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Financial Statements and Corporate Governance

At its 26th May 2000, 20th October 2000, 12th July 2001, 9th August 2002, 10th October 2003, 8th October 2004, 9th December 2005 and 18th December 2006 meetings, the Board of Directors of the Company, using the authorisation given to it by the shareholders’ meetings of 24th May 2000, 10th May 2001, 6th May 2003, 11th May 2005, and 4th May 2006 approved the granting of stock options for subscription of shares in the Company.

At its 18th December 2006 meeting, the Board of Directors of the Company, using the authorisation given to it by the shareholders’ meeting of 4th May 2006 approved the granting of performance shares and restricted shares in the Company.

At its 7th December 2007 meeting, the Board of Directors of the Company approved the granting of performance units and restricted units in the Company.

The principal characteristics of these options, performance and restricted shares and performance and restricted units as at 31st December 2007 are set out in the “Notes to the Consolidated Financial Statements (IFRS) — Note 31: Share-based Payment”. They are also set out in the table below:

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(1)

As regards to the sixth tranche, vesting of part of the options granted to EADS top Executives was subject to performance conditions. As a result, part of these conditional options have not vested and were therefore forfeited during the year 2007.

 

First tranche

Second tranche

 

 

 

Date of shareholders’ Meeting

24th May 2000

24th May 2000

Date of Board of Directors Meeting (grant date)

26th May 2000

20th October 2000

Number of options granted

5,324,884

240,000

Number of options outstanding

1,671,380

32,000

Options granted to directors and officers

720,000

60,000

Total number of eligible employees

850

34

Exercise date

50% of options may be exercised after a period of two years and four weeks from the date of grant of the options; 50% of options may be exercised as of the third anniversary of the date of grant of the options (subject to specific provisions contained in the Insider Trading Rules - see “Part 2/3.1.3 Governing Laws”).

Expiry date

8th July 2010

8th July 2010

Conversion right

One option for one share

One option for one share

Vested

100%

100%

Exercise price

€20.90

€20.90

Exercise price conditions

110% of fair market value of the shares at the date of grant

Number of exercised options

2,892,020

188,000

 

 

 

 

Third tranche

Fourth tranche

Date of shareholders’ Meeting

10th May 2001

10th May 2001

Date of Board of Directors Meeting (grant date)

12th July 2001

9th August 2002

Number of options granted

8,524,250

7,276,700

Number of options outstanding

3,773,169

2,706,434

Options granted to:

 

 

• Mr. Philippe Camus

135,000

135,000

• Mr. Rainer Hertrich

135,000

135,000

• the 10 employees having being granted the highest number of options during the year 2001 (third tranche) and 2002 (fourth tranche)

738,000

808,000

Total number of eligible employees

1,650

1,562

Exercise date

50% of options may be exercised after a period of two years and four weeks from the date of grant of the options; 50% of options may be exercised as of the third anniversary of the date of grant of the options (subject to specific provisions contained in the Insider Trading Rules - see “Part 2/3.1.3 Governing Laws”).

Expiry date

12th July 2011

8th August 2012

Conversion right

One option for one share

Vested

100%

100%

Exercise price

€24.66

€16.96

Exercise price conditions

110% of fair market value of the shares at the date of grant

Number of exercised options

3,492,831

4,305,066

 

 

 

 

Fifth tranche

Sixth tranche

Date of shareholders’ Meeting

6th May 2003

6th May 2003

Date of Board of Directors Meeting (grant date)

10th October 2003

8th October 2004

Number of options granted

7,563,980

7,777,280

Number of options outstanding

4,818,873

6,240,986(1)

Options granted to:

 

 

• Mr. Philippe Camus

135,000

135,000

• Mr. Rainer Hertrich

135,000

135,000

• the 10 employees having being granted the highest number of options during the year 2003 (fifth tranche) and 2004 (sixth tranche)

808,000

808,000

Total number of eligible employees

1,491

1,495

Exercise date

50% of options may be exercised after a period of two years and four weeks from the date of grant of the options; 50% of options may be exercised as of the third anniversary of the date of grant of the options (subject to specific provisions contained in the Insider Trading Rules - see “Part 2/3.1.3 Governing Laws”).

Expiry date

9th October 2013

7th October 2014

Conversion right

One option for one share

Vested

100%

100%(1)

Exercise price

€15.65

€24.32

Exercice price conditions

110% of fair market value of the shares at the date of grant

Number of exercised options

2,503,423

2,400

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(*)

For more information in respect of units granted to the Chief Executive Officer, see “Notes to the Company Financial Statements — Note 11: Remuneration”.

