Document:

Exhibit 4.7 Rights Agency Agreement

Exhibit 4.7

RIGHTS AGENCY AGREEMENT

     RIGHTS AGENCY AGREEMENT, dated as of August 6, 2009, by and between KB FINANCIAL GROUP INC., a
company incorporated under the laws of Korea (the “Company”), and CITIBANK, N.A., a
national banking association organized under the laws of the United States of America acting solely
in its capacity as ADS rights agent hereunder and having an office at 388 Greenwich Street, New
York, New York 10013 (“Citibank”).

WITNESSETH THAT:

     WHEREAS, the Company is issuing rights (the “Share Rights”) to holders
(“Shareholders”) of its shares of common stock (such shares of common stock, the
“Shares”, and such issuance, the “Issuance”), upon the terms and subject to the
conditions to be described in a Prospectus Supplement (the “Prospectus Supplement”) to be
dated on or about August 7, 2009, supplementing the terms of that certain Prospectus dated July 10,
2009 (the “Base Prospectus” and, together with the Prospectus Supplement, the
“Prospectus”). Each Share Right consists of one (1) transferable Share Right (a “Share
Right”) allowing holders thereof to purchase one (1) new Share (a “New Share”), as
described in the Prospectus setting forth, inter alia, such offer to purchase New Shares (the
“Share Offer”);

     WHEREAS, the Issuance shall include the issuance of transferable rights (such rights, the
“ADS Rights”) to holders of Shares represented by American Depositary Shares
(“ADSs”) issued pursuant to the terms of the Third Amended and Restated Deposit Agreement,
dated as of September 29, 2008 (the “Deposit Agreement”), by and among the Company,
Citibank, as Depositary (the “Depositary”), all Holders and Beneficial Owners (as defined
in the Deposit Agreement) of ADSs issued thereunder and Kookmin Bank, a company organized under the
laws of the Republic of Korea, each ADS representing one (1) Share. Each ADS Right consists of one
(1) ADS Right (an “ADS Right”) allowing holders thereof to purchase one (1) new ADS (a
“New ADS”) representing one New Share, as described in the Prospectus setting forth, inter
alia, such offer to purchase New ADSs (the “ADS Offer”);

     WHEREAS, upon exercise of their (i) Share Rights and payment of the Share Subscription Price
(as defined below), holders of Share Rights will be issued New Shares in the amount subscribed for
and (ii) ADS Rights and payment of the ADS Subscription Price (as defined below), holders of the
ADS Rights will receive New ADSs in the amount subscribed for; and

     WHEREAS, the Company has requested that Citibank act as agent in connection with the ADS
Offer, and Citibank is willing to accept, and does accept, such appointment, solely upon the terms
and subject to the conditions set forth, or expressly referred to, herein.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein,
the parties hereto agree as follows:

 

 

	1.	 	Definitions.
	 
	 	 	As used herein, the following terms have the meanings herein specified, and, if applicable
with terms defined in the singular having a corresponding meaning in the plural and vice
versa:
	 
	 	 	Additional Conversion Exchange Rate has the meaning ascribed thereto in Section
11(b) hereof.
	 
	 	 	ADS Offer has the meaning ascribed thereto in the second recital hereof.
	 
	 	 	ADS Rights has the meaning ascribed thereto in the second recital hereof.
	 
	 	 	ADS Rights Certificates has the meaning ascribed thereto in Section 6 hereof.
	 
	 	 	ADSs has the meaning ascribed thereto in the second recital hereof.
	 
	 	 	ADS Subscription Period means August 7, 2009 through August 21, 2009, or such other
period as may be determined by the Company.
	 
	 	 	ADS Subscription Deposit Price means US$33.56 per New ADS.
	 
	 	 	ADS Subscription Price means the price per New ADS at which holders of ADS Rights
may subscribe for New ADSs pursuant to the ADS Offer, calculated as the U.S. dollar
equivalent of the Share Subscription Price, based on the Applicable Exchange Rate.
	 
	 	 	Agent has the meaning ascribed thereto in Section 3 hereof.
	 
	 	 	Agreement means this Rights Agency Agreement, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with the terms hereof.
	 
	 	 	Allocation Date has the meaning ascribed thereto in Section 14 hereof.
	 
	 	 	Applicable Exchange Rate means (i) if the Total ADS Subscription Deposit Price is
equal to or greater than the U.S. dollar equivalent of the Total Share Subscription Price
based on the Initial Conversion Exchange Rate, the Initial Conversion Exchange Rate, or (ii)
if the Total ADS Subscription Deposit Price is less than the U.S. dollar equivalent of the
Total Share Subscription Price based on the Initial Conversion Exchange Rate, the weighted
average of the Initial Conversion Exchange Rate and the Additional Conversion Exchange Rate.
	 
	 	 	Base Date means the third Seoul Business Day prior to the first day of the Share
Subscription Period.
	 
	 	 	Base Prospectus has the meaning ascribed thereto in the first recital hereof.
	 
	 	 	Broker Letter has the meaning ascribed thereto in Section 7 hereof.

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	 	 	Business Day means a day on which commercial banks and foreign exchange markets
settle payments and are open for general business in New York.
	 
	 	 	Citibank has the meaning ascribed thereto in the introductory statement hereof.
	 
	 	 	Client Letter has the meaning ascribed thereto in Section 7 hereof.
	 
	 	 	Closing Price means the daily closing price of Shares on the Korea Exchange.
	 
	 	 	Commission means the United States Securities and Exchange Commission.
	 
	 	 	Company has the meaning ascribed thereto in the introductory statement hereof.
	 
	 	 	Custodian means Korea Securities Depository, the Custodian under the Deposit
Agreement.
	 
	 	 	Deposit Agreement has the meaning ascribed thereto in the second recital hereof.
	 
	 	 	Depositary has the meaning ascribed thereto in the second recital hereof.
	 
	 	 	DTC means The Depository Trust Company.
	 
	 	 	Domestic Holder has the meaning ascribed thereto in Section 7 hereof.
	 
	 	 	Effective Date has the meaning ascribed thereto in the definition of “Registration
Statement.”
	 
	 	 	Excess Amount has the meaning ascribed thereto in Section 11(a) hereof.
	 
	 	 	Expiration Date means 5:00 p.m. (New York City time) on August 21, 2009, or such
other time and date as may be agreed in writing by the Company and the Agent.
	 
	 	 	Initial Conversion Exchange Rate has the meaning ascribed thereto in Section 10(b)
hereof.
	 
	 	 	KRW Deficiency Amount has the meaning ascribed thereto in Section 11(b) hereof.
	 
	 	 	Issuance has the meaning ascribed thereto in the first recital hereof.
	 
	 	 	Instructions Booklet has the meaning ascribed thereto in Section 7 hereof.
	 
	 	 	Korea Exchange means the KRX KOSPI Market, the exchange on which the Shares are
publicly traded.
	 
	 	 	KRW means Korean Won.
	 
	 	 	New ADSs has the meaning ascribed thereto in the second recital hereof.

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	 	 	New Shares has the meaning ascribed thereto in the first recital hereof.
	 
	 	 	NY Account means the account established by Agent for purposes hereof and registered
as “KBFG ADS Rights Offering”.
	 
	 	 	Overseas Holders has the meaning ascribed thereto in Section 7 hereof.
	 
	 	 	Prospectus has the meaning ascribed thereto in the first recital hereof.
	 
	 	 	Prospectus Supplement has the meaning ascribed thereto in the first recital hereof.
	 
	 	 	Record Date means the date for determination of the holders of ADSs entitled to
receive ADS Rights which was 5:00 p.m. (New York City time) on July 27, 2009.
	 
	 	 	Registration Statement means the registration statement on Form F-3 of the Company
filed with the Commission on July 10, 2009 (File No. 333-160505), as amended at the time of
such registration statement’s effectiveness for the purposes of Section 11 of the Securities
Act (the “Effective Date”), including (i) all documents filed as a part thereof or
incorporated or deemed to be incorporated by reference therein and (ii) any information
contained or incorporated by reference in a prospectus or a prospectus supplement filed with
the Commission pursuant to Rule 424(b) under the Securities Act, to the extent such
information is deemed, pursuant to Rule 430B under the Securities Act, to be part of such
registration statement at the Effective Date.
	 
	 	 	Securities Act means the United States Securities Act of 1933, as amended.
	 
	 	 	Seoul Account means the following account, which is managed by the Custodian on
behalf of the Depositary:

Bank: Kookmin Bank

Swift/BIC Code: CZNBKRSE

Account name: Citibank NA (I.GDR / KMBANK)

Account number: 972468-07-100028

	 	 	Seoul Business Day means a day on which commercial banks and foreign exchange
markets settle payments and are open for general business in Seoul.
	 
	 	 	Shareholders has the meaning ascribed thereto in the first recital hereof.
	 
	 	 	Shares has the meaning ascribed thereto in the first recital hereof.
	 
	 	 	Share Offer has the meaning ascribed thereto in the first recital hereof.
	 
	 	 	Share Rights has the meaning ascribed thereto in the first recital hereof.

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	 	 	Share Subscription Period means August 26, 2009 through August 27, 2009, or such
other period as may be determined by the Company.
	 
	 	 	Share Subscription Price means the price per New Share at which holders of Share
Rights may subscribe for New Shares pursuant to the Share Offer and shall be equal to the
lower of (A) KRW 37,250 and (B) 0.75 multiplied by the lower of (i) the arithmetic average
of (x) the volume-weighted average Closing Price for the one-week period immediately
preceding, and inclusive of, the Base Date and (y) the Closing Price on the Base Date and
(ii) the Closing Price on the Base Date; provided that the Share Subscription Price shall
not be lower than KRW5,000.
	 
	 	 	Total ADS Subscription Deposit Price has the meaning ascribed thereto in Section
10(a) hereof.
	 
	 	 	Total Share Subscription Price has the meaning ascribed thereto in Section 10(b)
hereof.
	 
	 	 	USD Deficiency Amount has the meaning ascribed thereto in Section 11(b) hereof.
	 
