Elektrobit Group Oyj - ELEKTROBIT AWARDS STOCK OPTIONS TO ENCOURAGE LONG-TERM EQUITY COMMITMENT
June 01, 2006
ELEKTROBIT AWARDS STOCK OPTIONS TO ENCOURAGE LONG-TERM EQUITY COMMITMENT
The Board of Directors of Elektrobit Group Plc. has decided upon the distribution of the stock options, aimed at encouraging long-term equity commitment, issued at the Annual General Shareholders' Meetings held on March 15, 2006 and March 17, 2005. The purpose of the new scheme is to encourage the management to work on a long-term basis to increase shareholder value and reinforce their commitment to the company.
The stock options, aimed at encouraging long-term equity commitment, were originally issued at the Annual General Shareholders' Meeting held on March 15, 2006 were granted to the Chairman of the Board and CEO of Elektrobit Group Plc. The distributed stock options were marked with the symbol 2006A, with 750,000 stock options being awarded to Chairman of the Board and 1,000,000 to the CEO. According to the option clause, the 2006A stock options are granted on the condition that recipients of the options shall purchase the amount, determined at the Annual General Meeting held on March 15, 2006, of shares in Elektrobit Group Plc. either directly or through companies under their control (Chairman of the Board at least 75,000 shares and CEO at least 100,000 shares).
Other Elektrobit management was granted a total of 922,500 stock options with the symbol 2005B in the spring of 2006. At the same time, the remaining 262,500 stock options with the symbol 2005B were granted to Elektrobit Group Plc's subsidiary Elektrobit Technologies Ltd. for distribution to the management employed by or to be recruited by Elektrobit. In accordance with the option clause, certain prerequisites based on the group's financial targets are included in the 2005B stock options. The share subscription period for these stock options shall not commence unless certain performance criteria determined by the Board of Directors have been achieved before the distribution of these stock options. According to the share ownership plan associated with this stock option plan, the management is obliged to use a considerable part of the income earned from the stock options for purchasing the company's shares.
The terms and conditions of the stock options approved at the Annual General Shareholders' Meeting held on March 15, 2006 were published in full in our Stock Exchange Release dated February 15, 2006. Stock options marked with the symbol 2005B were approved at the Annual General Shareholders' Meeting held on March 17, 2005 and the terms and conditions of these stock options were published in full in our Stock Exchange Release dated February 15, 2005. Due to the consolidation of Elektrobit Group Plc. shares as entered into the Finnish Trade register on April 11, 2005, the Board of Directors has changed the terms and conditions of the 2005B stock options accordingly with regard to the number of shares subscribed with the stock options.
Oulunsalo, June 1, 2006
Elektrobit Group Plc.
Board of Directors
