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Notes to the Consolidated Financial Statements31 December 2024ESR Group Limited Annual Report 2024233STRATEGIC REPORTSCORPORATE GOVERNANCEFINANCIAL STATEMENTS41.SHARE-BASED COMPENSATION PLAN (continued)B.Share Option Plan by a subsidiary of the CompanyOn 20 January 2022, the Group completed the acquisition of 100% equity interests in ARA Group. ARA Group has the following share-based payment arrangement held by its subsidiary.In 2021, the subsidiary established an employee share option plan (%u201cESOP Plan%u201d), subject to the subsidiary%u2019s board of directors%u2019 discretion, which entitles employees to purchase shares in the company. The ESOP Plan is intended to motivate, reward and retain certain members of the management team and the purpose is to promote the long-term growth of the subsidiary and drive strategic and economic alignment with shareholders.Under the ESOP Plan, subject to the subsidiary%u2019s board of directors%u2019 discretion, holders of vested options are entitled to purchase shares at an exercise price determined by the board of directors of the subsidiary having regard to the market value of an ordinary share at the date on which the options were granted. The ESOP Plan shall expire in September 2031.Provided that the holders remain in continuous employment at the subsidiary between the date of entry into the ESOP Plan and the relevant vesting date of the options, the holders are only entitled to exercise the vested options on the occurrence of an exit event stipulated in the ESOP Plan.InSeptember2021,atotalof790.13optionsweregrantedundertheESOPPlantocertaineligibleemployees.These options vest equally in 4 tranches on 1 September 2021 and in December of each year from 2021 to 2023.In September 2022, a total of 102.20 options were granted under the ESOP Plan to certain eligible employees. These options vest equally in 5 tranches in September 2022 and in December of each year from 2022 to 2025.InAugust2023,atotalof747.48optionsweregrantedundertheESOPPlantocertaineligibleemployees.These options vest equally in 5 tranches in August 2023 and in December of each year from 2023 to 2026.In 2024, the exit event clause in the ESOP Plan has been triggered due to the founders roll up exercise. According to the terms indicated in the ESOP Plan, the vested options would be settled at a price determined by the subsidiary%u2019s board of directors. The non-vested options and those options which were out of the money were cancelled.