Creative 2010 Annual Report Download - page 13

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CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
4. DIRECTORS’ CONTRACTUAL BENEFITS
Since the end of the previous nancial year, no director has received or become entitled to receive a benet by reason of a
contract made by the Company or a related corporation with the director or with a rm of which he is a member or with a
company in which he has a substantial nancial interest, except as disclosed in the accompanying nancial 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 rst day (1 July) of each of the ve nancial 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 nancial year. The Option Committee has the discretion to decide the vesting schedule in the letter of
offer. If it is not specically stated in the letter of offer, 1/4 of the total amount of the grant vests on the rst 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 ve 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 fth 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 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 nancial year ended 30 June 2009, the Company granted 277,000 share options under the 1999 Scheme at an
exercise price per share of US$2.64. The weighted average fair value per share was US$0.64 using the Black Scholes option
pricing model.
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
nancial commencement commencement outstanding
year ended of scheme to of scheme to as at
Name of director 30.6.2010 30.6.2010 30.6.2010 30.6.2010
Lee Kheng Nam – 160,000 80,000 80,000
Ng Kai Wa – 80,000 – 80,000
During the nancial year ended 30 June 2010, the Company re-issued 7,000 (2009: 2,000) treasury shares pursuant to
exercises under the 1999 Scheme.