Reebok 2010 Annual Report Download - page 226

222 Consolidated Financial Statements Notes Notes – Additional Information
Equity compensation benefits 38
Management Share Option Plan (MSOP) of adidas AG Management Share Option Plan (MSOP) of adidas AG
Under the Management Share Option Plan (MSOP) adopted by the shareholders of adidas AG on
May 20, 1999, and amended by resolution of the Annual General Meeting on May 8, 2002, and on
May 13, 2004, the Executive Board was authorised to issue non-transferable stock options for up
to 1,373,350 no-par-value bearer shares to members of the Executive Board of adidas AG as well
as to managing directors/senior vice presidents of its related companies and to other executives
of adidas AG and its related companies until August 27, 2004. The granting of stock options took
place in tranches not exceeding 25% of the total volume for each fiscal year.
A two-year vesting period and a term of approximately seven years upon their respective issue
applied for the stock options.
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, 2009 0 — 0 — 0 — 11,200 6.40 4,600 4.00
Forfeited during the period 0 — 0 — 0 — 300 0.00 500 82.60
Exercised during the period
May 2009 1 ) 0.00 0 — 0 — 0 — 0 — 0 —
Aug. 2009 1 ) 136.48 0 — 0 — 0 — 0 — 4,100 82.60
Nov. 2009 1 ) 0.00 0 — 0 — 0 — 0 — 0 —
Expired during the period 0 — 0 — 0 — 10,900 0.00 0 —
Outstanding as at Dec. 31, 2009 0 — 0 — 0 — 0 — 0 —
Exercisable as at Dec. 31, 2009 0 — 0 — 0 — 0 — 0 —
Outstanding as at Jan. 1, 2010 0 — 0 — 0 — 0 — 0 —
1) Due to the share split effective May 2006, one option grants the right to purchase four shares. Accordingly, the share price information refers to four shares each.
There were no stock options outstanding at the end of the years ending December 31, 2010 and
2009. No stock options were issued during 2010.
Stock options could 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 could only be exercised against payment of the exercise price. The exercise price
corresponded 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 was 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 stipulated that the stock options could have been used for existing
common shares in lieu of new shares from the contingent capital, or in the place of common
shares the discount was paid in cash.
The new shares participated in profits from the beginning of the year in which they were
issued.