Document:

exv10w25

 

Exhibit 10.25

BUSINESS OBJECTS S.A.

2001 STOCK INCENTIVE PLAN

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

on August 20, 2004 , on August 12, 2005, on October 20, 2005 and on June 7, 2006

     UNOFFICIAL TRANSLATION INTO ENGLISH FOR CONVENIENCE PURPOSES

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

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

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

1. PURPOSES OF THE PLAN

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

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

2. DEFINITIONS

     As used herein, the following definitions shall apply:

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

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

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

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

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

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

          (i) any person or entity, other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company acting in such capacity or a corporation owned directly or
indirectly by the shareholders of the Company in substantially the same proportions as their
ownership of stock of the

 

 

Company, becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing 50% or more of the total voting
power represented by the Company’s then outstanding voting securities, or

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

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

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

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

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

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

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

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

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

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

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

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

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

 

 

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

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

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

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

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

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

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

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

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

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

	 	–	 	companies of which at least one tenth (1/10) of the share capital or voting
rights is held directly or indirectly by the Company;
	 
	 	–	 	companies which own directly or indirectly at least one tenth (1/10) of the
share capital or voting rights of the Company; and
	 
	 	–	 	companies of which at least fifty percent (50%) of the share capital or
voting rights is held directly or indirectly by a company which owns directly or
indirectly at least fifty percent (50%) of the share capital or voting rights of the
Company.

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

     (cc) “Fair Market Value” The Fair Market Value shall be the closing sale price in euros for
such Share (or the closing bid, if no sales were reported) as quoted on the Eurolist by Euronext
TM or on such other Regulated Market on which the Shares are traded, on the last market
trading day prior to the day of grant, as

 

 

reported by Euronext Paris S.A., or such other source as the Administrator deems reliable.
For the purpose of calculation under Section 5.1 of the Plan, Fair Market Value shall be also the
closing price (as determined here above) for a share subject to an Incentive Stock Option;

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

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

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

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

     Subject to the provisions of
 Section 11 of the Plan, the maximum aggregate number of Shares
which may be optioned and issued under the Plan is 3,000,000 Shares per calendar year, being
provided, however, that the total number of Shares issued during each calendar year under the
sixteenth, the seventeenth, the eighteenth, the nineteenth and the twentieth resolutions of the
Company’s shareholders meeting held on June 7, 2006, shall not exceed, for each concerned calendar year,
3% of the Company’s share capital as of December 31 of the previous calendar year. This
authorization is valid for 24 months and will expire on June 6, 2008.

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

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

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

4. ADMINISTRATION OF THE PLAN

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

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

	 	—	 	to determine the Fair Market Value of the Shares, in accordance with Section 2(cc)
of the Plan;
	 
	 	—	 	to select the Beneficiaries to whom Options may be granted hereunder;
	 
	 	—	 	to determine whether and to what extent Options are granted hereunder;
	 
	 	—	 	to determine the number of Shares to be covered by each Option granted hereunder;
	 
	 	—	 	to approve forms of agreement for use under the Plan, if any;
	 
	 	—	 	to determine the terms and conditions, not inconsistent with the terms and
conditions of the Plan, of any Options granted hereunder. Such terms and conditions
include, but are not limited to, the exercise price, the time or times when Options
may be exercised (which may be based on performance criteria), any vesting
acceleration or waiver of forfeiture restrictions, and any

 

 

	 	 	 	restriction or limitation regarding any Option or the Shares relating thereto, based
in each case on such factors as the Administrator, in its sole discretion, shall
determine;
	 	—	 	to construe and interpret the terms of the Plan and Options granted pursuant to the
Plan;
	 
	 	—	 	to prescribe, amend and rescind rules and regulations relating to the Plan,
including rules and regulations relating to sub-plans to the Plan established for
the purpose of qualifying for preferred tax treatment under foreign tax laws;
	 
	 	—	 	to modify or amend the conditions and terms of each Option (subject to Section 13.3
of the Plan), including the discretionary authority to extend the post-termination
exercisability period of Options longer than is otherwise provided for in the Plan;
	 
	 	—	 	to authorize any person to execute on behalf of the Company any instrument required
to effect the grant of an Option previously granted by the Administrator;
	 
	 	—	 	to decide and institute an Option Exchange Program subject to the express approval
of the Shareholders;
	 
	 	—	 	to determine the terms and restrictions applicable to Options, including without
limitation to limit or prohibit the exercise of an Option as well as the sale or
conversion into bearer form of Shares acquired pursuant to the exercise of an Option,
during certain periods or upon certain events which the Administrator shall determine
in its sole discretion; and
	 
	 	—	 	to make all other determinations deemed necessary or advisable for administering
the Plan.

