Chrysler 2007 Annual Report Download - page 289

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On November 3, 2006 the Fiat S.p.A. Board of Directors resolved an eight year stock option plan (subject to approval by the
Stockholders Meeting, which was given on April 5, 2007), which provides certain managers of the Group and the Chief Executive
Officer of Fiat S.p.A. with the right to purchase a determined number of Fiat S.p.A. ordinary shares at the fixed price of 13.37 euros
per share. In particular, the 10,000,000 options granted to employees and the 5,000,000 options granted to Mr. Marchionne have a
vesting period of four years, with a quarter of the number vesting each year, are subject to achieving certain pre-determined
profitability targets (Non-Market Conditions or “NMC”) in the reference period and may be exercised from the date on which the
2010 financial statements are approved. The remaining 5,000,000 options granted to the Chief Executive Officer of Fiat S.p.A. also
have a vesting period of four years with a quarter of the number vesting each year and may be exercised from November 2010.
In addition, the ability to exercise the options is additionally subject to specific restrictions regarding the duration of the
employment relationship or the continuation of the position held. The stock option plan will become effective once all its conditions
have been satisfied.
The contractual terms of 2006 plan are as follows:
Strike price No. of options Vesting
Plan Recipient Expiry date (euros) granted Vesting date portion
Stock Option November 2006 Chief Executive Officer November 3, 2014 13.37 5,000,000 November 2007 25%
November 2008 25%
November 2009 25%
November 2010 25%
Stock Option November 2006 Chief Executive Officer November 3, 2014 13.37 5,000,000 1st Quarter 2008 (*) 25%*NMC
1st Quarter 2009 (*) 25%*NMC
1st Quarter 2010 (*) 25%*NMC
1st Quarter 2011 (*) 25%*NMC
Stock Option November 2006 Executives November 3, 2014 13.37 10,000,000 1st Quarter 2008 (*) 25%*NMC
1st Quarter 2009 (*) 25%*NMC
1st Quarter 2010 (*) 25%*NMC
1st Quarter 2011 (*) 25%*NMC
(*) On the approval of the Financial Statements of the previous year.
Fiat S.p.A. Financial Statements at December 31, 2007 - Notes to the Financial Statements288