Osim FR 050407.indd

Directors’ Report (cont’d)Share optionsThe OSIM Share Option Scheme (the “Option Scheme”) is administered by the Remuneration Committee comprising the followingmembers:Ong Kian Min (Chairman)Ron Sim Chye HockCharlie Teo Chay LeeMichael Kan Yuet YunKhor Peng SoonOnly confi rmed full-time employees as well as directors of the Group (other than Ron Sim Chye Hock and Teo Sway Heong) who are notcontrolling shareholders and their associates are eligible to receive options granted under the Option Scheme.The aggregate number of ordinary shares subject to outstanding options granted under the Option Scheme will not at any time exceed 15%of the issued share capital of the Company. The exercise price of the options shall be determined by the Remuneration Committee andfi xed at:(i)(ii)a price (the “Market Price”) equal to the average of the last dealt prices of the Company’s share, as determined by reference to theFinancial News or other publication published by the SGX-ST for the 3 consecutive trading days immediately preceding the date ofgrant, rounded up to the nearest whole cent in the event of fractional prices; ora price which is set at a discount to the Market Price, provided that:(a)(b)the maximum discount shall not exceed 20% of the Market Price (or such other percentage or amount as may be determinedby the Remuneration Committee and permitted by the SGX-ST); andthe shareholders of the Company in general meeting shall have authorised the making of offers and grants of options underthe Option Scheme at a discount not exceeding the maximum discount as aforesaid.Where the exercise price as determined above is less than $0.05, the exercise price shall be $0.05.The exercise period of options with exercise price at Market Price commences on the fi rst anniversary of the date of grant while the exerciseperiod of options with exercise price at a discount to the Market Price commences on the second anniversary of the date of grant. Optionsgranted to executive directors and employees expire on the tenth anniversary of the date of grant while options granted to non-executivedirectors and employees of associated companies expire on the fi fth anniversary of the date of grant.Directors’ Report 66Annual Report 2006