LensCrafters 2005 Annual Report Download - page 92

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| 91 <
STOCK OPTIONS PLANS
At the Extraordinary Shareholders’ Meeting on March 10, 1998, shareholders approved the adoption of
a Stock Options Plan under which the capital of the Luxottica Group may be increased one or more
times, up to a maximum amount of Lire 1,225,000,000, through the issue of 12,250,000 ordinary
shares to be reserved for grants to officers and key employees of the Group. The conversion of
Luxottica Group’s authorized and issued share capital into Euro, approved on June 26, 2001, resulted
in a decrease in the number of ordinary shares available for the aforementioned Stock Options Plan.
In consideration of the reduction of the number of ordinary shares available for the Stock Options Plan,
and the growing size of Luxottica Group resulting in a larger number of potential employee
beneficiaries of stock options, on September 20, 2001, the Extraordinary Shareholders’ Meeting
approved a Stock Options Plan under which the capital of the Luxottica Group could be increased one
or more times, up to a maximum amount of Euro 660,000, through the issuance of new ordinary
shares reserved for grants to officers and key employees of the Group.
On September 14, 2004, Luxottica Group announced that its majority shareholder, Leonardo Del
Vecchio, allocated approximately 9.6 million of Luxottica Group shares held by him through the holding
company La Leonardo Finanziaria S.r.l., to a stock options plan for the Group’s top management.
Options issued through this plan will become exercisable upon the accomplishment of certain financial
objectives. Consequently, the cost of these shares representing approximately 2.11% of the capital of
Luxottica Group, calculated based on the market value, will not be recorded in the balance sheet until
such a time as the number of exercisable options is known.
SHARE BUY BACK PLANS
On September 25, 2002, upon the authorization of Luxottica Group S.p.A. Luxottica U.S. Holdings
Corp., a U.S. subsidiary of Luxottica Group, approved the purchase of up to 11,500,000 Luxottica
Group’s ADS, representing an equal number of ordinary shares, equivalent to 2.5% of Luxottica
Group’s authorized and issued share capital. This plan required that the purchase be carried out on
the New York Stock Exchange within 18 months of its approval.
On March 20, 2003, Luxottica U.S. Holdings Corp. approved the purchase of up to 10,000,000
Luxottica Group ADS, representing an equal number of ordinary shares, and equivalent to 2.2% of
Luxottica Group’s authorized and issued share capital, to be purchased on the New York Stock
Exchange within 18 months of its approval. As of its expiration date, Luxottica U.S. Holdings Corp. had
acquired 6,434,786 Luxottica Group ADS, representing approximately 1.4% of the capital of Luxottica
Group. These ADS have been transferred by Luxottica U.S. Holdings Corp. to its subsidiary Arnette
Optics Illusions Inc. and on the first quarter of 2006 they have been converted in Luxottica Group
ordinary shares in accordance with applicable law.
STOCK OPTIONS
PLANS AND SHARE
BUY BACK PLANS