Registration document 2007 - Total.com
Registration document 2007 - Total.com
Registration document 2007 - Total.com
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Other guarantees given<br />
Non-consolidated subsidiaries<br />
The Group also guarantees the current liabilities of some of nonconsolidated<br />
subsidiaries. Performance under these guarantees<br />
would be triggered by a financial default of the entity. As of<br />
December 31, 2006, the total amount of these guarantees is<br />
estimated to be 68 M€.<br />
Other guarantees given<br />
As part of normal ongoing business operations and consistent<br />
with generally and accepted recognized industry practice, the<br />
Group enters into numerous agreements with other parties.<br />
24) Share-based payments<br />
Appendix 1 – Consolidated financial statements<br />
Notes to the consolidated financial statement<br />
9<br />
These <strong>com</strong>mitments are often entered into for <strong>com</strong>mercial<br />
purposes or for regulatory purposes and for other operating<br />
agreements. As of December 31, 2006, these other<br />
<strong>com</strong>mitments include guarantees given to customers or suppliers<br />
for 1,544 M€, guarantees on letters of credit for 1,416 M€ and<br />
other operating <strong>com</strong>mitments for 1,195 M€.<br />
In line with the business practice of all oil and gas <strong>com</strong>panies for<br />
development of gas fields, the Group is involved in long-term sale<br />
agreements on quantities of natural gas. The price of these<br />
contracts is indexed to prices of petroleum products and other<br />
forms of energy.<br />
A) TOTAL share subscription options plan<br />
2003 Plan (a) 2004 Plan (b) 2005 Plan (c) 2006 Plan (d) <strong>Total</strong><br />
Exercise price until May 23, 2006 included (in euros) (e) 33.30 39.85 49.73 -<br />
Exercise price since May 24, 2006 (in euros) (e) 32.84 39.30 49.04 50.60<br />
Expiration date<br />
Number of options<br />
07/16/2011 07/20/2012 07/19/2013 07/18/2014<br />
(f)<br />
Existing options as of January 1, 2004 11,741,224 - - - 11,741,224<br />
Granted - 13,462,520 - - 13,462,520<br />
Cancelled (8,400) (48,000) - - (56,400)<br />
Exercised (3,800) - - - (3,800)<br />
Existing options as of January 1, 2005 11,729,024 13,414,520 - - 25,143,544<br />
Granted - 24,000 6,104,480 - 6,128,480<br />
Cancelled (10,000) (16,400) (10,400) - (36,800)<br />
Exercised (522,228) (10,800) - - (533,028)<br />
Existing options as of January 1, 2006 11,196,796 13,411,320 6,094,080 - 30,702,196<br />
Granted - - 134,400 5,727,240 5,861,640<br />
Cancelled (22,200) (57,263) (43,003) (1,080) (123,546)<br />
Adjustment following the spin-off of Arkema (g) 163,180 196,448 90,280 - 449,908<br />
Exercised (729,186) (120,133) - - (849,319)<br />
Existing options as of December 31, 2006 10,608,590 13,430,372 6,275,757 5,726,160 36,040,879<br />
(a) Grants decided by the Board of Directors on July 16, 2003 pursuant to the authorization given by the Shareholders’ Meeting held on May 17, 2001. The options are exercisable only after<br />
a two-year period from the date the option is granted to the individual employee and must be exercised within eight years from the date of grant. Underlying shares may not be sold for<br />
four years from the date of grant.<br />
(b) Grants decided by the Board of Directors on July 20, 2004 pursuant to the authorization given by the Shareholders’ Meeting held on May 14, 2004. The options are exercisable only after<br />
a two-year period from the date the option is granted to the individual employee and must be exercised within eight years from this date. Underlying shares may not be sold for four years<br />
from the date of grant.<br />
(c) Grants decided by the Board of Directors on July 19, 2005 pursuant to the authorization given by the Shareholders’ Meeting held on May 14, 2004. The options are exercisable only after<br />
a two-year period from the date the option is granted to the individual employee and must be exercised within eight years from this date. Underlying shares may not be sold for four years<br />
from the date of grant.<br />
(d) Grants decided by the Board of Directors on July 18, 2006 pursuant to the authorization given by the Shareholders’ Meeting held on May 14, 2004. The options are exercisable only after<br />
a two-year period from the date the option is granted to the individual employee and must be exercised within eight years from this date. Underlying shares may not be sold for four years<br />
from the date of grant.<br />
(e) To reflect the four-for-one stock split, the exercise prices of TOTAL shares subscription options were multiplied by 0.25. Moreover, following the spin-off of Arkema, the exercise prices of<br />
TOTAL shares subscription options were multiplied by an adjustment factor equal to 0.986147 with effect as of May 24, 2006.<br />
(f) The number of options was multiplied by four to reflect the four-for-one stock split on May 18, 2006.<br />
(g) Adjustments decided by the Board of Directors on March 14, 2006, in application of Articles 174-9, 174-12 and 174-13 of the Decree n°67-236 of March 23, 1967 in force during this<br />
Board of Directors and during TOTAL S.A. Shareholders’ Meeting of May 12, 2006, as part of the spin-off of Arkema. These adjustments have been made on May 22, 2006 with effect as<br />
of May 24, 2006.<br />
TOTAL – <strong>Registration</strong> Document 2006 217