In 2006, the Supervisory Board established an incentive scheme for the Executive
Board 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 grant options to the Executive Board and
Management Team in 2010. The exercise price is fixed at the average price on
NASDAQ OMX Copenhagen for the first 10 business days after publication of Annual
Report 2009 on 10 March 2010. Grant date is 25 March 2010 when the exercise
price will also be calculated. The number of options is not fixed until this
date but is expected to total approximately 30,000 share option. The Supervisory
Board also plans to grant options in the years ahead.
Options issued in 2010 can be used to acquire shares in the company in 2013 and
2014. However, exercise can only be made within the first 10 banking days
following publication of the company's annual reports for 2012 and 2013,
respectively.
Exercise of the options is conditional on the individual employee not having
resigned from the group before the exercise date.
The issued options are estimated to have a total market value of approximately €
0.3m. Market value of the options issued is calculated using the Black-Scholes
model with a volatility of 41% (calculation based on the past 36 months), an
interest-rate level of 5%, a share price of DKK 330 and subject to granted
options being exercised in March 2013. The measurement takes into account future
dividend distribution, corresponding to 4% of the share price.
Yours faithfully,
Solar A/S
Flemming H. Tomdrup
