{"id":7080,"date":"2021-08-23T19:09:52","date_gmt":"2021-08-23T19:09:52","guid":{"rendered":"https:\/\/magilex.com\/?p=7080"},"modified":"2023-04-07T13:15:15","modified_gmt":"2023-04-07T13:15:15","slug":"option-agreement","status":"publish","type":"legal_template","link":"https:\/\/www.magilex.com\/et\/legal-template\/option-agreement-7080\/","title":{"rendered":"Option Agreement"},"content":{"rendered":"

OPTION AGREEMENT<\/strong><\/p>\r\n

<\/p>\r\n

This Option Agreement (hereinafter the \u201cAgreement<\/strong>\u201d) has been entered into on [date<\/mark>]\u00a0by and between:<\/p>\r\n

[Name of Issuer<\/mark>], registry code [code<\/mark>], address [address<\/mark>]\u00a0(hereinafter the \u201cIssuer<\/strong>\u201d), represented by the representative named on the last page of the Agreement and
[Name of Option Holder<\/mark>], id code [id code<\/mark>], address [address<\/mark>] (hereinafter \u201cOption Holder<\/strong>\u201d),<\/p>\r\n

the Issuer and the Option Holder hereinafter each individually also referred to as a \u201cParty<\/strong>\u201d\u00a0and both collectively also referred to as the \u201cParties<\/strong>\u201d.<\/p>\r\n

The Parties have agreed as follows:<\/p>\r\n

1. Definitions
<\/strong>Unless expressly otherwise stated in the Agreement, the following capitalised terms used in the Agreement shall have the following meanings in the Agreement, the singular (where appropriate) shall include the plural and vice versa and references to Schedules and Sections shall mean Schedules and Sections of this Agreement:<\/p>\r\n

\r\n\r\n\r\n\r\n\r\n\r\n\r\n
\u00a0<\/td>\r\n\r\n

“Share<\/strong>“<\/p>\r\n<\/td>\r\n

\u00a0<\/td>\r\n\r\n

registered common share of the Issuer with a nominal value of EUR [number<\/mark>].<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\u00a0<\/td>\r\n\r\n

\u201cSubscription Period<\/strong>\u201d<\/p>\r\n<\/td>\r\n

\u00a0<\/td>\r\n\r\n

term, during which the Option Holder has the right to subscribe for the Shares on the basis of the Options, which term shall be specified for each series of Options by the general meeting of shareholders or supervisory board of the Issuer, whereas the Subscription Periods to be specified must be within the following time periods:<\/p>\r\n

    \r\n
  1. Options 1 \u2013 [date range<\/mark>];<\/li>\r\n
  2. Options 2 \u2013 [date range<\/mark>];<\/li>\r\n
  3. Options 3 \u2013 [date range<\/mark>].<\/li>\r\n<\/ol>\r\n

    The Issuer shall publish the exact Subscription Periods on its web page, through the information system of the [name of the Exchange]\u00a0or shall notify the Option Holder thereof in any other way.<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\u00a0<\/td>\r\n\r\n

\u201cOption<\/strong>\u201d<\/p>\r\n<\/td>\r\n

\u00a0<\/td>\r\n\r\n

right granted by the Issuer to the Option Holder to subscribe for and acquire the Share on the terms and conditions set forth in the Agreement. Based on the terms for exercising the Options, the Options are divided into the following series:<\/p>\r\n

    \r\n
  1. Options 1;<\/li>\r\n
  2. Options 2;<\/li>\r\n
  3. Options 3.<\/li>\r\n<\/ol>\r\n

    Each Option gives the Option Holder the right to subscribe for one Share, unless otherwise determined in accordance with these terms.<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\u00a0<\/td>\r\n\r\n

\u201cStrike Price<\/strong>\u201d<\/p>\r\n<\/td>\r\n

\u00a0<\/td>\r\n\r\n

the amount payable by the Option Holder to the Issuer upon the exercise of Options and issuance of Shares which is set out in Schedule 1 for each series of Options. The exact amount of the Strike Price for Options 1 and Options 2 shall be approved by the general meeting or supervisory board of the Issuer and the Issuer shall publish it on its web page, through the information system of the [name of the Exchange] or shall notify the Option Holder thereof in any other way.<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n

