Lenovo 2014 Annual Report Download - page 114

112 Lenovo Group Limited 2013/14 Annual Report
DIRECTORS’ REPORT
DIRECTORS’ RIGHTS TO ACQUIRE SHARES OR DEBENTURES (continued)
Share Option Scheme (continued)
1. New Option Scheme (continued)
(c) Maximum number of shares
The total number of ordinary shares which may be issued upon exercise of all share options to be granted
under the New Option Scheme and any other share option scheme(s) of the Company must not in aggregate
exceed 10% of ordinary shares in issue on the date of approval of the New Option Scheme. The maximum
number of ordinary shares of the Company which may be issued upon exercise of all outstanding share
options granted and yet to be exercised under the New Option Scheme and any share option scheme(s) of
the Company must not exceed 30% of ordinary shares in issue from time to time.
As at March 31, 2014, share options were outstanding under the New Option Scheme entitling the holders
to subscribe for 31,487,601 ordinary shares of the Company, which represented approximately 0.3% of the
ordinary shares of the Company in issue as at the date of this report.
(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% 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% 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 Company’s ordinary shares
as stated in the Stock Exchange’s daily quotation sheet on the date of grant of the share options; (ii) the
average of the closing prices of the Company’s ordinary shares as stated in the Stock Exchange’s daily
quotation sheets for the 5 trading days immediately preceding the date of the 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.