Common use of Bonus and Stock Options Clause in Contracts

Bonus and Stock Options. 4.1. AHOLD shall pay the CFO a bonus based on targets set, by mutual agreement, between the CFO and the Supervisory Board and will be payable in a single payment. The target amounts to 1.25 times the annual base salary, as that will be determined from year to year. For the first 12 months of employment following the Date of Employment, the CFO will be entitled to a guaranteed bonus of 70% of the annual target bonus amount. Eor the consecutive 12 months of employment, the CFO will be entitled to a guaranteed bonus of 50% of the annual target bonus amount. At the Date of Employment the CFO will be paid a first instalment of the guaranteed bonus for the first twelve months of employment in the amount of gross EUR 500,000. 4.2. The CFO may participate in the AHOLD Stock Option Plan, for the first time in 2004. The number of stock options will be determined by ESOS on the recommendation of AHOLD's Supervisory Board. Currently, the Supervisory Board is recommending that members of the Executive Board be granted 75,000 options. 4.3. As soon as practically possible, after the Date of Employment, the CFO will be granted 100,000 shares of common stock. Such shares shall be subject to a lockup period which shall last until two days after the General Meeting of Shareholders in 2004. All tax consequences shall be for the account of the CFO. 4.4. The CFO will be granted an additional 100,000 shares of common stock under the so-called "AHOLD Restricted Stock Award", to be introduced shortly. To the extent other members of the Executive Board will be granted more than 200,000 shares of common stock under the "AHOLD Restricted Stock Award", the CFO will receive such excess.