Embla Medical hf — Remuneration Information 2018

Mar 8, 2018

Announcement no. 19/2018
8 March 2018

ÖSSUR®
LIFE WITHOUT LIMITATIONS

New share option program

Today, Össur hf. initiated a new share option program for the CEO and other members of the Executive Management, their direct reports (with exceptions) and key specialists in strategic positions. The purpose of the program is to attract and retain the management team and key leaders and reward for the delivery of long-term strategy. This aligns the interest of the shareholders and management by providing the Company with a competitive compensation tool to drive and motivate team performance culture. The key terms and conditions of the new share option program were approved by the Annual General Meeting on 8 March 2018 in accordance with the Company's Remuneration Policy.

Up to 5,400,000 share options, for one share each, may be granted and outstanding at each time under the share option program, corresponding to approximately 1.3% of the total share capital of the Company. The share options shall be granted periodically and no more than 2,700,000 share options may be granted and be in effect under the program in 2018. The vesting time is three years from the grant date, the exercise period is one year immediately after the share options have been vested, and the exercise price is the Company's average share price on Nasdaq Copenhagen the 20 trading days prior to the grant date.

Other key terms and conditions:

• Participants may not exercise their share options when they are in possession of inside information.
• Participants are required to hold shares, corresponding to 5% of the profit gained of the share options after deduction of taxes, until their employment with the Company is terminated.
• In general, the share options will lapse if participants are no longer employed with the Company. The Company may, however, decide to waive this condition in special circumstances.
• The Company may not grant any loans or guarantees to participants in connection with the share options.

The Company's cost of the proposed new share incentive program is estimated to be USD 4 million in total, based on the option pricing model of Black-Scholes. The formula is described in the Company's annual report. The cost of each granted option is expensed evenly over three years from the grant date.

Forward-looking statements

This press release includes "forward-looking statements" which involve risks and uncertainties that could cause actual results to differ materially from results expressed or implied by these statements. Össur hf. undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

Össur Head Office
Grjótháls 1-5
110 Reykjavík
Iceland
T +354 515 1300
F +354 515 1366
ossur@ossur.com
WWW.OSSUR.COM