of the Corporation with or within another
          Company, or the sale of the majority of its assets, each outstanding
          Option shall be transferred, or an Option or an equivalent right shall
          be granted by the corporation succeeding it, or a Parent corporation
          or Subsidiary of such successor.

          In the event that the successor refuses to transfer the Option or to
          substitute an equivalent for it, the Beneficiary may completely
          exercise the Option on all Shares forming part thereof, including
          those on which it would not normally have been able to exercise any
          right or which it would not have been able to subscribe. In such a
          case, where the Option may be completely exercised in the absence of
          transfer or replacement, the Administrator shall inform the
          Beneficiary in writing that he has a period of fifteen (15) days after
          such notification to exercise the Option. After such period, the
          Option shall be canceled. For purposes of this paragraph, an Option
          shall be deemed as transferred if, following a merger or sale of
          assets, the Option or the right permits, for each Share resulting from
          the exercise of the Option under the conditions immediately preceding
          the merger or sale of the assets, the subscription or receipt of
          consideration (in shares, cash or other securities or assets) received
          during the merger or sale of the shares by the holders of the Shares
          for each Share held on the date the transaction was realized (and if
          the holders had a choice, the type of consideration chosen by the
          holder of the majority of the outstanding Shares); provided, however,
          that the consideration received upon the merger or the sale of assets
          not consist solely of the common stock of the succeeding Corporation
          or parent corporation, the Administrator may, subject to agreement by
          the successor, determine that the consideration to be received in
          exchange for the exercise of the Option for each Share resulting from
          exercising the Option shall solely consist of the common stock of the
          successor or of the parent corporation, equivalent in market value to
          the consideration received per share by the bearers of the Shares
          after the merger or sale of assets.

10.  Validity of the Plan. The Options may be allocated within the Plan
     framework for a period of five (5) years after the date on which the Plan
     is approved by the Corporation's Extraordinary General Shareholders Meeting
     (June 4, 1998).

11.  Amendment, suspension or cancellation of the Plan.

     The Board may at any time amend, suspend or cancel the Plan. To the extent
     necessary in order to conform to applicable law, the Corporation shall
     ensure that the shareholders approve any amendment of the Plan in the
     fashion and to the extent required.

     No Option may be allocated during a suspension of the Plan or after its
     cancellation. An amendment, suspension or cancellation of the Plan shall
     not affect the Options already allocated, which shall remain in force for
     all legal purposes as if the Plan had not been amended, suspended or
     canceled, unless the Beneficiary and the Administrator jointly

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     resolve otherwise. Such agreement shall be drafted in writing and signed by
     the Beneficiary and the Corporation.

12.  Reservation of the Shares.

     (a)  The entire time that this Plan is in force, the Corporation shall
          reserve and keep available a sufficient number of Shares as to address
          the Plan conditions.

     (b)  Failure by the Corporation to obtain from a government with
          jurisdiction such authority as the Corporation's attorney deems
          necessary for the issuance and legal sale of the Plan Shares in
          question shall release the Corporation of any liability deriving from
          failure to issue or sell the Shares for which such authority was
          unable to be obtained.

13.  Absence of impact on employment conditions.

     The Plan shall grant no Beneficiary any right with respect to maintaining
     employment with the Corporation. The Plan shall not in any way interfere
     with the right of the Beneficiary or the Corporation to end their
     professional relations at any time.

14.  Information intended for the Beneficiaries.

     The Corporation shall provide each Beneficiary, during the period when such
     Beneficiary is holding one or more valid Options, copies of the financial
     statements presented at the Ordinary General Shareholders Meeting convoked
     in order to approve the Corporation's financial statements.

15.  Transferability of Options.

     Notwithstanding any provision in this Plan or the Option Agreement to the
     contrary, Options may not be transferred, pledged, assigned or otherwise
     disposed of except by will or the laws of descent and distribution;
     provided, however, that Options may be, with the approval of the Committee,
     transferred to a member or members of an Optionee's immediate family (as
     defined below) or to one or more trusts or partnerships established in
     whole or in part for the benefit of one or more of such immediate family
     members (collectively, "Permitted Transferees"), subject to such rules and
     procedures as may from time to time be adopted or imposed by the Committee.
     If an Option is transferred to a Permitted Transferee, it shall be further
     transferable only by will or the laws of descent and distribution or, for
     no consideration, to another Permitted Transferee of the Optionee. An
     Optionee shall notify the Corporation (or its designee) in writing prior to
     any proposed transfer of an Option to a Permitted Transferee and shall
     furnish the Corporation, upon request, with information concerning such
     Permitted Transferee's financial condition and investment experience. For
     purposes of the Plan, an Optionee's "immediate family" means spouse, lineal
     descendant, father, mother, brother or sister of the transferor; provided,
     however, that if the Corporation adopts a different definition of
     "immediate family" (or similar term) in connection with the transferability
     of employee stock options awarded to Optionees, such definition shall
     apply, without further action by the Board, to the Plan.

