What is the primary purpose of these Rule 10b5-1 trading plans?

The primary purpose is to allow corporate officers and directors to pre-arrange the sale of company stock and exercise of stock options at a time when they do not possess material non-public information. This provides a structured way to diversify personal investments and manage stock options before they expire, while avoiding potential insider trading concerns.

Will the CEO's stock ownership decrease significantly due to these plans?

No, the plans are structured to prevent a significant decrease in ownership. In fact, the plans are designed to ensure that net shares acquired through option exercises may not all be sold, potentially increasing Mr. Lane's overall ownership position over time. Furthermore, his current holdings and the structure of the plans ensure his ownership remains well above the company's stock ownership guidelines.

Are these trades subject to public disclosure?

Yes, transactions conducted under these Rule 10b5-1 plans will be publicly disclosed as they occur through Form 4 filings with the Securities and Exchange Commission.

Will other executive officers also be selling stock?

Yes, other executive officers, including the President of the Agricultural Division, the Chief Financial Officer, and the General Counsel, have also adopted similar Rule 10b5-1 trading plans. These plans allow for transactions to occur from time to time through May 2006.

DE 8-K SEC Disclosure — Jun 1, 2005

Summary

Deere & Company (DE) filed an 8-K report on May 31, 2005, to disclose that its Chairman and CEO, Robert W. Lane, along with other executive officers, have adopted pre-arranged stock trading plans under Rule 10b5-1. These plans allow insiders to exercise stock options and sell company stock according to a predetermined schedule, ensuring transactions are made without possession of material non-public information. Mr. Lane's initial plan, commencing no earlier than September 18, 2005, permits the exercise of up to 522,454 options and the sale of up to 19,163 shares by December 23, 2005. These plans are designed to allow for gradual diversification of holdings and to manage option expiration, while importantly, all plans are structured to ensure executive ownership remains above the company's compensation committee's stock ownership guidelines.

Key Highlights

1CEO Robert W. Lane and other senior executives have adopted Rule 10b5-1 trading plans.
2These plans facilitate the orderly exercise of stock options and sale of company stock.
3Transactions are executed without the executives being in possession of material non-public information.
4CEO Lane's initial plan starts September 18, 2005, and runs through December 23, 2005.
5CEO Lane's plan allows for the exercise of up to 522,454 options and the sale of up to 19,163 shares.
6Other executive officers (e.g., CFO, President of Ag Division) have also adopted similar plans, with transactions through May 2006.
7All adopted plans ensure executive stock ownership remains above company guidelines (CEO > 5x annual salary, others > 3.5x annual salary).

DEERE & CO 8-K Report, Corporate Update (Jun 1, 2005)

Summary

Key Highlights

Frequently Asked Questions