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Chapter
34 /
Share-Based Payments (l FRS 2)
395
De~criptiml
gf granlr
A.C. Moberg:
5-year2003
grant'
5-year 2004 grant
5-year2005
grant"
10-year 2003 grant'
IO-year 2004 grant
JO-year 2005 grant'
Outstanding at
Granted Exercised
Forfeited
Expired
Outstanding
beginning
of
during
during
during
during at the end
of
Exercise
Expiration
2.QQ2
2QQ2
2QQ2
2QQ2
2QQQ
~
tuia:
dais.
500.000
500.000
5.20
05/04/2008
50.625
50.625
5.83
12/28/2008
60.750
60.750
6.36
04/03/2010
500.000
500.000
5.20
05/04/201 3
50.625
50.625
5.83
12128/2013
60.750
60.750
6.36
04/0312015
P.N. Wakkie:
5-year 2005 grant'
IO-year 2005 grant'
Subtotal Corporate
Executive Board
Members
Weighted-average
exercise price
Other
employees
5-year
8-year
IO-year
Subtotal other
employees
Tota l options)
Weighted average–
exercise price
Weighted-average
share price at date
of exercise
45.000
45.000
45.000
45.000
1.312,750
1,312.750
5.44
5.44
11.384,435
67.500
108.284
760.272 3.848.413 6.734 .966
9.394.967
175,715
606. 177
8.573.075
10.097.564
67.500
56.098
508.098
366.749 9.234.101
30.876.966 135.000
340.097 1.874.547 4.215.162 24.542.142
32.189.698 135.000
360.097 1.874.547 4.215.162 25.874.892
6.46
6.12
14.83
31.07
11.4
7.30
6.36
6.36
8.64
6.36
18.22
11.44
11.14
04/03/20 10
04/03/2015
, Special grant effective May
5.
2005.
1
This
represents
the maximum (120%
Ievelt
number of options.
J
The
number
of
outstanding
options at the beginning of 2006 has been adjusted
by
1.487.950 options.
These
optio ns were
erroneously
reported as
forfeited in prior years. as a result of clerical errors.
The following table summarizes information about the outstanding share optio ns for all
emp loyees at December 31. 2006:
Weighted-
Weighted-
Number
average
Number
average
Range of
outstanding
at
Weighted-
remaining
exercisable at
Weighted-
remaining
exercise
December 31.
average
contractual
December 31.
average
contractual
prices EUR
2006
exercise price
years
2006
exercise price
years
5.20-11.65
21.979.543
7.56
4.76
12.859.968
8.41
3.72
15.18-22.17
396.272
22.17
0.99
396.272
22.17
0.99
25.38-29.39
539.975
29.15
3.03
539.975
29.15
3.03
30.26-34.36
2959 102
32.98
4.13
2959102
32.98
4.13
Tota l
25.874,892
16,755,317
The aggrega te intrinsic value of options exercisable at December 3 1, 2006 , amounts to EUR16.
Valuation model and input variables
The weighted-average fair value of the share options granted in 2005 and 2004 amounts to
EUR2 .30 and EUR2.12 respec tively . These fair values were calculated using the Black-Scholes–
Merton formu la and the following assumptions:
Weighted-average assumntions
Expected life of the option (years);
5-year options
8-yearoptions
lO-year options
Interest rate
Volatility
Assumedannual forfeitures
Assumed dividend yield
4.0
5.5
6.0
3.0%
43.0%
5.0%
2.0%
4.0
6.0
3.5%
45.0%
5.0%
2.0%
The effects of expec ted early exercise have been incorporated into the calc ulation by using an
expected life of the share option that is shorter than the contract ual life. Expec ted volatility has been
determined based on historical volatility, whereby the extraordinarily volatile month after Feb–
ruary 24, 2003 , has been excluded.