<\/p>\r\n<\/figure>\r\n

<\/p>\r\n

2. Options
<\/strong>The Issuer hereby grants to the Option Holder the Options set out in Schedule 1. The\u00a0Option Holder acquires the Options from the moment of signing of this Agreement.<\/p>\r\n

<\/p>\r\n

<\/p>\r\n

3. Exercise of Options
<\/strong>3.1. The Option Holder has the right to exercise the Options of certain series only during the Subscription Period established for such series of Options.
3.2. In order to exercise the Option(s) the Option Holder must submit to the Issuer a written notice (\u201cOption Notice<\/strong>\u201d) in the form set out in Schedule 2 and pay the Strike Price for the Shares to be subscribed by him\/her\/it to the bank account of the Issuer set forth in Schedule 1 in such a way that the Issuer receives the Option Notice and the Strike Price is credited to the bank account of the Issuer not later than on the last day of the Subscription Period established for the respective Options. For avoidance of doubt, it is hereby stated that the declaration of intent of the Option Holder to exercise the Option(s) and subscribe for the Share(s) shall be deemed to be made (the Option(s) shall be deemed to be exercised and Share(s) shall be deemed to be subscribed) only if both following conditions are met: (i) the Issuer has received the Option Notice in accordance with these terms and (ii)\u00a0the Strike Price for the Shares to be subscribed has been credited to the bank account of the Issuer in accordance with these terms. The Option Holder shall specify in the Option Notice, among other things, the number of Shares to be subscribed on the basis of the Options and the details of the securities account in the Estonian Central Register of Securities to which the Option Holder wishes the Shares to be transferred (the \u201cOption Holder\u2019s Securities Account<\/strong>\u201d).
3.3. If the Issuer receives, during the relevant Subscription Period, the Option Notice complying with all these terms and the Strike Price of the Shares specified in the Option Notice is credited, during the relevant Subscription Period, to the bank account of the Issuer, then the Option Holder shall be deemed to have subscribed for the amount of Shares specified in the Option Notice (\u201cSubscribed Shares<\/strong>\u201d) and undertaken to acquire the Subscribed Shares. If the Issuer receives the Option Notice after the relevant Subscription Period or if the Option Notice does not comply with one or more of the terms of the Agreement or if the Option Holder fails to pay the Strike Price or the Strike Price is credited to the bank account of the Issuer after the relevant Subscription Period, then the respective Option Notice does not have any legal effect whatsoever.
3.4. If the Option Holder has exercised the Option in accordance with these terms, the Issuer shall perform all acts on its part in order to procure that the Subscribed Shares subscribed on the basis of the respective Options are registered in the Option Holder\u2019s Securities Account not later than within one (1) month after the relevant Subscription Period.
3.5. The Issuer may unilaterally make amendments to the form of the Option Notice as well as to the terms of the Agreement regulating the payment of the Strike Price and transfer of the Subscribed Shares, if such amendments are necessary due to changes in laws and\/or regulations relating to issuing of Shares and\/or registration of Shares on the securities account. If amendments are made, the Issuer shall publish a new form of the Option Notice and\/or amended terms of the Agreement on its web page or through the information system of the [name of the Exchange] or notify the Option Holder thereof in any other way.
3.6. The Shares subscribed on the basis of the Options shall grant their holder the right to receive dividend during the financial year in which, according to laws and regulations, the rights arising from the Subscribed Shares shall be deemed have arisen (for example, during the financial year in which the share capital represented by the Subscribed Shares shall be deemed to be increased). However, the Subscribed Shares shall not grant their holder the right to receive dividends, which are payable to shareholders whose list was fixed before the date on which, according to the laws and regulations, the rights arising from the Subscribed Shares shall be deemed to have arisen.<\/p>\r\n