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                  ACTIVCARD S.A. 1998 FRENCH STOCK OPTION PLAN

                                  U.S. APPENDIX

1.   This Appendix governs the grant of Options to United States Participants

     This Appendix constitutes the part of the Plan that will govern the
     subscription of Shares by, and the grant of Options to, United States
     Participants (the "U.S. Options") and incorporates all the terms of the
     Plan (as set forth above) including as modified in accordance with the
     provisions of this Appendix.

2.   The limit on the number of Shares which can be issued

     The maximum aggregate number of Shares (which, for this purpose, means
     fully paid ordinary Shares in the capital of the Corporation) which may be
     issued under U.S. Options, intending to qualify as "incentive stock
     options" ("ISOs") within the meaning of Section 422 of the U.S. Internal
     Revenue Code of 1986, as amended (the "U.S. Tax Code"), under the Plan is
     1,200,000, subject to such adjustments made in a manner consistent with
     Section 422 of the U.S. Tax Code in the event of any issue or
     reorganization, as determined by the Board in its sole discretion. To the
     extent permitted under Section 422 of the U.S. Tax Code, any Shares subject
     to an ISO Award (as defined in Section 7 below) which lapses, expires or is
     otherwise terminated without the issuance of such Shares may, in its sole
     discretion of the Board, again be available for purposes of this limit.

3.   How U.S. Options will be granted

     All U.S. Options shall be evidenced by an instrument(s) in such form or
     forms as may from time to time be approved by the Board of the Committee
     that, among other things, shall set out the manner in which a Participant
     may exercise his U.S. Option and the form of payment for the Shares.

4.   Administration of this Appendix

     The Board or the Committee shall (i) administer this Appendix, (ii)
     establish from time to time such rules and regulations as it may deem
     appropriate for the proper administration of this Appendix and (iii) make
     such determinations under (including, without limitation, factual
     determinations), and such interpretations of, and take such actions in
     connection with, this Appendix or the U.S. Options as it may deem necessary
     or advisable, including without limitation, determinations, interpretations
     and actions to ensure that U.S. Options intended to qualify as ISOs shall
     so qualify.

<PAGE>

5.   Section 16 Compliance

     If any officer, director or shareholder of the Corporation is awarded U.S.
     Options and therefore becomes subject to Section 16 of the U.S. Securities
     Exchange Act 1934, as amended (the "Exchange Act"), the Corporation shall
     take all appropriate action to ensure that such awards under this Appendix
     are exempt from Section l6b under the Exchange Act.

6.   Form of U.S. Options

     U.S. Options may be either ISOs under Section 422 of the U.S. Tax Code or
     "nonqualified stock options". The Board or the Committee shall have the
     sole authority and discretion as to whether and to whom to grant either
     type of U.S. Option; provided, however, that the terms of each U.S. Option
     shall specify clearly the type of U.S. Option granted and no U.S. Option
     shall permit a "tandem" exercise arrangement within the meaning of Temp.
     Treas. Reg. section 14a.422A-1(Q/A-21), (Q/A-39).

7.   Compliance with the ISO Rules

     The following provisions shall apply to any U.S. Option that is intended to
     qualify as an ISO (each, an "ISO Award"):

     (a)  The aggregate market value (determined as of the date the ISO Award is
          granted in accordance with the requirements of Section 422 of the U.S.
          Tax Code) of the Shares underlying one or more ISO Award that is first
          exercisable in any calendar year (under all stock option plans of the
          Corporation and its Subsidiaries (within the meaning of Section 424 of
          the U.S. Tax Code)) shall not exceed U.S. $100,000 (or the equivalent)
          and, in the event that such limit is exceeded, such U.S. Options shall
          be treated, to the extent of such excess, as nonqualified stock
          options.

