DESTINI Annual Report 2018

23. Employees Share Option Scheme (“ESOS”) At an extraordinary general meeting held on 10 February 2014, the Company’s shareholders approved the establishment of an ESOS for eligible Directors and a employees of the Group. The ESOS is administered by committee (“ESOS Committee”). The ESOS became effective for a period of five (5) years from 17 April 2014 to 16 April 2019. All ESOS have been fully exercised and no share option was granted during the financial year. The salient features of the ESOS scheme are, inter alia, as follows: (i) Eligible employees include Directors of the Company and confirmed full time employees of the Company and its eligible subsidiaries or under a fixed term employment contract, the contract should be for a duration of at least one (1) year, shall have attained the age of eighteen (18) years old and have served for at least one year of full continuous service in the Group. (ii) The aggregate number of shares to be issued under the ESOS shall not exceed 15% of the total issued and paid-up ordinary share capital of the Company at the point in time during the tenure of the ESOS. (iii) The new Company’s shares of RM0.10 each (“new Shares”) to be allotted and issued upon the exercise of the ESOS option shall, upon allotment and issue, rank pari passu in all respects with the existing Company’s ordinary shares of RM0.10 each save and except that the new Shares will not be entitled to any distributions made or paid prior to the date of allotment of the new Shares. The ESOS option shall not carry any right to vote at a general meeting of the Company. (iv) The Scheme shall be in force for a period of five (5) year commencing from the effective date. The Scheme may be extended by the Board of Director at its absolute discretion, without having to obtain approval from the Company’s shareholders, for a further period of up to five (5) years immediately from the expiry of the first five (5) years but will not in aggregate exceed ten (10) years. (v) The ESOS option is personal to the grantee and is non-assignable and non-transferable. (vi) The Shares to be issued and allotted to a grantee pursuant to the exercise of an ESOS option under the Scheme will not be subject to any retention period or restriction on transfer except that a Non-Executive Director shall not sell, transfer or assign the Shares obtained through the exercise of the ESOS option within one (1) year from the grant date. (vii) An option price shall not be at a discount of more than 10% (or such discount as the relevant authorities shall permit) from the 5-day weighted average market price of the shares of the Company preceding the date on which the ESOS option is granted and shall in no event be less than the par value of the shares of the Company of RM0.10. (viii) An option holder may, in a particular year, exercise up to such maximum number of shares in the option certificate or as determined by the Board of Director. (ix) The option granted to eligible executives will lapse when they are no longer in employment of the Group. NOTES TO THE FINANCIAL STATEMENTS DESTINI BERHAD ANNUAL REPORT 2018 166