Eik fasteignafélag — AGM Information 2021

Mar 3, 2021

EIK

Proposals of the Board of Directors

Annual General Meeting 25 March 2021

1. Proposal on the confirmation of the company's annual accounts for the year 2020 (agenda item 2)

The Board of Directors proposes to the annual general meeting of the company that it approve the company's annual accounts for 2020.

1. Proposal on the distribution of profit for the operating year 2020 (agenda item 3)

The board of directors proposes to the annual general meeting of the company that the company distribute to the company's shareholders dividend of ISK 0.19 per share for the year 2020. The aggregate amount of the dividend payments will therefore be ISK 650,000,000. The dividend declaration date shall be 25 March 2021 and the record date shall be 29 March 2021 which means that registered shareholders at the end of day on 29 March 2021 will be entitled to a dividend payment in accordance with the above.

The ex-date, i.e. the date on which trading commences with the company's shares without the right to a dividend for the 2020 financial year, shall be 26 March 2021, which is the first day of trading after the dividend declaration date. The pay date will be 6 May 2021 and payments will be made in Icelandic krona.

1. Decision on the remuneration of Directors and committee members for the 2021-2022 operating year (agenda item 4)

The Board of Directors of the company proposes to the annual general meeting of the company that for the 2021-2022 operating year the remuneration of Directors and members of committees working for the company shall be as follows:

• The monthly salary of each Director shall be ISK 325,000 and of the Chairman ISK 700,000.
• The salary of Directors sitting on the Remuneration Committee shall be ISK 35,000 per month. Remuneration Committee members who are not also directors shall be paid for each hour worked according to an issued invoice provided that the Board of Directors has approved the hourly rate in advance. Chairmanship is not specifically remunerated for.
• The salary of Directors sitting on the Audit Committee shall be ISK 75,000 per month. Remuneration Committee members who are not also directors shall be paid for each hour worked according to an issued invoice provided that the Board of Directors has approved the hourly rate in advance. Chairmanship is not specifically remunerated for.
• The salary of members of the Nomination Committee shall be ISK 60,000 per month and ISK 90,000 per month for the Chairman.

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Informal English translation of the prevailing Icelandic original

1. Proposal of the Board of Directors regarding the remuneration policy (agenda item 5)

The Board of Directors of the company proposes no amendments to the remuneration policy.

1. Election of the Board of Directors (agenda item 6)

The notice to the annual general meeting references the proposals of the Nomination Committee and the report of the Nomination Committee is accessible on the company's website. The proposals are for recommendation only and the rules for declaring candidature in the articles of association and company legislation apply unaffected for those who intend to put themselves forward for election to the Board of Directors.

According to the company's current articles of association the deadline for declaration expires seven days prior to the annual general meeting, on 18 March 2021 at 16:00. Declarations on candidature shall be made to the Board of Directors in writing.

The declaration of candidacy for the Board of Directors shall include, in addition to the candidate's name, ID number and address, information regarding primary occupation, other Board of Directors' participation, education, experience and shareholdings in the company. Information regarding interests with the company's main customers and competitors, as well as shareholders who own more than 10% in the company. Declarations shall be sent to the office of Eik fasteignáfélag hf. at Sóltún 26, 105 Reykjavík or by email to stjornun@eik.is.

1. Election of authorised auditors or auditing firm (agenda item 7)

The Board of Directors proposes to the annual general meeting of the company that KPMG ehf. shall be re-elected as the company's auditor for the next year, and it engaged on market terms. This reflects the proposals of Eik fasteignáfélag hf.'s audit committee.

1. Authorisation to buy back shares (agenda item 8)

The Board of Directors proposes the following:

"The company is authorised to buy back its own shares up to a maximum of 10% of the issued share capital in accordance with Section 55 of the Act on Public Limited Liability Companies, for the purpose of facilitating market making with shares in the company and/or to establish a formal buyback programme pursuant to Section 116 of the Act on Securities Transactions or on the basis of Section 115(3)(1) and 119(2) of the Act on Securities Transactions and regulations adopted on the basis of Sections 118 and 131 of the same act. This authorisation shall be valid for 18 months from its approval.

The payment for the purchased shares shall not be higher than the amount of the last independent transaction or highest existing purchase bid on Nasdaq Iceland, whichever is higher. These purchases are, however, permitted if they are made by a market maker, pursuant to Section 116 of the Act on Securities Transactions or on the basis of Section 115(3)(1) and 119(2) of the Securities Transactions Act and regulations deriving from Sections 118 and 131 of the same act."

Reykjavík, 2 March 2021

Eik fasteignáfélag hf. Board of Directors