Creative 2000 Annual Report Download - page 32

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32
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8 – EMPLOYEE SHARE PURCHASE AND STOCK OPTION PLANS (Cont’d)
Because the exercise prices for the aforementioned grants are below the deemed fair value per ordinary share of $4.50, the
grants give rise to a deferred share compensation expense of approximately $9.2 million. The compensation expense is being
amortized over the four-year vesting period of the underlying options and for the year ended June 30, 2000, the subsidiary
recorded an amortization expense of $0.6 million. Future amortization of deferred share compensation expense is subject to
changes due to the impact of future grants and cancellation of options, if any.
A summary of options granted to employees, consultants and directors under the subsidiary’s stock option plan is presented
below:
Options Outstanding
Weighted Average
Number of Shares Exercise Price
(’000) ($)
Options granted 3,901 1.99
Options cancelled (60) 2.50
Balance as of June 30, 2000 3,841 1.98
The following table summarizes option information for the subsidiary employee stock option plans as at June 30, 2000:
Range of Weighted Average
Exercise Price Number Outstanding Remaining Contractual Life Number Exercisable
(’000) (years) (’000)
$1.00 1,320 9.20 –
$2.50 2,521 9.20 –
3,841 9.20 –