DIRECTORS’
STATEMENT
37
CITIC ENVIROTECH LTD.
Annual
Report
2015
4 SHARE OPTIONS (cont’d)
(a) Options to take up unissued shares (cont’d)
(i)
Under the Scheme, the ordinary shares of the Company (“Shares”) under option may
be exercised in full or a multiple thereof, on the payment of the exercise price. Under
the Scheme, there are no fixed periods for the grant of Options. As such, offers for
the grant of options may be made at any time from time to time at the discretion of
the Committee. The consideration for the grant of an option is S$1.00. The exercise
price is based on the price that is equivalent to the Market Price; or a price that is set
at a discount to the Market Price, provided always that the maximum discount shall not
exceed 20% of the Market Price; and the prior approval of Shareholders shall have been
obtained in a separate resolution. No options have been granted at a discount. The
Scheme shall continue in operation at the discretion of the Committee, subject to a
maximum duration of 10 years and may be continued for any further period thereafter
with the approval of Shareholders by ordinary resolution in general meeting and of any
relevant authorities may then be required. Options granted will lapse when the option
holder ceases to be a full-time employee of the Company or any company in the Group
subject to certain exceptions at the discretion of the Committee.
The option period for an option granted at Market Price commences after the first
anniversary of the date of grant of option and expires on the tenth anniversary of such
date except that for options granted to the non-executive directors, the option period
shall be a period commencing after the first anniversary of the date of grant of option
and expiring on the fifth anniversary of such date.
An option granted at a discount to the Market Price shall be exercisable after the
second anniversary of the date of grant of option up to the tenth anniversary of such
date except that for options granted at a discount to non-executive directors, the option
shall be exercisable after the second anniversary of the date of grant of option and
expiring on the fifth anniversary of such date.
The Scheme was amended by the Committee on February 14, 2014 with inclusion of a
vesting schedule in the offer letter for option granted and revision of certain terms and
conditions of the Scheme.
*
market price - a price equal to the average of the last dealt prices for the Shares
on the SGX-ST over the five consecutive trading days, immediately preceding the
Date of Grant of that option, as determined by the Committee by reference to the
daily official list or any other publication published by the SGX-ST
(ii)
In 2012, the Company issued $137,264,000 (equivalent to US$113,800,000), 2.5%
convertible bonds as disclosed in Note 23 to the financial statements.
During the year, the remaining US$44,000,000 (March 31, 2015 : US$69,800,000) of
convertible bonds have been converted to ordinary shares of the Company.