	2.	 	ADS Offer.
	 
	a.	 	The Agent will distribute on behalf of the Company to registered holders of ADSs of record on
the Record Date 0.0776839 ADS Right for every ADS held as of the Record Date. No fractional
ADS Rights will be issued. Each one (1) ADS Right will entitle the holder thereof to
subscribe for one (1) New ADSs at the ADS Subscription Price. ADS Rights will be evidenced by
ADS Rights Certificates. The ADS Offer will be made to eligible holders of ADSs of record on
the Record Date by means of, inter alia, the Prospectus to be mailed or distributed to such
holders as described in Section 7 hereof. The ADS Subscription Period will expire on the
Expiration Date. After the Expiration Date, the holders of ADS Rights (and the ADS Rights
Certificates representing such ADS Rights) not previously exercised will have no rights and
such ADS Rights will be void and will have no further value.
	 
	b.	 	If the aggregate number of New Shares available for subscription pursuant to the ADS Rights
and Share Rights equals or exceeds the aggregate number of New Shares subscribed for, the
Company will allocate to each holder of ADS Rights who has exercised his/her ADS Rights the
number of New Shares in the form of New ADSs indicated in his/her ADS Rights Certificate.
Holders of ADS Rights must deliver to the Agent the ADS Subscription Deposit Price for all New
ADSs applied for pursuant to the exercise of the ADS Rights.
	 
	c.	 	Fractional entitlements to ADS Rights shall be aggregated and sold by the Agent. The net
proceeds from such sale (after deducting applicable fees (up to $0.02 per ADS Right sold)
expenses and withholding taxes) shall be remitted to holders of ADS Rights entitled thereto in
proportion to such holders’ fractional entitlements.
	 
	d.	 	The Company hereby represents and warrants to the Agent that (i) the Registration Statement
has been filed and has become effective and (ii) as of the Effective Date, the Registration

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	 	 	Statement did not, and, as of its date, the Prospectus will not, contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein,
or necessary in order to make the statements therein, as to the Prospectus in light of the
circumstances under which such statements were made, not misleading; provided,
however, that this representation and warranty shall not apply to any statements or
omissions made in reliance upon and in conformity with information furnished in writing to
the Company or the Company’s representatives by Citibank, as Agent, for use in the
Registration Statement or the Prospectus (as the case may be).
	 
	3.	 	Appointment of the Agent.
	 
	 	 	The Company hereby appoints Citibank as its agent hereunder (the “Agent”) in
connection with the ADS Offer, and Citibank hereby accepts such appointment, solely upon the
terms and subject to the conditions contained, or expressly referred to, herein, including,
without limitation, the appointment fee contemplated on Exhibit B attached hereto. The
Agent may perform its obligations hereunder through any agent appointed by it, provided that
the Agent shall remain primarily liable hereunder.
	 
	4.	 	[Reserved]
	 
	5.	 	Allocation of ADS Rights.
	 
	 	 	On August 7, 2009, the Agent will allocate to each registered holder of ADSs of record as of
the Record Date 0.0776839 ADS Right for every ADS owned as of the Record Date. One (1) ADS
Right will entitle the holder thereof to subscribe for one (1) New ADS.
	 
	6.	 	Preparation of ADS Rights Certificates.
	 
	a.	 	The Agent will cause to be prepared, for issuance to registered holders of ADSs of record as
of the Record Date, ADS Rights Certificates substantially in the form attached hereto as
Exhibit A (the “ADS Rights Certificates”). The Company authorizes the Agent to cause
to be prepared ADS Rights Certificates as soon as practicable after the date hereof and to
cause to be destroyed any such ADS Rights Certificates that are not issued as a result of the
initial issuance of ADS Rights and any transfer or assignment of all or a portion of the ADS
Rights in respect of which any such ADS Rights Certificates were prepared.
	 
	b.	 	The Agent will cause to appear on each ADS Rights Certificate (i) the name of the holder of
the ADS Rights to whom such ADS Rights Certificate is issued, (ii) the number of ADS Rights to
which such holder is entitled and (iii) the certificate number of such ADS Rights Certificate.
	 
	c.	 	The Company authorizes the Agent, in connection with the initial issuance of ADS Rights
Certificates or the subsequent issuance of any ADS Rights Certificate, as a result of any
transfer or assignment of all or a portion thereof, to sign ADS Rights Certificates by either
the manual or the facsimile signature of a duly authorized officer of the Agent. Until the
Agent has

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	 	 	signed an ADS Rights Certificate, such ADS Rights Certificate will not be valid or
obligatory for any purpose.
	 
	7.	 	Issuance, Transfer, Sale and Exercise of ADS Rights.
	 
	a.	 	On August 7, 2009, (i) Cleary Gottlieb Steen & Hamilton LLP, U.S. counsel for the Company,
will deliver to the Agent two (2) original copies of its legal opinion addressed to the Agent
(substantially in form of Exhibit F attached hereto); and (ii) Shin & Kim, Korean counsel to
the Company, will deliver to the Agent two (2) original copies of its legal opinion addressed
to the Agent (substantially in form of Exhibit G attached hereto).
	 
	b.	 	(i) On August 7, 2009 (after receipt of the items listed in Section 13(a)), the Agent will
send under its blanket surety bond: (x) by first class mail, to each holder of ADSs having an
address of record within the United States (each a “Domestic Holder”) on the Record
Date: (A) an ADS Rights Certificate evidencing the ADS Rights to which such holder is entitled
pursuant to the ADS Offer, as well as an Instructions Booklet (as hereinafter defined)
relating to, inter alia, the exercise and transfer of the ADS Rights Certificate; and (B) a
copy of the Prospectus, and (y) by air mail (without registration or insurance) to each holder
of ADSs having addresses outside the United States, of record (each an “Overseas
Holder”) on the Record Date, the documents described in clause (x) above, unless otherwise
directed in writing to the Agent by the Company.

	 	(ii) On August 7, 2009 (after the Agent’s receipt of the items listed in Section 13(a)), the
Agent will (x) distribute to DTC participants who held ADSs as of the Record Date sufficient
copies (in the amounts requested by such DTC participants) of the following: (A) the
Prospectus; (B) such broker letter substantially in the form set forth in Exhibit C attached
hereto (the “Broker Letter”); (C) such client letter substantially in the form set
forth in Exhibit D attached hereto (the “Client Letter”); and (D) such instructions
booklet substantially in the form set forth in Exhibit E attached hereto (the
“Instructions Booklet”), and (y) distribute to DTC, for credit to DTC participants
as of the Record Date, the requisite number of ADS Rights (0.0776839 ADS Right for every ADS
held as of the Record Date).

	c.	 	In the event that any ADS Rights Certificate is returned to the Agent for any reason and
proper delivery thereof cannot be effected on or prior to the Expiration Date, the ADS Rights
represented by such ADS Rights Certificate will be void and will have no further value. The
Agent will furnish to the Company such information as the Company may request with respect to
any ADS Rights Certificate that cannot be delivered. The Agent shall cause the ADS Rights
evidenced by ADS Rights Certificates not mailed to registered holders in accordance with
Section 7(b) hereof, to be sold and the aggregate net proceeds of the sale of all such ADS
Rights (after subtraction of applicable fees of up to US$0.02 per ADS Right sold, expenses and
applicable taxes) to be distributed to such ineligible holders of ADSs in amounts equal to
their pro rata share by means of a check mailed to the last known address of each such holder.
	 
	d.	 	The Agent will effect transfers and assignments of ADS Rights Certificates (or portions
thereof) as directed by the holders thereof, and will send to each transferee or assignee of
ADS

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	 	 	Rights Certificates (or portions thereof), by first class mail to a Domestic Holder, and by
airmail to an Overseas Holder (without registration or insurance), upon cancellation of such
ADS Rights Certificates, a newly issued ADS Rights Certificate together with the other
documents described in clause (b)(i) above.
	 
	e.	 	The Company authorizes the Agent to waive proof of authority to sign (including the right to
waive signatures of co-fiduciaries and proof of appointment or authority of any fiduciary or
other person acting in a representative capacity) in connection with the transfer or
assignment of ADS Rights Certificates (or portions thereof) evidencing ADS Rights;
provided, however, that the signature to the relevant instrument of transfer
or assignment is guaranteed by an eligible guarantor institution which is a member of a
Medallion Signature Guarantee Program.
	 
	f.	 	In the event that, prior to the Expiration Date, any person notifies the Agent that the ADS
Rights Certificate to which such person is entitled has not been delivered, or has been lost,
stolen or destroyed, the Agent will arrange for the issuance of a new ADS Rights Certificate
and the delivery of the other documents described in clause (b)(i) above to any person from
whom it has received, prior to the Expiration Date, a duly executed letter or other
communication satisfactory to the Agent indicating the name and address of the registered
holder of the lost ADS Rights Certificate, the number of such ADS Rights Certificate, and the
number of ADS Rights evidenced thereby, or has otherwise satisfied the Agent as to such
failure of delivery, or lost, stolen or destroyed ADS Rights Certificate in accordance with
procedures which are standard to the industry; provided, however, that such
issuance may be delayed by the Agent, in its discretion, pending receipt of an indemnity from
such person satisfactory to the Company and the Agent and confirmation that such lost, stolen
or destroyed ADS Rights Certificate has not been exercised or transfered. Upon issuance of
such new ADS Rights Certificate, the Agent shall cancel all such ADS Rights Certificates which
are claimed not delivered or were lost, stolen or destroyed and shall record such cancellation
in the register of ADS Rights to be maintained by the Agent.
	 
	g.	 	A holder of ADS Rights may place an order with the Agent to sell all or a portion of such
holder’s ADS Rights and, in such event, shall deliver its ADS Rights Certificate(s) to the
Agent. The Agent must receive such holder’s ADS Rights Certificate(s) prior to 5:00 p.m. (New
York City time) on August 14, 2009. In connection with any sale of ADS Rights, the Agent may
charge a fee of up to US$0.02 per ADS Right sold. At least once weekly during the period when
the ADS Rights are listed on the New York Stock Exchange, the Agent will aggregate the ADS
Rights delivered to it with instructions to sell and will arrange for their sale on the New
York Stock Exchange through a broker appointed by the Agent for such purpose. The Agent will
not be liable to any holder for its failure to obtain the best market price for any ADS Rights
it sells at the request of a holder. Each seller of ADS Rights through the Agent will receive
the net sale price for the ADS Rights sold, calculated on the basis of the weighted average of
all sales of ADS Rights by the Agent during the ADS Rights trading period net of expenses,
commissions and fees incurred in connection with such sales.

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	h.	 	If the Agent does not receive instructions to exercise, sell or exchange any ADS Rights prior
to 5:00 p.m. (New York City time) on the Expiration Date, those ADS Rights will be void and
will have no further value.
	 
	i.	 	The Company hereby instructs the Agent, and the Agent hereby agrees, to treat, for purposes
of U.S. tax reporting, the distribution of ADS Rights to holders of ADSs as a “non-taxable
stock dividend” under United States federal income tax law.
	 
	j.	 	The Company and the Agent agree that the Depositary shall be authorized to charge holders of
ADSs as of the Record Date a fee of up to US$0.02 per ADS held by such holders in connection
with the initial distribution of ADS Rights to such holders in accordance with the Deposit
Agreement. The Company and the Agent agree that the Agent shall be authorized to charge
holders of ADS Rights certain fees as set forth on Exhibit B attached hereto.
	 
