ESR AR 2019 EN

109 DIRECTORS’ REPORT ESR Annual Report 2019 (b) deliver a written notice to our Company to confirm use of either the net share settlement (i.e. in lieu of the participant paying the exercise price, the participant will receive the greatest number of whole shares as determined by the formula set out in the KM ESOP) or net cash settlement arrangement (i.e. in lieu of the participant paying the exercise price to exercise an option, the participant will receive a payment in cash equal to the value of the shares in respect of which the option is being exercised less the exercise price otherwise payable for those shares). (ix) Basis of determining the exercise price The Board decided the option price which was stated at the date of grant. The option price may be nil unless the shares subject to the option are to be subscribed, when the option price cannot be less than the nominal value of a share. The total amount payable on the exercise of an option is the relevant option price multiplied by the number of shares in respect of which the option is exercised. (x) The remaining life of the scheme and details of exercise of the options The term of the KM ESOP will terminate on the tenth anniversary of the commencement date being 24 November 2017 or at any earlier time determined by the Board. Termination of the KM ESOP will not affect options granted before termination. (xi) Exercise price, grant date and vesting schedule Number of options Exercise price (USD) Grant date Vesting Period held at 1 November 2019 exercised during the Period (note a) cancelled during the Period Held at 31 December 2019 0.2520 February 2014 All vested 4,189,286 – – 4,189,286 0.4722 December 2017 Varies from 3 to 4 years and all vested 13,870,414 (2,827,243) – 11,043,171 0.9445 December 2017 4 years 22,723,127 (2,294,949) – 20,428,178 0.9445 January 2018 4 years 13,513,611 – – 13,513,611 1.1453 August 2018 4 years 873,103 – – 873,103 0.4722 February 2019 3 years 1,376,535 (582,401) – 794,134 0.9445 February 2019 3 years 103,080 – – 103,080 1.3655 February 2019 4 years 1,098,494 – – 1,098,494 1.5172 February 2019 4 years 3,710,342 – (49,433) 3,660,909 0.9445 May 2019 Varies from 3 to 4 years and all vested 1,111,700 – – 1,111,700 1.5172 May 2019 4 years 988,651 – (329,550) 659,101 63,558,343 (5,704,593) (378,983) 57,474,767 Note a: Shares to be issued for the options exercised shall be issued after May 1, 2020 as a result of a delayed settlement arrangement. The exact number of shares to be issued is subject to calculation (by considering any income tax and social security contribution), which shall not be more than the number of options exercised in any event. The total number of shares which may be issued upon the exercise of all share options granted under the KM ESOP is 63,558,343 Shares as at the Listing Date, and no further share options have been granted under the KM ESOP on or after the Listing Date.