Until March 31, 2010 the company met the recommendation in the German Corporate Governance Code regarding deductibles for any Directors’ & Officers’ (D&O) liability insurance by obtaining personal declarations from each member of the Board of Management and Supervisory Board. According to these declarations, the members of the Board of Management undertook, should they cause damage to the company or third parties through gross negligence (as defined by German law) in the performance of their duties, to pay for such damage up to the equivalent of half their total annual compensation for the year in which any such damage occurred; the members of the
Supervisory Board undertook until March 31, 2010, to pay for such damage, if caused by them, up to the equivalent of the variable portion of their respective annual compensation as Supervisory Board members for the relevant year.
The company agreed the statutory deductible for members of the Board of Management when the D&O insurance was renewed effective April 1, 2010. It also agreed a deductible for the members of the Supervisory Board in the amount recommended by the German Corporate Governance Code, effective on the same date. The personal declarations referred to above thus became obsolete as of April 1, 2010.