Lenovo 2010 Annual Report Download - page 132

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2009/10 Annual Report Lenovo Group Limited
130
NOTES TO THE FINANCIAL STATEMENTS (continued)
130
29 Share capital (continued)
(b) Share options
Under the Company’s employee share option scheme adopted on January 18, 1994 (“Old Option Scheme”), the
Company granted options to employees (including directors) of the Company or its subsidiaries to subscribe for
ordinary shares in the Company, subject to a maximum of 10 percent of the issued share capital of the Company
from time to time. Options granted are exercisable at any time during a period of ten years from the date upon which
the option is accepted. The subscription price of the option shares is the higher of the nominal value of the ordinary
shares and an amount which is 80 percent of the average of the closing prices of the listed ordinary shares on the
five trading days immediately preceding the date on which the offer is made. The Old Option Scheme was terminated
on April 26, 2002. Despite the fact that no further options may be granted thereunder, all other provisions of the Old
Option Scheme will remain in force to govern the exercise of all the options previously granted.
On March 25, 2002, an ordinary resolution approving the adoption of a new share option scheme (“New Option
Scheme”) was passed by shareholders at an extraordinary general meeting of the Company.
Under the New Option Scheme, the Company may grant options to qualified participants as defined in the New
Option Scheme to subscribe for ordinary shares in the Company, subject to a maximum of 10 percent of the issued
share capital of the Company as at the date of adoption of the New Option Scheme. Options granted are exercisable
at any time during a period of ten years from the date upon which the option is accepted. The subscription price of
the option shares is the highest of the closing price of the listed ordinary shares on the date of grant; the average of
the closing prices of the listed ordinary shares for the five trading days immediately preceding the date of grant; and
the nominal value of the ordinary shares.
2010 2009
Number of Number of
outstanding outstanding
share options share options
At the beginning of the year 258,011,051 282,959,051
Exercised during the year (ii) (32,370,500) (24,948,000)
Lapsed during the year (iii) (5,714,000) –
At the end of the year (iv) 219,926,551 258,011,051
(i) No share options were granted or cancelled by the Company during the years ended March 31, 2009 and
2010.