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

5. LIMITATIONS

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

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

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

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

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

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

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

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

 

 

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

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

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

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

6. TERM OF PLAN

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

7. TERM OF OPTION

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

8. OPTION EXERCISE PRICE AND CONSIDERATION

8.1 Exercise Price

In the case of an Option to subscribe to new shares, the subscription price of one share shall be
determined by the Board of Directors on the date of the grant of the option in accordance with the
following:

	 	(a)	 	In the case of Incentive Stock Options granted to a U.S. resident beneficiary or
subject to the U.S. laws and regulations at the option grant date, who owns stock
representing more than 10% of the voting rights of all classes of stock of the Company or
any affiliates, to the extent such beneficiary is legally authorized to receive option
grants, the subscription price per share shall be set in euros and shall not be lower than
the higher of the two following prices: (i) 110% of the closing price reported on the
market Eurolist by EuronextTM on the last trading day preceding the grant date,
or (ii) 100% of the average opening prices reported on such market over the twenty trading
days preceding the grant date; as reported by Euronext Paris S.A. or some other publication
that the Board of Directors deems reliable.
	 
	 	(b)	 	In the case of an Incentive Stock Option or Non-Statutory Stock Option granted to any
beneficiary other than a beneficiary described in paragraph (a) above, the subscription
price per share shall be set in euros and shall not be lower than the higher of the two
following prices: (i) 100% of the closing price reported on the market Eurolist by
EuronextTM on the last trading day preceding the grant date, or (ii) 100% of the
average opening prices reported on such market over the twenty trading days preceding the
grant

 

 

	 	 	 	date; as reported by Euronext Paris S.A. or some other publication that the Board of
Directors will deem reliable.

In case of options to purchase shares, which were repurchased by the Company and held as treasury
shares, the purchase price of one share shall be determined by the Board of Directors on the date
of the grant of the option in accordance with the following:

	 	(a)	 	In the case of an Incentive Stock Option granted to a U.S. resident beneficiary or
subject to the U.S. laws and regulations who, at the option grant date, owns stock
representing more than 10% of the voting rights of all classes of stock of the Company or
any affiliates, to the extent such beneficiary is legally authorized to receive option
grants, the purchase price per share shall be set in euros and shall not be lower than the
higher of the three following prices: (i) 110% of the closing price reported on the market
Eurolist by EuronextTM on the last trading day preceding the grant date, (ii)
100% of the average purchase price of the treasury shares held by the Company under
articles L.225-208 and L.225-209 of the French Commercial Code, according to article
L.225-179 of the French Commercial Code or (iii) 100% of the average opening prices
reported on such market over the twenty trading days preceding the grant date; as reported
by Euronext Paris S.A. or some other publication that the Board of Directors will deem
reliable.
	 
	 	(b)	 	In the case of an Incentive Stock Option or Non-Statutory Stock Option granted to any
beneficiary other than a beneficiary described in paragraph (a) above, the purchase price
per share shall be set in euros and shall not be lower than the higher of the three
following price: (i) 100% of the closing price reported on the market Eurolist by
EuronextTM on the last trading day preceding the grant date, (ii) 100% of the
average purchase price of the treasury shares held by the Company under articles L.225-208
and L.225-209 of the French Commercial Code, according to article L.225-179 of the French
Commercial Code or (iii) 100% of the average opening prices reported on such market over
the twenty trading days preceding the grant date; as reported by Euronext Paris S.A. or
some other publication that the Board of Directors will deem reliable.

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

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

	 	—	 	wire transfer;
	 
	 	—	 	check;
	 
	 	—	 	delivery of a properly executed notice together with such other documentation as
the Administrator and the broker, if applicable, shall require to effect exercise of
the Option and delivery to the Company of the sale or loan proceeds required to pay
the exercise price;
	 
	 	—	 	proceeds from the resale of shares in case of cash-less exercise; or
	 
	 	—	 	any combination of the foregoing methods of payment.

