Incentive Scheme

Karolinska Development has adopted a share related incentive program directed to CEO, CFO and the Investment Managers. Warrants will be issued annually during five years. Each year’s issue, if fully subscribed, will correspond to 0.5 per cent of the KDAB shares (totally 2.5 per cent during the period). The warrant subscription price corresponds to the market price at the time of acquisition (Black and Scholes), and is not subsidized by the Company. The price for the 2008 issue has been set to SEK 7.40. Warrants in the 2008 issue entitle to subscription of new shares 1 October - 31 December 2012. The 2009-2012 issues will entitle to subscription October – December 2013-2016 respectively. The exercise price shall be 166 per cent of the market value for the KDAB share. For the 2008 issue the market value was set to SEK 60 per share. Market values for the rest of the period shall be established annually by an independent valuer appointed by KDAB. If the shares are subject to market quotation the market value shall be the quoted share price. The 166 per cent level is based on an annual hurdle rate of seven per cent (annually compounded) 2008–2012. In the future parts of the plan, the threshold shall be established based on a threshold interest of six per cent for the years 2008–2012 and eight per cent for the years 2013 and onwards.

If the number of KDAB shares is raised (however not due to the incentive plan) the participators may subscribe for additional warrants, to protect their holding.