Consolidated - CHUNGHWA PICTURE TUBES, LTD.

distributed except for the appropriation of legal reserve and special reserve.
f. On December 22, 2004, the Board of Directors resolved to increase the capital by issuing GDSs for up to
700,000 thousand shares. Such plan was approved by the authorities on March 24, 2005.
g. In 2004, the Company issued 156,669,754 shares and 104,630,234 shares for the conversion of the
Company’s convertible bonds due 2007 and 2005, respectively. Total outstanding shares increased to
$68,521,629 after the conversion.
h. In 2004, total stock options exercised were 4,253,000 shares, each at $13.35 of exercise price. Total
issued common stock after exercise was $68,564,159.
(14) Stock compensation
The Company has two stock option plans (2002 plan and 2004 plan). These stock options provide for the
granting of options to qualified employees of the Company or any of its domestic or foreign subsidiaries for
the purchase of the Company’s common shares at the market price of the grant date. Stock options expire in
five years from the date granted and vest over service periods that range from two to four years. The
Company is authorized to grant options for up to 400,000 thousand shares and 233,982 thousand shares
under the 2002 plan and 2004 plan, respectively.
a. A summary of the Company’s stock option activity and the related information for the years ended
December 31, 2003 and 2004 were described as shown below:
2003 2004
2002 plan 2002 plan 2004 plan
Options Weighted-Average Options Weighted-Average Options Weighted-Average
(in thousand
shares)
Exercise Price
(in dollars)
(in thousand
shares)
Exercise Price
(in dollars)
(in thousand
shares)
Exercise Price
(in dollars)
Outstanding-beginning of year 97,596 $13.35 218,041 $12.45 - $-
Granted 165,710 11.90 - - 186,170 16.11
Exercised - - (4,253) 13.35 - -
Forfeited (45,265) 12.36 (15,721) 12.35 (7,125) 16.69
Outstanding-end of year 218,041 12.45 198,067 12.44 179,045 16.09
b. Information with respect to the outstanding options of the Company’s as of December 31, 2004 is as
follows:
Date of
Range of
Exercise Price
Outstanding options at balance sheet date
Options
(in
thousand
shares)
Weighted-
Average
Remaining
Contractual
Weighted-
Average
Exercise Price
Options Exercise
Number of
Exercisable
Options (in
Weighted-
Average
Exercise
Price
25