     (b)  The exercise price of the Shares covered by each ISO Award shall not
          be less than 100% of the market value (determined as of the date the
          ISO Award is granted in accordance with the requirements of Section
          422 of the U.S. Tax Code) of such Shares determined as of the date the
          ISO Award is granted in accordance with the requirements of Section
          422 of the U.S. Tax Code (110% in the case of an ISO Award granted to
          a Ten Percent Shareholder).

     (c)  An ISO Award may not be exercisable more than 10 years after the date
          such ISO Award is granted (5 years in the case of an ISO granted to a
          Ten Percent Shareholder).

     (d)  The terms of such ISO Award shall provide that it is not transferable
          except by will or pursuant to the laws of descent and distribution,
          and shall not permit any U.S. Option designated to be an ISO to be
          exercised more than three months following the Participant's
          termination of employment with the Corporation or its Subsidiaries
          within the meaning of Section 424 of the U.S. Tax Code (more than

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          12 months following the Participant's death or disability, as
          disability is defined in Section 22(e)(3) of the U.S. Tax Code). The
          terms of such ISO Award shall further provide that, during the
          Participant's lifetime, such ISO Award shall only be exercisable by
          the Participant.

     (e)  This Appendix may be further modified to ensure that any U.S. Option
          that is intended to be an ISO under this Appendix will comply with the
          requirements of Section 422 of the U.S. Tax Code.

8.   Term of U.S. Option: addition of consistent provisions

     Subject to the provisions of Section 7 above, in the case of an ISO, the
     Corporation shall determine at the date the ISO Award is granted the term
     during which a U.S. Option may be exercised and whether any of the U.S.
     Option shall be exercisable in one or more installments. A U.S. Option may
     also be subject to any other provision imposed by the Corporation that is
     consistent with the purpose and intent of this Appendix.

9.   Exercise Method of U.S. Options

     A Participant may, in accordance with the terms of an applicable Award
     Agreement and subject to the sole discretion of the Board or the Committee,
     exercise his U.S. Option, (i) by a cash payment to the Corporation of the
     exercise price(s) of all Shares purchased pursuant to the exercise of the
     U.S. Option, (ii) in Shares already owned by the Participant or (iii) by
     any combination of cash or Shares.

10.  U.S. Withholding Taxes: disqualifying dispositions

     It shall be a condition to the obligation of the Corporation to deliver
     Shares pursuant to any U.S. Option under the Plan that the Participant pays
     to the Corporation (or the Subsidiary that employs the Participant) such
     amount as may be required by the Corporation or such Subsidiary for the
     purpose of satisfying any liability for any U.S. federal, state or local
     taxes of any kind required to be withheld with respect thereto. Any U.S.
     Option granted under the Plan may require the Corporation (or the
     Subsidiary that employs the Participant), or, the Board, in its sole
     discretion, may permit the Participant to elect, in accordance with any
     applicable rules established by the Corporation, to withhold or to pay all
     or a part of the amount of the withholding taxes in Shares. Such election
     may be denied by the Corporation in its sole discretion, or may be made
     subject to certain conditions specified by the Board.

     The applicable ISO Award shall provide that if a Participant makes a
     disposition, within the meaning of Section 424(c) of the U.S. Tax Code and
     the regulations promulgated thereunder, of any Shares issued to such
     Participant pursuant to the exercise of an ISO Award within the two-year
     period commencing on the date of grant or within the one-year period
     commencing on the date of transfer of such Share to the Participant
     pursuant to such exercise, the Participant shall, within 10 days of such
     disposition, notify

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     the Corporation of it (or the Subsidiary that employs the Participant), by
     delivery of written notice to the Corporation or such Subsidiary at its
     principal executive office.

11.  Securities Laws Compliance

     No Shares may be issued or transferred in connection with the exercise of a
     U.S. Option, unless the Corporation shall have determined that such issue
     or transfer is in compliance with or pursuant to an exemption from all
     applicable U.S. federal and state securities laws.

12.  Certain definitions

     For the purposes of the U.S. Options, the following terms shall have the
     following meanings (notwithstanding any contrary provision in the Plan):

     "Participants" means the Employees who are selected by the Board or the
     Committee to receive U.S. Options.

     "Subsidiary" means any company (other than the Corporation) in an unbroken
     chain of companies beginning with the Corporation, where each of the
     companies other than the last company in the unbroken chain owns stock
     possessing 50% or more of the total combined voting powers of all classes
     of stock in one or the other companies in such chain.

