(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 T he 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 T he 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 January 2022 Exercised during the period Cancelled during the period Held at 30 June 2022 0.2520 February 2014 All vested – – – – 0.4722 December 2017 Varies from 3 to 4 years and all vested 100,020 – – 100,020 0.9445 December 2017 4 years 5,194,760 (972,292) – 4,222,468 0.9445 January 2018 4 years 10,285,138 (800,000) – 9,485,138 1.1453 August 2018 4 years 873,103 – – 873,103 0.4722 February 2019 3 years – – – – 0.9445 February 2019 3 years – – – – 1.3655 February 2019 4 years 948,494 – – 948,494 1.5172 February 2019 4 years 2,447,524 (397,250) – 2,050,274 0.9445 May 2019 Varies from 3 to 4 years and all vested 179,769 (23,750) – 156,019 1.5172 May 2019 4 years 626,146 (90,627) – 535,519 20,654,954 (2,283,919) – 18,371,035 No further options will be issued under the KM ESOP in the future. During the six months ended 30 June 2022, since all options holders opted for 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 1,458,829 ordinary shares were issued by the Company for the six months ended 30 June 2022 in satisfaction of the 2,283,919 options so exercised. The shares were issued at nominal value of US$0.001. E S R G R O U P L I M I T E D I N T E R I M R E P O R T 2 0 2 2 23
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