Invitation - Saab

6 (11)PensionFor pension agreements entered into after 1 January 2005, the pension age is 62. Inaddition to the ITP agreement, the pension is part of a defined premium basedcontribution plan where provisions are made annually. For the President and CEO, theprovision is equivalent to maximum 35 per cent of the fixed salary. For other seniorexecutives the percentage is based on a set of regulations in the so-called Saab plan.According to this plan, the percentage is dependent on the number of years remaininguntil the age of retirement upon joining the plan. The aggregate insurance balanceshould cover a targeted pension from 65 years of age of approximately 32.5 per centof salary levels between 20 and 30 basic income amounts and approximately 50 percent of segments above 30 basic income amounts.All senior executives may also be entitled to strengthened disability pension andsurvivors’ pension.Miscellaneous termsAll executives in the Group Management, including the President and CEO, mayterminate their employment with six months’ notice. If the employment is terminated bySaab, the notice period is six months, and after the notice period, severance equal toone year’s salary is paid. An additional year’s salary is payable if no new employmenthas been obtained in the first 18 months from the time the notice of termination wasserved.With respect to employment agreements made after 1 January 2005, and in caseswhere Saab terminates the employment, a maximum severance pay of 18 months ispayable in addition to the six-month notice period. In both cases, any income fromtermination pay and severance pay will be deducted against income from otheremployment during the corresponding time.Consultant fees to Board MembersSaab AB Board Members, elected by the Shareholders’ Meeting, may in special casesreceive a fee for services performed within their respective areas of expertise,separately from their Board duties and for a limited period of time. Compensation forthese services shall be paid at market terms.Information in the Annual Report note 37Note 37 of the Annual Report includes a description of existing remunerations forsenior executives, including fixed and variable compensation, long-term incentiveprograms and other benefits.LONG-TERM INCENTIVE PROGRAMS (item 13)Background and reasons for the proposalThe Board of Directors finds it essential and in all shareholders’ interest thatemployees in the Group have a long-term interest of a good value development of the