HOCHTIEF Annual report 2008 - Notes to the Consolidated Financial Statements > Explanatory Notes to the Consolidated Balance Sheet

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The quantities of SARs and stock awards granted, expired and exercised under the Long-term Incentive Plans and under the 2004 TERP are as follows:

	Originally granted	Outstanding at Dec. 31, 2006	Granted in 2007	Expired in 2007	Exercised in 2007	Outstanding at Dec. 31, 2007
LTIP 2003	1,010,900	7,600	-	-	1,000	6,600
LTIP 2004	1,055,900	10,000	-	-	-	10,000
LTIP 2005	885,150	881,550	-	4,000	874,850	2,700
LTIP 2006 - SARs	445,774	441,441	1,333	8,467	-	434,307
LTIP 2006 - stock awards	165,243	163,710	-	4,792	467	158,451
LTIP 2007 - SAR	430,450	-	430,450	7,350	-	423,100
LTIP 2007 - stock awards	110,650	-	110,650	1,250	300	109,100
LTIP 2008 - SAR*	41,250	-	41,250	-	-	41,250
LTIP 2008 - stock awards*	26,950	-	26,950	-	-	26,950
TERP 2004	1,853,901	1,789,866	-	10,677	67,450	171,1739

Provisions recognized for the stated share-based payment arrangements totaled EUR 54,513,000 as of the balance sheet date (2006: EUR 45,240,000). The total expense recognized for the stated arrangements in 2007 was EUR 31,209,000 (2006: EUR 46,041,000). The intrinsic value of SARs exercisable at the end of the reporting period was EUR 7,487,000 (2006: EUR 2,627,000).

26. Provisions for pensions and similar obligations

The Group�s retirement benefits include both defined contribution and defined benefit plans. Under defined contribution plans, the Company pays into a state or private pension fund voluntarily or in accordance with statutory or contractual stipulations and has no obligation to pay further contributions. Under defined benefit plans, the Company�s obligation is to provide agreed benefits to current and former employees. Defined benefit plans can be funded externally or through pension provisions.

Defined benefit plans are mostly in use at HOCHTIEF Aktiengesellschaft, its domestic subsidiaries and the Turner Group (benefits agreed up to December 31, 2003). Since January 1, 2000, pension arrangements in the domestic HOCHTIEF Group have consisted of a company-funded basic pension in the form of a modular defined-contribution plan and a supplementary pension linked to company performance. These benefits are classed as defined-benefit liabilities under IAS 19. The size of the basic pension component depends on employee income and age (resulting in an annuity conversion factor) and a general pension contribution reviewed by HOCHTIEF every three years. The size of the supplementary pension component depends

on growth in IFRS-basis profit before after taxes. The basic pension can be supplemented in this way by up to 20 percent. The pension arrangements in force until December 31, 1999 featured benefit groups based on collective agreements. These benefits were integrated into the new system of retirement benefits as an initial pension component. The entitlements of employees taken over from Siemens and Deutsche Lufthansa in the 2004 fiscal year were also transferred to the HOCHTIEF pension scheme. Benefits comprise an old-age pension, an invalidity pension and a surviving dependants� pension.

Turner changed over from defined benefit to defined contribution plans with effect from January 1, 2004. Depending on length of service and salary level, between three percent and nine percent of an employee�s salary is paid into an external fund. In addition, Turner employees have an option to pay up to five percent of their salaries into an investment fund as part of a 401 (k) plan. Turner steps up the deferred compensation by up to 100 percent depending on length of service. Employees can join the plan after three years� service. The maximum salary amount on which contributions can be based is USD 230,000 in the 2008 fiscal year. Tax relief is granted on payments into the fund; the investment risk is borne by employees. Leighton and Flatiron likewise have defined contribution plans and pay between four and ten percent of salary (before deductions) into an external fund.

HOCHTIEF Aktiengesellschaft�s pension finances were restructured with the creation of a contractual trust arrangement (CTA) as of December 31, 2004. This arrangement was extended to