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45
D-LINK CORPORATION AND SUBSIDIARIES
Notes to the consolidated financial statements
(Continued)
Period following granting of options Percentage exercisable
2 Years 50 %
3 Years 75 %
4 Years 100 %
The Company replaced its employee stock options with a continuing service bonuses program
approved by the Chairman on October 3, 2011. The agreement period is from October 5, 2011
to October 4, 2013. Each unit of employee stock options converts into a $5 bonus. The
bonuses are paid separately at the percentage of 40%, 30%, and 30% on October each year from
2011 to 2013. The bonus agreement covers the originally issued 18,871 units of employee stock
options with 990 and 2,381 lapsed units in 2013 and 2012, the remaining units have been paid on
October, 2013. Since there is no incremental fair value for the replacement, the Company
recognizes compensation cost based on its fair value of the original grant date.
(3) Information on employee stock options as of December 31, 2014 and 2013 are as follows:
2014
Approval
Issuance
Units Effective
Exercise
restricted
Original
exercise
Adjusted
exercise
date date issued Period period price ($) price ($)
2009.8.31 2009.10.5 30,000 2009.10.5~
2014.10.4
2009.10.5~
2011.10.4
$ 28.45 21.63
2013
Approval
Issuance
Units Effective
Exercise
restricted
Original
exercise
Adjusted
exercise
date date issued Period period price ($) price ($)
2007.12.26 2007.12.28 20,000 2007.12.28~
2013.12.27
2007.12.28~
2009.12.27
$ 56.60 47.47
2009.8.31 2009.10.5 30,000 2009.10.5~
2014.10.4
2009.10.5~
2011.10.4
28.45 24.49
In 2014, the Company declared the cash dividends and stock dividends, and adjusted the exercise
price under the employee stock option plan 2 to $21.63 based on the ex-dividend date on
September 30, 2014.
In 2013, the Company declared a cash dividend and adjusted the exercise price under the
employee stock option plan 1 and 2 to $44.90 and $23.15, respectively, based on the ex-dividend
date on July 27, 2013.
(4) Information about recognition of compensation cost for employee stock options were as follows:
2014 2013
Compensation cost arising from employee stock
options $ - 5,288
Premium arising from continuing service plan -
5,677