	8.	 	Acceptance of Subscriptions.
	 
	a.	 	The Company hereby authorizes and directs the Agent to accept subscriptions for New ADSs on
behalf of the Company upon the proper completion and execution of an ADS Rights Certificate,
surrender of the applicable ADS Rights Certificate and delivery of the ADS Subscription
Deposit Price for the New ADSs, in accordance with the terms thereof and hereof. The Company
further authorizes the Agent to refuse to accept, in its reasonable discretion, any improperly
completed or unexecuted ADS Rights Certificate.
	 
	b.	 	The Company authorizes the Agent to waive proof of authority to sign (including the right to
waive signatures of co-fiduciaries and proof of appointment or authority of any fiduciary or
other person acting in a representative capacity) in connection with any subscription with
respect to which:

	 	(i)	 	the surrendered ADS Rights Certificate is registered in the name of one or more
individuals or an executor, administrator, trustee, custodian for a minor or other
fiduciary and has been executed by such registered holder or holders, provided that the
New ADSs subscribed for are to be issued in the name of such registered holder or
holders;
	 
	 	(ii)	 	the surrendered ADS Rights Certificate is registered in the name of a
corporation and has been executed by an officer of such corporation, provided that the
New ADSs subscribed for are to be issued in the name of such corporation;
	 
	 	(iii)	 	the surrendered ADS Rights Certificate has been executed by a bank, trust
company or broker as agent for the registered holder thereof, provided that the New
ADSs subscribed for are to be issued in the name of such registered holder; and
	 
	 	(iv)	 	the surrendered ADS Rights Certificate is registered in the name of a decedent
and has been executed by a person who purports to act as the executor or administrator
of such

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	 	 	 	decedent’s estate, provided that (A) such subscription is for not more than 10 New
ADSs, (B) the New ADSs are to be issued in the name of such person as executor or
administrator of such decedent’s estate, (C) the check tendered in payment of such
subscription is drawn for the proper amount and to the order of the Agent, and is
otherwise in order, and (D) there is no evidence indicating that such person is not
the duly authorized representative which such person purports to be.

	 	 	In all cases other than those described in clauses (i) through (iv) above, the Agent will
obtain all necessary proof of authority to sign in connection with the subscriptions for New
ADSs, provided, however, that in the event that such proof of authority has
not been received on or prior to the Expiration Date, the Agent shall obtain advice from the
Company as to whether any such subscriptions may be accepted.
	 
	c.	 	The Company authorizes the Agent to accept customary letters of indemnification from
commercial banks, trust companies or eligible guarantor institutions that are members of a
Medallion Signature Guarantee Program with respect to nonconforming aspects of documents
delivered in connection with subscriptions for New ADSs.
	 
	d.	 	On each Business Day during the ADS Subscription Period, the Agent shall deposit in the NY
Account the aggregate amount of the ADS Subscription Deposit Price received by the Agent on
such day in respect of payments made upon exercise of ADS Rights.
	 
	9.	 	Reports by the Agent.
	 
	a.	 	During the ADS Subscription Period, the Agent will advise the Company and Goldman Sachs
(Asia) L.L.C., Seoul Branch, Morgan Stanley & Co., International plc, Seoul Branch, Korea
Investment & Securities Co., Ltd., Samsung Securities Co., Ltd. and KB Investment & Securities
Co., Ltd. daily by telephone, facsimile transmission or e-mail to certain e-mail accounts
notified in writing to the Agent as to (i) the total number of New ADSs subscribed for
pursuant to the exercise of ADS Rights and (ii) the aggregate amount of the ADS Subscription
Deposit Price received by the Agent in respect of such subscriptions in U.S. dollars.
	 
	b.	 	Not later than 8:00 a.m. (Korea time) on the Seoul Business Day following the Expiration
Date, the Agent will advise the Company, in accordance with written instructions to be sent by
the Company and received by the Agent, as to (i) the total number of New ADSs subscribed for
pursuant to the exercise of ADS Rights and (ii) the aggregate amount of the ADS Subscription
Deposit Price received by the Agent in respect of such subscriptions in U.S. dollars. The
figure so reported will be final and the Agent will not be authorized to accept subscriptions
for any additional New ADSs. In accordance with Section 11 hereof, the Agent will submit to
the Custodian under the Deposit Agreement on behalf of the Depositary and for transmission to
the Company a facsimile transmission containing the information specified above.
	 
	10.	 	Payment of the ADS Subscription Deposit Price.

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	a.	 	The Agent shall, at or prior to 5:00 p.m. (New York City time) on the Business Day
immediately following the Expiration Date, transfer, by electronic transfer of funds to the
Seoul Account, an amount in U.S. dollars equal to the aggregate ADS Subscription Deposit Price
received from exercising holders of ADS Rights in respect of all new ADSs validly subscribed
for during the ADS Subscription Period (the “Total ADS Subscription Deposit Price”):
	 
	b.	 	The Agent shall instruct the Custodian: (i) to convert, through Kookmin Bank, the applicable
portion of the Total ADS Subscription Deposit Price into the aggregate Share Subscription
Price in Korean Won for the total number of New Shares corresponding to the total number of
New ADSs subscribed by exercising holders of ADS Rights (the “Total Share Subscription
Price”) on or prior to the Seoul Business Day immediately preceding the Share Subscription
Period, (ii) to notify the Company and the Agent of the actual U.S. dollar to Korean Won
exchange rate (including currency conversion expenses) at which the Custodian has been able to
convert the applicable portion of the Total ADS Subscription Deposit Price into the Total
Share Subscription Price as provided in clause (i) above (the “Initial Conversion Exchange
Rate”) and (iii) to pay the Total Share Subscription Price during the Share Subscription
Period in accordance with the subscription procedure of the Share Offer.
	 
	11.	 	Distribution of Excess Amount and Payment of Deficiency Amount
	 
	a.	 	If the Total ADS Subscription Deposit Price exceeds the U.S. dollar equivalent of the Total
Share Subscription Price based on the Initial Conversion Exchange Rate, the Agent shall
instruct the Custodian to transfer, on or prior to the Seoul Business Day immediately
preceding the Share Subscription Period, by electronic transfer of funds to an account
designated by the Agent, the amount by which the Total ADS Subscription Deposit Price so
exceeds the U.S. dollar equivalent of the Total Share Subscription Amount (the “Excess
Amount”) in U.S. dollars. The Agent shall, as promptly as practicable after receipt of the
Excess Amount, remit to each exercising holder of ADS Rights such holder’s pro rata share of
the Excess Amount (after deduction of applicable expenses).
	 
	b.	 	If the Total ADS Subscription Deposit Price is less than the U.S. dollar equivalent of the
Total Share Subscription Price based on the Initial Conversion Exchange Rate, the Company
shall notify the Agent, through the Custodian, at or prior to 9:00 a.m. (New York City time)
on the Business Day immediately preceding the Share Subscription Period, of the additional
Korean Won amount necessary to pay the Total Share Subscription Price in full (the “KRW
Deficiency Amount”). The Agent shall, at or prior to 5:00 p.m. (New York City time) on the
Business Day immediately preceding the Share Subscription Period, transfer, by electronic
transfer of funds to the Seoul Account, an amount in U.S. dollars sufficient to cover the KRW
Deficiency Amount, after taking into account potential changes in the exchange rate that may
apply when such U.S. dollar amount is converted to Korean Won as provided for in the following
sentence. The Agent shall instruct the Custodian (i) to convert, through Kookmin Bank, such
U.S. dollar amount to Korean Won on the first day of the Share Subscription Period, (ii) to
notify the Company and the Agent of the portion of such U.S. dollar amount that is actually
converted to pay the KRW Deficiency Amount (the “USD Deficiency Amount”) and the U.S.
dollar to Korean Won exchange rate (including currency conversion expenses) at which the USD
Deficiency Amount is converted into the KRW Deficiency Amount (the “Additional 

11

 

	 	 	Conversion Exchange Rate”) and (iii) to promptly return to the Agent any excess of
such U.S. dollar amount over the USD Deficiency Amount.
	 
	c.	 	As soon as practicable after determination of the USD Deficiency Amount, the Agent shall
notify each exercising holder of ADS Rights of its pro rata share of the USD Deficiency
Amount. Each exercising holder of the ADS Rights shall promptly pay its pro rata share of the
USD Deficiency Amount to the Agent. The Agent will not deliver New ADSs subscribed for by such
holder prior to the receipt by the Agent of such payment. If payment of the applicable USD
Deficiency Amount is not received from a subscriber by the Agent by September 8, 2009, the
Agent shall sell all or a portion of such New ADSs subscribed for by such subscriber in a
commercially reasonable manner, and in an amount sufficient to cover such USD Deficiency
Amount and to cover any costs incurred in selling such New ADSs. In such event, the Agent will
then deliver the remaining New ADSs (if any) to such subscriber together with a check in the
amount of the excess proceeds, if any, from such sale (after deduction of applicable
Depositary fees of up to US$0.02 per New ADS sold, expenses and taxes). The Agent will
thereupon have the right to reimbursement by the Company with respect to any USD Deficiency
Amount not collected as provided above from any such holder after such sale of New ADSs and
application of the proceeds thereof (less such costs) to any such USD Deficiency Amount owed
by such holder to the Agent.
	 
	12.	 	Deposit of New Shares and Issuance of New ADSs.
	 
	a.	 	The Company shall, as soon as practicable after the issuance of the Shares represented by the
New ADSs subscribed for pursuant to the ADS Offer, cause to be deposited such Shares in an
account maintained by the Custodian in the name of the Depositary or its designated nominee.
	 
	b.	 	The Depositary shall as soon as practicable after the Company shall cause New Shares to be so
deposited pursuant to paragraph (a) of this Section 12, issue, in accordance with the terms of
the Deposit Agreement, New ADSs subscribed for pursuant to the ADS Offer and, subject to
Section 11(c) hereof, (i) in the case of ADS Rights exercised through DTC, make delivery
thereof to the applicable DTC participants, and (ii) in the case of ADS Rights exercised by
registered holders of ADS Rights Certificates, mail to each subscriber, in the manner
specified by such subscriber, an ADR representing the number of New ADSs for which such
subscriber has subscribed. Each ADR will be registered in the name specified by the
subscriber on its surrendered ADS Rights Certificate.
	 
	c.	 	Any ADR requested to be mailed by the subscriber therefor will be mailed by the Agent by
first class mail, in each case under its blanket surety bond and within the limits thereof,
protecting the Agent and the Company from any loss or liability arising out of nonreceipt or
nondelivery of any such ADR or the replacement thereof.
	 
	13.	 	Supplies of Documents.
	 
	a.	 	As promptly as practicable following the date hereof, the Agent shall notify the Company in
writing as to the number of copies of the Prospectus, Broker Letter, Client Letter,
Instructions

12

 

	 	 	Booklet, and Form W-9 required to be printed in preparation for distribution to eligible
holders of ADS Rights. The Company shall cause such number of copies (as shall have been
notified by the Agent to the Company) of the Prospectus to be furnished to the Agent when
the same become available, along with sufficient copies of the Broker Letter, the Client
Letter, the Instructions Booklet, and Form W-9 to be distributed by the Agent to holders and
to transferees of ADS Rights and New ADSs.
	 
	b.	 	Promptly after the Expiration Date, the Agent shall cause any unused ADS Rights Certificates
in its possession to be destroyed and all ADS Rights Certificates that were registered or
assigned and all ADS Rights Certificates that were exercised will be cancelled and destroyed.
The Agent will provide to the Company a record of such ADS Rights Certificates having been
cancelled and destroyed upon the Company’s request.
	 
