1 EXHIBIT 1.2 [CHRYSLER CORPORATION LETTERHEAD] William J. O'Brien Vice President General Counsel and Secretary July 6, 1995 Mr. Lee A. Iacocca Lee Iacocca & Associates, Inc. 1440 S. Sepulveda Blvd., 3rd Floor Los Angeles, CA 90025 OUTSTANDING STOCK OPTIONS Dear Lee: At a meeting this morning, the Board of Directors of Chrysler Corporation carefully reviewed the letter submitted on your behalf. Based upon the Board's review of the requirements of the Plan, the Board has determined that the conditions precedent to stock option exercise specified in the Plan have not been satisfied, and that, accordingly, the Company will not process the option exercise request made on your behalf last week. Sincerely, Bill WJO: mc