Chrysler 2009 Annual Report Download - page 196

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The current features of the stock option plan are as follows:
Strike Number
price of options Vesting
Plan Recipient Modification date Expiry date (€) granted Vesting date portion
Stock Options July 2004 (modified) Chief Executive Officer 27 March 2009 1 January 2016 6.583 10,670,000 31 December 2010 100%
On 3 November 2006 the Fiat S.p.A. Board of Directors approved (subject to the subsequent approval of shareholders in General Meeting, which was
given on 5 April 2007) an eight year stock option plan, which provides certain managers of the Group and the Fiat S.p.A. Chief Executive Officer with the
right to purchase a determined number of Fiat S.p.A. ordinary shares at the fixed price of฀€13.37 per share. In particular, the 10,000,000 options granted to
employees and the 5,000,000 options granted to the Chief Executive Officer 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. 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 Number
price of options Vesting
Plan Recipient Expiry date (€) granted Vesting date portion
Stock Option November 2006 Chief Executive Officer 3 November 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 3 November 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 Managers 3 November 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 approval of the prior year’s Consolidated financial statements, subject to the continuation of the professional relationship.
On 26 February 2008 the Board of Directors of Fiat S.p.A. passed an incentive plan which was subsequently approved by shareholders in the Annual General
Meeting on 31 March 2008, by which an overall maximum of 4 million financial instruments may be assigned on a periodic basis until 2010 in the form of
stock options and/or stock appreciation rights. The plan addresses the attraction and retention of managers in key roles who have been hired or promoted
following the granting of the stock option plan of 3 November 2006 or who have assumed greater responsibilities since the granting of the 2006 plan and
has the features of that plan in terms of performance vesting and exercise rights. Implementing the first grant under this program on 23 July 2008, the Board
of Directors assigned 1,418,500 stock options which have an exercise price of฀€10.24 and a vesting period of three years, which are subject to achieving
certain pre-determined profitability targets (Non-Market Conditions or “NMC”) in the reference period and which may be exercised from the date on which
the 2010 Financial statements are approved.