Share-based payments

An Extraordinary General Meeting of shareholders on December 8, 2003 decided on the introduction of an employee stock option program, according to which all employees in the Active Biotech Group are issued with employee stock options at no charge in accordance with a separate plan. The program covers a maximum of 1,000,000 stock options in total, with each option carrying entitlement to purchase approximately one share. To secure the undertakings pursuant to the employee stock option program, it was decided to issue to a wholly owned subsidiary of Active Biotech a debenture in a nominal value of SEK 1,330 attached to a maximum of 1,330,000 warrants for subscription of shares on conditions corresponding to those applying to the employee stock options (see below). 

The options were allotted on three occasions: Series 1 encompassing 329,825 options was allotted in December 2003, Series 2 encompassing 239,075 options was allotted in June 2005 and Series 3 encompassing 340,000 was allotted in June 2006. Series 1 employee stock options expired on May 31, 2009 without any exercise having taken place. Each Series 2 option entitled the holder to subscribe for 1.23 shares during the period June 1, 2007 to May 31, 2010 at a recalculated price of SEK 38.20. Each Series 3 option entitled the holder to subscribe for 1.23 shares during the period June 1, 2008 to May 31, 2011 at a recalculated price of SEK 58.40.