Festi hf.: Share option plan for employees of the Festi Group

In accordance with Festi’s remuneration policy, a share option plan, approved at the Company’s Annual General Meeting on March 6, 2024, is in effect based on Article 10 of the Income Tax Act No. 90/2003.

The share option plan is valid for a period of three years, i.e., until May 2027, and applies to all permanent employees of the Festi Group. The objective of the plan is to align the interests of employees with the performance and long-term goals of the Company and its shareholders. Implementation of the share option plan was announced in notices dated April 24 and May 5, 2024.

According to Article 2.3 of the share option plan, employees who join Festi or its subsidiaries after the adoption of the plan are entitled to enter into share option agreements, with such entitlement commencing on the next exercise date following the start of their permanent employment contract and continuing until the expiration of the plan or termination of their employment. The same applies to employees of new companies that become part of the Group during the plan's validity period.

Following the recent exercise of share options in May and the signing of new share option agreements as outlined above, valid share option agreements with employees of the Group are now in place covering a total of 7,816,349 shares for the duration of the plan, until May 2027. The exercise prices are distributed as follows: options for 6,389,589 shares at an exercise price of ISK 187, and options for 1,426,760 shares at an exercise price of ISK 297.1. It should be noted that, under the terms of the plan, the exercise price is adjusted for future dividend payments and equivalent distributions of company assets to shareholders. As of now, a total of 1,350 employees of the Festi Group hold valid share option agreements under the share option plan.