Crucial 2012 Annual Report Download - page 272

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INOTERA MEMORIES, INC.
NOTES TO FINANCIAL STATEMENTS
(Continued)
As it belongs to a highly capital-intensive industry, the Company adopts a dividend distribution policy which
is in line with its capital budget and long-term financial plans. This policy requires that the distribution of cash
dividends shall be equal to at least fifty percent (50%) of the Company's total dividend distribution every year.
Based on the resolution approved by the stockholders during their meeting on May 27, 2010 and June 8, 2011,
no appropriations were made of earnings in 2009 and 2010 as the Company had no earnings available for
appropriations but an accumulated deficit as of December 31, 2009 and 2010, respectively.
(e) Share-based payment transactions
On August 29, 2007, December 13, 2007, December 31, 2008, April 30, 2009 and October 15, 2010, 98,000,
2,000, 80,000, 14,500 and 56,182 units of stock options, respectively, were granted to qualified full-time
employees of the Company. Each option entitles the holder to subscribe for one thousand common shares of
the Company when exercisable. The original exercise price is $31.05, $26.50, $10.00, $17.40 and $15.40
per share, respectively. As the Company issued additional GDSs, however, the exercise price granted before
August 4, 2009 has been adjusted to $28.6, $24.8, $10.0 and $17.2 per share, respectively, according to its
employee stock option plan rules. Also, as the Company issued additional shares from capital increase in
cash on February 6, 2010, however, the exercise price granted before February 6, 2010 has been adjusted to
$27.8, $24.5, $10.0 and $17.2 per share, respectively, according to its employee stock option plan rules.
These stock options are valid for 8 years and exercisable at certain percentages after the second anniversary
year from grant date. 50%, 75% and 100% of these stock options are vested after the second, third and fourth
anniversary dates, respectively. On December 15, 2009, the board of directors approved (a) to increase the
Company's capital stock by issuing 640 million Company shares according to Article 267 of the Company
Law, (b) to retain 10% of 640 million Company shares for employees, and (c) to set January 6, 2010 as the
grant date and employee purchase price of $22.5 per share.