     "Ten Percent Shareholder" means a Participant who, at the date an ISO Award
     is granted, owns (within the meaning of Section 422(b)(6) of the U.S. Tax
     Code) stock possessing more than 10% of the total combined voting power of
     all classes of stock of the Corporation or its Subsidiaries (as such term
     is defined in Section 424 of the U.S. Tax Code.

                                       4Exhibit 4.3.3

                                 ACTIVCARD S.A.

                             STOCK OPTION PLAN 1999

                     (As Amended and Restated July 24, 2000)

(a)      Preamble

In compliance with sections 208-1 to 208-8-2 of French law n(degree)66-537 dated
July 24, 1966 (hereafter "Company Law"), an Extraordinary Shareholders Meeting
of ACTIVCARD (hereafter indiscriminately "ACTIVCARD S.A." or the "Company")
dated May 19, 1999, has authorized, in its 16th resolution, the Board of
Directors (hereafter the "Board") to implement a plan of options to subscribe
ACTIVARD shares (hereafter the "1999 Stock Option Plan") to the benefit of all
or part of the employees and managers (hereafter the "Beneficiaries") of
ACTIVCARD S.A. and of the linked companies as defined under section 208-4 of
Company Law (the Company and the linked companies, hereafter together the
"Group"), including the subsidiaries ACTVICARD EUROPE S.A. and ACTIVCARD Inc.
The purpose of this document is to define the conditions of allocation and the
exercise of the options to subscribe for ACTIVCARD shares allocated to the
Beneficiaries with respect to the 2000 Stock Option Plan (hereafter the
"Options"), as well as the conditions of transfer of the shares subscribed by
exercise of the Options (hereafter the "Shares"), pursuant to the decisions of
the Board.

Pursuant to the Extraordinary Shareholders Meeting' authorization of May 19,
1999, the maximum amount of Options authorized, shall not give the right, at
each date of allocation considered, to subscribe a number of Shares superior to
1,100,000 shares. Each Option allows the subscription of one Share. The Board
decided to adopt the principle of allocating in blocks: (a) Block A including
Options allocated to Beneficiaries who are French fiscal residents as of the
date of allocation by the Board of Directors ("Options A"), and (b) Block B
including Options allocated to Beneficiaries who are non-French fiscal residents
as of the date of allocation by the Board of Directors ("Options B").

The Options are not negotiable and, unless specified by the Board and permitted
by applicable law, can be transferred solely by succession.

(b)      Beneficiaries of the Options

The Board will fix, during its meetings (hereafter the "Date of Allocation"),
pursuant to the proposal of the Remuneration Committee, the list of
Beneficiaries of Options A and Options B, specifying the number of Options
allocated to each Beneficiary and the price of exercise of the Options. This
list will be divided into two sub-lists corresponding respectively to the
Beneficiaries of Options A and Options B. This list will be attached to the
minutes of the each Board's meeting proceeding to allocations.
<PAGE>

(c)      Price of exercise of the Options

Following the modalities of determination of the exercise price of the Options
fixed by the Extraordinary Shareholders Meeting dated May 19, 1999, the special
report of the statutory auditors to this meeting and the Board's report to this
meeting, the exercise price for the Options A and Options B will be fixed by the
Board of Directors as the date the Options are granted. The price shall be equal
to the average of the closing quotation price of the Share during the 20
quotation days on the EASDAQ preceding the day of allocation of Options by the
Board of Directors, converted in French francs at the applicable exchange rate
of the day preceding the allocation date by the Board of Directors.

This exercise price fixed for the duration of the validity of Options A and
Options B shall be, as the case may be, modified pursuant to the provisions of
section 208-5 of the Company Law.

(d)  Modalities of exercise of Options A and Options B and of transfer of the
     Shares subscribed to by exercise of the Options

     (A)    Block A

     (i)    Any Beneficiary, subject to remaining an employee or manager of a
            company of the Group will be able to exercise, in whole or in part,
            at once or in several blocks, the following quantities of Options A:

            o    Fifty percent (50%) of Options A as of the second (2nd)
                 anniversary of the Date of Allocation (indicated in the
                 notification of allocation sent to the Beneficiary); and

            o    one forty-eighth (1/48) additionally each month during the
                 following 24 months, subject to the Beneficiary remaining an
                 employee or manager of a company of the Group on each such
                 vesting date.

