ESR Interim Report 2020 (EN)

Corporate Governance and Other Information 22 (xi) Exercise price, grant date and vesting schedule Number of options Exercise price (USD) Grant date Vesting Period held at 1 January 2020 exercised during the Period cancelled during the Period held at 30 June 2020 0.2520 February 2014 All vested 4,189,286 (1,000,000) – 3,189,286 0.4722 December 2017 Varies from 3 to 4 years and all vested 11,043,171 (8,332,935) – 2,710,236 0.9445 December 2017 4 years 20,428,178 (6,236,262) – 14,191,916 0.9445 January 2018 4 years 13,513,611 (804,075) – 12,709,536 1.1453 August 2018 4 years 873,103 – – 873,103 0.4722 February 2019 3 years 794,134 (337,500) – 456,634 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 3,660,909 (407,691) (16,478) 3,236,740 0.9445 May 2019 Varies from 3 to 4 years and all vested 1,111,700 (283,800) – 827,900 1.5172 May 2019 4 years 659,101 (32,955) – 626,146 57,474,767 (17,435,218) (16,478) 40,023,071 No further options will be issued under the KM ESOP in the future. Since certain options holders opted for either net cash settlement or net share settlement method in lieu of paying in full the exercise price for the number of shares over which the option was exercised, only a net total of 14,185,966 ordinary shares were issued by the Company for the six months end 30 June 2020 in satisfaction of the 23,139,811 options so exercised, which comprised the exercise of 17,435,218 options as set out above (for the period from 1 January 2020 to 30 June 2020) and the exercise of 5,704,593 options for the period from the Listing Date to 31 December 2019 (due to a delayed settlement arrangement in 2019). The shares were issued at the corresponding exercise price or at nominal value of US$ 0.001, and the total fund raised was approximately US$4.59 million which will be used for general working capital. 2. Tier 1 ESOP Below is a summary of the principal terms of the Tier 1 ESOP of the Company. The terms of the Tier 1 ESOP are not subject to the provisions of Chapter 17 of the Listing Rules. (i) Purpose The Tier 1 ESOP is intended to provide our Company with a flexible means of retaining, incentivizing, rewarding, remunerating, compensating and/or providing benefits to selected participants. By aligning the interests of selected participants with those of the Shareholders, participants will be encouraged and motivated to continue their efforts towards enhancing the value of the Company. The options were granted based on the performance of the option holders who have made important contributions to and are important to the long term growth and profitability of the Group. (ii) Selected participants WP OCIM One LLC (“ WP OCIM ”), Laurels Capital Investments Limited (“ Laurels ”), and Redwood Consulting (Cayman) Limited (“ Redwood Consulting ”).