 

 

 

 

Seventh tranche

Date of shareholders’ Meeting

11th May 2005

Date of Board of Directors Meeting

9th December 2005

Number of options granted

7,981,760

Number of options outstanding

7,907,600

Options granted to:

 

 

• Mr. Thomas Enders

135,000

• Mr. Noël Forgeard

135,000

• the 10 employees having being granted the highest number of options during the year 2005 (seventh tranche)

940,000

Total number of eligible beneficiaries

1,608

Exercise date

50% of options may be exercised after a period of two years from the date of grant of the options; 50% of options may be exercised as of the third anniversary of the date of grant of the options (subject to specific provisions contained in the Insider Trading Rules - see “Part 2/3.1.3 Governing Law - Dutch Regulations”). As regards to the seventh tranche, part of the options granted to the top EADS Executives are performance related.

Expiry date

8th December 2015

Conversion right

One option for one share

Vested

50%

Exercise price

€33.91

Exercice price conditions

110% of fair market value of the shares at the date of grant

Number of exercised options

0

 

 

 

 

Eighth tranche

Date of shareholders’ Meeting

4th May 2006

Date of Board of Directors Meeting

18th December 2006

 

Stock option plan

Number of options granted

1,747,500

Number of options outstanding

1,742,000

Options granted to:

 

 

• Mr. Thomas Enders*

67,500

• Mr. Louis Gallois*

67,500

• the 10 employees having being granted the highest number of options during the year 2006 (eighth tranche)

425,000

Total number of eligible beneficiaries

221

Date from which the options may be exercised

50% of options may be exercised after a period of two years from the date of grant of the options; 50% of options may be exercised as of the third anniversary of the date of grant of the options (subject to specific provisions contained in the Insider Trading Rules - see “Part 2/3.1.3 Governing Laws”)

Date of expiration

16th December 2016

Conversion right

One option for one share

Vested

0%

Exercice price

€25.65

Exercice price conditions

110% of fair market value of the shares at the date of grant

Number of exercised options

0

 

Performance and restricted shares plan

 

Performance shares

Restricted shares

Number of shares granted

1,344,625

391,300

Number of shares outstanding

1,328,375

386,750

Shares granted to:

 

 

• Mr. Thomas Enders*

16,875

-

• Mr. Louis Gallois*

16,875

-

• the 10 employees having being granted the highest number of shares during the year 2006 (eighth tranche)

137,500

28,200

Total number of eligible beneficiaries

1,637

Vesting date

The performance and restricted shares will vest if the participant is still employed by an EADS company and, in the case of performance shares, upon achievement
of mid-term business performance. The vesting period will end at the date of publication of the 2009 annual results, expected in March 2010.

Number of vested shares

875

0

 

 

 

 

Ninth tranche

Date of Board of Directors Meeting

7th December 2007

 

Performance and restricted unit plan

 

Performance units

Restricted units

Number of units granted

1,693,940

506,060

Units granted to:

 

 

• Mr. Louis Gallois*

33,700

-

• the 10 employees having being granted the highest number of units during the year 2007 (ninth tranche)

239,900

43,500

Total number of eligible beneficiaries

1,617

Vesting dates

The performance and restricted units will vest if the participant is still employed by an EADS company at the respective vesting dates and, in the case of performance units, upon achievement of mid-term business performance. Vesting schedule is made up of 4 payments over 2 years:

- 25% expected in May 2011;
- 25% expected in November 2011;
- 25% expected in May 2012;
- 25% expected in November 2012.

The information in respect of stock options and performance and restricted shares cancelled and exercised during the year are set out in “Notes to the Consolidated Financial Statements (IFRS) — Note 31: Share-based Payment”.

For information on the transactions carried out by the members of the Board of Directors and the Executive Committee see EADS’ website and/or the relevant stock exchange authorities’ website.

Shareholding in the Company of the members of the Board of Directors

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(*)

See eighth tranche as set forth in the above table.

Member of the Board of Directors

Shareholding

 

 

• Mr. Louis Gallois

- 5 ordinary shares
- 67,500 stock options*
- 16,875 performance shares*

• Mr. Dominique d’Hinnin

- 61 ordinary shares

• Mr. Arnaud Lagardère

- 2 ordinary shares

The other members of the Board of Directors do not hold shares or other securities in the Company.