127 Cloudberry Annual report 2022 Financial statements 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 warrants 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 normally 3 years from the grant date. The value of the warrants in the accounts are calculated at the grant date given a fair value using the BlackScholes model. The key assumptions applied for the grants in 2022 are 40% volatility (based on listed peer with 3 years historical data and updated with historic volatility for the Company from listing on the Main List Oslo Børs to the grant date in June 2022), 2.8% interest rate and approx. 1% dividend yield. Other inputs to the model are current stock price, exercise price and expected life of option (vesting period + one year). The table shows the outstanding warrants as of 1 January and 31 December and movements in the year: FY 2022 Outstanding warrants 01.01. 7 700 000 Granted in 2022 3 000 000 Exercised in 2022 - Expired in 2022 (200 000) Outstanding warrants 31.12. 10 500 000 Vested 31.12.2022 3 299 995 Charged to profit and loss statement 2022 (NOK million ) 25 Charged to equity 2022 (NOK million ) 26 FY 2021 Outstanding warrants 01.01.2021 2 200 000 Granted in 2021 5 500 000 Exercised in 2021 - Expired in 2021 - Outstanding warrants 31.12.2021 7 700 000 Vested 31.12.2021 2 200 000 Charged to profit and loss statement 2021 (NOK million ) 5 Charged to equity 2021 (NOK million ) 4
RkJQdWJsaXNoZXIy NTYyMDE=