	14.	 	[Reserved].
	 
	15.	 	Instructions and Indemnification.
	 
	a.	 	The Agent will be entitled to rely upon any instructions or directions furnished to it in
writing by any director or officer to the Company or any attorney-in-fact for the Company
appointed for this purpose pursuant to a power of attorney signed by any director or officer
of the Company, and to apply to such individuals for advice or instructions in connection with
its duties, and will be entitled to treat as genuine, and as the document it purports to be,
any letter or other document, furnished to it by such individuals. The Agent shall incur no
liability or responsibility to the Company for any action taken in reliance on, and in
accordance with, any notice, resolution, waiver, consent, order, certificate, or other paper,
document or instrument believed by it to be genuine and to have been signed, sent or
represented by the proper party or parties.
	 
	b.	 	The Company will indemnify the Agent against, and defend and hold it harmless from, any and
all liability and related expenses (including reasonable fees and expenses of its counsel)
incurred by the Agent, which may arise out of acts performed or omitted in connection with
this Agreement, as the same may be amended, modified, or supplemented from time to time, (i)
by the Agent, except to the extent such liability or expense arises out if its own negligence
or willful misconduct, or (ii) by the Company or any of its agents.
	 
	c.	 	The Agent will indemnify the Company against, and defend and hold it harmless from, any and
all liability and related expenses (including reasonable fees and expenses of its counsel)
incurred by the Company, which arising out of negligence or willful misconduct of the Agent,
the Custodian or any of their respective employees, officers, directors or agents.
	 
	d.	 	If any action or claim shall be brought or threatened to be brought against any party in
respect of which indemnity may be sought pursuant to this Section 15, such indemnified party
shall, as soon as practicable (or, in the case of any action or claim which is threatened to
be brought, as soon as practicable after such party actually becomes aware of the same) notify
the party against whom indemnity may be sought in writing of such action or claim, and in such

13

 

	 	 	circumstances, and also in the event of any action or claim being brought or threatened to
be brought against any of the parties thereto, the other party thereto shall provide to the
party against whom such action or claim is brought or threatened to be brought, such
information and assistance as such party shall reasonably request, subject always to the
provisions of indemnity contained in this Section 15. Each party shall to the extent
reasonable and practicable in all circumstances consult with the other party as and when
reasonably requested by such party in respect of any action or claim referred to in this
Section 15.
	 
	e.	 	The obligation set forth in this Section 15 shall survive notwithstanding the termination of
this Agreement and the succession or substitution of any indemnified person.
	 
	16.	 	Payment for Services.
	 
	 	 	The Company will compensate the Agent for its services hereunder as provided in a letter
agreement, dated the date hereof, between the Company and the Agent, a copy of which is
attached hereto as Exhibit B.
	 
	17.	 	Amendment.
	 
	 	 	This Agreement may be amended, supplemented or otherwise modified only by a written
instrument executed and delivered by each of the parties hereto.
	 
	18.	 	Governing Law; Jurisdiction; Waiver.
	 
	 	 	This Agreement will be governed by, and construed and interpreted in accordance with, the
laws of the State of New York. The parties agree that the federal and state courts located
in the City of New York, State of New York, shall have jurisdiction to hear and determine
any suits, actions or proceedings and to settle any disputes between the parties relating to
this Agreement and for such purpose each of the parties irrevocably submits to the
jurisdiction of such courts. The Company hereby irrevocably designates, appoints and
empowers Kookmin Bank, New York Branch, located at 565 Fifth Avenue, 24th Floor,
New York, New York 10017, as its authorized agent to receive and accept for and on its
behalf and on behalf of its properties, assets and revenues, service by mail of any and all
legal process, summons, notices and documents that may be served in any suit, action or
proceeding brought against the Company in any court as described in the preceding sentence.
If for any reason the Company’s authorized agent shall cease to be available to act as such,
the Company agrees to designate a new authorized agent in the United States for receiving
and accepting service of all legal process on the terms and for the purposes of this Section
18 reasonably satisfactory to the Agent. The Company further hereby irrevocably consents
and agrees to any and all legal process, summons, notices and documents that may be served
in any suit, action or proceeding against it under the terms hereof, by service by mail of a
copy thereof upon its authorized agent (whether or not the appointment of its authorized
agent shall for any reason prove to be ineffective or its authorized agent shall fail to
accept or acknowledge such service), with a copy mailed to the Company by registered or
certified air mail, postage prepaid, to its address provided herein. The Company agrees
that the failure of its authorized agent to give any notice of such service

14

 

	 	 	to it shall not impair or affect in any way the validity of such service or any judgment
rendered in any action or proceeding based thereon. The Company irrevocably and
unconditionally waives, to the fullest extent permitted by law, any objection that it may
not now or hereafter have to the laying of venue of any actions, suits or proceedings
brought in any court as provided herein, and hereby further irrevocably and unconditionally
waives and agrees not to plead or claim in any such court that any such action, suit or
proceeding brought in any such court has been brought in an inconvenient forum. The
provisions of this Section 18 shall survive notwithstanding the termination of this
Agreement.
	 
	19.	 	Counterparts.
	 
	 	 	This Agreement may be executed by the parties hereto on separate counterparts, which
counterparts taken together will be deemed to constitute one and the same instrument.
	 
	20.	 	Notices.
	 
	 	 	All notices and other communications hereunder shall be in writing, in English and shall be
deemed duly given (a) on the date of delivery if delivered personally, or if by facsimile,
upon confirmation of successful transmission, (b) on the third Business Day following the
date of dispatch if delivered by a recognized next-day courier service, or (c) on the
earlier of confirmed receipt or the fifth Business Day following the date of mailing if
delivered by registered or certified mail, return receipt requested, postage prepaid.
	 
	 	 	Any written notice provided for herein shall be deemed given when received and shall be
addressed as follows: (i) if to the Company, to KB Financial Group Inc., located at 9-1,
2-ga, Namdaemun-ro, Jung-gu, Seoul 100-703, Korea, Attention: Financial Planning and
Management Department, Telecopier No.: +82-2-2073-2829; (ii) if to the Agent, to Citibank,
N.A., 388 Greenwich Street, 14th Floor, New York, New York 10013, Attention: ADR
Department, Telecopier No.: (+1-212) 816-6865. Any party may, by notice given in writing
to each other party at its above address, designate another address for receipt of notices
thereunder.
	 
	21.	 	Binding Effect.
	 
	 	 	This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns and, to the extent contemplated herein,
the holders and beneficial owners of ADS Rights.
	 
	22.	 	Severability.
	 
	 	 	In case any one or more of the provisions contained in this Agreement should be or become
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability
of the remaining provisions contained herein shall in no way be affected, prejudiced or
disturbed thereby.

15

 

	23.	 	Force Majeure.
	 
	 	 	The Agent shall not incur any liability for not performing any act or fulfilling any
obligation hereunder by reason of any occurrence beyond its control (including, but not
limited to, any provision of any present or future law or regulation or any act of any
governmental authority, any act of God or war or terrorism, or the unavailability of the
Federal Reserve Bank wire services or any electronic communication facility).

[Remainder of page intentionally left blank]

16

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered
by their duly authorized officers as of the day and year above written.

	 	 	 	 	 
	 	KB FINANCIAL GROUP INC.

 	 
	 	By:  	/s/ Kap Shin
 	 
	 	 	Name:  	Kap Shin 	 
	 	 	Title:  	Deputy President and Chief Financial

Officer 	 
	 
	 	CITIBANK, N.A.

 	 
	 	By:  	/s/ Richard Etienne
 	 
	 	 	Name:  	Richard Etienne 	 
	 	 	Title:  	Vice President 	 

17

 

	 	 	 	 	 

EXHIBIT A

FORM OF ADS RIGHTS CERTIFICATE

KB FINANCIAL GROUP INC.

Citibank, N.A.

PO Box 43011

Providence, Rhode Island 02940-3011

Within USA, US territories & Canada 800 308 7887

Outside USA, US territories & Canada 781 575 4555

MR A SAMPLE

DESIGNATION (IF ANY)

ADD 1

ADD 2

ADD 3

ADD 4

ADD 5

ADD 6

			
	 	 	 
	No. of ADS rights:
	 	ADS Rights Certificate No.:

CUSIP No.: 48241A 113

ADS RIGHTS CERTIFICATE

The registered owner of this ADS rights certificate named below, or such owner’s assigns, is
entitled, under the terms of the ADS rights offering by KB Financial Group Inc. (“KBFG”) described
in the Prospectus Supplement, dated August 7, 2009, to the Prospectus, dated July 10, 2009
(collectively, the “Prospectus”), to the number of ADS rights shown above (referred to herein as
the “ADS rights”) to subscribe for American Depositary Shares (“ADSs”), each representing one (1)
share of common stock of KBFG. The ADS rights evidenced hereby constitute warrants. One (1) ADS
right entitles the holder to subscribe for one (1) new ADS at the ADS subscription price equal to
the U.S. dollar equivalent of the Share Subscription Price (as defined below), based on the
exchange rate on or about August 25, 2009 at which KBFG can convert U.S. dollar amounts to Won
amounts, plus currency conversion expenses. The “Share Subscription Price” per share will be the
lower of (i) W37,250 and (ii) a reference price set at a discount rate of 25% to the relevant
market price of KBFG’s common stock. The relevant market price of KBFG’s common stock will be the
lower of (i) the arithmetic average of (x) the volume-weighted average closing price for the
one-week period immediately preceding, and inclusive of, August 21, 2009, and (y) the closing price
on August 21, 2009, and (ii) the closing price on August 21, 2009, in each case on the KRX KOSPI
Market. Citibank, N.A. has been appointed by KBFG to act as ADS rights agent. The amount payable
for subscription of new ADSs

18

 

must be paid in U.S. dollars on the terms described in the Prospectus and must be in the form of a
U.S. dollar check drawn on a U.S. bank or bank draft made payable to the order of “Citibank, N.A.
— KBFG ADS Rights Offering.” Please reference your ADS rights certificate number on your check or
bank draft.

IN ORDER TO EXERCISE YOUR ADS RIGHTS, YOU MUST COMPLETE THE REVERSE SIDE OF THIS CARD AND DELIVER
THE COMPLETED AND SIGNED CARD, ALONG WITH PROPER PAYMENT FOR THE AGGREGATE NUMBER OF NEW ADSs YOU
WISH TO SUBSCRIBE FOR PURSUANT TO THE EXERCISE OF YOUR ADS RIGHTS, AS WELL AS ANY OTHER DOCUMENTS
REQUIRED, TO THE ADS RIGHTS AGENT PRIOR TO THE EXPIRATION OF THE ADS SUBSCRIPTION PERIOD AT 5:00
P.M. (NEW YORK CITY TIME) ON AUGUST 21, 2009.

