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Share-based compensation

 The Board of Directors of Exel Composites Plc has in 2007 established a long-term incentive program for the Management Company. The aim of the program is to commit persons entitled to participate in the Program to improve the Group's long-term profitability and value and reward them for achieving these goals. The Program consists of three subprograms (one for each of the financial years 2007, 2008 and 2009) with the total duration of each of the subprograms being three years.
The Participants shall earn the reward under each of the subprograms if the financial performance targets as set by the Board of Directors for the subprogram have been met. The Board of Directors will decide on the targets related to the growth of the Group's earnings per share (EPS) and return on capital employed (ROCE) for each subprogram separately in conjunction with the start the programs. The maximum amount of reward for each subprogram is decided by the Board of Directors and can be denominated as cash or a corresponding number of granted shares. The participant has to use the reward to buy Exel shares and there is a vesting period of two years before the final title of the shares is transferred. The cost of the program will be accounted for as operating expenses and accrued for in the financial statements.
Based on the development of the performance criteria EPS and ROCE, the reward paid for 2009 was EUR 0.5 million, which costs were thus recorded in the financial statements.
Exel Composites Oyj, Vantaa head office, Mäkituvantie 5, FI-01510 Vantaa, Finland