Long-term Incentive Programme 2016 (LTIP 2016)

The EGM in June 2016 approved the terms of the LTIP 2016. The EGM approved the proposal to hedge obligations related to the LTIP 2016 via equity swap agreement with a third party.

Basic features of LTIP 2016

The programme is directed towards 85 key individuals at Eltel including the new CEO, members of the Group Management Team and other key employees at Eltel. The total value subscribed for by the participants during the subscription period in August amounted to approximately one million euro and was equivalent to approximately 85% of the maximum offered to these individuals. A total amount of 107,658 Eltel AB shares were purchased at an average price of SEK 89.00, equal to a total value of approximately one million euro. These shares were bought by a third party in public trading at Nasdaq Stockholm in the beginning of October on behalf of the participants of the programme. Participants will, after a qualifying period and assuming an investment in Eltel ordinary shares, receive allotments of additional Eltel ordinary shares without consideration. The number of allotted shares will depend on the number of Eltel ordinary shares they have purchased and on the fulfilment of certain performance targets. The term of the LTIP 2016 is three years.

Participation in LTIP 2016

LTIP 2016 is directed towards three categories of participants:

Category Maximum of Savings Shares (% of base salary) Matching Shares per Savings share Performance Shares per Savings share
A) CEO 20% 1.0x 4.0x
B) Group Management Team (GMT),  maximum 10 persons 15% 1.0x 3.0x
C) Individuals reporting directly to the GMT and other key employees, a maximum of 74 persons 10% 1.0x 2.0x

The maximum number of Savings Shares for each participant shall be based on an investment in Eltel shares with an amount corresponding to a certain portion of the concerned participant’s base salary level for the current year. In order to be eligible to participate in LTIP 2016, the participant must make a minimum investment of an amount equal to 25% of the applicable maximum level for Savings Shares investment.

Any resolution on participation or implementation of LTIP 2016 shall be conditional on that it, in the Board’s judgement, can be offered with reasonable administrative costs and financial effects.

The subscription period for Eltel’s long-term incentive programme 2016 (LTIP 2016) took place in August 2016 and the interest in participating was high with 87% of the invited individuals participated.

The basic principles for LTIP 2016 are the same as LTIP 2015.

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Eltel AB POB 126 23, SE-112 92 Stockholm, Sweden

Tel. +46 8 585 376 00 | E-mail: info@eltelnetworks.com