THIS ADS RIGHTS CERTIFICATE IS TRANSFERABLE AT THE OFFICE OF THE ADS RIGHTS AGENT PRIOR TO 5:00
P.M. (NEW YORK CITY TIME) ON AUGUST 21, 2009.

VOID AFTER 5:00 P.M. (NEW YORK CITY TIME) ON AUGUST 21, 2009.

Please refer to the enclosed instructions booklet for instructions on

how to complete the reverse side of this card.

PLEASE FILL IN ALL APPLICABLE INFORMATION ON THE REVERSE SIDE OF THIS CARD AND
DELIVER TO CITIBANK, N.A.
before 5:00 p.m. (new york city time) on August 21, 2009.

	 	 	 
	By Courier:
	 	By Mail:
	CITIBANK, N.A. 

Corporate Actions 

250 Royall Street 

Suite V 

Canton, MA 02021
	 	CITIBANK, N.A.

Corporate Actions

P.O. Box 43011

Providence, RI 02940-3011

IF YOU DO NOT EXERCISE YOUR ADS RIGHTS PRIOR TO THE EXPIRATION OF THE ADS SUBSCRIPTION PERIOD, YOUR
ADS RIGHTS WILL BECOME VOID AND WILL HAVE NO FURTHER VALUE.

KB FINANCIAL GROUP INC.

BY: CITIBANK, N.A., as ADS RIGHTS AGENT

/s/ Citibank, N.A.

19

 

	 	 	 
	(A)

	 	(B)
	No. of ADS rights to sell through
the ADS rights agent

	 	No. of ADS rights exercised and new
ADSs subscribed
	 
	 	 
	Amount payable per new ADS 

subscribed/applied for

	 	X US$33.56
	Total amount payable

	 	US$

SECTION 1. TO SUBSCRIBE: I hereby irrevocably subscribe for the total number of new
ADSs indicated in column (B) above upon the terms and conditions specified in the
enclosed Prospectus, receipt of which is acknowledged.

TO SELL: If I have requested the ADS rights agent to attempt to sell any ADS rights in
column (A) above, I irrevocably authorize the sale of such ADS rights by the ADS rights
agent according to the procedures described in the Prospectus.

	 	 	 
	Name of Subscriber(s)/Seller(s):

	 	Taxpayer ID No. of Subscriber(s)/Seller(s):
	 
	 	 
	 

	 	 
	Address of Subscriber(s)/Seller(s):

	 	Signature of Subscriber(s)/Seller(s):
	 
	 	 
	 

	 	 
	 
	 	 
	 
 

	 	Daytime telephone number of
Subscriber(s)/Seller(s):                                         
	 
	 	 
	SECTION 2. TO TRANSFER ADS RIGHTS:

	 	SECTION 3. SPECIAL DELIVERY INSTRUCTIONS:
	For value received, ___ of the ADS
rights 
represented by the ADS
rights certificate are assigned
to:

 

(Print Full Name of Assignee)

 

(Print Full Address)

 

(Signature(s) of Assignor(s))

 

(Taxpayer Identification Number of
Assignor(s))

	 	Please mail certificates for the new ADSs I
have subscribed or any cash payment to which I
am entitled, as applicable, in accordance with
the Prospectus to the following address (if
other than shown on the face of the ADS rights
certificate):

Name:
 

Address:
 

 

20

 

IMPORTANT: The signature(s) must
correspond in every detail,
without alteration, with the
name(s) as printed on your ADS
rights certificate. The signature
must be guaranteed by an eligible
institution, such as a commercial
bank, trust company, trust
company, securities broker/dealer,
credit union, or savings
association, participating in a
Medallion Program approved by the
Securities Transfer Association,
Inc.

MEDALLION GUARANTEE

FOR USE BY ELIGIBLE INSTITUTIONS ONLY PLACE

MEDALION GUARANTEE IN SPACE BELOW

	 

Authorized Signature:
 

Name:
 

(Please Print)

     Title:
 

(Please Print)

Name of Firm:
 

Address:
 

(Include Zip Code)

	 
	If the number of ADS rights being exercised is less than all of the ADS rights
represented by this ADS rights certificate (check only one):
	 
	 	o 	 	 DELIVER TO ME A NEW ADS RIGHTS CERTIFICATE EVIDENCING THE REMAINING ADS RIGHTS
TO WHICH I AM ENTITLED.
	 
	 	o 	 	DELIVER A NEW ADS RIGHTS CERTIFICATE EVIDENCING THE REMAINING ADS RIGHTS IN
ACCORDANCE WITH MY SECTION 2 INSTRUCTIONS (which include any required signature
guarantee).
	 
	 	o 	 	SELL THE REMAINING UNEXERCISED ADS RIGHTS.

21

 

EXHIBIT B

SCHEDULE OF FEES

22

 

EXHIBIT C

FORM OF BROKER LETTER

23

 

EXHIBIT D

FORM OF CLIENT LETTER

24

 

EXHIBIT E

FORM OF INSTRUCTIONS BOOKLET

25

 

EXHIBIT F

FORM OF U.S. COUNSEL’S OPINION

26

 

EXHIBIT G

FORM OF LOCAL COUNSEL’S OPINION

27exv10w1

Exhibit 10.1

AMENDED AND RESTATED

SEVERANCE AGREEMENT

     THIS AMENDED AND RESTATED SEVERANCE AGREEMENT (this “Agreement”) is made as of the ___ day of
                    , 20___, between Imation Corp., a Delaware corporation, with its principal offices at One
Imation Place, Oakdale, Minnesota 55128 (the “Company”) and                                                             .

     WHEREAS, this Agreement is intended to specify the financial arrangements that the Company
will provide to you upon your separation from employment with the Company and all of its Affiliates
under any of the circumstances described herein; and

     WHEREAS, this Agreement is entered into by the Company in the belief that it is in the best
interests of the Company and its shareholders to help assure that the Company will have your
continued dedication during your employment with the Company, by providing for certain severance
benefits under certain circumstances in connection with your employment with the Company or any of
its Affiliates, thereby enhancing the Company’s ability to attract and retain highly qualified
people; and

     WHEREAS, this Agreement hereby amends and restates in its entirety any previous Severance
Agreement between the Company and you.

     NOW THEREFORE, to assure the Company that it will have your continued dedication, and to
induce you to remain in the employ of the Company or any of its Affiliates, and for other good and
valuable consideration, the Company and you agree as follows:

     1. Term of Agreement. The term of this Agreement shall commence on the date of this
Agreement (the “Effective Date”) and shall continue in effect until the first anniversary of the
Effective Date, and shall thereafter be automatically renewed for successive one-year terms
provided that you are employed by the Company or any of its Affiliates on each anniversary of the
Effective Date (the “Covered Period”), unless the Company, upon authorization by its Board of
Directors gives notice to you that the Company does not wish to extend this Agreement, and
provided further, that, notwithstanding any such notice by the Company not to extend, the
Covered Period and this Agreement shall continue in effect for a period of 12 months from the date
of the notice in the event the notice is not given following a Change of Control, or for a period
of 24 months following the date of a Change of Control in the event the notice is given following
such Change of Control.

     2. Definitions. When the following terms are used in this Agreement with initial
capital letters, they shall have the following meanings.

     (i) “Affiliate” means any entity that, together with the Company, is treated as a
single employer under Code section 414(b) or (c). For purposes of determining whether a
Termination of Employment has occurred, the term Affiliate will be determined by applying
Code section 1563(a)((1), (2) and (3) for purposes of determining a controlled group of
corporations under Code section 414(b) and in applying Treas. Reg.
Section 1.414(c)-2 for purposes of determining trades or businesses that are under
common control for purposes of Code section 414(c), the phrase “at least 50 percent” will be
used instead of “at least 80 percent” each place it appears.

 

 

     (ii) “Cause” shall mean termination by the Company or an Affiliate of your employment
based upon:

     (a) your gross incompetence or substantial failure to perform your duties; or

     (b) misconduct by you that causes or is likely to cause harm to the Company or
an Affiliate or that causes or is likely to cause harm to the Company’s or an
Affiliate’s reputation, as determined by the Company’s or Affiliate’s Board of
Directors in its sole and absolute discretion (such misconduct may include, without
limitation, insobriety at the workplace during working hours or the use of illegal
drugs); or

     (c) failure to follow directions of the Company’s or Affiliate’s Board of
Directors that are consistent with your duties; or

     (d) your conviction of, or entry of a pleading of guilty or nolo contendere to,
any crime involving moral turpitude, or the entry of an order duly issued by any
federal or state regulatory agency having jurisdiction in the matter permanently
prohibiting you from participating in the conduct of the affairs of the Company or
an Affiliate.

     (iii) “Good Reason” shall mean the occurrence of any of the following events, except
for occurrence of such an event in connection with the termination of your employment or
reassignment by the Company or an Affiliate for Cause, for disability or for death, provided
you have given the Company written notice within ninety (90) days of the initial existence
of the Good Reason event and the Company has not cured such event within thirty (30) days of
the receipt of such notice:

     (a) a material diminution, either prior to or following a Change of Control, of
your authority, duties or responsibilities from your authority, duties or
responsibilities as of the date of this Agreement; or

     (b) a material diminution, either prior to or following a Change of Control, in
your base compensation (specifically excluding any long-term incentive compensation
for which you are eligible), excluding any reduction caused by a restructuring by
management of benefits for the employees of the company as a whole that affects you
in a manner comparable to other senior executives of the Company; or

     (c) a material change in the geographic location at which you perform your
services following a Change of Control (but in no event including a
relocation that does not increase the actual distance required for you to
commute from your home to the new place of business by more than 10 miles).

