össur annual report2009 - Euroland

25. retained earnings
RETAINED
EARNINGS
At 1 January 2008 52,677
Transferred to statutory reserves ( 162 )
Net profit 28,488
At 1 January 2009 81,003
Transferred to statutory reserves ( 62 )
Net profit 22,706
At 31 December 2009 103,647
26. stock option contracts
and obligations to increase share capital
The Company has in place a share option plan, approved at the Company’s Annual
General Meetings, under which managers may be granted options to purchase ordinary
shares at an exercise price, which is the average of the Company’s share price twenty
working days prior to the grant date.
Each employee share option converts into one ordinary share on exercise. No amounts
are paid or payable by the recipient on receipt of the option. The options carry neither
rights to dividends nor voting rights. The options expire one month after the exercise
date.
The Company’s listing on NASDAQ OMX Copenhagen activated a clause in the share
option agreements changing the exercise price from ISK to DKK using the exchange rate
at grant date. This lowered the estimated remaining cost due to the stock option contracts
by USD 0.8 million.
The following share-based payment arrangements were in existence at year end:
GRANT/ fAIR VALUE
NUMBER
ISSUE
DATE
ExERCISE ExERCISE AT GRANT
DATE pRICE DKK DATE (i)
Issued to Executive Management 1,540,000 5.2.07 1.12.11 7.8 5.5
Issued to President and CEO 1,250,000 5.2.07 1.12.11 7.8 5.5
Issued to Management team 1,950,000 23.2.08 23.2.12 6.9 5.5
Issued to Executive Management 500,000 15.7.08 15.7.12 5.4 5.5
Issued to Management team 200,000 2.3.09 2.3.13 4.4 5.2
Issued to Management team 300,000 15.12.09 15.12.13 5.2 5.2
Total issued option contracts 5,740,000
(i) Date of conversion in DKK.
The employee must remain continuously employed with Össur until expiring date, either
as an employee or in any other way, deemed satisfactory by the Company.
2009 2008
WEIGHTED WEIGHTED
NUMBER Of AVERAGE NUMBER Of AVERAGE
SHARES (IN CONTRACT SHARES (IN CONTRACT
THOUSANDS) RATE (IN DKK) THOUSANDS) RATE (IN ISK)
Outstanding at beginning of year 5,740 7.2 3,098 92.3
Granted during the year 500 4.9 3,150 91.2
Forfeited during the year ( 500 ) 6.9 ( 508 ) 91.9
Outstanding at the end of the year 5,740 7.0 5,740 91.7
Estimated remaining cost due to the stock option contracts are USD 1.0 million which
will be expensed over the next four years. An expense of USD 0.5 million is recognised in
the Income Statement for the period.
All amounts in thousands of USD 89 annual report 09
Össur hf. consolidated financial stateMents 2009