Vtech 2001 Annual Report Download - page 58

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20. SHARE CAPITAL (Continued)
Share option schemes
Pursuant to the share option scheme adopted on 24th September 1991 (the ``Scheme''), the board of directors
is authorized to grant options to certain directors or employees of the Company or any of its subsidiaries to
subscribe for shares in the Company at prices to be determined by the board in accordance with the terms of
the Scheme. The movements in the number of share options under the Scheme during the year were as follows:
Number of options granted
under the Scheme
2001 2000
Balance as at 1st April 2000 5,265,300 5,473,300
Granted during the year 40,000 370,000
Cancelled during the year (580,000) (405,000)
Exercised during the year (4,000) (173,000)
Balance as at 31st March 2001 4,721,300 5,265,300
On 16th November 2000, the Company granted to an employee options to subscribe for an aggregate of
40,000 shares in the Company at a price of US$1.76 per share. During the year, 4,000 options were exercised
in the following months: August 2000, 2,000 options; September 2000, 2,000 options.
The 4,721,300 options outstanding at 31st March 2001 include 316,300 options that may be exercised at a
price of US$0.733 per share, 4,025,000 options that may be exercised at a price of US$2.9 per share, 200,000
options that may be exercised at a price of US$2.72 per share, 140,000 options that may be exercised at a
price of US$2.3 per share and 40,000 options that may be exercised at a price of US$1.76 per share.
Warrants
Pursuant to a warrant instrument dated 19th January 2000 issued by the Company to AT&T Corp. (``AT&T'') as
part of a brand license agreement between the Company and AT&T pursuant to which AT&T granted the
Company the exclusive right to use the AT&T brand for 10 years in connection with the manufacture and sale of
wireless telephones and accessories in the United States and Canada, the Company granted AT&T warrants
carrying rights to subscribe for 3,000,000 shares in the Company at a subscription price of HK$20.00 per share
on or before 18th January 2012. No warrants have been exercised since the date of grant.
56
Notes to the Financial Statements