Incentive program & Investor warrants

As a means to incentivize and retain key employees and advisors to ensure alignment of focus with current and future shareholders, various share-based incentive schemes have been used over the years. Also, investor warrants have been used as part of the company’s fundraisings.

The share options are issued by the Parent Company Nilar International AB. The share options may be used by the holder at any time after the vesting date until the exercise. Each share option gives the right to subscribe one ordinary share in Nilar International AB. In the event that share options are issued to employees its granted unvested employee share option upon termination of employment may be forfeited.

The fair value of the options has been determined by using the Black-Scholes valuation model. Significant factors to the model are described inthe table above. Parameters such as volatility and risk free rate has been estimated by a third party.

Share options granted under program 2016:1 have been issued as incentive to management. The share options vest over three years and expire on 29 April 2020.

Share options granted under program 2017:1 have been issued as incentive to management and directors. The share options vest over three years and expire on 5 December 2021.