2

 

     (iv) “Change of Control” means any one of the following events:

     (a) the consummation of a transaction or series of related transactions in
which a person, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than
the Company or a subsidiary of the Company, or any employee benefit plan of the
Company or a subsidiary of the Company, acquires beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of 35% or more of the
Company’s then outstanding shares of common stock or the combined voting power of
the Company’s then outstanding voting securities (other than in connection with a
Business Combination in which clauses (1), (2) and (3) of paragraph (iii)(c) apply);
or

     (b) individuals who, as of the Effective Date hereof, constitute the Board of
Directors of the Company (the “Incumbent Board”) cease for any reason to constitute
at least a majority of the Board of Directors of the Company; provided, however,
that any individual becoming a director subsequent to the Effective Date hereof
whose election, or nomination for election by the Company’s stockholders, was
approved by a vote of at least a majority of the directors then comprising the
Incumbent Board (other than a nomination of an individual whose initial assumption
of office is in connection with a solicitation with respect to the election or
removal of directors of the Company in opposition to the solicitation by the Board
of Directors of the Company) shall be deemed to be a member of the Incumbent Board;
or

     (c) the consummation of a reorganization, merger, statutory share exchange,
consolidation or similar transaction involving the Company, a sale or other
disposition in a transaction or series of related transactions of all or
substantially all of the Company’s assets or the issuance by the Company of its
stock in connection with the acquisition of assets or stock of another entity (each,
a “Business Combination”) in each case unless, following such Business Combination,
(1) all or substantially all of the individuals and entities that were the
beneficial owners of the Company’s outstanding common stock and the Company’s
outstanding voting securities immediately prior to such Business Combination
beneficially own immediately after the transaction or transactions, directly or
indirectly, more than 50% of the then outstanding shares of common stock and more
than 50% of the combined voting power of the then outstanding voting securities (or
comparable equity interests) of the entity resulting from such Business Combination
(including an entity that, as a result of such transaction, owns the Company or all
or substantially all of the Company’s assets either directly or through one of more
subsidiaries) in substantially the same proportions as their ownership of the
Company’s common stock and voting securities immediately prior to such Business
Combination, (2) no person, entity or group (other than a direct or indirect parent
entity of the Company that, after giving
effect to the Business Combination, beneficially owns 100% of the outstanding
voting securities (or comparable equity interests) of the entity resulting from the
Business Combination) beneficially owns, directly or indirectly, 35% or more of the
outstanding shares of common stock or the combined voting power of the then
outstanding voting securities (or comparable equity interests) of the entity
resulting from such Business Combination and (3) at least a majority of the members
of the board of directors (or similar governing body) of the entity resulting from
such Business Combination were members of the Incumbent Board at the time of the
execution of the initial agreement or of the action of the Board of Directors of the
Company providing for such Business Combination; or

3

 

     (d) approval by the stockholders of the dissolution of the Company.

     (v) “Date of Termination” shall mean the date specified in the Notice of Termination
(except in the case of your death, in which case Date of Termination shall be the date of
death); provided the Date of Termination is consistent with your Termination of Employment.

     (vi) “Notice of Termination” shall mean a written notice which sets forth the Date of
Termination and, in reasonable detail, the facts and circumstances claimed to provide a
basis, if any, for your Termination of Employment.

     (vii) “Termination of Employment” means a termination of your employment relationship
with the Company and all Affiliates or such other change in your relationship with the
Company and all Affiliates that would be considered a “separation from service” under
Section 409A of the Code. Your employment relationship will be treated as remaining intact
while you are on a military leave, a sick leave or other bona fide leave of absence
(pursuant to which there is a reasonable expectation that you will return to perform
services for the Company or an Affiliate) but only if the period of such leave does not
exceed six (6) months, or if longer, so long as you retain a right to reemployment by the
Company or an Affiliate under applicable statute or by contract, provided, however, where
your leave is due to any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period of not less
than six (6) months and such impairment causes you to be unable to perform the duties of
your position of employment or any substantially similar position of employment, a
twenty-nine (29) month period of absence may be substituted for such six (6) month period of
absence. In all cases, the Executive’s Termination of Employment must constitute a
“separation from service” under Section 409A of the Code and any “separation under service”
under Section 409A of the Code shall be treated as a Termination of Employment.

     3. Termination Procedures. Any purported Termination of Employment by the Company or
an Affiliate or you (other than by reason of your death) during the Covered Period shall be
communicated by a Notice of Termination in accordance with Section 9 hereof. No purported
Termination of Employment by the Company or an Affiliate during the Covered Period shall be
effective if it is not pursuant to a Notice of Termination. Failure by you to
provide Notice of Termination shall not limit any of your rights under this Agreement except
to the extent the Company can demonstrate that it suffered actual damages by reason of such
failure.

4

 

     4. Qualification for Severance Benefits. You shall be eligible for severance benefits
pursuant to the terms of this Agreement on account of your Termination of Employment if the Date of
Termination occurs during the Covered Period in either of the following circumstances:

     (i) Termination of Employment by the Company or an Affiliate of your employment with
the Company and its Affiliates for any reason other than Cause; or

     (ii) Termination of Employment by you for Good Reason within the twenty-four (24) month
period following the initial existence of the Good Reason event and, in the event of a
Change in Control, only on or after the 120th day following the Change in
Control;

provided, however, that you shall not begin receiving any payments or benefits
under this Agreement unless and until you execute a general release of all claims against the
Company and its Affiliates, including non-competition and non-solicitation covenants, in the form
attached hereto as Exhibit A and you have not rescinded such release within the permitted time
period for rescission under Section 3.J therein; and provided further, that in
such case, failure to execute such release within 21 days of your Date of Termination shall result
in the loss of any rights to receive payments or benefits under this Agreement. No severance
benefits become payable pursuant to this Agreement in the event of Termination of Employment upon
your death or disability.

     5. Compensation Upon Termination.

     (i) Amounts. Upon qualification for severance benefits pursuant to this
Agreement, you shall be entitled to the benefits, to be funded from the general assets of
the Company, provided below:

     (a) The Company shall pay to you (1) the full base salary earned by you and
unpaid through the Date of Termination, at the rate in effect on the date of the
Notice of Termination, (2) any amount earned by you as a bonus with respect to the
fiscal year of the Company immediately preceding the Date of Termination if such
bonus has not theretofore been paid to you, and (3) an amount representing credit
for any paid time off earned or accrued by you but not taken during the current
“paid time off year”;

     (b) In lieu of any further base salary payments to you for periods subsequent
to the Date of Termination, the Company shall pay to you:

5

 

     (I) If the Date of Termination for a Termination of Employment by the
Company other than for Cause, or the event giving rise to Termination of
Employment by you for Good Reason, occurs prior
to a Change of Control (other than as described in the proviso in
clause (II) below) (a “Non-Change-of-Control Termination”), the sum of an
amount equal to the target bonus under the applicable annual bonus plan for
the fiscal year in which the Date of Termination occurs (specifically
excluding any long-term incentive compensation for which you are eligible)
plus an amount equal to your annual base salary for the fiscal year in which
the Date of Termination occurs (but disregarding any decrease thereof that
constituted “Good Reason”); or

     (II) If the Date of Termination for a Termination of Employment by the
Company other than for Cause, or the event giving rise to Termination of
Employment by you for Good Reason, occurs after a Change of Control (a
“Change-of-Control Termination”), the sum of:

     (A) if the Date of Termination occurs one year or less after the
Change of Control, an amount equal to two (2) times the average of
the sum of the actual annual bonuses paid to you for the two years
prior to the fiscal year in which the Date of Termination occurs
provided that if you are an employee for more than one year and less
than two years prior to the fiscal year in which the termination
occurs, such amount will be equal to two (2) times the last year’s
actual bonus paid, or if you are employed less than one year, such
amount shall be equal to two (2) times the target amount for that
year as determined by the Compensation Committee (specifically
excluding any long-term incentive compensation for which you are
eligible) plus an amount equal to two (2) times your annual base
salary for the fiscal year in which the Date of Termination occurs
(but disregarding any decrease thereof that constituted “Good
Reason”); or

     (B) if the Date of Termination occurs more than one year, but
within two years, after the Change of Control, an amount equal to one
(1) times the average of the sum of the actual annual bonuses paid to
you for the two years prior to the fiscal year in which the Date of
Termination occurs provided that if you are an employee for more than
one year and less than two years prior to the fiscal year in which
the termination occurs, such amount will be equal to the last year’s
actual bonus paid, or if you are employed less than one year, such
amount shall be equal to the target amount for that year as
determined by the Compensation Committee (specifically excluding any
long-term incentive compensation for which you are eligible) plus an
amount equal to one (1) times your annual base salary for the fiscal
year in which the Date of Termination occurs (but disregarding any
decrease thereof that constituted “Good Reason”).

6

 

     (c) The Company shall provide you a lump sum payment equal to the aggregate
amount of the employer portion of COBRA premiums (and excluding any administration
fees) that would be incurred for continuation under the Company’s employee group
medical and dental Plan based on coverage and COBRA continuation premiums in effect
immediately prior to the Date of Termination, (1) equal to twelve (12) months of
continuation coverage following the Date of Termination in the case of a
Non-Change-of-Control Termination, or (2) equal to twenty-four (24) months of
continuation coverage following the Date of Termination in the case of a
Change-of-Control Termination.

     (d) Intentionally deleted.

     (ii) No Disability or Life Insurance Benefits. The Company shall not be
required to continue to provide disability or life insurance benefits (group or individual)
following your Date of Termination other than with respect to benefits to which you became
entitled prior to the Date of Termination and which are required to be paid following such
Date of Termination in accordance with the terms of applicable disability or life insurance
plans or policies in effect prior to such Date of Termination.

     (iii) Time and Form of Cash Payments.

     (a) In the case of a Non-Change-of-Control Termination, the cash payments
provided for in Section 5(i) above shall be paid by the Company in a single lump sum
payment as promptly as practicable after the Date of Termination (but not later than
the earlier of 90 days after the Date of Termination or March 15 of the calendar
year following the calendar in which the Date of Termination occurred, in either
case subject to the provisions of Section 4 of this Agreement relating to execution
of a release in the form of Exhibit A and provided you have not rescinded such
release within the permitted time period for rescission under Section 3.J thereof).
All severance payments are subject to any required withholding.

     (b) In the case of a Change-of-Control Termination, the cash payments provided
for in Section 5(i) above shall be paid by the Company in a single lump sum payment
as promptly as practicable after the Date of Termination (but no later than the
earlier of 90 days after the Date of Termination or March 15 of the calendar year
following the calendar year in which the Date of Termination occurred, in either
case subject to the provisions of Section 4 of this Agreement relating to execution
of a release in the Form of Exhibit A and provided you have not rescinded such
release within the permitted time period for rescission under Section 3.J thereof).
All severance payments are subject to any required withholding.

7

 

     (iv) Effect of Reemployment. If you are re-employed by the Company or an
Affiliate after severance payments have been scheduled to be made but before the final
severance payment is made, all remaining severance payments shall be forfeited and shall
automatically terminate as of the date of re-employment. If you have received severance
payments in a single lump sum and are re-employed before the date the final severance
payment would have been made if payments had been made at regular payroll intervals in an
amount equal to your base salary that you were receiving before your Termination of
Employment (plus an amount equal to the pro rata portion of your target bonus), you will be
required to refund to the Company: (a) that portion of the lump sum payment representing
severance payments you would have received after the date of re-employment minus (b) an
amount equal to any taxes paid or payable on such portion of the lump sum payment.

     (v) No Mitigation. You shall not be required to mitigate the amount of any
payment provided for in this Section 5 by seeking other employment or otherwise, nor shall
the amount of any payment provided for in this Section 5 be reduced by any compensation
earned by you as the result of employment by another employer after the Date of Termination,
or otherwise, except as set forth in Section 5(iv) hereof.

