Lenovo 2008 Annual Report Download - page 62

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DIRECTORS’ REPORT (CONTINUED)
Directors’ service contracts
On October 9, 2006, the Company entered into the service contracts with Mr. Yang Yuanqing, an executive director and Chairman of
the Board and with Ms. Ma Xuezheng, the then executive director, Chief Financial Officer and Senior Vice President of the Company,
respectively for an unfixed term commencing from October 9, 2006. Upon termination of the service contracts, each of Mr. Yang
and Ms. Ma may be entitled to compensation and other payments equivalent to more than one year’s emoluments depending on a
number of factors including the length of service, the amount of the unvested equity awards and the amount of the annual bonus.
The service contracts were approved by the shareholders at an extraordinary general meeting of the Company held on November 7,
2006 (at which Mr. Yang and Ms. Ma and their associates abstained from voting) pursuant to rule 13.68 of the Listing Rules. Ms. Ma
has retired as the Chief Financial Officer and Senior Vice President of the Company and has been re-designated as a non-executive
Vice Chairman of the Company with effect from May 23, 2007. No service contract for being a non-executive Vice Chairman has
been entered into between Ms. Ma and the Company.
Mr. William J. Amelio, an executive director, President and Chief Executive Officer of the Company entered into a service contract with
the Company for an initial term of 3 years on December 20, 2005 which will automatically continue for successive one-year periods
unless otherwise terminated by either party. Upon termination of the service contract, Mr. Amelio may be entitled to compensation
and other payments equivalent to more than one year’s emoluments depending on a number of factors including the amount of his
unvested equity awards and the entitlement and amount of his target bonus. The service contract was approved by the shareholders
at an extraordinary general meeting of the Company held on May 24, 2006 (at which Mr. Amelio and his associates abstained from
voting) pursuant to rule 13.68 of the Listing Rules.
Save as disclosed above, none of the directors has a service contract with the Company which is not determinable within one year
without payment of compensation, other than statutory compensation.
Directors’ interests in contracts
No contracts of significance in relation to the Group’s business to which the Company or its subsidiaries was a party and in which
a director of the Company had a material interest, whether directly or indirectly, existed at the end of the year or at any time during
the year.
Lenovo Group Limited • Annual Report 2007/08
60