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164 KPJ Healthcare Berhad

(Company No. 247079 M)

Annual Report 2010

notes to the

financial statements

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2010 (cont’d)

34 SHARE CAPITAL (CONTINUED)

(b) Share split, bonus issue and free warrants (continued)

The new shares issued arising from Share Split, Bonus Issue and Free Warrants exercised shall upon issue and allotment, rank

pari passu in all respects.

The warrants exercise period is fve years commencing from the offer date. Warrant exercise price is 15% discount to the

theoretical ex-all price based on fve-day volume weighted-average market price up to and including 20 November 2009 (“price fxing date”).

Set out below are details of the free warrants issued by the Company:

Number of warrants 2010/2015 Exercise At At Issuance date Expiry date price 15.01.2010 Exercised 31.12.2010 RM/share ‘000 ‘000 ‘000

15 Jan 2010 14 Jan 2015 1.70 131,907 (32,281) 99,626

Details relating to warrants exercised during the period are as follows:

Fair value of shares Exercise Number of shares issued Exercise date at share issue date price 2010 2009 RM/share RM/share ‘000 ‘000

16 Jan 2010 to

31 Dec 2010 2.54 – 3.78 1.70 32,281 0

Details relating to warrants exercised during the period are as follows: (continued)

Group/Company 2010 2009 RM’000 RM’000

Ordinary share capital – at par 16,141 0 Share premium 38,737 0

Proceeds from exercise of warrants 54,878 0

Fair value at exercise date of shares issued 113,122 0

The fair value of shares issued on the exercise of warrants is the mean market price at which the Company’s shares were

traded on the Main Market of Bursa Malaysia Securities Berhad on the day prior to the exercise of the warrants.

(c) Employees’ Share Option Scheme

The Company implemented an Employees’ Share Option Scheme (“ESOS”) on 13 July 2004 which is governed by the by-laws

approved by the shareholders on 15 June 2004. Share options are granted to executive directors and key employees with more than fve years of service.

The main features of the ESOS are as follows:

The total number of ordinary shares to be issued by the Company under the ESOS shall not exceed 10% of the total issued and

paid-up ordinary shares of the Company, such that not more than 50% of the shares available under the ESOS is allocated, in aggregate, to directors and senior management.