 

 

9. EXERCISE OF OPTION

	9.1	 	Procedure for Exercise; Rights as a Shareholder
	 
	 	 	Any Option granted hereunder shall be exercisable,

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

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

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

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

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

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

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

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

9.4 Death of Optionee. In the event of the death of an Optionee during the term of the Option, the
Option may be exercised at any time within six (6) months following the date of death, by the
Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or
inheritance, but only to the extent that the

 

 

Optionee was entitled to exercise the Option at the date of death (and in no event later than the
expiration of the term of such Option as set forth in the Notice of Grant). If, at the time of
death, the Optionee was not entitled to exercise his or her entire Option, the Shares covered by
the unexercised portion of the Option shall immediately revert to the Plan. If, after death, the
Optionee’s estate or a person who acquired the right to exercise the Option by bequest or
inheritance does not exercise the Option within the time specified herein, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

10. NON-TRANSFERABILITY OF OPTIONS AND SHARES

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

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

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

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

	 	—	 	issuance of shares to be subscribed for in cash offered exclusively to the shareholders,
	 
	 	—	 	capitalization of reserves, profits, issuance premiums and distribution of free shares,
	 
	 	—	 	issuance of bonds convertible or exchangeable into shares offered
exclusively to shareholders,
	 
	 	—	 	distribution of reserves in cash or portfolio securities,
	 
	 	—	 	capital reduction motivated by losses, and
	 
	 	—	 	repurchase of its own Shares at a price higher than market value, pursuant
to Article 174-9A of the decree no. 67-236 of March 23, 1967,

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

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

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

11.3 Change in Control. In the event of a Change in Control of the Company, each outstanding
Option shall be assumed or an equivalent option or right shall be granted by the successor
corporation or an affiliated

 

 

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

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

12. DATE OF GRANT

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

13. AMENDMENT AND TERMINATION OF THE PLAN

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

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

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

14. CONDITIONS UPON ISSUANCE OF SHARES

14.1 Legal Compliance. Shares shall not be issued pursuant to the exercise of Options unless the
exercise of such Options and the issuance and delivery of such Shares shall comply with all
relevant provisions of law including, without limitation, the Law, the Securities Act of 1933, as
amended, the Exchange Act, the rules and

 

 

regulations promulgated thereunder, Applicable U.S. Laws and the requirements of any stock exchange
or quotation system upon which the Shares may then be listed or quoted.

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

15. LIABILITY OF COMPANY

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

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

     The Company informs the Optionee of the grant of Options by sending him/her the Notice of
Grant to which a copy of the present Plan is attached. As of the time of receipt, the Optionee
reviews all the documents sent by the Company and returns to it an acknowledgement of receipt
provided by the Company for this purpose.

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

17. LAW AND JURISDICTION AND LANGUAGE

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

     The Plan has been adopted in the French language. As a result, only the French version shall
prevail. Any version hereof drafted in another language is for information purposes only.exv10w25w1

 

Exhibit 10.25.1

BUSINESS OBJECTS S.A.

2001 STOCK INCENTIVE PLAN

SUBSIDIARY STOCK INCENTIVE SUB-PLAN

Amended and Restated Effective as of June 7, 2006

     At the 2004 annual shareholders’ meeting, the shareholders of the Company approved the
adoption of this Subsidiary Stock Incentive Sub-Plan as a sub-plan under the Company’s 2001 Stock
Incentive Plan. The Subsidiary Stock Incentive Sub-Plan provides for the grant by the Trustee to
Subsidiary Beneficiaries of Restricted Stock or Performance Shares (both as defined below) at the
direction of the Subsidiary Administrator.

     The terms and conditions of the Subsidiary Stock Incentive Sub-Plan are set out below.

1. PURPOSES OF THE SUB-PLAN

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

2. DEFINITIONS

     Initially capitalized terms shall have the meanings set forth in Section 2 of the Parent Plan.
In addition, the following definitions shall apply when used in this Sub-Plan:

     (a) “Award” means, individually or collectively, a grant under the Sub-Plan of Restricted
Stock, or Performance Shares.

     (b) “Award Agreement” means the written agreement setting forth the terms and provisions
applicable to each Award granted under the Sub-Plan. The Award Agreement is subject to the terms
and conditions of the Sub-Plan and the Parent Plan.

     (c) “Awarded Stock” means the shares subject to an Award.

     (d) “Parent Plan” means the 2001 Stock Incentive Plan, as amended from time to time.

     (e) “Performance Share” means a performance share Award granted to a Subsidiary Beneficiary
pursuant to Section 8.

