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Ossur Hf : New Share Option Program

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Announcement from Össur hf. No.24/2015
Reykjavik, 27 May 2015 

Össur - New Share Option Program

Today, Össur hf. implemented a new share option program for the CEO and Executive Management, and managers in strategic positions. The purpose of the share incentive program is to attract and retain management team and key leaders and reward for the delivery of long-term strategy. That way the interest of the shareholders and management are aligned and the Company is provided with 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 12th March 2015 in accordance with the Company's Remuneration Policy.

Up to 6,000,000 share options may be issued and outstanding at each time under the share option program, exercisable into the same amount of shares, corresponding to approximately 1.3 % of the total share capital of the Company. At this time 1,800,000 share options have been granted; 1,300,000 to the President & CEO and Executive Management and 500,000 share options have been granted to managers in strategic positions. The exercise price is DKK 21.88 determined in accordance with the terms of the share option program, i.e. the Company's average share price on NASDAQ Copenhagen 20 trading days prior to the grant date. The options shall vest in 3 years from the grant date and can be exercised for a period of one year during open trading windows.

Details of the share options granted to the President & CEO and Executive Management:

 

Name

Jón Sigurðsson 		Position

President & CEO 		Options

625,000 		Price

21.88 		Vesting date

27 May 2018 		Total options*

1,875,000 		Current shares**

539,806
Egill Jónsson Executive VP M&O 225,000 21.88 27 May 2018 725,000 818,499
Ólafur Gylfason Executive VP Sales & Marketing 225,000 21.88 27 May 2018 375,000 6,539
Þorvaldur Ingvarsson Executive VP R&D 225,000 21.88 27 May 2018 725,000 0

 

* Previously granted options have all vested.
** In addition Mr. Sigurðsson's financially linked parties hold 3,324 shares and Mr. Jónsson's financially linked parties hold 4,250 shares.

Other key terms and conditions:

  • If the share options cannot be settled with shares, e.g. due to currency restrictions, the Company shall pay to the participants the difference of the exercise price and the market price on the day of exercise.
  • 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 (if share settlement is possible).
  • In general, the share options will lapse if the participants are no longer employed with the Company. The Company may decide to waive this condition, including if a participant becomes disabled or dies.
  • The Company shall not grant any loans or guarantees to participants in connection with the share options.

The Company's cost of the new share option program is estimated to be USD 1.17 million a year for the next three years based on the option pricing model of Black-Scholes.

About Össur

Össur (NASDAQ: OSSR) is a global leader in non-invasive orthopaedics that helps people live a life without limitations. Its business is focused on improving people's mobility through the delivery of innovative technologies within the fields of braces, supports, prosthetic limbs and compression therapy. A recognized "Technology Pioneer", Össur invests significantly in research and product development; its award-winning designs ensuring a consistently strong position in the market. Successful patient and clinical outcomes are further empowered via Össur's educational programs and business solutions. Headquartered in Iceland, Össur has major operations in the Americas, Europe and Asia, with additional distributors worldwide. www.ossur.com

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.

HUG#1924180

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