Fiat and UST establish exercise price for Call Option

In addition, the UST has agreed to assign to Fiat all of the UST’s rights under the Equity Recapture Agreement entered into between UST and VEBA on June 10, 2009, for a price of US$75 million.

Under the Equity Recapture Agreement, the holder retains the economic benefits associated with the Chrysler ownership interests held by VEBA above a specified threshold (equal to $4.25 billion plus 9 percent per annum compounded annually from January 1, 2010).

Under the Equity Recapture Agreement, any proceeds to VEBA from its Chrysler membership interests that exceed the specified threshold are paid over to the holder along with any membership interests retained at the time in excess of that threshold.

In addition, the holder has a right to purchase all of the membership interests retained by VEBA for a purchase price equal to the specified threshold less any proceeds previously received by VEBA from its membership interests in Chrysler.1 Both transactions will be consummated upon receipt of the requisite regulatory approvals.

“On behalf of my family and I,” commented Fiat’s Chairman, John Elkann, “I reiterate our confidence in Sergio Marchionne and his leadership team and our support of all the people at Fiat and Chrysler who are working with dedication and humility and have made it possible to repay the trust that the U.S. government demonstrated towards us a mere 23 months ago. We will continue to support them as they further strengthen this historic alliance and together build an international automotive group capable of competing with the very best in the automotive market.”


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