     (f) “Restricted Stock” means shares granted pursuant to Section 7 of the Sub-Plan.

     (g) “Shareholders’ Authorization” means the approval on June 10, 2004 of the Company’s
shareholders regarding (i) the adoption of this Sub-Plan and (ii) the issuance of new Shares, with
subscription reserved for the Trust, as amended by the approval on June 7, 2006 of the Company’s
shareholders regarding (i) the approval of the amendments to this Sub-Plan; and (ii) the issuance of
new Shares, with subscription reserved for the Trust.

1

 

     (h) “Sub-Plan” means this Subsidiary Stock Incentive Sub-Plan authorized under the Parent
Plan.

     (i) “Sub-Plan Trust” or “Trust” means the Business Objects Employee Benefit Sub-Plan Trust
from which Awards may be issued to Subsidiary Beneficiaries pursuant to this Sub-Plan and created
under the trust agreement attached hereto as Exhibit A;

     (j) “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as
defined in Section 424(f) of the Code. A Subsidiary shall not include a company incorporated under
the laws of France.

     (k) “Subsidiary Administrator” means the Board of Directors of each Subsidiary which shall
administer this Sub-Plan with respect to Subsidiary Beneficiaries of that Subsidiary, or a
designated committee which shall administer this Sub-Plan with respect to Subsidiary Beneficiaries
of all Subsidiaries, in accordance with Section 4 of this Sub-Plan.

     (l) “Subsidiary Beneficiary” means any person employed by a Subsidiary. Neither service as a
Subsidiary Director nor payment of a director’s fee by the Subsidiary shall be sufficient to
constitute “employment” by the Subsidiary.

     (m) “Subsidiary Board” means the board of directors of a Subsidiary.

     (n) “Subsidiary Director” means a member of the board of directors of a Subsidiary.

     (o) “Trustee” means the trustee of the Sub-Plan Trust.

3. STOCK SUBJECT TO THE SUB-PLAN

3.1. New Shares. Pursuant to the Shareholders’
 Authorization authorizing the Board to issue new
Shares on one or more occasions to be subscribed by the Sub-Plan Trust for the purpose of granting
Awards under the Sub-Plan, the maximum number of new Shares (aggregated with any repurchased Shares
pursuant to Section 3.3 hereof) authorized by the shareholders to be subscribed (or repurchased) by
the Sub-Plan Trust is 3,000,000 Shares per calendar year, provided however that the total number
of shares issued and/or allocated under the nineteenth and the twentieth resolutions of Company’s
shareholders meeting held on June 7, 2006 shall not exceed 2,500,000 Shares, and provided further that
the total number of shares issued during each calendar year under the sixteenth, the seventeenth,
the eighteenth, the nineteenth and the twentieth resolutions of this general meeting shall not
exceed, for each concerned calendar year, 3% of the Company’s share capital as of December 31 of
the previous calendar year.

3.2 Repurchased Shares. Pursuant to the shareholders’ authorizations approving the share repurchase
program of the Company and authorizing the Board to allocate repurchased Shares to the Sub-Plan
Trust for the purpose of granting Awards under the Sub-Plan, within the terms, conditions and
limits of the share repurchase program and applicable laws, the Board may allocate repurchased
Shares to be acquired by the Trust instead of the issuance and subscription of new Shares mentioned
in section 3.1, subject to the limits set forth by this section.

2

 

3.3 Forfeited or Repurchased Award. If an Award is forfeited to or repurchased by the Trust, the
forfeited or repurchased shares which were subject thereto shall either (i) become available for
future grant or sale under the Sub-Plan to Subsidiary Beneficiaries of the same Subsidiary (unless
the Sub-Plan has terminated), or (ii) at the direction of the Subsidiary Administrator, sold on a
stock exchange with the proceeds paid to the Subsidiary.

3.4 Conversion into ADS. Shares shall be converted into Company ADSs after they have been
subscribed by and issued to the Trust. Awards issued under the Sub-Plan shall cover such Company
ADSs (and may be referred to as “shares” herein).

4. ADMINISTRATION OF THE SUB-PLAN

4.1 Procedure. The Sub-Plan shall be administered by the Trustee. With respect to such
administration, the Trustee shall follow the directions of the Subsidiary Administrator.

