Registration document 2007 - Total.com

Other guarantees given
Non-consolidated subsidiaries
The Group also guarantees the current liabilities of some of nonconsolidated
subsidiaries. Performance under these guarantees
would be triggered by a financial default of the entity. As of
December 31, 2006, the total amount of these guarantees is
estimated to be 68 M€.
Other guarantees given
As part of normal ongoing business operations and consistent
with generally and accepted recognized industry practice, the
Group enters into numerous agreements with other parties.
24) Share-based payments
Appendix 1 – Consolidated financial statements
Notes to the consolidated financial statement
9
These commitments are often entered into for commercial
purposes or for regulatory purposes and for other operating
agreements. As of December 31, 2006, these other
commitments include guarantees given to customers or suppliers
for 1,544 M€, guarantees on letters of credit for 1,416 M€ and
other operating commitments for 1,195 M€.
In line with the business practice of all oil and gas companies for
development of gas fields, the Group is involved in long-term sale
agreements on quantities of natural gas. The price of these
contracts is indexed to prices of petroleum products and other
forms of energy.
A) TOTAL share subscription options plan
2003 Plan (a) 2004 Plan (b) 2005 Plan (c) 2006 Plan (d) Total
Exercise price until May 23, 2006 included (in euros) (e) 33.30 39.85 49.73 -
Exercise price since May 24, 2006 (in euros) (e) 32.84 39.30 49.04 50.60
Expiration date
Number of options
07/16/2011 07/20/2012 07/19/2013 07/18/2014
(f)
Existing options as of January 1, 2004 11,741,224 - - - 11,741,224
Granted - 13,462,520 - - 13,462,520
Cancelled (8,400) (48,000) - - (56,400)
Exercised (3,800) - - - (3,800)
Existing options as of January 1, 2005 11,729,024 13,414,520 - - 25,143,544
Granted - 24,000 6,104,480 - 6,128,480
Cancelled (10,000) (16,400) (10,400) - (36,800)
Exercised (522,228) (10,800) - - (533,028)
Existing options as of January 1, 2006 11,196,796 13,411,320 6,094,080 - 30,702,196
Granted - - 134,400 5,727,240 5,861,640
Cancelled (22,200) (57,263) (43,003) (1,080) (123,546)
Adjustment following the spin-off of Arkema (g) 163,180 196,448 90,280 - 449,908
Exercised (729,186) (120,133) - - (849,319)
Existing options as of December 31, 2006 10,608,590 13,430,372 6,275,757 5,726,160 36,040,879
(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
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
four years from the date of grant.
(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
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
from the date of grant.
(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
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
from the date of grant.
(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
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
from the date of grant.
(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
TOTAL shares subscription options were multiplied by an adjustment factor equal to 0.986147 with effect as of May 24, 2006.
(f) The number of options was multiplied by four to reflect the four-for-one stock split on May 18, 2006.
(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
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
of May 24, 2006.
TOTAL – Registration Document 2006 217