IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

Wiley l FRS: Practical Implem entation Guide and Workbook

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2004-2006 Performan ce Sha re Gra nt Main characteristics

Effective January 2004, Ahold launched a one-off share bonu s plan for a limited number of em– ployees, the 2004-2005 Ahold Performance Share Grant Plan (the "PSG" Plan). This is a performance-related share grant plan based on the development of Ahold' s Total Shareholder Return ("TSR") benchmarked against the TSR development of a selected group of 10 companies (including Ahold) with the same core activities as Ahold. The peer group consists of the following companies : Sysco Corporation, Wal-Mart Stores, Inc., Safeway Inc., Delhaize Group, The Kroger Co., Casino SA., Metro A.G., Carrefour S.A., and Tesco PLC. TSR development is measured over the 2004-2006 period. The starting value of each of the share prices of the peer group is defined as the average share price for the last six months of 2003 . The ending value is defined as the average share price for the last six months of 2006, with dividends added. The PSG plan ended on December 31, 2006, and based on the relative TSR performance, Ahold ranked seventh in the peer group. As a consequence no The fair value of the 2004-2006 Performance Share Grant has been calculated using a Monte Carlo simulation model. The most important inputs are the historical volatilitie s in the share price of each of the shares of the peer group companies between January 1, 200 1 and December 31,2003 . The fair value resulting from the Monte Carlo simulation, adj usted for forfeitures, has been recognized ratably over the three-year period of the plan. Restricted shares retention agreements for key management In 2003, Ahold granted restricted shares to certai n key officers under individual key management retention agreements. The size of the grant was adjusted in 2004 due to the dilutive effect of the rights issue in December 2003. Vesting of 868,750 shares and 765,000 shares occurred in July 2004 and December 2004, respectively. Total compensation expense has been recognized ratably over the vesting period of these grants. 10.2 ADIDAS GROUP, Annual Report 2006 Notes 33. Equity Compensation Benefits Management Share Option Plan (MSOP) ofadidas AG Under the Management Share Option Plan (MSOP) adopted by the shareholders of adidas AG on May 20, 1999, and amended by resolution of the Annual General Meeting on May 8, 2002, and on May 13, 2004 the executive board was authorized to issue nontransferable stock options for up to 1,373,350 no-par value bearer shares to members of the executive board of adidas AG as well as to managing directors/senior vice presidents of its related companies and to other executives of adidas AG and its related companies until August 27, 2004. The granting of stock options was able to take place in tranches not exceeding 25% of the total volume for each fiscal year. There is two-year vesting period for the stock options and a term of approximately seven years upon their respective issue. shares have vested under this plan. Valuation model and input variables