4.2 Powers of the Subsidiary Administrator. Subject to the provisions of the Sub-Plan, U.S.
Applicable Laws and other applicable laws, the Subsidiary Administrator shall have the authority,
in their discretion, to instruct and direct the Trustee with respect to the following actions:

	 	-	 	to select the Subsidiary Beneficiaries to whom Awards may be granted hereunder;
	 
	 	-	 	to determine whether and to what extent Awards are granted hereunder;
	 
	 	-	 	to determine the number of shares to be covered by each Award granted hereunder;

	 
	 	-	 	to approve forms of agreement for use under the Sub-Plan;
	 
	 	-	 	to determine the terms and conditions, not inconsistent with the terms and
conditions of the Sub-Plan, of any Awards granted hereunder. Such terms and
conditions include, but are not limited to, the purchase price (if any), vesting
schedules (which may be performance based), any vesting acceleration or waiver of
forfeiture restrictions, and any restriction or limitation regarding any Award or the shares relating thereto, based in each case on such factors as the Subsidiary
Administrator, in their sole discretion, shall determine;
	 
	 	-	 	to determine whether and to what extent shares subject to an Award shall be
distributed at a specific time after vesting;
	 
	 	-	 	to construe and interpret the terms of the Sub-Plan and Awards granted pursuant to
the Sub-Plan;
	 
	 	-	 	to prescribe, amend and rescind rules and regulations relating to the Sub-Plan,
including rules and regulations relating to sub-plans established for the purpose of
qualifying for preferred tax treatment under applicable tax laws;
	 
	 	-	 	to modify or amend each Award (subject to Section 15.3 of the Sub-Plan);
	 
	 	-	 	to authorize the Trustee to execute on behalf of the Subsidiary any instrument
required to effect the grant of an Award previously decided by the Subsidiary
Administrator;
	 
	 	-	 	to determine the terms and restrictions applicable to Awards, including without
limitation the sale of Shares acquired pursuant to an Award during certain periods or
upon certain events which the Subsidiary Administrator shall determine in its sole
discretion; and

3

 

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

4.3 Effect of Subsidiary Administrator’s Decision; Effect of Trustee’s Decision. The Subsidiary
Administrator’s decisions, determinations and interpretations shall be final and binding on the
Trustee, subject to the provisions of Section 15.3 of the Sub-Plan. The Trustee’s decisions,
determinations and interpretations in accordance with the Subsidiary Administrator’s directions
shall be final and binding on all Subsidiary Beneficiaries.

5. LIMITATION

5.1 Neither the Sub-Plan nor any Award shall confer upon a Subsidiary Beneficiary any right with
respect to continuing the Subsidiary Beneficiary’s employment with the Subsidiary, the Company or
any Affiliated Company, nor shall they interfere in any way with the Subsidiary or the Subsidiary
Beneficiary’s right, as the case may be, to terminate such employment at any time, with or without
cause.

6. TERM OF SUB-PLAN

6.1 The amended Sub-Plan is effective and Awards may be granted as of the date of the Sub-Plan’s
approval by the Company’s shareholders on June 10, 2004. It shall continue in effect so long as
the Parent Plan remains in effect, unless terminated earlier.

7. RESTRICTED STOCK.

7.1 Grant of Restricted Stock. Subject to the terms and conditions of the Sub-Plan, Restricted
Stock may be granted by the Trustee to Subsidiary Beneficiaries at any time as shall be determined
by the Subsidiary Administrator, in its sole discretion and as thereafter communicated to the
Trustee. The Subsidiary Administrator shall have complete discretion to determine and instruct the
Trustee as to (i) the number of shares subject to a Restricted Stock award granted to any
Subsidiary Beneficiary, and (ii) the conditions that must be satisfied, which typically will
include the signature by the Beneficiary of his/her Restricted Stock Award Agreement within 90 days
from receipt by the Beneficiary of notification from the Subsidiary Human Resources manager of the
Restricted Stock Awards Agreement and principally or solely on continued provision of services, but
may include a performance-based component, upon which is conditioned the grant or vesting of
Restricted Stock. Restricted Stock shall be granted by the Trustee in the form of units to acquire
shares from the Trust. Each such unit shall be the equivalent of one share for purposes of
determining the number of shares subject to an Award. Until the shares vest and are distributed
from the Trust, the Trust shall hold the shares subject to an Award.