4. Amendment of terms of Options
<\/strong>4.1. If the nominal value of the Share is changed without changing the size of the share capital of the Issuer, then the Issuer will make unilaterally amendments to these terms in order to ensure that the total nominal value of all Shares that may be acquired on the basis of the Options that are valid at that time and the total Strike Price payable for all such Shares remain the same.
4.2. If, before the acquisition of the Shares on the basis of the Options, the share capital of the issuer is increased or decreased, then the Issuer will, if necessary, make unilaterally amendments to these terms in respect of Options which are valid at that time, taking into consideration the financial effect of the share capital increase or decrease on the Option Holder.
4.3. If, before the acquisition of Shares on the basis of the Options, the Issuer merges with another company in such a way that the Issuer is deemed to be dissolved as a result of the merger or if a new company is established as a result of the merger or if the Issuer is divided, then
4.4. the Options shall be replaced with new options, which grant the Option Holder the right to acquire the shares of the respective surviving company on the terms and conditions which do not differ from these terms in any material aspects or
4.5. the Issuer shall grant the Option Holder the right to subscribe for the Shares on these terms during a subscription period prior to completion of the merger or division which is specifically established by the Issuer for that purpose, whereas if the Option Holder does not subscribe for the Shares during such subscription period, then the respective Options shall automatically terminate.
4.6. The making of amendments set forth in this Section 4 and performance of actions referred to in this Section 4 shall be, among others, subject to obtaining respective consents required by applicable laws and regulations (including by [name of the Exchange<\/mark>] Rules) and adoption of respective decisions required by applicable laws and regulations (including by [name of the Exchange<\/mark>] Rules).
4.7. The reorganisation of the Issuer and the delisting of the Shares of the Issuer shall not affect these terms nor the rights and obligations relating to the Options.<\/p>\r\n

5. Termination and cancellation of Options
<\/strong>5.1. Options which the Option Holder fails to exercise during the relevant Subscription Period in accordance with these terms or which the Option Holder encumbers or transfers in violation of these terms, shall be deemed to have been automatically terminated. The Options which are terminated pursuant to this Section do not give their holder any rights and in relation to such Options the Issuer does not have any obligations in respect of any persons. \u00a0
5.2. The Issuer shall have the right to unilaterally cancel the Options in whole or in part in cases and pursuant to the procedure set forth in Schedule 3. The Issuer shall notify the Option Holder of the cancellation of Options by publishing a notice thereof on its web page or through the information system of the [name of the Exchange<\/mark>] or by notifying the Option Holder thereof in any other way. The Options terminated pursuant to this Section do not give their holder any rights and in relation to such Options the Issuer does not have any obligations.<\/p>\r\n

<\/p>\r\n

<\/p>\r\n

<\/p>\r\n

<\/p>\r\n

6. Final provisions
<\/strong>6.1. This Agreement and the Options shall be governed by the laws of the Republic of Estonia. All disputes relating to this Agreement and the Options shall be settled in a competent court in Estonia.
6.2. The limitation period (aegumist\u00e4htaeg<\/em>) for any claims of the Option Holder arising from this Agreement and\/or the Options shall be one (1) year.
6.3. The Option Holder may encumber or transfer the Options and transfer the rights and obligations arising from this Agreement to third person upon the written consent of the Issuer.
6.4. All notices, consents, declarations of intent and applications related to this Agreement and the Options and the disputes arising therefrom (hereinafter \u201cNotices<\/strong>\u201d) shall be made in the English language and shall be delivered to the other Party by hand or by courier against the signature of the other Party or shall be sent to the other Party by registered mail, fax or e-mail to the address specified in Schedule 1 or to any other address notified by such Party to the other Party in writing. In cases set forth in the Agreement a Notice may be delivered also in other ways. The Option Notice shall be submitted to the Issuer against signature or by registered mail.
6.5. Invalidity of a single provision of this Agreement will not cause invalidity of the entire Agreement or of other provisions of this Agreement. Should any provision of this Agreement appear to be invalid, the Parties shall make their best efforts to amend such provision in order that it will comply with law to the extent that it remains closest to the original intention of the Parties and original purpose of the provision.
6.6. Any amendments to the Agreement shall be valid only if made in writing. In cases set forth in the Agreement, amendments may be made also in other form.
6.7. The Agreement has the following Schedules:<\/p>\r\n

\r\n\r\n\r\n\r\n\r\n\r\n
\r\n

Schedule 1<\/p>\r\n<\/td>\r\n

\r\n

Terms of Options and Parties\u2019 contact details<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\r\n

Schedule 2<\/p>\r\n<\/td>\r\n

\r\n

Form of Option Notice<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\r\n

Schedule 3<\/p>\r\n<\/td>\r\n

\r\n

Terms of cancellation of Options<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/figure>\r\n

