Funcom has a stock option plan that is part of the total remuneration package for its employees. The stock option plan covers employees and management as well as Managing and Supervisory Directors and is regarded as a component of the total remuneration offered by the Company. In short, the option plan's main terms and conditions are as follows:
- Funcom's option plan is a major part of the total remuneration to management, key employees and Management and Supervisory Board members.
- The plan is in place to secure a stable workforce and provide an important long term bonus incentive.
- The options vest over a period of several years, with initial vesting happening after 12 months. This is to encourage employees to contribute to the long term value of the business.
- The options have a pre-determined expiration period; when the options expire they cease to exist and can no longer be exercised.
- It is expected that employees and management will exercise options and sell shares whenever the company facilitates the right to take advantage of the stock option plan in accordance with the internal insider trading regulation.
On 6 March 2017 employees of Funcom exercised 689,112 options at an average exercise price of NOK 1.90 per share. The issued share capital after the capital increase pertaining to the stock option exercise is EUR 10,157,966.44 divided into 253,949,161 shares.
The primary insiders listed below transferred their rights to receive shares resulting from the exercise of options to a third party. This third party facilitated the sale of the shares resulting from the exercise of options. The average sale price of NOK 3.16 was determined on the basis of the amount subsequently obtained by the third party when selling the share in the market. The primary insiders could not be held liable for losses incurred by the third party if the shares were sold below the strike price:
- Mrs. Terri Perkins, Legal at Funcom, exercised stock options and transferred the rights to receive shares for 40,000 stock options at an exercise price of NOK 2.005. After the transactions Mrs. Terri Perkins holds 177,667 stock options at conditions as announced previously and 8 shares.
- Mr. Jamie Chen, Senior Billing Programmer at Funcom, exercised stock options and transferred the rights to receive shares for 16,000 stock options at an exercise price of NOK 1.87. After the transactions Mr. Jamie Chen holds 72,000 stock options at conditions as announced previously and no shares.
Badhoevedorp, The Netherlands, 6 March 2017
This information is subject to the disclosure requirements acc. to § 5-12 vphl (Norwegian Securities Trading Act)