New incentive program for the Board of Directors of Orphazyme

Orphazyme A/S
Company announcement                                                                                       
No. 53/2020                                                                                                          
Company Registration No. 32266355

Copenhagen, Denmark, September 21, 2020 – Orphazyme A/S (ORPHA.CO) (the “Company”), a late-stage biopharmaceutical company pioneering the Heat-Shock Protein response for the treatment of neurodegenerative orphan diseases, today announced that the Company introduces a new Board Incentive Program for the Company’s members of the Board of Directors, as approved at the Company’s Extraordinary General Meeting held on September 21, 2020. 

The purpose of the Board Incentive Program is to attract and retain qualified members of the Board of Directors as share-based incentives are commonly used among competing international biotech and pharmaceutical companies. Further, the Board Incentive Program reflects the objective of a motivated and lasting value creation for the shareholders. 

The Board Incentive Program is based on restricted share units (“RSUs”) which entitle the participant, subject to vesting of the RSUs, to be allocated a number of shares equivalent to the number of RSUs vested at maximum price per RSU equal to the par value of the Company’s shares.

The RSUs will have a vesting period from the date of grant and until approval of the annual report at the annual general meeting in the Company in the following year. Vesting are not conditional on any financial or performance criteria, but is, however, conditional upon (i) the continued membership by the participant on the Company’s Board of Directors until vesting and (ii) the initiation or completion of an offering and listing of American Depositary Shares in the United States. In addition, exercise of the RSUs are contingent on the participant not exercising his or her RSUs granted in March 2020 and approved at the Annual General Meeting on March 26, 2020, which will subsequently lapse and no longer be exercisable. Upon vesting, the RSUs may be exercised within a period of twelve months.