<\/p>\r\n

\r\n\r\n\r\n\r\n
\r\n

ISSUER:<\/p>\r\n

__________________________________<\/p>\r\n

Signature<\/p>\r\n

Name: \u00a0 \u00a0 ____________________________<\/p>\r\n

Position: ____________________________<\/p>\r\n<\/td>\r\n

\r\n

OPTION HOLDER:<\/p>\r\n

__________________________________<\/p>\r\n

Signature<\/p>\r\n

 <\/p>\r\n

 <\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/figure>\r\n

<\/p>\r\n

<\/p>\r\n

Schedule 1<\/strong>\u00a0– <\/strong>Terms of Options and Parties\u2019 contact details <\/strong><\/p>\r\n

\r\n\r\n\r\n\r\n\r\n\r\n\r\n
\r\n

Series<\/p>\r\n<\/td>\r\n

\r\n

Number of Options<\/p>\r\n<\/td>\r\n

\r\n

Strike Price (per one Share)<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\r\n

Options 1<\/p>\r\n<\/td>\r\n

\r\n

[amount<\/mark>]<\/p>\r\n<\/td>\r\n

\r\n

EUR [amount<\/mark>]<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\r\n

Options 2<\/p>\r\n<\/td>\r\n

\r\n

[amount<\/mark>]<\/p>\r\n<\/td>\r\n

\r\n

The weighted average of the prices paid for the Share in transactions executed through [name of the Exchange<\/mark>]\u00a0during the period [date range<\/mark>]\u00a0+ 10%<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\r\n

Options 3<\/p>\r\n<\/td>\r\n

\r\n

[amount<\/mark>]<\/p>\r\n<\/td>\r\n

\r\n

The weighted average of the prices paid for the Share in transactions executed through [name of the Exchange<\/mark>]\u00a0during the period [date range<\/mark>]\u00a0+ 10%<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n

<\/p>\r\n<\/figure>\r\n

<\/p>\r\n

\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
\r\n

The Issuer:<\/p>\r\n<\/td>\r\n

E-mail:<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\u00a0<\/td>\r\nAttention to:<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\u00a0<\/td>\r\nBank account no:<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\u00a0<\/td>\r\nBank:<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\u00a0<\/td>\r\n\u00a0<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\u00a0<\/td>\r\n\u00a0<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\r\n

The Option Holder:<\/p>\r\n<\/td>\r\n

E-mail:<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\u00a0<\/td>\r\nBank account no:<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\u00a0<\/td>\r\nBank:<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\u00a0<\/td>\r\n\u00a0<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n

<\/p>\r\n<\/figure>\r\n

<\/p>\r\n

 <\/p>\r\n

Schedule 2 – Form of Option Notice <\/strong><\/p>\r\n

OPTION NOTICE<\/strong>\u00a0<\/p>\r\n

<\/p>\r\n

\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
\r\n

Date of option notice:<\/p>\r\n<\/td>\r\n

\r\n

______ \u00a0____________________ \u00a0_______
day \u00a0 \u00a0 \u00a0 \u00a0month \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0year<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\u00a0<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\r\n

Name of Option Holder:<\/p>\r\n<\/td>\r\n

\r\n

___________________________________<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\u00a0<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\r\n

Id. code of Option Holder:<\/p>\r\n<\/td>\r\n

\r\n

___________________________________<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\u00a0<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\r\n

Option series:<\/p>\r\n<\/td>\r\n

\r\n

_______________
1, 2 or 3<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\u00a0<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\r\n

Number of Shares to be subscribed:<\/p>\r\n<\/td>\r\n

\r\n

___________________________________<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\u00a0<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\r\n

Total Strike Price of Shares:<\/p>\r\n<\/td>\r\n

\r\n

EUR_______________________________<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\u00a0<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\r\n

Option Holder\u2019s Securities Account no:<\/p>\r\n<\/td>\r\n

\r\n

___________________________________<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\u00a0<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\r\n

Option Holder\u2019s Securities Account operator:<\/p>\r\n<\/td>\r\n

\r\n

___________________________________<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n

<\/p>\r\n<\/figure>\r\n

<\/p>\r\n

I hereby acknowledge that the Option(s) shall be deemed exercised and above specified\u00a0Share(s) subscribed only if [name of Issuer<\/mark>]\u00a0receives this notice not later than on the last day of the Subscription Period and the Strike Price of the Shares is credited to the bank account of [name of Issuer<\/mark>]\u00a0not later than on the last day of the Subscription Period in accordance with the terms of the option agreement. I acknowledge that from that moment I will be bound to acquire the above mentioned\u00a0Shares.<\/p>\r\n