     (vi) Six Month Suspension for Specified Key Employees. Notwithstanding the
foregoing, if at the time of your Termination of Employment you are a Specified Employee,
then any payment that the Company reasonably determines is deferred compensation subject to
the requirements of Section 409A of the Code and that is payable on account of your
Termination of Employment shall not be paid to you until the first day after the end of the
six (6) month period following your Termination of Employment, or, if earlier, upon your
death. You are a “Specified Employee” if on the date of your Termination of Employment you
are a “key employee” (defined below), and the Company or any entity that owns 50% or more of
the Company has stock that is publicly traded on an established securities market within the
meaning of such term under Section 409A(a)(2)(B) of the Code. For this purpose, you are a
“key employee” during the 12-month period beginning on the April 1 immediately following a
calendar year, if at any time during such preceding calendar year you were employed by the
Company or any Affiliate and satisfied the requirements of Section 416(i)(1)(A)(i), (ii) or
(iii) of the Code (applied in accordance with the regulations issued thereunder and
disregarding Section 416(i)(5) of the Code). You will not be treated as a Specified
Employee if you are not required to be treated as a Specified Employee under Treasury
Regulations issued under Section 409A of the Code.

8

 

     6. 280G Provision.

     (i) In the event that any payment or benefit received or to be received by you (whether
payable pursuant to the terms of this Agreement or otherwise (collectively, the “Total
Payments”)) would be subject to the excise tax imposed by Section 4999 of the Internal
Revenue Code of 1986, as amended (the “Code”) (“Excise Tax”), then you shall be entitled to
receive from the Company an additional cash payment (a “Gross-Up Payment”) within thirty
business days of such determination in an amount such that after payment by you of all
taxes, including any Excise Tax, imposed upon the Gross-Up Payment, you retain an amount of
the Gross-Up Payment equal to the Excise Tax imposed upon the Total Payments.
Notwithstanding the foregoing provisions of this Section 6(i), if it shall be determined
that you are entitled to the Gross-Up Payment, but
that the Parachute Value of all Payments do not exceed 110 % of the Safe Harbor Amount,
then no Gross-Up Payment shall be made to you and the amounts payable under this Agreement
shall be reduced so that the Parachute Value of all Payments, in the aggregate, equals the
Safe Harbor Amount. The reduction of the amounts payable hereunder, if applicable, shall be
made by first reducing the payments under Section 5(i)(b). For purposes of reducing the
Payments to the Safe Harbor Amount, only amounts payable under this Agreement (and no other
Payments) shall be reduced. If the reduction of the amount payable under this Agreement
would not result in a reduction of the Parachute Value of all Payments to the Safe Harbor
Amount, no amounts payable under the Agreement shall be reduced pursuant to this Section
6(a). All determinations required to be made under this Section 6, including whether a
Gross-Up Payment is required and the amount of such Gross-Up Payment, shall be made by an
independent accounting firm retained by the Company (the “Accounting Firm”), which shall
provide detailed supporting calculations both to the Company and you within a reasonable
period of time as requested by the Company. If the Accounting Firm determines that no
Excise Tax is payable by you, it shall furnish you with an opinion that you have substantial
authority not to report any Excise Tax on your federal income tax return. For purposes of
this Agreement, the following terms have the meanings set forth below:

“Parachute Value” of a Payment shall mean the present value as of the date of the
change of control for purposes of Section 280G of the Code of the portion of such
Payment that constitutes a “parachute payment” under Section 280G(b)(2), as
determined by the Accounting Firm for purposes of determining whether and to what
extent the Excise Tax will apply to such Payment.

“Payment” shall mean any payment or distribution in the nature of compensation
(within the meaning of Section 280G(b)(2) of the Code) to or for your benefit,
whether paid or payable pursuant to this Agreement or otherwise.

“Safe Harbor Amount” means 2.99 times your “base amount,” within the meaning of
Section 280G(b)(3) of the Code.

“Value” of a Payment shall mean the economic present value of a Payment as of the
date of the change of control for purposes of Section 280G of the Code, as
determined by the Accounting, Firm using the discount rate required by Section
280G(d)(4) of the Code.

     (ii) Any uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder shall be resolved in favor of you. As
a result of the uncertainty in the application of Section 4999 of the Code at the time of
the initial determination by the Accounting Firm hereunder, it is possible that at a later
time there will be a determination that the Gross-Up Payments made by the Company were less
than the Gross-Up Payments that should have been made by the Company (“Underpayment”),
consistent with the calculations required to be made hereunder. In the event that you are
required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount
of the Underpayment, if any, that has
occurred and any such Underpayment shall be promptly paid by the Company to you or for
your benefit. If, after you receive any Gross-Up Payment, you become entitled to receive
any refund with respect to such claim, you shall promptly pay to the Company the amount of
such refund (together with any interest paid or credited thereon after taxes applicable
thereto).

9

 

     (iii) Any determination by the Accounting Firm as to the amount of any Gross-Up
Payment, including the amount of any Underpayment, shall be binding upon the Company and
you.

     (iv) Notwithstanding any other provision of this Section 6, the Company may, in its
sole discretion, withhold and pay over to the Internal Revenue Service or any other
applicable taxing authority, for your benefit, all or any portion of any Gross-Up Payment,
and you hereby consent to such withholding.

     (v) Notwithstanding the foregoing, reimbursement of the Gross-Up Payment will be made
not later than the end of the calendar year next following the calendar year in which you
remit the related taxes (or the related taxes are remitted on your behalf) to the
appropriate taxing authority, provided if an additional Gross-Up Payment is payable
following an audit or litigation and no additional taxes are remitted by you, reimbursement
by the Company shall be made by the end of the calendar year next following the calendar
year in which the audit is completed or there is a final nonappealable settlement or other
resolution of the litigation.

     7. Section 409A of the Code. The parties intend that payments under this Agreement be
exempt from or otherwise comply with the requirements of Section 409A of the Code (including
current and future guidance issued by the Department of Treasury or Internal Revenue Service).

     8. Successors.

     (i) This Agreement shall inure to the benefit of and be binding upon the Company and
its successors and assigns.

     (ii) This Agreement shall inure to the benefit of and be enforceable by your personal
or legal representatives, executors, administrators, successors, heirs, distributees,
devisees, and legatees. If you should die while any amount would still be payable to you
hereunder if you had continued to live, all such amounts, unless otherwise provided herein,
shall be paid in accordance with the terms of this Agreement, to your devisee, legatee or
other designee or, if there is no such designee, to your estate or, if no estate, in
accordance with applicable law.

10

 

     (iii) The Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise to all or substantially all of the business and/or assets
of the Company), by agreement in form and substance satisfactory to you, to expressly assume
and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such succession had
taken place. Failure of the Company to obtain such agreement prior to the effectiveness of
any such succession shall be a breach of this Agreement and shall entitle you to
compensation from the Company in the same amount and on the same terms as you would be
entitled hereunder if you terminated your employment for Good Reason, except that for
purposes of implementing the foregoing, the date on which any such succession becomes
effective shall be deemed the Date of Termination. As used in this Agreement, “Company”
shall mean the Company and any successor to its business and/or assets which executes and
delivers the agreement provided for in this Section 8 or which otherwise becomes bound by
all the terms and provisions of this Agreement by operation of law.

     9. Notice. All notices, requests, demands and all other communications required or
permitted by either party to the other party by this Agreement (including, without limitation, any
Notice of Termination) shall be in writing and shall be deemed to have been duly given when
delivered personally or received by certified or registered mail, return receipt requested, postage
prepaid, at the address of the other party as follows:

	 	 	 	 	 	 	 
	 

	 	If to the Company:
	 	Imation Corp.	 	 
	 

	 	 	 	Attention: General Counsel	 	 
	 

	 	 	 	One Imation Place	 	 
	 

	 	 	 	Oakdale, Minnesota 55128	 	 
	 
	 	 	 	 	 	 
	 

	 	If to you:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 

Either party to this Agreement may change its address for purposes of this Section 9 by giving
fifteen (15) days’ prior written notice to the other party hereto.

     10. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing and signed by you
and the Company. The validity, interpretation, construction, and performance of this Agreement
shall be governed by the laws of the State of Minnesota without regard to its conflicts of law
principles.

     11. Effect of Agreement; Entire Agreement. This agreement supersedes any and all
other oral or written agreements or policies made relating to the subject matter hereof and
constitutes the entire agreement of the parties relating to the subject matter hereof.

     12. Validity. The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this Agreement, which
shall remain in full force and effect.

11

 

     13. Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed to be an original but all of which together will constitute one and the same
instrument.

     14. Employment. This Agreement does not constitute a contract of employment or impose
on the Company or any subsidiaries of the Company any obligation to retain you as an employee, to
continue your current employment status or to change any employment policies of the Company or any
subsidiary of the Company, including but not limited to the Company’s Employee Agreement.

     If this letter sets forth our agreement on the subject matter hereof, please sign and return
to the Company the enclosed copy of this letter which will then constitute our agreement on this
subject.

	 	 	 	 	 
	 	IMATION CORP.:

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Its: 	 	 
	 
	 	EXECUTIVE:

 	 
	 	 	 
	 	 	 
	 	 	 
	 

12

 

EXHIBIT A

CONFIDENTIAL GENERAL RELEASE OF ALL CLAIMS

     This Confidential General Release of All Claims (“Agreement”) is made and entered into between
                                        , (“Employee”) and Imation Corp. (“Imation”). EMPLOYEE UNDERSTANDS THAT
EMPLOYEE MAY CONSIDER THIS AGREEMENT FOR AT LEAST TWENTY-ONE (21) DAYS AFTER EMPLOYEE HAS RECEIVED
THIS AGREEMENT, WHICH WAS ON                                         ,
UNLESS EMPLOYEE CHOOSES TO WAIVE THAT RIGHT BY EXECUTING THE AGREEMENT WITHIN THE TWENTY-ONE (21)
DAY PERIOD.

1. What Imation Agrees To Do

In return for this Agreement and for Employee’s termination from Imation as described herein and in
full and final settlement, compromise, and release of all of Employee’s employment-related claims
(as described in section 2 below), Imation agrees to pay Employee in accordance with the terms set
forth in the Amended and Restated Severance Agreement.

2. What Employee Agrees To Do

As a condition to receiving the payments and benefits set forth in Section 1, Employee agrees as
follows:

	A)	 	Employee must return all Imation property currently in Employee’s possession, including, but
not limited to, all notes, memoranda, correspondence, files, notebooks, technical charts or
diagrams, customer lists or information, sales and marketing information, computer recorded
information, software, equipment, materials, keys and credit cards. Employee acknowledges that
this obligation is continuing and agrees to promptly return to Imation any subsequently
discovered property as described above.

	B)	 	Employee also agrees to repay to Imation the amount of any permanent or temporary advances or
other monies due and owing Imation, and to pay off the remaining balance on his/her corporate
credit cards. If Employee fails to make such payments as of the date he/she signs this
Agreement, Employee agrees that Imation may deduct any monies owed from the Agreement
payments, if no other written arrangements are made for repayment by the date this Agreement
is signed.

