In 2006, the Supervisory Board established an incentive scheme for the Executive
Board of Solar A/S and in 2008, for the Management Team in the Solar Group. The
scheme is based on options that entitle the holder to buy shares from the
company's holding of treasury shares. The reason for introducing the scheme was
to seek to bind employees closer to the group as well as to establish a share
price-dependent incentive for participants, thus enhancing agreement between the
interests of shareholders and participants. As at 31 December 2009, share
options outstanding totalled 112,799.
The Supervisory Board will also issue options to the Executive Board and
Management Team in 2010. The exercise price is fixed at DKK 370.04 based on the
average price on NASDAQ OMX Copenhagen for the first 10 business days after
publication of Annual Report 2009. 26,088 options will be issued in 2010.
The market value of the issued options has now been determined at € 0.4m. Market
value is calculated in accordance with the Black-Scholes model with a volatility
of 41% (calculation based on the past 36 months), an interest-rate level of 5%
and a share price of DKK 378.96, and it is assumed that the issued options will
be exercised in March 2013. The measurement takes into consideration future
dividend distribution corresponding to 3% of the share price.
Yours faithfully,
Solar A/S
Flemming H. Tomdrup