 <\/p>\r\n

_________________________
signature<\/p>\r\n

 <\/p>\r\n

Confirmation of receipt:<\/strong><\/p>\r\n

<\/p>\r\n

\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
\r\n

Signature of Issuer\u2019s representative:<\/p>\r\n<\/td>\r\n

\r\n

___________________________________<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\u00a0<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\r\n

Full name of Issuer\u2019s representative:<\/p>\r\n<\/td>\r\n

\r\n

___________________________________<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\u00a0<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\r\n

Position of the representative:<\/p>\r\n<\/td>\r\n

\r\n

___________________________________<\/p>\r\n<\/td>\r\n<\/tr>\r\n

\u00a0<\/td>\r\n\u00a0<\/td>\r\n<\/tr>\r\n
\r\n

Date:<\/p>\r\n<\/td>\r\n

\r\n

___________________________________<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/figure>\r\n

<\/p>\r\n

<\/p>\r\n

Schedule 3 – Terms of cancellation of Options<\/strong>\u00a0<\/p>\r\n

1. The Issuer shall at any time have the right to unilaterally cancel all Options, if the employment and\/or service relationship of [name of Option Holder<\/mark>] in the position of [position] terminates.<\/p>\r\n

2. Not later than by the beginning of each of the the Subscription Periods the Issuer shall have the right to unilaterally cancel all or part of the Options of the running year, if the criteria set out in Sections 3-5 have not been fulfilled in respect of the Option Holder for the respective previous year. If the Option Holder is a member of the Management Board of the Issuer, the Options shall be cancelled in accordance with Section 3. If the Option Holder is a member of the Supervisory Board of the Issuer, the Options shall be cancelled in accordance with Section 4. If the Option Holder is neither a member of the Management Board nor the member of the Supervisory Board of the Issuer, the Options shall be cancelled in accordance with Section 5.<\/p>\r\n

3. Criteria:\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Weight<\/strong>
Fulfillment of Issuer\u2019s financial targets\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a070%
Fulfillment of objectives related to specific area\u00a0 20%
Fulfillment of personal objectives\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a010%<\/p>\r\n

The Issuer\u2019s financial targets (turnover, EBITDA\/EBIT, net profit or other similar indicators) for each year shall be proposed by the Management Board of the Issuer and approved by the Supervisory Board of the Issuer.<\/p>\r\n

The Issuer may divide the financial targets into sub-targets, for example turnover (sales) target 50%, profit target 50%.<\/p>\r\n

If the fulfillment rate of the Issuer\u2019s financial targets for the previous year is less than 80%, then the Issuer shall cancel all Options for the running year.<\/p>\r\n

If the fulfillment rate of the Issuer\u2019s financial targets for the previous year is at least 80%, then the Issuer shall calculate the number of Options for the running year remaining valid under this criteria as follows: % of fulfillment of Issuer\u2019s financial targets x weight of the criteria (70%) x total number of Options for the running year.<\/p>\r\n

Objectives related to specific area\u00a0for each year shall be proposed by the Management Board of the Issuer and approved by the Supervisory Board of the Issuer. Depending on the nature of the objective, the partial fulfillment of the objective may also be possible.<\/p>\r\n

The Issuer shall calculate the number of Options for the running year remaining valid under this criteria as follows: % of fulfillment of objectives related to specific area x weight of the criteria (20%) x total number of Options for the running year.<\/p>\r\n

Personal objectives for each year shall be proposed by the Management Board of the Issuer and approved by the Supervisory Board of the Issuer (this may be done also in connection with performance review). Depending on the nature of the objective, the partial fulfillment of the objective may also be possible.<\/p>\r\n

The Issuer shall calculate the number of Options for the running year remaining valid under this criteria as follows: % of fulfillment of personal objectives x weight of the criteria (10%) x total number of Options for the running year.<\/p>\r\n

The Issuer shall calculate the total number of Options for the running year remaining valid under all three criteria and cancel the rest of the Options for the running year.<\/p>\r\n

The abovementioned calculations shall be made by the Management Board of the Issuer and approved by the Supervisory Board of the Issuer.<\/p>\r\n