	C)	 	Employee hereby irrevocably and unconditionally releases and forever discharges Imation from
any and all federal, state or local charges, claims, controversies, causes of action, damages,
costs, attorneys’ fees, or liabilities of any nature, both past and present, known and
unknown, including but not limited to claims arising under federal, state, local, and common
laws and under any regulations of any jurisdiction that in any way relate to employment and
termination of employment
existing at any time up to and including the date of this Agreement, that Employee now may
have or ever have had. This Agreement specifically includes, but is not limited to, ANY
CLAIMS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT of 1967, THE OLDER WORKERS BENEFIT
PROTECTION ACT OF 1990, Title VII of the Civil Rights Act of 1964, the Americans with
Disabilities Act, any state or local human rights act, claims for wrongful termination,
breach of contract, and tort claims (for example, defamation, emotional distress or any
tort or negligence-based claim). Employee expressly acknowledges that this Agreement also
is intended to include in its scope, without limitation, all claims that Employee does not
know of or expect to exist in Employee’s favor at the time Employee signs this Agreement
and that this Agreement contemplates the extinguishment of any such claim or claims that in
any way relate to employment or termination of employment except as expressly provided in
this Section. THE EMPLOYEE IS NOT WAIVING ANY RIGHTS FOR EVENTS ARISING AFTER THE DATE OF
THIS AGREEMENT.

Exhibit A-1

 

	D)	 	Employee agrees that, for a period of two years after termination of employment with Imation:

	 	i 	 	 Employee will inform any new employer, prior to accepting
employment, of the existence of this provision of the Confidential General
Release and provide such employer with a copy thereof.
	 
	 	ii.	 	Employee agrees not to directly or indirectly, render
services to any Conflicting Organization in the United States or in any
country in which Imation has a plant for manufacturing a product upon which
Employee worked during employment by Imation, except that Employee may accept
employment with a large Conflicting Organization whose business is diversified
(and which has separate and distinct divisions), and which as to part of its
business is not a Conflicting Organization, provided Imation, prior to
Employee accepting such employment, shall receive separate written assurances
satisfactory to Imation from such Conflicting Organization and from Employee
that Employee will not render services directly or indirectly in connection
with the development, manufacture, marketing, sale, merchandising, leasing,
servicing or promotion of any Conflicting Product.

	 	 	 	“Conflicting Product” means any product, process, system or
service of any person or organization other than Imation, in
existence or under development, which is the same as or similar to
or competes with, or has a usage allied to, a product, process,
system or service upon which Employee worked during the last three
years of Employee’s employment by Imation.
	 
	 	 	 	“Conflicting Organization” means any person or organization which
is engaged in or about to become engaged in, research on or
development, production, marketing, leasing, selling or services
of a Conflicting Product.

	E)	 	Employee also agrees that following Employee’s termination from Imation, Employee will not
make disparaging remarks about Imation and will not interfere with Imation’s business
relationships with its customers, vendors, or distributors.

Exhibit A-2

 

	F)	 	Employee further agrees that Employee will not solicit Imation employees, either on behalf of
Employee or any third party, to resign from Imation to work for Employee or any third party.

	G)	 	As further consideration for this Agreement, Employee agrees that if requested by Imation,
Employee will make himself/herself available at reasonable times to assist and cooperate with
Imation in the litigation of any lawsuits or claims, and agrees to be available to Imation to
testify honestly with regard to such lawsuits or claims if Employee is determined by Imation
to be a material witness. Similarly, Employee agrees that he/she will decline to voluntarily
aid, assist, or cooperate with any parties who are involved in claims or lawsuits by or
against Imation, or with their attorneys or agents; and will notify Imation when and if the
Employee is contacted by other parties or their attorneys or agents involving claims or
lawsuits by or against Imation. It is understood and intended that nothing in this paragraph
shall prevent Employee from honestly testifying at a legal proceeding in response to a lawful
and properly served subpoena in a proceeding involving Imation.

	H)	 	Employee agrees that Imation shall be entitled to injunctive and other equitable relief to
prevent a breach or threatened breach of the provisions of this Agreement, without the
necessity of proving actual damages. Such injunctive relief shall be in addition to any other
damages that may be available at law. Employee also acknowledges that if Imation is required
to bring an action to enforce its rights under this Agreement, it shall be entitled to recover
its attorney’s fees and costs associated with such an action, if Imation prevails.

3. Other Understandings, Agreements, and Representations

	A)	 	Employee agrees that Employee’s Imation employment will terminate effective
                                        . Employee further understands and agrees that Employee will not be
eligible for and will not receive consideration, severance pay or benefits under any other
group Income Assistance Pay Plan for which Employee might otherwise have been eligible.

	B)	 	Employee understands that the term Imation, as used in this Agreement, includes: (1) its
past, present, and future divisions, subsidiaries, affiliates successors and
assigns, and their officers, directors, employees, agents, insurers and legal counsel; (2)
any ERISA employee benefit plan sponsored by Imation, acting as plan administrator,
fiduciary or party in interest with respect to such plan. Employee agrees that this
Agreement binds Employee and also binds Employee’s heirs, executors, administrators,
assigns, agents, partners and successors in interest.

	C)	 	Employee agrees that this Agreement and the payment of money and benefits to Employee by
Imation is not an admission by Imation of any violation of Employee’s rights or of any
statutory or other legal obligation.

Exhibit A-3

 

	D)	 	Employee represents that no right, claim, or cause of action covered by this Agreement has
been assigned or given to someone else.

	E)	 	Employee represents that, except as provided in Section 5(iv) of the Amended and Restated
Severance Agreement, Employee will not apply for or accept employment with Imation in any
capacity.

	F)	 	Except as set forth in Section 2.D.i Employee represents that Employee will keep the terms of
this Agreement strictly confidential, except that Employee may tell Employee’s spouse or
domestic partner, legal counsel and tax advisor. In the event Employee chooses to communicate
any information about the existence of the Agreement or any of its terms to Employee’s spouse
or domestic partner, legal counsel and/or accountant or investment advisor, Employee shall
instruct such persons that information about the existence of the Agreement and its terms are
confidential and that the spouse or domestic partner, legal counsel or accountant is not to
disclose, disseminate or publicize, or cause or permit to be disclosed, disseminated or
publicized, the information to any other party, entity, person (including any current or
former employee of Imation), company, government agency, publication judicial authority.
Employee may also disclose information regarding the Agreement (1) to the extent necessary to
report the sum awarded to appropriate taxing authorities or (2) in response to any subpoena
issued by a state or federal governmental agency or court of competent jurisdiction; provided,
however, that notice of receipt of such order or subpoena shall be promptly communicated to
Imation by telephone and in writing to General Counsel, Imation Legal Affairs, 1 Imation
Place, Oakdale, Minnesota 55128, telephone (651) 704-4489 so that Imation shall have an
opportunity to intervene and assert what rights it has to nondisclosure prior to any response
to such order or subpoena. Any court reviewing a subpoena should be aware that part of the
consideration for the Agreement is the agreement of Employee not to testify regarding the
existence of the Agreement or any of its terms.

	G)	 	This Agreement and the Amended and Restated Severance Agreement contain the entire
understanding between Employee and Imation and supersedes all prior agreements and
understandings relating to the subject matter of this Agreement. This Agreement shall not be
modified, amended, or terminated except as provided
in section 3.J. unless such modification, amendment, or termination is executed in writing
by Employee and Imation.

	H)	 	Employee agrees that Imation may use this Agreement to secure withdrawal of any federal,
state, or local charge Employee might have filed or will file, that Employee will sign any
document necessary to obtain the withdrawal of any such charge, and that Employee waives the
right to receive monetary damages or other legal or equitable relief awarded by any
governmental agency related to any such charge.

Exhibit A-4

 

	1)	 	Employee represents and certifies that Employee has twenty-one (21) days to consider whether
to accept this Agreement and enter into this Release; review it before being asked to sign it;
has read this Agreement carefully; has been given a fair opportunity to discuss and negotiate
the terms of this Agreement; understands its provisions; has been advised to consult an
attorney; has determined that it is in Employee’s best interest to enter into this Agreement;
has not been influenced to sign this Agreement by any statement or representation by Imation
not contained in this Agreement; and enters into this Agreement knowingly and voluntarily. If
Employee chooses to sign this Agreement before twenty-one (21) days have passed, Employee
understands that it is their decision to execute the Agreement early and that Imation has made
the full twenty-one (21) day period available for Employee to consider the Agreement.

	J)	 	Employee understands that pursuant to the provisions of
Minnesota Statutes ' 363.031, subd.
2, Employee may rescind this Agreement by notifying Imation of Employee’s desire to do so in a
writing delivered to Imation personally or by certified mail, return receipt requested, within
fifteen (15) calendar days of Employee’s execution of this Agreement. To be effective, such
notice of rescission, if mailed, must be postmarked within the fifteen (15) day period and
addressed as follows:

Imation Corp.

Attn: General Counsel

1 Imation Place

Oakdale, MN 55128

	K)	 	In case any part of this Agreement is held invalid, illegal or otherwise unenforceable, the
validity, legality and enforceability of the remaining provisions will not be affected in any
way, it being intended that the provisions of this Agreement are severable, EXCEPT THAT, if
paragraph 2 of this Agreement is held invalid, illegal, or unenforceable, this Agreement is
voidable, and, if Employee seeks to void this Agreement, Employee understands and agrees that
Employee will repay the total amount of consideration paid to Employee under this Agreement.

	L)	 	Any dispute arising between Employee and Imation under this Agreement will be
submitted to final and binding arbitration in accordance with the rules of the American
Arbitration Association before an arbitrator mutually selected by the parties. In the event
that the parties cannot agree on an arbitrator, the parties agree to submit the dispute
before an arbitrator selected by the Chief Judge of Ramsey County Court. The Arbitration
shall be conducted in St. Paul, Minnesota and shall be final and binding on both parties.
The expenses of the neutral arbitrator(s) and any court reporter shall be equally divided
between Employee and Imation.

Exhibit A-5

 

	M)	 	The agreement will be governed by and construed and interpreted according to the laws of the
State of Minnesota.

N) Nothing in this Agreement shall be deemed to terminate or reduce in any way any right Employee
might have to indemnification from Imation under the provisions of the Delaware General Corporation
Law and Imation’s Restated Certificate of Incorporation and Bylaws, each as in effect on the date
of employment termination, for acts, omissions or events that occurred or are alleged to have
occurred prior to the date of termination of employment.

	 	 	 	 	 	 	 	 	 	 	 
	ACCEPTED AND AGREED:	 	 	 	IMATION CORP.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

WAIVER OF

CONSIDERATION PERIOD

I understand that under the law I have 21 days to consider the Confidential General Release of All
Claims. I knowingly and voluntarily waive this consideration period. The 15 day rescission period
to revoke the acceptance of the Confidential General Release of All Claims remains in effect.

Print Name

Signature

Date

Exhibit A-6

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