Incentive program

The 2007 Annual General Meeting resolved to introduce a longterm performance-based incentive program under which senior executives and key personnel were allotted employee stock options on condition that the participants become shareholders through their own investment in Haldex shares in the marketplace.

Each share acquired in the marketplace provides entitlement to the allotment, free of charge, of 10 employee stock options, whereby each option provides entitlement to the acquisition of one Haldex share.

Another condition for allotment is that Haldex’s pretax income has increased by more than 7% in relation to the preceding fiscal year. Maximum allotment occurs on condition that pretax income has increased by 20% or more in relation to the preceding fiscal year. The employee stock options will be issued in three series and be allotted in accordance with decisions made by the Board during 2008, 2009 and 2010, respectively. No allotment of the 2008 options will occur.

Buybacks

During 2007, 145,000 Haldex shares were repurchased at an average price of SEK 165 per share. The number of treasury shares at year-end totaled 376,470. Holdings of treasury shares correspond to 1.7% of the total number of shares.

Acquisition of the company’s own shares shall be made on the Stockholm Stock Exchange and is limited insofar as the company’s total holdings of own shares must not exceed 10 per cent of the total number of shares in the company. Transfer of own shares may be made for the purpose of financing possible future corporate acquisitions either on the Stockholm Stock Exchange or in other manner, up to the number of own shares held by the company at the time of transfer, and may be made with deviation from the preferential rights of the shareholders. Transfer of own shares for the purpose of covering certain costs related to the incentive program LTI 2007 may be made on the Stockholm Stock Exchange and shall not exceed 60,000 shares.

Transfer of own shares shall be made at a price determined in close connection to the shares’ quoted price at the time of the Board of Directors’ resolution to transfer the shares.