AEG 21604 G Manual de usuario descargar pdf (Pagina 289)

F-48

18. Contingencies

Apart from the legal proceedings mentioned below, neither the Company nor its subsidiaries are the subject of

government interventions or a party to legal, or arbitration proceedings which might significantly affect the

Group's profitability. To Managements best knowledge, no such proceedings are pending.

The Group's German subsidiary is currently involved in court proceedings against a customer from which it

seeks to recover approximately EUR 36.0 million against delivery of 104 Power Control Systems and Modules

for silicon reactors under frame agreements entered into on 12 December 2007 and 25 April 2008. According to

Management, the customer had agreed to order a total of 294 Power Control Systems and Modules by 31 De-

cember 2009 under these framework agreements. The legal proceedings are currently pending with the Regional

Court of Stuttgart, Germany. The customer recently filed a counter-claim alleging abuse of dominant market

position. The counter-claim is for Euro 12.7 million plus interest in damages. Management believes the counter-

claim to be groundless and unsubstantiated.

Management believe that any legal proceedings incidental to the conduct of its business, including employee

related actions, are adequately provided for in the condensed consolidated financial statements or will not result

in any significant costs to the Group in the future.

19. Related parties

The Group’s subsidiaries have related party relationships with each other and with the Company. These involve

trading and other intra-group transactions all of which are carried out on an arm’s length basis. Related party

relationships also exist with Board members and managers who have an interest in the equity of the Company.

Furthermore a related party relationship exists with the Executive and Non-Executive members of the Board who

receive remuneration from the Group.

The Company has entered into transition agreements with Messrs Brock and Huljak under the terms of which Mr

Brock and Mr Huljak will step down from their executive roles on August 1 and December 31, 2010 respec-

tively. Under the terms of the agreements Mr Brock and Mr Huljak will receive severance payments totalling

€1.779 million between them. In addition, on the respective date of severance all shares due to them under their

employment contracts become vested. Mr Brock and Mr Huljak are entitled to 100,000 and 50,000 shares re-

spectively. The cost of the share awards recognized in these condensed consolidated interim financial statements

is €1.12 million. Appropriate provisions have been made in the condensed consolidated interim financial state-

ments accounts for the severance and share awards to be made to these executives under the terms of the transi-

tion agreements.

In May 2010 the Company announced the appointment of Dr. Horst J. Kayser as new Chief Executive with ef-

fect from August 1, 2010. Dr. Kayser was appointed to the Board of Directors on July 23, 2010. Under his ser-

vice agreement with the Company, Dr. Kayser is entitled to receive 40,000, 30,000 and 30,000 shares in the

Company on the first, second and third anniversary of his joining the Company respectively.

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AEG 21604 G Manual de usuario Pagina 289