Incentive program

The Annual General Meetings in 2010 resolved to introduce a long-term performance-based incentive program under which senior executives and key personnel would be allotted employee stock options on condition that the participants become shareholders by making their own investment in Haldex shares in the stock market.

Under the 2010 program, each share acquired in the market provides entitlement, free of charge, to an allotment of ten employee stock options, whereby each option provides entitlement to the acquisition of 1.0 Haldex share. A prerequisite for allotment was that the company’s operating margin exceeded 1%, excluding restructuring costs and nonrecurring costs/revenues from acquisitions or divestments during the 2010 fiscal year. Maximum allotment would occur if the company’s operating margin, subject to the above, exceeded 4%. The employee stock options would be allotted based on the company’s earnings outcome in 2010 and in accordance with decisions taken by the Board during 2011. Maximum allotment occurred in 2011.

According to the conditions in the program, the program was recalculated due to the capital structure changes that occurred due to the demerger of the group. Both strike price and number of shares that each option entitles to has been recalculated in accordance with generally accepted methods whereby the demerger and the new capital structure has not affected the cost for the Group or the benefit for the employee.