In the context of the Group's three year strategic plan 2008-2010 and the relevant targets set therein and also in recognition of the staff's efforts to improve the profitability of the Group and for continuous volume growth, the Board of Directors of Bank of Cyprus Public Company Ltd ('the Bank') decided, at its meeting held on 28 May 2008, to establish a Share Options Plan ('Share Options 2008/2010') for the Group employees in Cyprus and Greece. The establishment of the Share Options 2008/2010 Plan falls within the provisions of the special resolution approved at the Annual General Meeting of the shareholders which was held on 14 May 2008.
The Share Options granted within the context of the Share Options 2008/2010 Plan will result, once exercised, until the expiry of the Plan in a total issue of 12,5 million shares.
The Share Options 2008/2010 will be granted to the permanent staff of the Group in Cyprus and Greece, as well as those employed under contract (except seasonal staff) who are in its employment as at 28 May 2008.
The exercise price of the Share Options 2008/2010 has been set at 10% above the average closing price on the Athens Stock Exchange during the last 30 trading sessions that precede the date that the options were granted, that is 28 May 2008, which sets the Exercise Price at euro 9,41.
On 31 December 2009 2/3 of the total Share Options granted will be vested to each beneficiary. The remaining 1/3 of the total Share Options granted will be vested to the beneficiaries on 31 December 2010. The beneficiaries will be able to exercise the Share Options allotted to them in full or in part within the Exercise Periods.
The Exercise Periods of the Share Options 2008/2010 are set from 1 January - 31 March for 2011 and 2012 and also from 1 November - 31 December 2012.
The Share Options 2008/2010 will not be transferable, nor will they be listed or traded on the Cyprus Stock Exchange or Athens Exchange.