Vtech 2005 Annual Report Download - page 51

Notes to the Financial Statements
49
VTech Holdings Ltd Annual Report 2005
19 Share Capital, Share Options and Warrants (continued)
Share Options (continued)
Note 1: Due to the large number of employees participating in the 2001 Scheme, the relevant information can only be shown within a reasonable range in this Annual Report. For
options granted to employees, the options were granted during the underlying periods for acceptance of such options by the employees concerned.
Note 2: As one of the conditions of grant, the employees concerned agreed with the Company that the options shall not be exercisable within the period of 36 months from the date on
which such options were deemed to be granted and accepted and shall not be exercisable after 60 months from the date on which such options were deemed to be granted
and accepted. However, options shall be automatically vested to the grantees when the grantees reach 60 years of age.
Note 3: On 20th April 2004, the Company granted 2,670,000 options to certain employees of the Company and its subsidiaries pursuant to the 2001 Scheme to subscribe for an
aggregate of 2,670,000 ordinary shares of the Company at a price of HK$15.00 per ordinary share. The closing price of the Company’s shares traded on the Hong Kong Stock
Exchange on 19th April 2004, being the date immediately before the date on which options were granted during the period, was HK$14.95 per share.
Note 4: On 19th November 2004, the Company granted 1,500,000 options to an employee of the Company and its subsidiaries pursuant to the 2001 Scheme to subscribe for 1,500,000
ordinary shares of the Company at a price of HK$11.03 per ordinary share. The closing price of the Company’s shares traded on the Hong Kong Stock Exchange on
18th November 2004, being the date immediately before the date on which options were granted during the period, was HK$10.70 per share.
Note 5: On 23rd March 2005, the Company granted 1,480,000 options to certain employees of the Company and its subsidiaries pursuant to the 2001 Scheme to subscribe for an
aggregate of 1,480,000 ordinary shares of the Company at a price of HK$11.41 per ordinary share. The closing price of the Company’s shares traded on the Hong Kong Stock
Exchange on 22nd March 2005, being the date immediately before the date on which options were granted during the period, was HK$11.50 per share.
Note 6: No options were cancelled during the year.
Note 7: As at 22nd June 2005, an aggregate of 1,867,000 share options were exercised at the exercise price of HK$10.20 per share since April 2005. The weighted average closing price
of the shares of the Company immediately before the dates on which the options were exercised was HK$11.16 per share.
(ii) HomeRelay Plan Pursuant to the stock option plan
adopted by a subsidiary, HomeRelay Communications, Inc.
(“HomeRelay”) in August 2000 (the “HomeRelay Plan”), the
directors of HomeRelay may grant options to the employees of
HomeRelay up to 10% of HomeRelay’s common stock in issue
from time to time.
Prior to 10th September 2003, the number of common stock
issuable under the stock options granted pursuant to the
HomeRelay Plan was 705,475, which represented approximately
9.5% of the then issued stock capital of HomeRelay. All
outstanding options lapsed since 10th September 2003 as a
result of the termination of employment of the relevant
grantees under the HomeRelay Plan. HomeRelay is
now dormant.
Warrants Pursuant to a warrant instrument dated
19th January 2000 of the Company, the Company granted AT&T
warrants (the “AT&T Warrants”) carrying rights to subscribe for
3,000,000 ordinary shares in the Company at a subscription
price of HK$20.0 per share on or before 18th January 2012 as
part of the consideration of a trademark licence agreement
between the Company and AT&T Corp. whereby AT&T Corp.
granted the Company the exclusive right to use the AT&T brand
for 10 years in connection with the manufacture and sale of
wireline telephones and accessories in the United States and
Canada.
Pursuant to a Revised AT&T Brand Licence Agreement dated
24th January 2002, the subscription price of the AT&T Warrants
was revised to HK$8.43 per share (being the lower of the initial
subscription price of HK$20.0 per share and the average of the
closing price of the shares of the Company as quoted on The
Stock Exchange of Hong Kong Limited for the five (5) dealing
days immediately preceding 15th July 2002) and the expiration
date of these warrants was amended to 12th December 2011.
No warrants have been exercised since the date of grant.