Axactor Annual Report 2016

Note 22 Share based Payment Key employees of the Group receive remuneration in form of share-based payment. During 2016 Axactor AB have granted share options to key employees to subscribe for shares in the Company in 4 different series. The share options exercise price varies from NOK 1, - and NOK 1,30 per share. The share options have a term of 4 years, and are exercisable between 15.02.2018 and 31.12.2020. Employee share options are not subject to any performance-based vesting conditions. The Company have no legal obligation to repurchase or settle the share options or offer cash-settlements for options granted. Non-vested share options are cancelled when the employee has given notice of termination. The total expense recognised for allotment of share options to employees, and arising from the Groups’ equity-settled share based payment plan was approximately SEK 5,6 million for the year ended 31 December 2016. The following table Illustrate the numbers of options granted and their weighted average exercise price: Share option plan 2016 2015 Number of options WAEP (NOK) Number of options WAEP (NOK) Outstanding at the beginning of the year - - - - Granted 12,217,500 1 Granted 12,217,500 1.15 Granted 12,217,500 1.25 Granted 8,597,500 1.3 Expired - Forfeighted - Outstanding at the end of period 45,250,000 1.17 Excercisable at the end of period - - The fair value of the share options Is estimated at the grant date using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the share options were granted. The weighted average fair value of share options granted to employees during the period was NOK 1,53. The following table list the key Inputs to the model using used for the year ended 31 December 2016: The weighted average assumptions used 2016 2015 Expected volatility (%) 0.40 % Risk-free interest rate (%) -0.50 % Expected life of options (year) 4 Turnover adjustment factor 5 % Weighted average share price (NOK) 2.65 Axactor AB | Annual report 2016 54