Lenovo 2011 Annual Report Download - page 56

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2010/11 Annual Report Lenovo Group Limited 59
Directors’ Rights to Acquire Shares or Debentures (continued)
Share Option Schemes (continued)
2. New Option Scheme (continued)
(d) Maximum entitlement of each qualified participant
The maximum number of ordinary shares issued and to be issued upon exercise of share options granted to each
qualified participant (including both exercised and outstanding options) in any 12-month period up to the date of grant
shall not exceed 1 percent of the ordinary shares of the Company in issue. Any further grant of share options in excess
of this limit is subject to shareholders’ approval in general meeting of the Company.
Share options to be granted to a director or chief executive of the Company or any of their respective associates are
subject to approval by the independent non-executive directors of the Company. In addition, any grant of share options
to an independent non-executive director of the Company or any of their respective associates, when aggregated with
all share options (whether exercised, cancelled or outstanding) already granted to any of them during the 12-month
period up to the date of grant, in excess of 0.1 percent of the ordinary shares of the Company in issue and with an
aggregate value in excess of HK$5,000,000, is subject to shareholders’ approval in general meeting of the Company.
(e) Timing for exercise of options
In respect of any particular option, the directors may in their absolute discretion determine the period within which an
option may be exercised provided that such period must expire no later than 10 years from the date upon which the
option is deemed to be accepted by the grantee. Option will then lapse to the extent not exercised during the option
period.
(f) Acceptance of offers
An option shall be deemed to have been granted and accepted when the duplicate offer letter comprising acceptance
of the option duly signed by the grantee shall have been received by the Company on or before the last day for
acceptance as set out in the offer letter.
(g) Basis for determination of exercise price
The exercise price must be no less than the highest of: (i) the closing price of the listed ordinary shares on the date
of grant; (ii) the average of the closing prices of the listed ordinary shares of the Company for the 5 trading days
immediately preceding the date of grant; or (iii) the nominal value of the ordinary shares.
(h) Life of the scheme
The New Option Scheme shall be valid and effective for a period of 10 years from April 26, 2002, the date on which it is
deemed to take effect in accordance with its terms.