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Unilever Group Notes to the consolidated accounts 33 Equity based compensation plans (continued) 00000000000000001111 The NA Option Plan The NA Option Plan provides for the granting of options to purchase a maximum of 3 200 000 shares in Unilever NV of the New York Registry, and amended in 1997 for an additional 4 000 000 shares of Unilever PLC, to key employees of the Group. Under the NA Option Plan, options are granted on a discretionary basis to acquire shares at market value on the day options are granted. These options become exercisable over a three-year period from the date of grant and have a maximum term of ten years. A summary of the status of the NA Option Plan as at 31 December 1999, 1998 and 1997 and the changes during the years ended on these dates is presented below: 00000001111011111011111011111101111101111101111 For the years ended 31 December: 1999 1998 1997 0511110511 0511110511 0511110511 Weighted Weighted Weighted Number average Number average Number average of shares price of shares price of shares price 00000110511 10511 0511 10511 0511 10511 NV Options Outstanding at the beginning of the year 1 702 300 US $ 41.04 1 735 963 US $ 33.64 2 092 448 US $ 29.78 10511 10511 0511 10511 0511 10511 Granted 293 888 US $ 69.19 261 073 US $ 76.69 330 952 US $ 48.50 Exercised 23 933 US $ 29.27 291 802 US $ 29.01 685 433 US $ 28.97 Forfeited 8 784 US $ 38.41 2 934 US $ 33.79 2 004 US $ 54.49 10511 10511 0511 10511 0511 10511 Outstanding at the end of the year 1 963 471 US $ 45.41 1 702 300 US $ 41.04 1 735 963 US $ 33.64 10511 10511 0511 10511 0511 10511 Options exercisable at the end of the year 1 388 599 US $ 36.21 1 073 084 US $ 31.83 952 065 US $ 28.67 10511 10511 0511 10511 0511 10511 PLC Options Outstanding at the beginning of the year 3 878 316 US $ 8.58 2 177 968 US $ 6.72 — — 10511 10511 0511 10511 0511 10511 Granted 1 968 176 US $ 9.30 1 747 196 US $ 10.85 2 177 968 US $ 6.72 Exercised 5 356 US $ 6.72 40 552 US $ 6.72 — — Forfeited 10 656 US $ 9.46 6 296 US $ 6.72 — — 10511 10511 0511 10511 0511 10511 Outstanding at the end of the year 5 830 480 US $ 8.82 3 878 316 US $ 8.58 2 177 968 US $ 6.72 10511 10511 0511 10511 0511 10511 Options exercisable at the end of the year 1 982 696 US $ 7.92 688 800 US $ 6.72 — — 10511110511110511110511110511110511 1999 1998 1997 00000001111011111011111011111101111 01111 01111 NV Option value informatio n (a) Fair value per option (b) US $ 19.45 US $ 19.67 US $ 13.19 Valuation assumptions Expected option term 5 years 5 years 5 years Expected volatility 24.50% 19.48% 15.67% Expected dividend yield 1.23% 1.30% 0.82% Risk-free interest rate 5.21% 5.67% 6.45% PLC Option value informatio n (a) Fair value per option (b) US $ 2.23 US $ 2.97 US $ 1.69 Valuation assumptions Expected option term 5 years 5 years 5 years Expected volatility 24.26% 20.09% 17.55% Expected dividend yield 2.48% 1.39% 1.79% Risk-free interest rate 5.21% 5.64% 6.48% (a) Weighted average of options granted during each period. (b) Estimated using Black Scholes option pricing method. 00000001111011111011111011111101111101111101111
Unilever Group Notes to the consolidated accounts 33 Equity based compensation plans (continued) 00000000000000001111 The following table summarises information about fixed price stock options outstanding at 31 December 1999: 00000001111011111011111011111101111101111101111 Options Outstanding Options Exercisable 00511110051100511111005 00111111005 Number Weighted Number outstanding at average Weighted exercisable at Weighted Range of 31 December remaining average 31 December average exercise prices 1999 contractual life exercise price 1999 exercise price 0051151 005 005 005 005 005 NV Options US $ 25.69 43 000 3 years US $ 25.69 43 000 US $ 25.69 US $ 26.81 117 236 4 years US $ 26.81 117 236 US $ 26.81 US $ 25.67 225 398 5 years US $ 25.67 225 398 US $ 25.67 US $ 31.60 5 200 6 years US $ 31.60 5 200 US $ 31.60 US $ 31.95 288 166 6 years US $ 31.95 288 166 US $ 31.95 US $ 33.89 413 140 7 years US $ 33.89 413 140 US $ 