            After the seventh (7) anniversary of the Date of Allocation, all
            Options A not exercised shall be irrevocably null and void and shall
            be canceled without payment therefor.

     (ii)   Except as provided below, if the Beneficiary breaks his contract of
            employment or resigns from his managing position with a company of
            the Group, the right to exercise his Options A, which may be
            exercised pursuant to clause (i) hereabove, will cease automatically
            three (3) months after the date of breach of his contract of
            employment or resignation from his managing position with a company
            of the Group, as the case may be.

            As an exception, the right to exercise the Options A will remain, in
            the event of death or invalidity corresponding to the events
            provided in section 91 ter of Annexe II of the General French Tax
            Code, under the following conditions:

                                       2
<PAGE>

            o    in case of death, and to the extent that the Beneficiaries
                 could personally exercise the Options A as of the date of
                 death, the heirs shall have twelve (12) months from the date of
                 the death to exercise the allocated Options A;

            o    in case of invalidity and under the aforementioned conditions,
                 the Beneficiary will be able to, during the validity period of
                 the Options A, exercise all or part of the Options A that will
                 have been allocated to him with respect to this plan;

            o    with respect to the two paragraphs hereabove, the Options A
                 will be considered as open to exercise as of the Date of
                 Allocation

     (iii)  The Board will be able to temporarily suspend the exercise of the
            Options A during the periods of realization of operations of share
            capital or implying the detachment of a right.

     (iv)   The Shares subscribed by the exercise of the Options A will be
            allowed to transfer or to conversion into bearer form, except as
            provided in clause (ii) hereinabove, only after the fifth (5th)
            anniversary of the Date of Allocation.

     (B)    Block B

     (i)    Any Beneficiary, subject to remaining an employee or manager of a
            company of the Group will be able to exercise, in whole or part, at
            once or in several blocks, the Options B that were allocated to him
            pursuant to the following modalities:

            o    twenty five percent (25%) of Options B as of the first (1st)
                 anniversary of the Date of Allocation (indicated in the
                 notification of allocation sent to the Beneficiary); and

            o    one forty-eighth (1/48) additionally each month during the
                 following 36 months, subject to the Beneficiary remaining an
                 employee or manager of a company of the Group at those dates.

            After the seventh (7) anniversary of the Date of Allocation, the
            Options B not exercised shall be irrevocably null and void and shall
            be canceled without payment therefor.

     (ii)   Except as provided below, if the Beneficiary breaks his contract of
            employment or terminates his employment with a company of the Group,
            the right to exercise his Options B, which may be exercised pursuant
            to clause (i) hereabove, will cease automatically three (3) months
            after the date of breach of his contact of employment or his
            termination of employment with a company of the Group, as the case
            may be.

            As an exception, the right to exercise the Options B will remain, in
            the event of death or invalidity corresponding to the events
            provided in section 91 ter of Annexe II of the General French Tax
            Code, under the following conditions:

                                       3
<PAGE>

            o    in case of death, and to the extent that the Beneficiaries
                 could personally exercise the Options B as of the date of the
                 death, the heirs shall have a twelve (12) months period as of
                 the date of the death to exercise the allocated Options B;

            o    in case of invalidity and under the aforementioned conditions,
                 the Beneficiary will be able to, during the validity period of
                 the Options B, exercise all or part of the Options B that will
                 have been allocated to him with respect to this plan;

            o    with respect to the two paragraphs hereabove, the Options B
                 will be considered as open to exercise as of the Date of
                 Allocation

     (iii)  The Board will have the right to temporarily suspend the exercise of
            the Options B during the periods of realization of operations of
            share capital or implying the detachment of a right.

     (iv)   The Shares subscribed by the exercise of the Options B will be
            allowed to transfer or to conversion into bearer form, except as
            provided in clause (ii) hereinabove, as of their issuance.

     (v)    Any Beneficiary who will exercise his Options B in the United States
            will be required upon exercise of his Options, to provide the
            Company with an investor letter pursuant to which he represents and
            agrees (1) that he has subscribed to the Shares for investment and
            not with a view to the distribution thereof, and (2) that any resale
            of such shares will be made by such Beneficiary pursuant to a
            registration statement under the U.S. Securities Act of 1933, as
            amended, or applicable "blue sky" laws (or an exemption from
            registration) and (3) that such purchaser will deliver to each
            person to whom it transfers Shares a notice substantially to the
            effect of this legend.

