Aspiro has outstanding staff stock option plans for the CEO, senior executives and other key Aspiro staff.
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.