Incentive plan

Castellum shall uphold the remuneration levels and terms of employment required in order to recruit and maintain a good management with competence and capacity to achieve set objectives. A fixed salary will be paid for work performed in a satisfactory manner.

In addition, flexible remunerations under an incentive plan may also be offered. Such flexible remuneration shall aim to promote long-term value creation
within The Group. Flexible remuneration, which generally can not
exceed the fixed salary is determined by how far in advance its objectives
for growth in property management earnings per share and share price
development are achieved, and how soft factors such as customer and employee satisfaction are developed. Fleixible remuneration is paid as non pensionable salary. Executives who receive flexibel remuneration is committed to acquire Castellum-shares for at least half the amount of flexible remuneration after tax.

The pension terms of the executive management shall be set
according to general market practice and shall be based on pension plans with fixed payments.

The incentive plan's two parts:

One profit-based part based on the result of income from property management compared to previous year and an overall determination of the development of certain soft factors such as customer and personnel satisfaction. Bonus the growth in income from property management per share has to be 10% per year. The profit-based part is paid out yearly as salary after the year-end closing and can total no more than six month salary per year. The plan runs out at the end of 2013.

One share price-based part based on the total return on the Castellum share during a three-year period, both in nominal figures and compared with index for real estate shares in Sweden, Eurozone and Great Britain. In order to receive full bonus, the total return must be at least 50% during the period and the total return has to exceed the index development with at least 5%-units during the period. Any bonus due is paid as salary after the measurement period of June 2011 – May 2014. The maximum outcome in respect of the three-year share price based remuneration is one and a half of the annual fixed salary for the three-year period June 2011 - May 2014, which on the basis of the July 2011 salary level for the entire period is correspondent to a cost for Castellum of SEK 30 million in total.