Lenovo 2010 Annual Report Download - page 56

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2009/10 Annual Report Lenovo Group Limited
54
DIRECTORS’ REPORT (continued)
54
Directors’ rights to acquire shares or debentures (continued)
Share Option Schemes (continued)
4. Valuation of share options
The share options granted are not recognized in the financial statements until they are exercised. The directors consider
that it is not appropriate to value the share options on the ground that certain crucial factors for such valuation are
variables which cannot be reasonably determined at this stage. Any valuation of the share options based on speculative
assumptions in respect of such variables would not be meaningful and the results thereof may be misleading to the
shareholders. Thus, it is more appropriate to disclose only the market price and exercise price.
Long-term incentive program
The Company adopted the LTI Program on May 26, 2005, under which the Board or the trustee of the program shall select the
employees (including but not limited to the directors) of the Group for participation in the program, and determine the number
of shares to be awarded.
Details of the program and the movement in the number of awards for the year ended March 31, 2010 are set out in the
Corporate Governance section on pages 37 to 41 and note 29(a) to the financial statements.
Apart from the share option schemes and the LTI Program, at no time during the year ended March 31, 2010 was the Company
or any of its subsidiaries a party to any arrangements to enable the directors of the Company to acquire benefits by means of
acquisitions of shares in, or debentures of, the Company or any body corporate.
Purchase, sale, redemption or conversion of the Company’s securities and warrants
During the year, group companies/funds of TPG Capital, Newbridge Capital and General Atlantic, the holders of the Company’s
convertible preferred shares and warrants:
(i) exercised the conversion rights under the terms of issue of such shares and converted 1,005,832 convertible preferred
shares into 369,112,652 fully paid ordinary shares of the Company;
(ii) exercised the subscription rights of 63,502,788 warrants under the terms of issue of such warrants and subscribed for
63,502,788 fully paid ordinary shares of the Company; and
(iii) surrendered 173,914,686 warrants to the Company for cancellation in satisfaction of the subscription price of the
63,502,788 shares mentioned in (ii) above under the terms of issue of such warrants.
Save as disclosed above, the Company did not redeem and neither the Company nor any of its subsidiaries purchased or sold
any of the Company’s securities and warrants and no further conversion notice was received during the year ended March 31,
2010.
Directors
The directors during the year and up to the date of this report were:
Chairman and Non-executive Director
Mr. Liu Chuanzhi
Executive Director
Mr. Yang Yuanqing
Non-executive Directors
Mr. Zhu Linan
Ms. Ma Xuezheng
Mr. James G. Coulter
Mr. William O. Grabe
Dr. Wu Yibing (appointed on May 21, 2009)