The Work of the Board

In accordance with the Companies Act, Morphic's Board has adopted written rules of procedure for its work. The current rules of procedure, including rules of procedure for the CEO and for reporting, were adopted at the constituent meeting of the Board on October 20, 2008.

The rules of procedure are intended to serve as documents governing the work of the Board and to guarantee that the Board fulfils its duties and obligations in compliance with the Companies Act, the company's listing agreement with the Stock Exchange, the Code and other regulations and rules of procedure, as applicable from time to time, such as good practice in the securities market.

The rules of procedure define the division of work and responsibility within the Board and its two committees, the duties of the Board Chairman and the duties and authority of the CEO. as well as a plan for the work of the Board in the coming financial year and details of matters to be addressed at each Board meeting.

The rules of procedure for the CEO define limitations concerning decisions on investments, acquisitions, transfers and certain agreements. They also include rules of procedure on reporting, which regulate the CEO's reporting to the Board.