Reebok 2008 Annual Report Download - page 198

194 Consolidated Financial Statements Notes
The remaining contractual lives for stock options outstanding at the end of the period are pre-
sented as follows: Tranche IV (2002) until July 2009 and Tranche V (2003) until July 2010.
For stock options outstanding at the end of the period it is not possible to disclose the range of
exercise prices because they are dependent on future share price development.
No stock options were issued during the year under review.
Stock options may only be exercised subject to the attainment of at least one of the following
performance objectives:
(1) Absolute Performance: During the period between the issuance and exercise of the stock
options, the stock market price for the adidas AG share – calculated upon the basis of the “total
shareholder return approach” – has increased by an annual average rate of at least 8%.
(2) Relative Performance: During the same period, the stock market price for the adidas AG
share must have developed by an annual average of 1% more favourably than the stock market
prices of a basket of global competitors of the adidas Group and in absolute terms may not
have fallen.
The stock options may only be exercised against payment of the exercise price. The exercise
price corresponds to the arithmetical mean of the closing price of the adidas AG share over
the last 20 trading days of the respective exercise period, less a discount, based on the extent
to which the share price at exercise exceeded the absolute and relative performance hurdles
outlined above. In any case, the exercise price shall be at least the lowest issue price as stated in
§ 9 section 1 of the German Stock Corporation Act (AktG), currently € 1.00 (i.e. € 4.00 per option).
Option terms and conditions stipulate that the stock options may be used for existing common
shares in lieu of new shares from the contingent capital, or in the place of common shares the
discount is paid in cash.
The new shares participate in profi ts from the beginning of the year in which they are issued.
Management Share Option Plan (MSOP)
Tranche I (1999) Tranche II (2000) Tranche III (2001) Tranche IV (2002) Tranche V (2003)
Share price
in € Number
Exercise
price in € Number
Exercise
price in € Number
Exercise
price in € Number
Exercise
price in € Number
Exercise
price in €
Originally issued 266,550 335,100 342,850 340,850 88,000
Outstanding as at Jan. 1, 2007 0 — 8,050 4.00 12,150 4.00 30,625 43.84 7,800 4.00
Forfeited during the period 0 — 0 — 300 4.00 150 4.00 1,000 4.00
Exercised during the period
May 2007 1) 183.24 0 — 3,900 4.00 2,100 4.00 7,600 4.00 900 4.00
Aug. 2007 1) 172.36 0 — 0 — 400 4.00 575 4.00 0 —
Nov. 2007 1) 188.88 0 — 0 — 700 4.00 3,300 4.00 0 —
Expired during the period 0 — 4,150 4.00 0 — 0 — 0 —
Outstanding as at Dec. 31, 2007 0 — 0 — 8,650 4.00 19,000 4.00 5,900 4.00
Exercisable as at Dec. 31, 2007 0 — 0 — 8,650 4.00 19,000 4.00 5,900 4.00
Outstanding as at Jan. 1, 2008 0 — 0 — 8,650 4.00 19,000 4.00 5,900 4.00
Forfeited during the period 0 — 0 — 600 4.00 850 5.20 0 —
Exercised during the period
May 2008 1) 173.92 0 — 0 — 4,950 4.00 5,150 4.00 1,000 4.00
Aug. 2008 1) 154.44 0 — 0 — 0 — 1,800 6.40 300 4.00
Nov. 2008 1) 0.00 0 — 0 — 0 — 0 — 0 —
Expired during the period 0 — 0 — 3,100 4.00 0 — 0 —
Outstanding as at Dec. 31, 2008 0 — 0 — 0 — 11,200 6.40 4,600 4.00
Exercisable as at Dec. 31, 2008 0 — 0 — 0 — 11,200 6.40 4,600 4.00
1) Due to the share split effective May 2007, one option grants the right to purchase four shares. Accordingly, the share price information refers to four shares each.