     (vi)   The Board shall have the right to set any other terms and conditions
            with respect to the allocation, transfer or exercise of Options B.

(e)  Several provisions common to the Options A and Options B

     (i)    The Board was authorized by the Extraordinary General Meeting to
            determine the modalities of the Options A and Options B.

            The Board, using such authorization allowing it, notably to
            restrict, limit, or prohibit (a) the exercise of Options A and
            Options B or (b) the sale of the Shares resulting from the exercise
            of Options A and Options B, by the Beneficiaries during certain
            periods or as of certain events, has decided that the Options
            allocated with respect to Block A and Block B, shall not be
            exercised should the Company be subject to a spin-off, be part, as
            an absorbed company to a merger, or in the event of the sale of the
            majority of its assets.

                                       4

<PAGE>

            However, in the event of a merger or a spin-off of the Company by
            contribution of absorption, or of a sale of the majority of its
            assets, the successor of the Company shall grant an option on its
            own securities or on that of a linked company as defined under
            section 208-4 of Company Law for each Option A or Option B allocated
            or an equivalent right.

            Should the successor refuse to allocate the Options or to substitute
            them an equivalent, the Beneficiary may immediately exercise
            entirely the Options A or Options B, including those which could not
            be exercised yet. In such case, the Board or any person designated
            by it, shall inform the Beneficiary in writing that he disposes of a
            fifteen (15) day period following such notification to exercise his
            Options A and Options B. After such period, the Options A or Options
            B shall be null and void and canceled without payment therefor.

            Moreover, the Board or any person appointed by it for this purpose
            may, as the case may be, (a) require for the exercise of the Options
            A or Options B by the Beneficiary, that he provides all necessary
            elements so as to guarantee that he will carry out all tax and
            social obligations that will result from the exercise of the Options
            or the sale of Shares subscribed through the exercise of the Options
            and (b) after express authorization of the Beneficiary, retain on
            the gains of the sale of the Shares the potential quota of social
            charges or the tax due by the Beneficiary.

     (ii)   To the extent practicable, the Beneficiaries shall be informed at
            least one (1) week before the effectiveness of any temporary or
            definitive restriction, limitation or prohibition for the exercise
            of the Options A and Options B or the sale of the Shares resulting
            from the exercise of the Options A and Options B.

     (iii)  The Shares subscribed through the exercise of the Options A and
            Options B allocated with respect to this 2000 Stock Option Plan
            shall be in registered form and will receive dividends as of the
            first day of the fiscal year of their subscription.

     (iv)   The Board retains the right, as the case may be, and notwithstanding
            the provisions of clause d(A)(ii) hereabove, (a) to anticipate the
            dates of exercise of the Options allocated to all or part of the
            Beneficiaries of the Blocks A and B and (b) to maintain the
            possibility to exercise the Options A and Options B.

     (v)    The Board shall be able to, as the case may be, pursuant to the
            clauses (ii) and (iv) hereabove and the rules of the EASDAQ Dealing
            Code and any other applicable law, suspend or prolong during certain
            periods the exercise of the Options A and Options B.

     (vi)   Notwithstanding any provision in this Plan or the Option Agreement
            to the contrary, Options may not be transferred, pledged, assigned
            or otherwise disposed of except by will or the laws of descent and
            distribution; provided, however, that Options may be, with the
            approval of the Board (or its designee), transferred to a member or
            members of an Optionee's immediate family (as defined below) or to

                                       5
<PAGE>

            one or more trusts or partnerships established in whole or in part
            for the benefit of one or more of such immediate family members
            (collectively, "Permitted Transferees"), subject to such rules and
            procedures as may from time to time be adopted or imposed by the
            Board. If an Option is transferred to a Permitted Transferee, it
            shall be further transferable only by will or the laws of descent
            and distribution or, for no consideration, to another Permitted
            Transferee of the Optionee. An Optionee shall notify the Corporation
            (or its designee) in writing prior to any proposed transfer of an
            Option to a Permitted Transferee and shall furnish the Corporation,
            upon request, with information concerning such Permitted
            Transferee's financial condition and investment experience. For
            purposes of the Plan, an Optionee's "immediate family" means spouse,
            lineal descendant, father, mother, brother or sister of the
            transferor; provided, however, that if the Corporation adopts a
            different definition of "immediate family" (or similar term) in
            connection with the transferability of employee stock options
            awarded to Optionees, such definition shall apply, without further
            action by the Board, to the Plan.

