• Restricted Share Units (RSUs) giving a contractual right to receive shares over the next 3 year period as per an equated semi-annual vesting schedule.

LTI-2 Plan Objective

The incentive plan aims to align the interests of Tecnotree's shareholders and key employees in order to increase the company's value in the long term and commit the key employees to the implementation of the company's strategy and offer them a competitive incentive plan based on accumulation of the company's shares.

LTI-2 Plan Coverage

Restricted Share Units (RSUs) are granted to Tecnotree key employees for purposes related to retention and recruitment to ensure that Tecnotree is able to retain and recruit the talent which are critical for the future success of the company. The incentive program would currently cover 175 employees in total.

LTI-2 Plan Timetable

Under the LTI-2 Plan, the RSUs are divided into six semi-annual tranches spread over 3 years, each tranche consisting of one sixth of the RSUs granted.

LTI-2 Plan - Quantum of Shares

The grant under the LTI-2 plan could result in an aggregate maximum number of 8.0 million Tecnotree shares being granted to Tecnotree employees. At the approximate avarage share price in February 2021 of EUR 0.63, the aggregate value of the LTI-2 plan is EUR 5.04 million spread over the period of three years.

Share issuance for the settlement of shares for the purpose of the LTI-2 Plan

Tecnotree's Board of Directors has resolved to issue, without consideration, [8.0] million Tecnotree shares to Tecnotree to be later used to fulfil the company's obligations under the LTI-2 Plan. The resolution to issue shares is based on the authorization granted to the Board of Directors by the Annual General Meeting on 15 May 2019 (General Authorization).

Dilution effect

Once the 8,000,000 shares issued to the company have been registered with the Trade Register, the company will have in aggregate 282,628,428 shares. The new shares represent approximately 2.83% of all the shares after the share issue.