A maximum of four out of every six SAR can be “earned” via the absolute performance target and a maximum of two via the relative performance target. If neither an absolute nor relative performance target is met by the end of the lock-up period, the SAR of the related tranche will expire and no replacement or compensation of any kind will be provided. The table below presents further details of the tranches of the LTIP 2006:

The table below provides detailed information on the individual tranches of the expired stock option plan:

Any options of Tranche 2003 that had not been exercised expired at the end of the exercise period on 1 August 2008, with no replacement or compensation provided. The options of Tranche 2005 had already expired at the end of the lock-up period on 1 July 2008 – with no replacement or compensation – because the associated absolute and relative targets had not been met.

Pension commitments under the previous system

The members of the Board of Management have direct pensions commitments on the basis of their individual contracts, providing for benefits in case of permanent disability, death or retirement. If the contract of a member ends after at least five years of service on the Board of Management, the entitlements acquired will vest. Members are entitled to benefits due to permanent disability after at least five years of service. Eligibility for retirement benefits begins at the age of 55 at the earliest, or age 60 in the case of John P. Mullen and age 62 for Jürgen Gerdes. The members of the Board of Management may choose between ongoing pension payments and a lump sum payment. The benefit amount depends on the pensionable income and the pension level derived from the years of service.

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