SKEL fjárfestingafélag hf.: Allocation of stock options

The Board of Directors of SKEL has decided to grant certain employees of the company stock options for up to 3,591,141 shares in the company.

The stock option agreements are granted with the purpose of aligning the long-term interests of the company and its employees. The terms of the stock option agreements are in accordance with the stock option plan and the remuneration policy approved at the company’s Annual General Meeting on 7 March 2024, where the shareholders authorized the Board to allocate stock options to employees of the company, other than those key executives who were granted stock options under the stock option plan approved at the Annual General Meeting on 10 March 2022.

• The exercise price of the stock options is ISK 16.3 per share, corresponding to the closing price of the shares as listed on Nasdaq Iceland on the first business day prior to the allocation date. The price shall be adjusted (downward) for future dividend payments and equivalent distributions to shareholders and adjusted (upward) by annual interest equal to 3% above the risk-free interest rate from the issue date until the first possible exercise date for each exercise period.
• The vesting period is three years from the allocation date, after which the exercise period begins immediately. At that time, one-third of the stock options may be exercised; one-third may be exercised one year thereafter, and the final one-third may be exercised one year after that.
• Payment for the option shares shall be made in cash when and if the options are exercised.
• A specified portion of the option shares, equal to 15% of the realized gain of the option holder (if any), after deduction of all taxes and other mandatory charges, in the form of shares in the company, shall be retained until termination of employment.
• As a general rule, stock options lapse during the vesting period if the employment relationship between the option holder and the company is terminated.

Following the allocation of these stock options, the total number of outstanding stock options granted by SKEL to its key employees amounts to 111,194,084 shares, or approximately 5.92% of the company’s share capital.

Further information is available from Ásgeir Helgi Reykfjörð Gylfason, CEO of SKEL (fjarfestar@skel.is).