TomTom 2005 Annual Report Download - page 28

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28
Members฀of฀the฀Management฀Board฀are฀eligible฀to฀
participate฀in฀the฀Company’s฀defined฀contribution฀pension฀
plan.฀The฀Company’s฀contribution฀to฀the฀pension฀of฀each฀
member฀of฀the฀Management฀Board฀is฀a฀maximum฀of฀
10%฀of฀base฀salary.฀
For฀details฀of฀the฀remuneration฀of฀the฀Management฀
Board฀please฀refer฀to฀the฀notes฀to฀the฀financial฀statements
which฀are฀included฀in฀this฀annual฀report.฀
Employment฀contracts
Members฀of฀the฀Management฀Board฀have฀an฀
employment฀contract฀with฀the฀Company.฀The฀contracts฀
are฀entered฀into฀for฀an฀indefinite฀period฀of฀time.฀
However,฀the฀term฀of฀office฀of฀members฀of฀the฀
Management฀Board฀is฀4฀years,฀which฀appointment฀can฀
be฀renewed฀for฀another฀period฀of฀not฀more฀than฀four฀
years฀at฀a฀time.฀In฀case฀the฀employment฀of฀a฀member฀
of฀the฀Management฀Board฀is฀terminated฀by฀or฀on฀the฀
initiative฀of฀TomTom,฀then฀he฀shall฀be฀entitled฀to฀a฀fixed฀
amount฀of฀50%฀of฀his฀annual฀base฀salary,฀including฀
holiday฀allowance,฀unless฀the฀employment฀is฀terminated฀
for฀cause฀within฀the฀meaning฀of฀the฀articles฀7:677฀sub฀1฀
and฀7:678฀of฀the฀Dutch฀Civil฀Code,฀in฀which฀situation฀the฀
relevant฀Management฀Board฀member฀is฀not฀entitled฀to฀
any฀severance.฀This฀amount฀will฀be฀due฀in฀addition฀to฀the฀
salary฀the฀Company฀has฀to฀pay฀to฀members฀of฀the฀
Management฀Board฀during฀the฀agreed฀notice฀period฀of฀
12฀months.฀A฀member฀of฀the฀Management฀Board฀will฀not฀
be฀entitled฀to฀the฀severance฀if฀the฀employment฀is฀
terminated฀by฀him฀or฀on฀his฀initiative.฀Broadly฀in฀line฀with฀
practice฀in฀The฀Netherlands,฀we฀additionally฀contribute฀to฀
life฀and฀disability฀insurance฀for฀members฀of฀the฀
Management฀Board฀as฀well฀as฀health฀insurance.฀
Outlook฀2006
On฀the฀basis฀of฀a฀benchmark฀of฀salaries,฀performed฀
by฀an฀independent฀consultancy฀agency฀in฀2006,฀the฀
Supervisory฀Board฀proposes฀to฀continue฀the฀current฀
policy฀with฀respect฀to฀the฀base฀salaries฀and฀bonuses฀
of฀Management฀Board฀members.
The฀Supervisory฀Board฀has฀drawn฀up฀a฀Remuneration฀
Policy฀document,฀which฀shall฀be฀presented฀to฀the฀
General฀Meeting฀of฀Shareholders฀for฀its฀approval฀during฀
its฀annual฀meeting฀in฀April฀2006.฀
Financial฀statements฀2005
The฀consolidated฀annual฀financial฀statements฀of฀TomTom฀
NV฀for฀2005,฀as฀presented฀by฀the฀Management฀Board,฀
have฀been฀audited฀by฀Deloitte฀Accountants฀BV,฀
independent฀auditors.฀The฀Supervisory฀Board฀has฀
approved฀these฀financial฀statements฀for฀2005฀and฀all฀
individual฀members฀of฀the฀Supervisory฀Board฀(together฀
with฀the฀members฀of฀the฀Management฀Board)฀have฀
signed฀the฀financial฀statements฀for฀2005.
The฀Supervisory฀Board฀recommends฀that฀the฀General฀
Meeting฀of฀Shareholders฀adopt฀the฀Consolidated฀and฀
Company฀Annual฀Report฀for฀2005฀that฀are฀separate฀to฀
this฀annual฀report.฀This฀annual฀report฀includes฀the฀
Consolidated฀Financial฀Statements฀only.฀The฀Consolidated฀
and฀Company฀Annual฀Report฀for฀2005฀is฀available฀at฀the฀
Company’s฀offices฀on฀request”.
Upon฀approval฀of฀the฀Consolidated฀and฀Company฀Annual฀
Report฀for฀2005฀and฀in฀accordance฀with฀Article฀2:394฀and฀
Article฀2:395฀of฀the฀Dutch฀Civil฀Code,฀the฀Management฀
Board฀will฀file฀this฀annual฀report฀that฀includes฀the฀
Consolidated฀and฀Company฀Financial฀Statements฀for฀
2005฀with฀the฀Chamber฀of฀Commerce.
Supervisory฀Board
Amsterdam,฀The฀Netherlands฀13฀February฀2006