Chrysler 2007 Annual Report Download - page 304

Commitments
At December 31, 2007 commitments total 34,191 thousand euros, an increase of 29,543 thousand euros from December 31, 2006
and consist of:
■2,324 thousand euros as the residual amount of the commitment undertaken by Fiat S.p.A. on its centenary, in a resolution
adopted by stockholders in their meeting of June 22, 1998, to make a contribution to the costs of providing degree courses in
Automotive Engineering and of renovating the related university building over a ten-year period;
■27,875 thousand euros as the residual amount of the commitment undertaken by Fiat S.p.A. in a sponsorship agreement signed in
May 2007 with Juventus Football Club S.p.A. in the name of and on behalf of the Company and its subsidiaries for the three
seasons 2007-2008, 2008-2009 and 2009-2010;
■for 3,992 thousand euros as the residual amount of the commitment undertaken by Fiat S.p.A. in an agreement signed in July
2007 with the Italian Football Association (
Federazione Italiana Giuoco Calcio ) as the “Official Partner of the Italian National Team”
until December 31, 2010.
Teksid
Fiat S.p.A. is subject to a put contract with Renault (in reference to the original investment of 33.5% in Teksid, now 15.2%).
In particular, Renault would acquire the right to exercise a sale option to Fiat on its interest in Teksid, in the following cases:
■in the event of non fulfilment in the application of the protocol of the agreement and admission to receivership or any other
redressment procedure;
■in the event Renault’s investment in Teksid falls below 15% or Teksid decides to invest in a structural manner outside the foundry
sector;
■should Fiat be the object of the acquisition of control by another car manufacturer.
The exercise price of the option is established as follows:
■for the original 6.5% of the capital stock of Teksid, the initial investment price increased by a given interest rate;
■for the remaining amount of capital stock of Teksid, the share of the accounting net equity at the exercise date.
Contingent liabilities
In connection with significant asset divestitures carried out in prior years, Fiat S.p.A. directly or indirectly through its subsidiaries
provided indemnities to purchasers with the maximum amount of potential liability under these contracts generally capped at a
percentage of the purchase price. These liabilities primarily relate to potential liabilities arising from contingent liabilities in
existence at the time of the sale, as well as breach of representations and warranties provided in the contracts and, in certain
instances, environmental or tax matters, generally for a limited period of time. At December 31, 2007, potential obligations with
respect to these indemnities are approximately 808 million euros (approximately 810 million euros at December 31, 2006), net of
provisions set aside by the single companies. Certain other indemnifications have been provided that do not limit potential
payment; it is not possible to estimate a maximum amount of potential future payments that could result from claims made under
these indemnities.
Fiat S.p.A. Financial Statements at December 31, 2007 - Notes to the Financial Statements 303