Fly Play hf.: Granting of stock option

Granting of stock option

On 7 November 2022 the decision was made to grant stock options for 13,850,000 shares to six members of the executive team. The granting of stock options is part of a long-term share-based incentive program established to align the interest of key employees with the long term goals of the company and its shareholders.

The key terms and conditions of the option agreements are as follows:

The stock option agreements entitle purchase of shares at the base exercise price of ISK 16 per share.
The vesting time of the options is divided into three periods, from allocation to year three, 1/3 of the stock option vests, in year 4, 1/3 of the stock option vests and in year 5, 1/3 of the stock option vests.
The option has an exercise period which is divided into three parts, where 1/3 of the option may be exercised after 3 years, 1/3 of the option after 4 years and 1/3 of the option may be exercised after 5 years, excluding four closed periods, counting 30 days before the publication of the company´s interim results.
Exercise of the options is contingent on the holder still being employed by Fly Play hf. at the time of vesting.

The total number of unexercised stock options granted by Fly Play hf., including this new stock option grant, currently amounts to 47.486.366 million shares corresponding to approximately 6,35% of total issued share capital. The company’s cost of the new share option grant is estimated to be approximately 59.000.000 ISK (USD 405.000) over the next 3 – 5 years based on the option pricing model of Black-Scholes.

See attachment for information on stock options granted to members of Fly Play´s executive team.

Attachments