Cloudberry Clean Energy Annual report 2020

Cloudberry Annual report 2020 Financial statements 98 Share based payments and long-term incentive program In accordance with the terms adopted by the General Meeting of the Company on 21 March 2020, the Board of Directors has established a share incentive scheme for the executive managers and key employees of the Group. The key conditions are as follows: The equity incentive plan may cover up to 5% of the issued shares in the Company from time to time. Allocations are proposed by the Board and subject to shareholder approval. The exercise price for the war- rants is determined by the Board in its reasonable discretion based on fair market value of the Shares on the date of the Board of Directors proposed allocation of warrants under the program. The determined exercise price is subject to approval by the general meeting in relation with issuance of warrants. The duration of the warrants from grant date is 5 years. The vesting period is 1 year from the grant date. The value of the warrants in the accounts are calculated at the grant date given a fair value using the Black and Scholes model. The key assumptions applied is 40% volatility and 1% interest rate. The table shows the outstanding warrants as of 1 January 2020 and 31 December 2020 and movements in the year: Outstanding warrants 01.01.2020 - Granted in 2020 2 200 000 Exercised in 2020 - Expired in 2020 - Outstanding warrants 31.12.2020 2 200 000 Exircisable 31.12.2020 - Charged to profit and loss statement 2020 (tNOK) 1 460 Charged to equity 2020 (tNOK) 1 251 As of the date of the annual report the following warrants have been issued in 2020. NOK 1 000 # Warrants Grant date Expiry date Remaining years Exercise price Share Price (grant date) Warrant package #1 775 000 20.03.2020 20.03.2025 4.22 11.1 11.1 Warrant package #2 1 425 000 25.09.2020 25.09.2025 4.74 12.2 13.1 2 200 000 4.55 11.8 12.4 Per 31 December 2020, the equity incentive plan covers 2.1% of the issued shares in the Company.