The Board of Directors of Marel hf. resolved on 12 February 2018 to grant to employees up to 4.1 million shares through stock option agreements. The aim of the stock option agreements is to align long-term interests of senior management and of the Company. The key terms and conditions of the new stock option program were approved by Marel's Annual General Meeting on 2 March 2017 in accordance with the Company's Remuneration Policy as approved at the same meeting. The stock options will be granted to the Executive Team, and selected employees in strategic positions. Key terms and conditions of the agreements are as follows: -- The stock option agreements entitle purchase of shares at the base offering price of EUR 2.923 per share [1]. The exercise price shall be adjusted for any dividend payments decided after the grant date. -- One vesting period of 3 years. Exercise periods are two per year in April and October subject to disclosure of the Q1 and Q3 financials. First exercise period will be following the publication of the Q1 2021 results. Option holders can delay exercise of these options to Q1 2022, when the agreements expire and all unexercised options are cancelled. -- Option holders are required to hold shares in value corresponding to the net profit gained of the share options after deduction of taxes, until their employment with Marel is terminated. The total number of unexercised stock options granted by Marel hf., including this new stock option scheme, currently amounts to 14.0 million shares corresponding to approximately 1.9% of total issued share capital. The Company's cost of the new share option scheme is estimated to be approximately EUR 2.1 million over the next 3 years based on the option pricing model of Black-Scholes. Details of the share options granted to Marel's Executive Team: Name Title New Older granted Sharehold Shareholding stock and ing of of option unexercised insider financially s options related parties Árni Chief Executive 650,000 960,000 64,634 67,235 Oddur Officer Þórðars on Linda Chief Financial 425,000 1,029,000 158,500 0 Jónsdót Officer tir Árni Executive Vice 425,000 1,005,000 0 100,000 Sigurðs President Strategy son and Corporate Development Anton de Managing Director 250,000 905,000 15,000 0 Weerd (EVP) Poultry David Managing Director 250,000 947,000 27,300 0 Wilson (EVP) Meat Sigurður Managing Director 250,000 805,000 0 0 Ólason (EVP) Fish Jesper Managing Director 250,000 200,000 0 0 Hjortsh (EVP) Further øj Processing Davíð Executive Vice 250,000 805,000 135,000 0 Freyr President Human Oddsson Resources Folkert Executive Vice 250,000 0 17,862 0 Bölger President Supply Chain Pétur Executive Vice 250,000 1.120,000 219,430 0 Guðjóns President son Commercial Viðar Executive Vice 250,000 829,000 65,000 0 Erlings President son Innovation [1] The exercise price is determined by the closing rate of Marel shares at NASDAQ Iceland hf. on 12 February 2018, i.e. ISK 366.00 per share, calculated with the Central Bank of Iceland EUR/ISK mid-rate on that day; 125.20