LDK Solar Co., Ltd. - Asia Europe Clean Energy (Solar) Advisory Co ...

LDK SOLAR CO., LTD. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2006 AND 2007
(Amounts in US$ thousands, except share and per share data)
(8) SHARE OPTION
Share options to employees
On February 6, 2007, the Board of Directors of the Company approved the granting of 2,071,900 share
options to the Company's executives and employees at an exercise price of US$9.00 with a contractual term of
five years and vesting period of no less than three years, with no more than one-third of the options to be
vested each year.
A summary of option movements for the three-month period ended March 31, 2007 is presented below:
Weighted
Number Average Average
of Total Exercise Remaining
Non Shares Involved Price Contractual
Employees Employees Investors in the Option Per Share Term
Outstanding as of January 1,
2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,850,000 210,000 200,000 6,260,000
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,071,900 Ì Ì 2,071,900
ExercisedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì Ì Ì
Forfeited or cancelled ÏÏÏÏÏÏÏ
Outstanding as of March 31,
(92,100) (80,000) Ì (172,100)
2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,829,800 130,000 200,000 8,159,800 US$5.60 4.7 years
Exercisable as of March 31,
2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì Ì Ì Ì Ì
As of March 31, 2007, there was US$14,620 of total unrecognized compensation cost related to nonvested
share options. This cost is expected to be recognized over the next 3 years. The Company is expected to
issue new shares to satisfy share option exercises.
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