2. Criteria:\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Weight<\/strong><\/p>\r\n

Fulfillment of Issuer\u2019s financial targets\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 70%
Participation in the work of Supervisory Board\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a030%<\/p>\r\n

The Issuer\u2019s financial targets (turnover, EBITDA\/EBIT, net profit or other similar indicators) for each year shall be proposed by the Management Board of the Issuer and approved by the Supervisory Board of the Issuer.<\/p>\r\n

The Issuer may divide the Issuer\u2019s financial targets into sub-targets, for example turnover (sales) target 50%, profit target 50%.<\/p>\r\n

If the fulfillment rate of the Issuer\u2019s financial targets for the previous year is less than 80%, then the Issuer shall cancel all Options for the running year.<\/p>\r\n

If the fulfillment rate of the Issuer\u2019s financial targets for the previous year is at least 80%, then the Issuer shall calculate the number of Options for the running year remaining valid under this criteria as follows: % of fulfillment of Issuer\u2019s financial targets x weight of the criteria (70%) x total number of Options for the running year.<\/p>\r\n

Participation in the work of the Supervisory Board shall mean participation in the meetings of the Supervisory Board.<\/p>\r\n

If the person has in\u00a0the previous year participated in less than half of the meetings of the Supervisory Board, then the number of Options for the running year remaining valid under this criteria shall be 0.<\/p>\r\n

If the person has in the previous year participated in at least half of the meetings of the Supervisory Board, the Issuer shall calculate the number of Options for the running year remaining valid under this criteria as follows: % of fulfillment of criteria x weight of the criteria (30%) x total number of Options for the running year.<\/p>\r\n

The Issuer shall calculate the total number of Options for the running year remaining valid under both two criteria and cancel the rest of the Options for the running year.<\/p>\r\n

The abovementioned calculations shall be made by the Management Board of the Issuer and approved by the General Meeting of Shareholders of the Issuer.<\/p>\r\n

3. Criteria:\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Weight<\/strong>
Fulfillment of Issuer\u2019s financial targets\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 30%
Fulfillment of objectives related to specific area\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a060%
Fulfillment of personal objectives\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a010%<\/p>\r\n

The Issuer\u2019s financial targets (turnover, EBITDA\/EBIT, net profit or other similar indicators) for each year shall be proposed by the Management Board of the Issuer and approved by the Supervisory Board of the Issuer.<\/p>\r\n

The Issuer may divide the Issuer\u2019s financial targets into sub-targets, for example turnover (sales) target 50%, profit target 50%.<\/p>\r\n

If the fulfillment rate of the Issuer\u2019s financial targets for the previous year is less than 80%, then the Issuer shall cancel all Options for the running year.<\/p>\r\n

If the fulfillment rate of the Issuer\u2019s financial targets for the previous year is at least 80%, then the Issuer shall calculate the number of Options for the running year remaining valid under this criteria as follows: % of fulfillment of Issuer\u2019s financial targets x weight of the criteria (30%) x total number of Options for the running year.<\/p>\r\n

Objectives related to specific area\u00a0for each year shall be proposed by the Management Board of the Issuer and approved by the Supervisory Board of the Issuer. Depending on the nature of the objective, the partial fulfillment of the objective may also be possible.<\/p>\r\n

The Issuer shall calculate the number of Options for the running year remaining valid under this criteria as follows: % of fulfillment of objectives related to specific area x weight of the criteria (60%) x total number of Options for the running year.<\/p>\r\n

Personal objectives for each year shall be approved by the Management Board of the Issuer (this may be done also in connection with performance review). Depending on the nature of the objective, the partial fulfillment of the objective may also be possible.<\/p>\r\n

The Issuer shall calculate the number of Options for the running year remaining valid under this criteria as follows: % of fulfillment of personal objectives x weight of the criteria (10%) x total number of Options for the running year.<\/p>\r\n

The Issuer shall calculate the total number of Options for the running year remaining valid under all three criteria and cancel the rest of the Options for the running year.<\/p>\r\n

The abovementioned calculations shall be made by the Management Board of the Issuer and approved by the Supervisory Board of the Issuer.<\/p>\r\n

The detailed procedure and deadlines for the determination of the abovementioned criteria and the detailed procedure for the verification of fulfillment of the criteria shall be established by the Management Board of the Issuer.<\/p>\r\n

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