Today, Wavin - Jaarverslag.com

Wavin Annual Report 2010 | page 124The terms and conditions relating to the grants of the Long Term Incentive Plan are as follows:NUMBER OFINSTRUMENTSGRANTEDNUMBER OFINSTRUMENTSAFTERREVERSESTOCK SPLIT*VESTING CONDITIONSYEAR OFVESTINGYEAR OF EXPIRY(OPTIONS) /HOLDINGPERIOD(SHARES)Conditional performance options granted in 2008 919,440 104,897 4 years’ service and Ebitda growth target 2012 2015Conditional performance options granted in 2009 771,517 96,456 4 years’ service and Ebitda growth target 2013 2016Conditional performance options granted in 2010 752,445 94,104 4 years’ service and Ebitda growth target 2014 2017Total performance options 2,443,402 295,457Conditional matching shares granted in 2008 153,301 17,511 3 years’ service 2011 2013Conditional matching shares granted in 2009 128,586 16,095 3 years’ service 2012 2014Conditional matching shares granted in 2010 125,429 15,705 3 years’ service 2013 2015Total conditional shares 407,316 49,311* Number of instruments after reverse stock split includes the effect of actual forfeitures at the time of the reverse stock split.The number of the granted shares and options are as follows:2010 2009WEIGHTEDAVERAGEEXERCISEPRICE**NUMBER OFPERFORMANCEOPTIONSNUMBER OFMATCHINGSHARESWEIGHTEDAVERAGEEXERCISEPRICE*NUMBER OFPERFORMANCEOPTIONSNUMBER OFMATCHINGSHARESOutstanding at 1 January 1.93 1,529,880 254,980 7.29 374,580 62,455Granted during the period 752,445 125,429 314,316 52,386Forfeited during the period (9,175) (4,559) (161,077) (26,907)Effect rights issue – – 1,002,061 167,046Effect of reverse stock split (1,998,359) (333,081) – –Outstanding at 31 December 14.09 274,791 42,769 1.93 1,529,880 254,980Exercisable at 31 December – – – – – –* The weighted average exercise price per 31 December 2009 is affected by the rights issue and granted options in 2009.** Weighted average exercise price per 31 December 2010 is affected by the reverse stock split and granted options in 2010.The fair value of the matching shares is determined using the Black-Scholes model. Given that the Wavin shares are listed asfrom 11 October 2006, insuffi cient historical share price data is available for determining the historical volatility of the Wavinshares for a period equal to the life of the options granted. Therefore we have analysed the historical share price developmentof comparable companies in order to determine the expected volatility to be applied. The fair value of the performanceoptions at grant date is determined using a binominal tree valuation methodology.