Ocean Sky International Limited - Ocean Sky International Ltd ...

Issue Price
The Exercise Price (as defined under the Scheme) for each Share in respect of which an Option is
exercisable shall be determined and fixed by the Committee and shall be either :
(a) the market value equal to the weighted average share price of the Shares for the last trading day
immediately preceding the relevant date of grant of the Option (the “Market Price”); or
(b) the nominal value of the Shares, whichever is greater; or
(c) a price set at a discount to the Market Price or the nominal value of the Shares, whichever is
greater.
Options with discounted Exercise Price will only be granted to deserving executives and employees of
our Group whose performance have been consistently sterling and/or whose future contributions and
value-add to our Group would be invaluable.
The amount of discount in respect of such Options is to be determined during the financial period when
the Options are granted and the maximum discount shall not exceed 20% of the Market Price (or such
other percentage or amount as may be prescribed or permitted for the time being by the SGX-ST).
Our Company believes that the ability to offer discounted Options (“Incentive Options”) will operate as a
means to compliment good executives and employees for their outstanding performance and a reward for
their valuable and dedicated service to our Group. Incentive Options will not only motivate good
executives and employees to continue to excel and become more dedicated and loyal to our Group, it
also secures our employment of them through the implementation of a longer vesting period before the
Incentive Options may be fully exercised.
Further, our Company believes that the grant of Incentive Options to such executives and employees will
provide an added incentive for them to focus more on improving the profitability and returns of our Group
and enhance shareholder value, which will benefit all Shareholders when these are eventually reflected
through share price appreciation. Incentive Options would also be perceived as an added privilege by the
executives and employees of our Group, thus inspiring them to work hard and produce good results to
qualify themselves for Incentive Options.
In this respect, our Group has proposed that the quantum of discount to be given will be determined, at
the absolute discretion of the Committee, based on the performance of our Group with reference to our
Group’s earnings per Share growth during the financial period (the “Last Financial Period”) immediately
preceding the financial period when the Options are granted as compared to the financial period prior to
the Last Financial Period, in accordance with Rule 8 in the Rules of the Scheme, as set out in Appendix
D of this Prospectus.
Our Company has decided that regardless of the level of growth during the financial period when the
Options are granted, the equivalent discount quantum for its Incentive Options will only be up to a
maximum of 20%. Our Company feels that if the employees are able to drive the growth of our Group, a
discount of up to 20% for the Incentive Options should be a reasonable and fair quantum to sufficiently
reward them for their effort.
In any case, our Company is of the view that a discount quantum of up to 20% will enable our Group to
have greater flexibility to use share options as a means of building a variable component into the
remuneration package of our employees without compromising on their performance standard and
efficiency. It would enable our Group to introduce a refreshing manner of motivating employees to
maximise their performance which they would also benefit as Shareholders of our Company thereby
spurring them to optimise their performance standards and efficiency, which is vital to our Group’s
success.
Further, the ability to grant Incentive Options to our employees would help our Group to persuade
employees to accept necessary caps on their salary growth and enable us to retain good employees who
have the motivation and attributes to pursue continuous improvement in performance and are able to add
value to our Company.
78