Creative 2009 Annual Report Download - page 11

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11
CREATIVE฀TECHNOLOGY฀LTD฀AND฀ITS฀SUBSIDIARIES
4. DIRECTORS’ CONTRACTUAL BENEFITS
Since the end of the previous financial year, no director has received or become entitled to receive a benefit by reason of a
contract made by the Company or a related corporation with the director or with a firm of which he is a member or with a
company in which he has a substantial financial interest, except as disclosed in the accompanying financial statements and
in this report.
5. SHARE OPTIONS
(a) Employee share option plans
The Creative Technology (1999) Share Option Scheme (“1999 Scheme”) was approved by shareholders at an Extraordinary
General Meeting on 30 December 1998 which allows options to be granted to full-time employees as well as consultants and
non-executive directors. The total number of shares that may be granted under the 1999 Scheme is 7.5 million, provided
that such amount shall be automatically increased on the first day (1 July) of each of the five financial years ended 30
June 2001, 2002, 2003, 2004 and 2005 by four percent of the issued share capital of the Company as at the last day of the
immediate preceding financial year. The Option Committee has the discretion to decide the vesting schedule in the letter of
offer. If it is not specifically stated in the letter of offer, 1/4 of the total amount of the grant vests on the first anniversary
of the grant date and 1/48 of the total amount of the grant vests on the last day of each calendar month thereafter.
The exercise price of the options is determined at the average of the closing prices of the Company’s shares as quoted on the
Singapore Exchange Securities Trading Limited (“SGX-ST”) or the National Association of Securities Dealers Automated
Quotations (“NASDAQ”) for five market days preceding the date of the grant.
Options expire after the tenth anniversary of the date of grant, except in the case of options granted to participants other than
employees, options expire not later than the fifth anniversary of the date of grant. Effective 12 November 2007, amendments
were made to the 1999 Scheme to allow the use of treasury shares to satisfy share based exercises. The options under the
1999 Scheme do not entitle the holders of the options, by virtue of such holdings, to any right to participate in any share
issue of any other company.
The 1999 Scheme has expired on 29 December 2008. The existing options granted will continue to vest according to the
terms and conditions of the 1999 Scheme and the respective grants.
During the financial year ended 30 June 2009, the Company granted 277,000 (2008: 2,931,000) share options under the 1999
Scheme at an exercise price per share of US$2.64 (2008: US$4.70). The options would be exercisable from 24 December
2009 and expire on 24 December 2018. The total fair value of options granted was US$177,000 (2008: US$2,403,000)
using the Black Scholes option pricing model and the weighted average fair value per share was US$0.64 (2008: US$0.82).
During the financial year, no options were granted at a discount and no participant was granted 5% or more of the total
options available under the 1999 Scheme. No options were granted to controlling shareholders of the Company or their
associates.
Details of the Directors’ share options are set out as follows:
฀ ฀ Number฀of฀unissued฀ordinary฀shares฀of฀the฀Company฀under฀option
฀ ฀ ฀ Aggregate฀ Aggregate฀ ฀
฀ Granted฀in฀฀ granted฀since฀ exercised฀since฀ Aggregate฀
฀ financial฀ commencement฀ commencement฀ outstanding฀
฀ year฀ended฀ of฀scheme฀to฀ of฀scheme฀to฀ as฀at฀
Name฀of฀director฀ 30.6.2009฀ 30.6.2009฀ 30.6.2009฀ 30.6.2009
฀ ฀
฀ Lee฀Kheng฀Nam฀ –฀ 160,000฀ 80,000฀ 80,000
฀ Ng฀Kai฀Wa฀ –฀ 80,000฀ –฀ 80,000
฀During the financial year ended 30 June 2009, the Company has re-issued 2,000 treasury shares pursuant to exercises under
the 1999 Scheme.
AR09 pg1-64_Final.indd 11 10/2/2009 10:38:06 AM