Untitled - Swissco Holdings Limited

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2005
25. Share Capital of Swissco International Limited (continued)
(c)
Share options (continued)
In relation to an option granted to a person who is a controlling shareholder or an associate
of a controlling shareholder, the subscription price for each Scheme share shall be equal to
the average of the last dealt prices for the Company’s share for the 5 consecutive market
days immediately preceding the latest practicable date prior to the date of any circular,
letter or notice to the shareholders proposing to seek their approval of the grant of such
options to such controlling shareholder or, as the case may be, such associate.
The option can be exercised to subscribe for the ordinary shares of the Company in the
following proportions after the vesting period:
After the first anniversary of date of grant
of the Option
After the second anniversary of date of
grant of the Option
After the third anniversary of date of grant
of the Option
Maximum of 40% of Shares comprised
in such Option
Maximum of 70% Shares comprised
in such Option
100% of Shares comprised in such Option
Movement in the number of ordinary shares outstanding under option at the end of the
financial year and their exercise prices are as follows:
Number of ordinary shares
under option outstanding
Granted during At Exercise
Date of grant financial year 31.12.2005 price Exercise period
15.3.2005 565,000 565,000 $ 0.256 15.3.2006 to
15.3.2015
29.4.2005 600,000 600,000 $ 0.244 29.4.2006 to
29.4.2015
The fair value of options granted during the financial year determined using the Black-
Scholes valuation model was $76,000. The significant inputs into the model were share
price of $0.25 and $0.26 at the grant date, exercise price shown above, standard deviation of
expected share price returns of 33% and 32%, dividend yield of 0%, option life disclosed
above, and annual risk free rate of 1.88% to 2.27% which most closely approximate the
corresponding expected lives of the options. The volatility measured at the standard deviation
of expected share price returns is based on the historical share prices data of the two closest
comparable listed companies to the Company as the Company does not have sufficient
information on historical volatility.
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