Ecowise Annual Report 2007 - ecoWise Holdings Limited

Notes to FinancialStatements31 October 200710. EMPLOYEE BENEFITS EXPENSEGroup2007 2006$’000 $’000Employee benefits expenses including directors 4,728 4,066Contributions to defined contribution plans 227 200Other benefits 50 39Share-based compensation expenses 784 –Total employee benefits expenses 5,789 4,30511. ITEMS IN THE INCOME STATEMENTIn addition to the charges and credits disclosed elsewhere in the notes to the financial statements, this item includesthe following charges:-Group2007 2006$’000 $’000Non-audit fees paid to auditors of the company 11 1112. SHARE BASED PAYMENTS(A)SHARE OPTIONS – THE SCHEME:The ecoWise Employee Share Option Scheme (“the Scheme”) was adopted by the members of the companyat an extraordinary general meeting held on 3 March 2003 which provides for the grant of incentive shareoptions to employees and executive directors (excluding Lee Thiam Seng and Sunny Ong Keng Hua).Under the Scheme, the maximum number of shares to be issued to eligible employees shall not exceed 10%of the issued shares of the company on the date preceding the grant of an option. The scheme allows theissue of options with a subscription price at a discount of up to 20% of the market price, or its nominal value,whichever is higher.An option may be exercised in whole or in part, after the first anniversary of the date of grant of that optionbut before the fifth anniversary of the date of grant of that option in the case of a Market Price Option, or afterthe second anniversary of the date of grant of that option but before the fifth anniversary of that date of grantof that option in the case of Incentive Option.The lapsing of option is provided for upon the occurrence of certain events, which includes :-(a)(b)(c)(d)(e)the termination of the grantee’s employment;the death of the grantee;a take-over of the company;the winding-up of the company (voluntary or otherwise); andthe breach by the grantee of any terms of the option.63