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165

notes to the

financial statements

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

34 SHARE CAPITAL (CONTINUED)

(c) Employees’ Share Option Scheme (continued) The main features of the ESOS are as follows: (continued)

Not more than 10% of the shares available under the ESOS is allocated to any individual director or employee who, either singly

or collectively through his/her associates, holds 20% or more in the issued and paid-up capital of the Company. Only staff and executive directors of the Group are eligible to participate in the scheme. Executive directors are those involved in the day-to-day management and on the payroll of the Group.

The option price under the ESOS is the average of the mean market quotation of the shares of the Company as quoted in the

Daily Offcial List issued by Bursa Malaysia Securities Berhad for the fve market days preceding the offer date, or the par value of the shares of the Company of RM1.00, whichever is higher.

The options granted are exercisable one year beginning from the date of grant and have a contractual option term of fve years.

The employees’ entitlements to the options are vested (i.e. they are not conditional on future employment) as soon as they become exercisable and are exercisable in the following manner:

Percentage of new shares comprised in the option exercisable each year from Date of Offer

Year 1 Year 2 Year 3 Year 4 Year 5 20% 20% 20% 20% 20%

Options granted under the ESOS carry no dividend or voting rights. Upon exercise of the options, shares issued rank pari passu

in all respects with existing ordinary shares of the Company.

The persons to whom the options have been granted have no right to participate by virtue of the options in any share issue of

any other company.

Executive Directors of the Company and its subsidiary companies have been granted options under the Employees’ Share Options

Scheme on the same terms and conditions as those offered to other executive employees.

The share option scheme expired on 12 July 2009.

Details relating to options 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

1 Jan 2009 to

12 Jul 2009 2.00 – 3.31 1.33 0 1,590

Group/Company 2010 2009 RM’000 RM’000

Ordinary share capital - at par 0 1,590 Share premium 0 524

Proceeds received on exercise of options 0 2,114

Fair value at exercise date of shares issued 0 5,000

The fair value of shares issued on the exercise of options 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 options.