Aspiro has employee incentive programme directed to the CEO, senior executives and other key-employees in Aspiro.
The Annual General Meeting 2005 resolved on an incentive programme comprising a total of 10,000,000 options of which 7,900,000 was allotted. These options could be exercised by one-third each year from May 2006 up to and including May 2008. Each employee option entitled to one warrant for immediate subscription of a new share in Aspiro at a redemption price of SEK 3.77. Last date to sign for this programme was 30 May 2008.
At the Annual General Meeting 2006 it was resolved to issue an additional 2,100,000 employee options, of which 2,000,000 has been allotted, as a complement to the incentive programme resolved in 2005. These options may be exercised by one-third each year from July 2007 up to and including August 2009. Each employee option entitles to one warrant for immediate subscription of a new share in Aspiro at a redemption price of SEK 4.44.
At the Annual General Meeting 2007 it was resolved to issue an additional 1,800,000 employee options, of which 1,550,000 has been allotted, as a complement to the incentive programme resolved in 2005. These options may be exercised by one-third each year from May 2008 up to and including May 2010. Each employee option entitles to one warrant for immediate subscription of a new share in Aspiro at a redemption price of 2.88 SEK.
At the Annual General Meeting 2008 it was resolved to issue an additional 5,000,000 employee options. These options can be exercised by half from 30 June 2009 and by half at 30 June 2010. Each employee option entitled to one warrant for immediate subscription of a new share in Aspiro at a redemption price of SEK 1.76. Employees that has been allotted options in this programme is at the same time denied the right to exercise employee options from previous programmes.
The staff stock option plan approved by the Annual General Meeting (AGM) 2008 was the first phase of a three-year stock option scheme. The AGM 2009 approved the second phase of this scheme, the staff stock option plan 2009/2011, involving the issuance of another 5 million staff stock options, largely consistent with the terms and conditions for the staff stock option plan 2008/2010, with the addition of a performance requirement regarding the company’s net sales. These options can be exercised from the AGM 2010 to 30 June 2011, both dates inclusive. Each staff stock option entitles the holder to receive one warrant for immediate subscription for one Aspiro share at an exercise price of SEK 1.30.
10 million warrants are being held by a group company for the correct fulfillment of the company’s commitments in staff stock option plans.
The cost of the staff stock options is reported pursuant to IFRS 2. The fair value of options at the grant date is calculated using the Black & Scholes model for valuing options without adjustment for potential dilution. The cost is allocated on a straight-line basis over the term of the options. Provisioning for social security contributions is conducted proceeding from the fair value of options on the relevant reporting date, pursuant to the statement from RFR (Rådet för finansiell rapportering, the Swedish Financial Reporting Board, UFR 7 IFRS 2 and social security contributions for listed companies).
The purpose of the staff stock options is to offer senior executives of the company and key staff an incentive, whereby they are offered the opportunity to benefit from the value growth of the company’s stock. This is expected to accentuate interest in the company’s performance, and the company’s stock price, and stimulate continued loyalty to the company through the coming years. The stock option scheme is also expected to help the Aspiro group hire and retain skilled employees.
Upon full exercise of all outstanding warrants, share capital could increase by a total of SEK 10 m, corresponding to some 5% of the company’s share capital after the increase.
There is no right to renegotiate the terms of the stock option plans. However, Aspiro is entitled to amend the terms and conditions of the options if required by law, court rulings or decision by public authorities, or it is otherwise expedient or necessary for practical reasons and the rights of option-holders do not deteriorate in any respect.