The Board of Directors passed a resolution to grant share options to the members of the Board of Management and a number of senior managers of ALK-Abelló as part of a retention program. 75,000 options will be granted, divided into 6,000 options to each of the five members of the Board of Management and 45,000 shares to a group of senior managers.
The options can be exercised during the period from January 1, 2009 to January 1, 2012 during the four-week trading window following the release of annual and interim reports. If the option holders have not exercised their options within the period specified, the options will lapse without any compensation to the holders. The options will lapse on termination of employment.
The exercise price of the options will be determined as the average of the officially quoted price of the Company’s shares (the average price on the Copenhagen Stock Exchange) during the period March 1 – March 14, 2006 (both days included). To this should be added annual interest at the rate of 6%, which will be added the first time on January 1, 2007. The exercise price of the options will be adjusted on payment of dividend, to the effect that DKK 1 of dividend per share results in a reduction of the exercise price by 1 DKK.
The market value of the adopted option plan of 75,000 options is approximately DKK 14 million applying the Black & Scholes model for valuation of options. In the determination of the value, the assumed exercise price of DKK 947 per share is based on a share price of DKK 750, no dividend distribution, a volatility rate of 35% p.a. and a risk-free interest rate of 3.33% p.a.
Under the international financial reporting standards (IFRS), the option plan will be recognized in the income statement under costs in the respective functional areas over the vesting period.
The grant of share options does not change the Company’s financial forecast for the full year.
No options have been granted to members of the Board of Directors.
Hørsholm, March 1, 2006
ALK-Abelló A/S
Jørgen Worning
Chairman
Contact:
Jørgen Worning, Chairman of the Board of Directors, tel +45 4576 7405