                                       6

<PAGE>

                      ACTIVCARD S.A. STOCK OPTION PLAN 1999

                                  U.S. APPENDIX

1.   This Appendix governs the grant of Options to United States Participants

     This Appendix constitutes the part of the 1999 Stock Option Plan that will
     govern the subscription of Shares by, and the grant of Options to, United
     States Participants (the "U.S. Options") and incorporates all the terms of
     the 1999 Stock Option Plan (as set forth above) including as modified in
     accordance with the provisions of this Appendix.

2.   The limit on the number of Shares which can be issued

     The maximum aggregate number of Shares (which, for this purpose, means
     fully paid ordinary Shares in the capital of the Company) which may be
     issued under U.S. Options, intending to qualify as "incentive stock
     options" ("ISOs") within the meaning of Section 422 of the U.S. Internal
     Revenue Code of 1986, as amended (the "U.S. Tax Code"), under the 1999
     Stock Option Plan is 1,100,000, subject to such adjustments made in a
     manner consistent with Section 422 of the U.S. Tax Code in the event of any
     issue or reorganization, as determined by the Board in its sole discretion.
     To the extent permitted under Section 422 of the U.S. Tax Code, any Shares
     subject to an ISO Award (as defined in Section 7 below) which lapses,
     expires or is otherwise terminated without the issuance of such Shares may,
     in its sole discretion of the Board, again be available for purposes of
     this limit.

3.   How U.S. Options will be granted

     All U.S. Options shall be evidenced by an instrument(s) in such form or
     forms as may from time to time be approved by the Board that, among other
     things, shall set out the manner in which a Participant may exercise his
     U.S. Option and the form of payment for the Shares.

4.   Administration of this Appendix

     The Board shall (i) administer this Appendix, (ii) establish from time to
     time such rules and regulations as it may deem appropriate for the proper
     administration of this Appendix and (iii) make such determinations under
     (including, without limitation, factual determinations), and such
     interpretations of, and take such actions in connection with, this Appendix
     or the U.S. Options as it may deem necessary or advisable, including,
     without limitation, determinations, interpretations and actions to ensure
     that U.S. Options intended to qualify as ISOs shall so qualify.

<PAGE>

5.   Section 16 Compliance

     If any officer, director or shareholder of the Company is awarded U.S.
     Options and therefore becomes subject to Section 16 of the U.S. Securities
     Exchange Act 1934, as amended (the "Exchange Act"), the Company shall take
     all appropriate action to ensure that such awards under this Appendix are
     exempt from Section l6b under the Exchange Act.

6.   Form of U.S. Options

     U.S. Options may be either ISOs under Section 422 of the U.S. Tax Code or
     "nonqualified stock options". The Board shall have the sole authority and
     discretion as to whether and to whom to grant either type of U.S. Option;
     provided, however, that the terms of each U.S. Option shall specify clearly
     the type of U.S. Option granted and no U.S. Option shall permit a "tandem"
     exercise arrangement within the meaning of Temp. Treas. Reg. section
     14a.422A-1(Q/A-21), (Q/A-39).

7.   Compliance with the ISO Rules

     The following provisions shall apply to any U.S. Option that is intended to
     qualify as an ISO (each, an "ISO Award"):

     (a)  The aggregate fair market value (determined as of the date the ISO
          Award is granted in accordance with the requirements of Section 422 of
          the U.S. Tax Code) of the Shares underlying one or more ISO Award that
          is first exercisable in any calendar year (under all stock option
          plans of the Company and its Subsidiaries (within the meaning of
          Section 424 of the U.S. Tax Code) shall not exceed U.S. $100,000 (or
          the equivalent) and, in the event that such limit is exceeded, such
          U.S. Options shall be treated, to the extent of such excess, as
          nonqualified stock options.

     (b)  The exercise price of the Shares covered by each ISO Award shall not
          be less than 100% of the fair market value (determined as of the date
          the ISO Award is granted in accordance with the requirements of
          Section 422 of the U.S. Tax Code) of such Shares determined as of the
          date the ISO Award is granted in accordance with the requirements of
          Section 422 of the U.S. Tax Code (110% in the case of an ISO Award
          granted to a Ten Percent Shareholder).