7.2 Other Terms. The Subsidiary Administrator, subject to the provisions of the Sub-Plan, shall
have complete discretion to determine the terms and conditions of Restricted Stock granted by the
Trustee pursuant to the Sub-Plan. Restricted Stock grants shall be subject to the terms,
conditions, and restrictions determined by the Subsidiary Administrator and communicated to the
Trustee at the time the Restricted Stock is awarded. The Subsidiary Administrator and hence the
Trustee may require the recipient to sign a Restricted Stock Award agreement as a condition of the

4

 

Award. Any certificates representing the shares of stock awarded shall bear such legends as shall
be determined by the Subsidiary Administrator and communicated to the Trustee.

7.3 Restricted Stock Award Agreement. Each Restricted Stock grant shall be evidenced by an
agreement that shall specify the purchase price (if any) and such other terms and conditions as the
Subsidiary Administrator, in its sole discretion, shall determine and communicate to the Trustee;
provided; however, that if the Restricted Stock grant has a purchase price, such purchase price
must be paid no more than ten (10) years following the date of grant.

8. PERFORMANCE SHARES.

8.1 Grant of Performance Shares. Subject to the terms and conditions of the Sub-Plan, Performance
Shares may be granted by the Trustee to Subsidiary Beneficiaries at any time as shall be determined
by the Subsidiary Administrator, in its sole discretion and as thereafter communicated to the
Trustee. The Subsidiary Administrator shall have complete discretion to determine and instruct the
Trustee as to (i) the number of shares subject to a Performance Share award granted to any
Subsidiary Beneficiary, and (ii) the conditions that must be satisfied, which typically will
include the signature by the Beneficiary of his/her Restricted Stock Award Agreement within 90 days
from receipt by the Beneficiary of notification from the Subsidiary Human Resources manager of the
Performance Shares Awards Agreement and principally or solely on achievement of performance
milestones but may include a service-based component, upon which is conditioned the grant or
vesting of Performance Shares. Performance Shares shall be granted by the Trustee in the form of
units to acquire shares from the Trust. Each such unit shall be the equivalent of one share for
purposes of determining the number of shares subject to an Award. Until the shares vest and are
distributed from the Trust, the Trust shall hold the shares subject to an Award.

8.2 Other Terms. The Subsidiary Administrator, subject to the provisions of the Sub-Plan, shall
have complete discretion to determine the terms and conditions of Performance Shares granted by the
Trustee pursuant to the Sub-Plan. Performance Shares grants shall be subject to the terms,
conditions, and restrictions determined by the Subsidiary Administrator and communicated to the
Trustee at the time the Performance Shares are awarded which may include such performance-based
milestones as are determined appropriate by the Subsidiary Administrator. The Subsidiary
Administrator and hence the Trustee may require the recipient to sign a Performance Shares Award
agreement as a condition of the Award. Any certificates representing the shares of stock awarded
shall bear such legends as shall be determined by the Subsidiary Administrator and communicated to
the Trustee.

8.3 Performance Share Award Agreement. Each Performance Share Award shall be evidenced by an
agreement that shall specify such other terms and conditions as the Subsidiary Administrator, in
its sole discretion, shall determine and communicate to the Trustee.

5

 

9. NON-TRANSFERABILITY OF AWARDS

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

10. LEAVES OF ABSENCE.

     Unless the Subsidiary Administrator and Trustee provides otherwise or as otherwise required by
Applicable U.S. Laws or other applicable laws, vesting of Awards granted hereunder shall cease
commencing on the ninety-first day of any unpaid leave of absence and shall only recommence upon
return to active service.

11. VOTING RIGHTS.

     The Trustee shall abstain from voting shares held in the Trust.

12. DIVIDENDS AND TAX CREDITS.

     Any dividends or tax credits applicable to Shares underlying Awards that are held in the Trust
shall be distributed or forfeited at the same time as the underlying shares according to their
vesting or distribution schedule.