33.89 US $ 48.74 317 420 8 years US $ 48.74 209 803 US $ 48.74 US $ 76.69 260 023 9 years US $ 76.69 86 656 US $ 76.69 US $ 69.19 293 888 10 years US $ 69.19 — — 0051151 005 005 005 005 005 US $ 25.67 to US $ 76.69 1 963 471 US $ 45.41 1 388 599 US $ 36.21 0051151 005 005 005 005 005 PLC Options US $ 6.72 2 122 188 8 years US $ 6.72 1 402 748 US $ 6.72 US $ 10.85 1 740 116 9 years US $ 10.85 579 948 US $ 10.85 US $ 9.30 1 968 176 10 years US $ 9.30 — — 0051151 005 005 005 005 005 US $ 6.72 to US $ 10.85 5 830 480 US $ 8.82 1 982 696 US $ 7.92 0051151100510051005110051005 The NA Purchase Plan The NA Purchase Plan provides for the granting of options to purchase a maximum of 10 000 000 shares of Unilever NV of the New York Registry. The first offering under the purchase plan was held in 1995, and was limited to options covering 2 000 000 shares. This offering ended in 1997. The second offering under the NA Purchase Plan was held in 1997, and was limited to 2 000 000 shares. Under the terms of the second offering, eligible employees could elect to accept the option to purchase any number of whole shares, being not less than 40 or more than 416, by payroll deductions of up to 10% of annual base compensation over a two-year period in equal instalments beginning 1 November 1997 and ending 29 October 1999. At the end of the second offering, eligible employees exercised their options to purchase 631 493 NV shares at an option price of US $ 47.83, which represents a 10% discount to the market value on the grant date. This discount of US $ 4.4 million was amortised over the 24 month vesting period of the plan. The third offering, also limited to 2 000 000 shares, was held in 1999. Eligible employees can purchase between 30 and 381 shares by means of a maximum payroll deduction of 10% from January 2000 to December 2001. As at 31 December 1999 this represented 557 062 NV shares. The option price of US $ 52.43, 10% below the market value on the grant date, leads to a discount of US $ 3.2 million being amortised over the 24 month vesting period. A summary of the status of the NA Purchase Plan as at 31 December 1999, 1998 and 1997 and the changes during these years is presented below: 00000001111011111011111011111101111101111101111 For the years ended 31 December: 1999 1998 1997 0511110511 0511110511 0511110511 Weighted Weighted Weighted Number average Number average Number average of shares price of shares price of shares price 00000110511 10511 0511 10511 0511 10511 Outstanding at the beginning of the year 785 756 US $ 47.83 912 752 US $ 47.83 1 019 636 US $ 28.89 10511 10511 0511 10511 0511 10511 Granted 633 913 US $ 52.43 — — 918 172 US $ 47.83 Exercised 701 897 US $ 47.83 — — 969 724 US $ 28.89 Forfeited 83 859 US $ 47.83 126 996 US $ 47.83 55 332 US $ 30.74 10511 10511 0511 10511 0511 10511 Outstanding at the end of the year 633 913 US $ 52.43 785 756 US $ 47.83 912 752 US $ 47.83 10511 10511 0511 10511 0511 10511 Options exercisable at the end of the year — — — — — — 00000001111011111011111011111101111101111101111
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Unilever N.V. 1999 Annual Report on
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1 Unilever Annual Report on Form 20
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Financial highlights • Excellent
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Chairmen’s Statement The principa
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Selected financial data Consolidate
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Selected financial data By geograph
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About Unilever History and structur
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Financial review The figures quoted
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Financial review Total borrowings a
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Corporate governance Directors The
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Corporate governance Jan Peelen* Pe
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