Hexagon - Annual Report 2005

Comments and Notes NOTE 4b. cont. Warrants Exercise No. of No. of Related Price per Share Price Stock option plan 2003/2006 Redemption Period Options Shares Hexagon Share at Redemption Original total number of stock options 1 Oct. 2003–30 Sep. 2006 500,000 1,545,000 80.60 Cancellation – – No. of options not yet transferred –210,000 –648,900 Total number of options transferred 290,000 896,100 Opening balance 2005 transferred, non-redeemed, options 290,000 896,100 Redemption in 2005 –50,000 –154,500 162.00 Closing balance 2005 transferred, non-redeemed, options 240,000 741,600 Cash to be Received Less No. of Deductions for Hexagon Related Exercise Price No. of Shares to Receive per Subscribed Share Price Leica Geosystems’ stock option plans Redemption Period Options Free of Charge Hexagon Share at Redemption Number of options at the time of acquisition of Leica Geosystems 14 October 2005 7 Apr. 2010 8,516 42,580 439.88 20 Jan. 2006 1,493 7,465 435.04 31 Jan. 2006 1 5 412.01 8 Apr. 2009 8,430 42,150 321.13 8 Apr. 2011 24,828 124,140 293.26 8 Apr. 2012 43,392 216,960 122.39 4 Apr. 2008 1,823 9,115 89.67 12 Jul. 2008 1,540 7,700 78.77 6 Feb. 2008 589 2,945 13.33 Total no. of options at time of acquisitions of Leica Geosystems 90,612 453,060 220.58 Redemption 14 Oct. ’05–31 Dec. ’05 – – Closing balance 2005 7 Apr. 2010 8,516 42,580 439.28 20 Jan. 2006 1,493 7,465 434.44 31 Jan. 2006 1 5 411.45 8 Apr. 2009 8,430 42,150 320.69 8 Apr. 2011 24,828 124,140 292.85 8 Apr. 2012 43,392 216,960 122.22 4 Apr. 2008 1,823 9,115 89.55 12 Jul. 2008 1,540 7,700 78.66 6 Feb. 2008 589 2,945 13.31 Total closing balance 2005 90,612 453,060 220.28 Warrants 31 December 2005 2003/2006 Options (Leica) No. of Options Acquisition Price No. of Options Acquisition Price Chief Executive Officer – – – – Other senior executives (five people) – – – – Other employees 290,000 4,640,000 90,612 – Total 290,000 4,640,000 90,612 – For Hexagon’s 2003/2006 plan, the acquisition price corresponded to market value at subscription. The Leica options were transferred free of charge. The Chief Executive Officer and other senior executives (five people) did not hold any warrants as of 31 Dec. 2005. Upon full exercise of the non-terminated stock option plans, the dilution would be 2.6 per cent of the share capital and 1.8 per cent of the vote. Drafting and Decision Model Salary and other terms and conditions for the group’s senior executives are considered by a Remuneration Committee appointed by the Board of Directors and comprising the Chairman of the Board, the Deputy Chairman and CEO. The CEO did not participate in consideration of matters relating to the CEO’s salary and other benefits. Pursuant to a Board decision of 14 February 2006, the CEO is no longer a member, but only makes presentations to the Remuneration Committee.