     (c)  An ISO Award may not be exercisable more than 10 years after the date
          such ISO Award is granted (5 years in the case of an ISO granted to a
          Ten Percent Shareholder).

     (d)  The terms of such ISO Award shall provide that it is not transferable
          except by will or pursuant to the laws of descent and distribution,
          and shall not permit any U.S. Option designated to be an ISO to be
          exercised more than three months following the Participant's
          termination of employment with the Company or its Subsidiaries within
          the meaning of Section 424 of the U.S. Tax Code (more than

                                       2
<PAGE>

          12 months following the Participant's death or disability, as
          disability is defined in Section 22(e)(3) of the U.S. Tax Code). The
          terms of such ISO Award shall further provide that, during the
          Participant's lifetime, such ISO Award shall only be exercisable by
          the Participant.

     (e)  This Appendix may be further modified to ensure that any U.S. Option
          that is intended to be an ISO under this Appendix will comply with the
          requirements of Section 422 of the U.S. Tax Code.

8.   Term of U.S. Option: addition of consistent provisions

     Subject to the provisions of Section 7 above, in the case of an ISO, the
     Company shall determine at the date the ISO Award is granted the term
     during which a U.S. Option may be exercised and whether any of the U.S.
     Option shall be exercisable in one or more installments. A U.S. Option may
     also be subject to any other provision imposed by the Company that is
     consistent with the purpose and intent of this Appendix.

9.   Exercise Method of U.S. Options

     A Participant may, in accordance with the terms of an applicable Award
     Agreement and subject to the sole discretion of the Board, exercise his
     U.S. Option, (i) by a cash payment to the Company of the exercise price(s)
     of all Shares purchased pursuant to the exercise of the U.S. Option, (ii)
     in Shares already owned by the Participant or (iii) by any combination of
     cash or Shares.

10.  U.S. Withholding Taxes: disqualifying dispositions

     It shall be a condition to the obligation of the Company to deliver Shares
     pursuant to any U.S. Option under the 1999 Stock Option Plan that the
     Participant pays to the Company (or the Subsidiary that employs the
     Participant) such amount as may be required by the Company or such
     Subsidiary for the purpose of satisfying any liability for any U.S.
     federal, state or local taxes of any kind required to be withheld with
     respect thereto. Any U.S. Option granted under the 1999 Stock Option Plan
     may require the Company (or the Subsidiary that employs the Participant),
     or, the Board, in its sole discretion, may permit the Participant to elect,
     in accordance with any applicable rules established by the Company, to
     withhold or to pay all or a part of the amount of the withholding taxes in
     Shares. Such election may be denied by the Company in its sole discretion,
     or may be made subject to certain conditions specified by the Board.

     The applicable ISO Award shall provide that if a Participant makes a
     disposition, within the meaning of Section 424(c) of the U.S. Tax Code and
     the regulations promulgated thereunder, of any Shares issued to such
     Participant pursuant to the exercise of an ISO Award within the two-year
     period commencing on the date of grant or within the one-year period
     commencing on the date of transfer of such Share to the Participant
     pursuant to such exercise, the Participant shall, within 10 days of such
     disposition, notify

                                       3
<PAGE>

     the Company of it (or the Subsidiary that employs the Participant), by
     delivery of written notice to the Company or such Subsidiary at its
     principal executive office.

11.  Securities Laws Compliance

     No Shares may be issued or transferred in connection with the exercise of a
     U.S. Option, unless the Company shall have determined that such issue or
     transfer is in compliance with or pursuant to an exemption from all
     applicable U.S. federal and state securities laws.

12.  Certain definitions

     For the purposes of the U.S. Options, the following terms shall have the
     following meanings (notwithstanding any contrary provision in the 1999
     Stock Option Plan):

     "Participants" means the Beneficiaries who are selected by the Board to
     receive U.S. Options.

     "Subsidiary" means any companies (other than the Company) in an unbroken
     chain of companies beginning with the Company, where each of the other than
     the last company in the unbroken chain owns stock possessing 50% or more of
     the total combined voting powers of all classes of stock in one or the
     other companies in such chain.

     "Ten Percent Shareholder" means a Participant who, at the date an ISO Award
     is granted, owns (within the meaning of Section 422(b)(6) of the U.S. Tax
     Code) stock possessing more than 10% of the total combined voting power of
     all classes of stock of the Company or its Subsidiaries (as such term is
     defined in Section 424 of the U.S. Tax Code).

                                       4

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