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Stock option plans
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Indesit Company stock option plans
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Indesit Company was one of the first Italian companies to adopt stock option plans in favour of its executives and managerial staff. The aim was to integrate the management salary structure with a vehicle which, in the medium and long-term, would provide incentives for and secure the loyalty of Group executives and managerial staff directly involved in achieving major corporate objectives.
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Stock option plan in favour of Group company executives and managers
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This stock option plan enables Group company executives and managerial staff to subscribe ordinary Indesit Company shares at a pre-established price at the end of a pre-determined period of accrual. Allotment of these options is normally decided annually and the beneficiaries are identified by the Chairman as advised by the CEO. The beneficiaries are chosen from among executives, Italian managers and foreign managers with executive functions who would have at least one year's seniority when the options are allotted (three years for allotments made from July 2003 on). The Indesit Company stock option plan approved by the shareholders (pursuant to art. 2441, Civil Code) contemplates two capital increases up to a maximum of €5,400,000 by the issue of up to 6,000,000 ordinary new-issue shares (nominal value same as that of existing shares) to be earmarked for the exercise of options to be allotted under the Plan. The allotted options allow the individuals concerned to subscribe an equivalent number of ordinary shares at the average stock market price over the month prior to that in which they were allotted.
The vesting period for the first 50% of options allotted is two years and for the remaining 50% three years. For options allotted after July 2003 the period for the first 50% is three years and for the remaining 50% it is four years. Options do not give entitlement to dividends. In the case of severance by resignation, all rights over non-vested options are forfeited. Vested options must be exercised within three months of the severance date. In the case of death, right of exercise passes to the heirs.
Attached the stock option rights position up to 31st December 2007 (Italian version)
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The table below details the exercising of options over time.
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Number of options exercised |
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Number of shares issued |
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Period |
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1 |
5.000 |
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5.000 |
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January - October '01 |
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2 |
27.500 |
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27.500 |
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October '01- February '02 |
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3 |
616.000 |
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616.000 |
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March
- June '02 |
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4 |
38.750 |
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38.750 |
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July - December '02 |
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5 |
411.250 |
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411.250 |
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January - June '03 |
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6 |
55.500 |
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55.500 |
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July - December '03 |
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7 |
571.500 |
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571.500 |
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January - June '04 |
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8 |
715.750 |
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715.750 |
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July - December '04 |
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9 |
1.234.500 |
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1.234.500 |
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January - June '05 |
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10 |
17.500 |
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17.500 |
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July - December '05 |
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11 |
378.750 |
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378.750 |
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January - June '06 |
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12 |
43.750 |
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43.750 |
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July - December '06 |
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13 |
116.750 |
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116.750 |
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January - 3/05/2007 |
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Total |
4.232.500 |
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4.232.500 |
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