Vtech 2002 Annual Report Download - page 57

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Annual Report 2002 55
Notes to the Financial Statements
20. SHARE CAPITAL, SHARE OPTIONS AND WARRANTS (continued)
Share Options
The 1991 Scheme
Pursuant to the share option scheme adopted on 24th September 1991 (the “1991 Scheme”), the directors may, at their discretion, at any
time during the 10 years from the date of approval of the 1991 Scheme, invite employees of the Company and subsidiaries of the Group,
including directors, to take up share options of the Company for incentive purposes. The maximum number of shares on which options
may be granted may not exceed 10% of the issued share capital of the Company from time to time. The maximum number of shares in
respect of which options may be granted under the 1991 Scheme to any one participant (including shares issued and issuable to him
under all the options previously granted to him) is limited to 25% of the maximum aggregate number of shares of the Company subject
to the 1991 Scheme. The offer of a grant of options may be accepted within 28 days from the date of offer, upon payment of a nominal
consideration of HK$1.00 in total by the grantee. The exercise price in relation to each option offer shall be determined by the directors
at their absolute discretion, but in any event shall not be less than the greater of (i) 80% of the average of the official closing price of the
shares on the London Stock Exchange plc and The Stock Exchange of Hong Kong Limited for the 5 trading days immediately preceding
the relevant offer date and (ii) the nominal value of the shares. The terms of the 1991 Scheme provide that an option may be exercised at
any time during the period beginning with the commencement date (being the first anniversary of the date of grant of the option) and
ending with the date which is 10 years after the date of grant of the option and in the first 48 months following the commencement
date, a grantee may only exercise to the extent of 25% of shares comprised in the options granted to him in any 12 month period. The
1991 Scheme expired on 23rd September 2001.
As at 31st March 2002, the number of shares issuable under the options granted pursuant to the 1991 Scheme was 270,000, which
represented approximately 0.12% of the issued share capital of the Company. The movements in the number of share options under the
1991 Scheme during the period were as follows:
Number of Number of Number of
share options share options share options
Exercise Balance in granted exercised lapsed/cancelled Balance in
price issue at during during during issue at
Date of grant US$ Exercisable period 1st April 2001 the period the period the period 31st March 2002
8th October 1991 0.733 8th October 1991 316,300 ——(316,300) —
to 7th October 2001
1st May 1998 2.9 1st May 1998 4,025,000 ——(3,835,000) 190,000
to 30th April 2008
1st June 1999 2.72 1st June 1999 200,000 ——(200,000) —
to 30th May 2009
17th December 1999 2.3 17th December 1999 140,000 ——(60,000) 80,000
to 16th December 2009
16th November 2000 1.76 16th November 2000 40,000 ——(40,000) —
to 15th November 2010
4,721,300 ——(4,451,300) 270,000