Arion Bank: Share option agreements in the 2025 bonus scheme

The main features of the share option agreements are as follows:

• The base price is ISK 199.5 a share which is the Bank’s share price on the day that the annual financial statement for 2025 was endorsed and this price is subject to 5.5% annual interest over the vesting period, and the price shall be adjusted for any dividends which may be decided during the vesting period.
• Share options on 1,514,516 shares are structured so that 1/2 of the share option vests over three years from the date of issue and the remainder vests over four years (five years for the CEO and employees reporting directly to the CEO) from the date of issue. Each exercise period is 20 working days following the publication of the annual financial statement. If part of the share option is not exercised during the relevant exercise period, it is cancelled.
• Share options on 2,425,298 shares are structured so that the entire share option vests over four years (five years for the CEO and employees reporting directly to the CEO) from the date of issue. The exercise period is 20 working days following the publication of the annual financial statement. If the share option is not exercised during the exercise period, it is cancelled.
• Share options are generally cancelled if the employment relationship is terminated.
• In some circumstances the company is permitted to claw back share options in part or in full in accordance with the company’s rules on variable remuneration.
• The value of the share options was calculated by an independent expert using the Black-Scholes model.

The total number of shares options issued pursuant to the above represents approximately 0.28% of share capital in the company.

Information on the criteria for pricing share options pursuant to the 2025 bonus scheme can be found here.

Please see announcements on managers transactions attached related to abovementioned share options and delivery of shares.