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

13.1 Changes in capitalization. In the event of the carrying out by the Company of any of the
following financial operations:

	 	-	 	issuance of shares to be subscribed for in cash or by set-off of existing
indebtedness offered exclusively to the shareholders,
	 
	 	-	 	capitalization of reserves, profits, issuance premiums or the distribution
of free shares (other than pursuant to this Sub-Plan or similar awards),
	 
	 	-	 	issuance of bonds convertible or exchangeable into shares offered
exclusively to shareholders,
	 
	 	-	 	distribution of reserves in cash or portfolio securities,
	 
	 	-	 	capital reduction motivated by losses, and
	 
	 	-	 	repurchase of its own Shares at a price higher than market value, as
described in Article 174-9A of the decree no. 67-236 of March 23, 1967,

the Company and the Subsidiary Administrator shall effect an adjustment of the number and the price
of the shares (if any) subject to Awards as to be appropriate and equitable or such other
adjustment as may be determined to prevent diminution or enlargement of the Subsidiary
Beneficiary’s rights hereunder. The Company shall issue to the Trust the number of Shares to carry
out such adjustments within the limits defined by the Shareholder’s Authorizations.

6

 

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

13.2 Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the
Company, the Trustee shall notify each Subsidiary Beneficiary as soon as practicable prior to the
effective date of such proposed transaction. The Subsidiary Administrator in its discretion may
direct the Trustee that any Trust repurchase option or forfeiture rights applicable to any Award
shall lapse 100%, and that the vesting of any Award shall accelerate 100%, provided the proposed
dissolution or liquidation takes place at the time and in the manner contemplated. To the extent
it has not been previously vested, an Award will terminate immediately prior to the consummation of
such proposed action.

13.3 Change in Control – Restricted Stock and Performance Shares. In the event of a Change in
Control of the Company, each outstanding Restricted Stock and Performance Share award shall be
assumed or an equivalent Restricted Stock or Performance Share award substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation (or a trust thereof). In the
event that the successor corporation refuses to assume or substitute for the Restricted Stock or
Performance Share award, the Subsidiary Beneficiary shall fully vest in the Restricted Stock or
Performance Share award including as to shares which would not otherwise be vested. For the
purposes of this paragraph, a Restricted Stock or Performance Share award shall be considered
assumed if, following the Change of Control, the award confers the right to purchase or receive,
for each share subject to the Award immediately prior to the Change in Control, the consideration
(whether stock, cash, or other securities or property) received in the Change in Control by holders
of Shares for each Share held on the effective date of the transaction (and if holders were offered
a choice of consideration, the type of consideration chosen by the holders of a majority of the
outstanding Shares); provided, however, that if such consideration received was not solely ordinary
shares of the successor corporation, or its Parent, the Subsidiary Administrator and Trustee may,
with the consent of the successor corporation, provide for the consideration to be received, for
each share and each unit to acquire a share subject to the Award, to be solely ordinary shares of
the successor corporation or its Parent equal in fair market value to the per share consideration
received by holders of shares in the Change in Control.

14. DATE OF GRANT

     The date of grant of an Award shall be, for all purposes, the date on which the Trustee makes
the determination granting such Award. Notice of the determination shall be provided to each
Subsidiary Beneficiary within a reasonable time after the date of such grant.

15. AMENDMENT AND TERMINATION OF THE PLAN

15.1 Amendment and Termination. The Subsidiary Administrator may at any time amend, alter, suspend
or terminate the Sub-Plan.

7

 

15.2 Shareholder Approval. The Company shall obtain shareholder approval of any Sub-Plan amendment
to the extent necessary and desirable to comply with applicable laws, rules or regulations,
including the requirements of any exchange or quotation system on which the Shares or ADRs are
listed or quoted). Such shareholder approval, if required, shall be obtained in such a manner and
to such a degree as is required by the applicable laws, rules or regulations.

15.3 Effect of Amendment or Termination. No amendment, alteration, suspension or termination of
the Sub-Plan shall impair the rights of any Subsidiary Beneficiary, unless mutually agreed
otherwise between the Subsidiary Beneficiary and the Subsidiary Administrator, which agreement must
be in writing and signed by the Subsidiary Beneficiary and the Subsidiary Administrator.

16. CONDITIONS UPON ISSUANCE OF SHARES

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

16.2 Investment Representations. As a condition to the grant or vesting of an Award or the Awarded
shares, the Subsidiary Beneficiary may be required to represent and warrant that the shares are
being purchased only for investment and without any present intention to sell or distribute such
shares if the Trustee and Subsidiary Administrator decide that such a representation is required.

17. LIABILITY OF COMPANY AND SUBSIDIARY

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

18. LAW AND JURISDICTION AND LANGUAGE

     This Sub-Plan shall be governed by and construed in accordance with the laws of the nation in
which the Subsidiary directing the Trustee to grant an Award has its principal place of business.
This Sub-Plan has been drafted and approved in the English language.

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]