Aspiro has outstanding staff stock option plans for the CEO, senior executives and other key Aspiro staff.
The AGM 2005 resolved on a stock option plan involving 10,000,000 staff stock options, of which 7,900,000 were granted. One-third of these options could be exercised each year from May 2006 to May 2008, both dates inclusive. Each staff stock option entitled the holder to receive one warrant for immediate subscription for one newly issued Aspiro share at an exercise price of SEK 3.77. The final subscription date for this plan was 30 May 2008.
The AGM 2006 resolved to issue 2,100,000 staff stock options as a supplement to the plan resolved in 2005. 2,000,000 of these stock options have been granted. One third of these options could be exercised per year between July 2007 and August 2009, both dates inclusive. Each staff stock option entitled the holder to receive one warrant for immediate subscription for one newly issued Aspiro share at an exercise price of SEK 4.44.
The AGM 2007 resolved to issue 1,800,000 staff stock options as a supplement to the plan resolved in 2005. 1,550,000 of these stock options have been granted. One third of these options could be exercised per year between May 2008 and May 2010, both dates inclusive. Each staff stock option entitled the holder to receive one warrant for immediate subscription for one newly issued Aspiro share at an exercise price of SEK 2.88.
The AGM 2008 resolved to issue 5,000,000 staff stock options. Half of these options could be exercised from 30 June 2009 onwards and the remaining half on 30 June 2010. Each staff stock option entitled the holder to receive one warrant for immediate subscription for one newly issued Aspiro share at an exercise price of SEK 1.76. Staff granted options in this plan simultaneously surrendered the right to exercise staff stock options from previous plans, which means that all previously issued staff stock options have expired.
The staff stock option plan resolved at the AGM 2008 was the first part of a three-year stock option plan. The AGM 2009 resolved on the second part of the stock option plan, the stock option plan 2009/2011, involving the issue of another 5,000,000 staff stock options, mainly consistent with the terms of the staff stock option plan 2008/2010 with the addition of a performance requirement regarding the company’s net sales. These options could be exercised from the AGM 2010 to 30 June 2011, both dates inclusive. Each staff stock option entitled the holder to receive one warrant for immediate subscription for one newly issued Aspiro share at an exercise price of SEK 1.30. 30 June 2011 2,315,000 of these stock options were exercised.
The AGM 2010 resolved to issue 5,000,000 staff stock options. Half of these options can be exercised one year after issuance and the other two years after issuance, however no later than 31 December 2012. Each staff stock option entitles the holder to receive one warrant for immediate subscription for one newly issued Aspiro share at an exercise price of SEK 1.91.
The EGM 2011 on 10 October 2011 resolved to issue 5,000,000 staff stock options. The staff stock options was primarily issued in relation to the EGM. Issue to new employees can take place up until 30 June 2012. The staff stock options can be exercised from 1 October – 31 December 2014. Each staff stock option entitles the holder to receive one warrant for immediate subscription for one newly issued Aspiro share at an exercise price of SEK 1.39.
10 million warrants are being retained by group companies for the correct fulfillment of the company’s obligations in the staff stock option plan. Expenses for stock options are reported pursuant to IFRS 2. The fair value of options at issuance is calculated according to the Black & Scholes general model for valuing options without restatement for potential dilution. The expenses are allocated on a straight-line basis over the term of the options. Provisioning for social security expenses is based on the fair value of options at each reporting date, pursuant to statement UFR 7 IFRS 2 on social security expenses for listed companies from RFR. (Rådet för finansiell rapportering, the Swedish Financial Reporting Board).
The purpose of the staff stock options is to provide senior executives of the company and key staff with an incentive whereby they are offered the opportunity to participate in value growth of the company’s stock. This is expected to enhance interest in the company’s progress, and its stock price performance, and to stimulate continued loyalty to the company through the coming years. The option plan is also expected to contribute to the Aspiro group being able to hire and retain competent staff.
Upon full exercise of all outstanding warrants, share capital could increase by a maximum of SEK 10 m, or some 4.8% of the company’s share capital after the increase.
There are no rights to renegotiate the terms of the stock option plans. However, Aspiro is entitled to amend the option terms if required due to legislation, court rulings or regulatory decisions, or if other practical reasons make it expedient or necessary, and the rights of option holders are not impaired in any way.