HAW PAR CORPORATION LIMITED
46
DIRECTORS’ CONTRACTUAL BENEFITS
Since the end of the previous financial year, no Director has received or has become entitled to receive benefits required to
be disclosed by Section 201(8) of the Companies Act, by reason of a contract made by the Company or a related corporation
with the Director or with a firm of which he is a member or with a company in which he has a substantial financial interest
except those disclosed in Note 22 to the financial statements.
SHARE OPTIONS
Haw Par Corporation Group 2002 Share Option Scheme
The 2002 Scheme was approved by members of the Company at an Extraordinary General Meeting held on 22 May 2002.
The extension of the duration of the 2002 Scheme for a further period of 5 years to 2017 was approved by members of the
Company at the Annual General Meeting held on 20 April 2011. The 2002 Scheme is granted to key executives personnel
and directors (including non-executive directors) of the Company and the maximum life-span of exercising the options is
10 years. The exercise price of the options is determined at the average of the last dealt price of the Company’s ordinary
shares as quoted on the Singapore Exchange Securities Trading Limited for five market days immediately preceding the
date of the grant. The options are exercisable beginning on the first anniversary from the date when the options are granted
or the second anniversary if the options are granted at a discount to the market price. Once the options are vested, they
are exercisable for a period of four years. The options may be exercised in full or in part in respect of 1,000 shares or any
multiple thereof, on the payment of the exercise price. The Group has no legal or constructive obligation to repurchase
or settle the options in cash. The share option scheme size shall not exceed 15% of the total number of issued shares of
the Company on the day preceding grant date and exercise prices are allowed to be set at discounts of up to 20% to their
market price.
The number of unissued ordinary shares of the Company covered by the options in relation to the 2002 Scheme outstanding
at the end of the financial year was as follows:
Number of shares covered by the options
Date of grant
Balance at 31.12.2014
Exercise price
Exercise period
1.3.2010
36,000
$5.86
1.3.2011 – 28.2.2015
1.3.2011
85,000
$6.09
1.3.2012 – 29.2.2016
1.3.2012
67,000
$5.95
1.3.2013 – 28.2.2017
4.3.2013
303,000
$7.27
4.3.2014 – 3.3.2018
3.3.2014
512,000
$8.55
3.3.2015 – 1.3.2019
1,003,000
In 2014, options to subscribe for 526,000 unissued shares in the Company at the exercise price of $8.55 per share were
granted and accepted under the 2002 Scheme. Options in respect of 4,972,000 have been granted and accepted since
the adoption of the scheme on 22 May 2002. No options have been granted at a discount to the market price of shares
of the Company. Further information can be found in Note 25 to the financial statements.
During the financial year, options to subscribe for 14,000 unissued shares were cancelled and 298,000 shares were issued
by virtue of the exercise of options. The market price on the dates of exercise ranged from $8.10 to $8.89.
DIRECTORS’ REPORT
(CONTINUED)
For the financial year ended 31 December 2014
