Annual Report - QuamIR

Report of the Directors (Continued)
Share Option Schemes (Continued)
Share Options of the Company (Continued)
Using the Binominal Valuation model, the fair value of 10,000,000 share
options granted on 10 June 2011 was HK$1,360,532 for the period under
review. The significant inputs into the model were share price of HK$0.36
at the grant date, exercise price of HK$0.36, volatility of ranging from 53%
to 58%, dividend yield of 1.570%, an option life of three years to five years
and on normal risk-free interest rate ranging from 0.628% to 1.264%. The
volatility measured at the standard deviation of share returns is based on
statistical analysis of weekly share prices over the past three to five years.
The vesting period is between 10 June 2012 to 10 June 2014. The value of
the share options is subject to a number of assumptions and with regard to
the limitation of model. Therefore, the value may be subjective and difficult to
determine.
10,000,000
1,360,532
0.360.36
53%58%1.570%
0.628%
1.264%
Save as disclosed above, no share option was granted, exercised, cancelled
nor lapsed during the year ended 31 December 2011 under the HKC Option
Scheme.
Share Options of subsidiary of the Company
China Renewable Energy Investment Limited (“CRE”), a subsidiary of the
Company, adopted a share option scheme (the “CRE Option Scheme”) on 27
May 2008. Particulars of the CRE Option Scheme are set out below:-
(a)
Purpose
The principal purposes are to recruit and retain high caliber Eligible
Persons (as defined below) and attract human resources that are
valuable to the CRE Group or any entity in which any member of the
CRE Group holds an equity interest (“Invested Entity” or “Invested
Entities”), to recognise the significant contributions of the Eligible
Persons to the growth of the CRE Group or Invested Entities by
rewarding them with opportunities to obtain ownership interest in CRE
and to further motivate and give incentives to these Eligible Persons to
continue to contribute to the long term success and prosperity of the
(a)
CRE Group or Invested Entities.
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