Lenovo 2011 Annual Report Download - page 119

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2010/11 Annual Report Lenovo Group Limited
122
NOTES TO THE FINANCIAL STATEMENTS (continued)
30 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.
2011 2010
Number of
outstanding
share options
Number of
outstanding
share options
At the beginning of the year 219,926,551 258,011,051
Exercised during the year (ii) (52,614,500) (32,370,500)
Lapsed during the year (iii) (27,674,000) (5,714,000)
At the end of the year (iv) 139,638,051 219,926,551
(i) No share options were granted or cancelled by the Company during the years ended March 31, 2010 and 2011.