Page 129 - ar2013.pdf

NOTES TO THE FINANCIAL STATEMENTS
For the Ànancial year ended 31 December 2013
127
Annual Report 2013
F i nanc i a l Statement s
30. Share capital (continued)
Share options
Under the COSCO Group Employees’ Share Option Scheme 2002 (the “Scheme 2002”), share options are granted
to directors, key management and employees. The exercise price of the granted options is equal to the average
of the closing prices of the Company’s ordinary shares on the Singapore Exchange for the five market days
immediately preceding the date of grant. The options may be exercised in full or in part in respect of 1,000 shares or
a multiple thereof, on the payment of the exercise price. The persons to whom the options have been issued have
no right to participate by virtue of the options in any share issue of any other company. The Group has no legal or
constructive obligation to repurchase or settle the options in cash.
Options issued to directors and employees who have been in the service of the Company, subsidiary or associated
company, or the holding company for at least one year on or prior to the date of grant, may be exercised twelve
months after the date of grant but before the end of one hundred and twenty months. For employees and directors
who are in the service of the associated company and non-executive directors, the options shall expire at the end of
sixty months. Options issued at a discount to market price, may only be exercised two years after the date of grant.
Options issued to directors and employees who have been in the service of the Company, subsidiary or associated
company, or the holding company for at least six months but less than one year on or prior to the date of grant,
may be exercised twenty-four months after the date of grant but before the end of one hundred and twenty months.
For employees and directors who are in the service of the associated company and non-executive directors, the
options shall expire at the end of sixty months. Options issued at a discount to market price, may only be exercised
three years after the date of grant.
Movements in the number of unissued ordinary shares under option at the end of the financial year and their
exercise prices are as follows:
The Group and the Company
Financial year ended 31 December 2013
Number of ordinary shares
under option outstanding
Options relating to
Scheme 2002
Beginning of
financial year
Lapsed during
financial year
End of
financial year
Exercise
price Exercise period
’000 ’000 ’000 $
2006 Options 550 – 550 1.23 21.2.2007 - 20.2.2016
2007 Options 6,250 (2,500) 3,750 2.48 5.2.2008 - 4.2.2017
2008 Options (ii) 12,750 (3,840) 8,910 2.95 24.3.2009 - 23.3.2018
19,550 (6,340) 13,210
Financial year ended 31 December 2012
Number of ordinary shares
under option outstanding
Options relating to
Scheme 2002
Beginning of
financial year
Lapsed during
financial year
End of
financial year
Exercise
price Exercise period
’000 ’000 ’000 $
2006 Options 680 (130) 550 1.23 21.2.2007 - 20.2.2016
2007 Options (i) 10,550 (4,300) 6,250 2.48 5.2.2008 - 4.2.2017
2008 Options (ii) 17,080 (4,330) 12,750 2.95 24.3.2009 - 23.3.2018
28,310 (8,760) 19,550
(i) For non-executive directors, the exercise period shall be 5.2.2008 to 4.2.2012.
(ii) For non-executive directors, the exercise period shall be 24.3.2009 to 23.3.2013.
Out of the outstanding options on 13,210,000 shares (2012: 19,550,000), options on 13,210,000 shares (2012:
19,550,000) are exercisable. There was no share option issued in 2013 and 2012. There were also no shares of
the Company allotted and issued by virtue of the exercise of options to take up unissued shares of the Company in
2013 and 2012.