The Board of Directors of Generation Company Four of the Wholesale Market of Power and Energy (OGK-4) has approved the OGK-4 Option Program. This document determines the procedure for the Program participants' entitlement to acquisition of OGK-4 shares and the procedure for their using their entitlement to obtain OGK-4 shares at pre-determined prices.
The parameters of the OGK-4 Option Program are in line with the Basic Regulations for Option Remunerations for Directors General and Top Managers of Subsidiaries and Dependent Companies of RAO UES of Russia, approved by the Board of Directors of RAO UES of Russia on July 28, 2006. According to the Basic Regulations, entitled to participate in the Option Program are members of boards of directors, directors general (chairpersons of management boards), top managers and employees of the subsidiaries and dependent companies of RAO UES of Russia. Under the Option Program, the price of one share will be determined on the basis of its average weighted price on the securities market (organized stock exchanges) one year before the contract date; in case the shares are traded at stock exchanges for less than one year, for the period from the trading launch to the share purchase and sale contract date, but no sooner than in 6 months' time. The total number of ordinary shares in the subsidiaries and dependent companies must not exceed 2% of the total number of ordinary shares placed by the company.
The option remuneration is an incentive scheme for managers of the subsidiaries and dependent companies of RAO UES of Russia aimed to enhance their labor efficiency, preserve their personnel potential for further development of such companies, and motivate their managers toward increasing values of the companies they work for in the interests of all their shareholders.