155 ANNUAL REPORT 2024 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 (cont’d) 16. EMPLOYEE SHARE OPTION RESERVE The employee share option reserve represents the equity-settled share options granted to employees. The reserve is made up of the cumulative value of services received from employees recorded over the vesting period commencing from the grant date of equity-settled share options and is reduced by the expiry or exercise of the share options. The Employee Share Option Scheme of the Company (“ESOS”) is governed by the ESOS By-Laws and was approved by shareholders on 22 January 2024. The ESOS is to be in force for a period of 5 years effective from 22 April 2024. The main features of the ESOS are as follows:- (i) Eligible persons are directors and/or employees including crew members of the Group, save for companies which are dormant, who have been confirmed in the employment of the Group. In respect of the crew members who are serving short term employment contract, he must have served at least 100 days in a calendar year and been with the Group for at least 3 years before the date of the offer. (ii) The maximum number of new ordinary shares of the Company, which may be available under the scheme, shall not exceed in aggregate 15% of the issued and paid-up share capital of the Company at any one time during the existence of the ESOS. (iii) The option price shall be determined by the Board of Directors based on the 5-day weighted average market price of ordinary shares of the Company immediately preceding the offer date of the option, with a discount of not more than 10%, or such other percentage of discount as may be permitted. (iv) The option may be exercised by the grantee by notice in writing to the Company in the prescribed form during the option period in respect of all or any part of the new ordinary shares of the Company comprised in the ESOS. (v) All new ordinary shares issued upon exercise of the options granted under the ESOS will rank pari passu in all respects with the existing ordinary shares of the Company, provided always that new ordinary shares so allotted and issued, will not be entitled to any dividends, rights, allotments and/or other distributions declared, where the entitlement date of which is prior to date of allotment and issuance of the new ordinary shares. All options granted and accepted under the ESOS are to be settled through physical delivery of ordinary shares of the Company upon cash payment made by the director and/or employee for the exercise of share options. Upon the exercise of share options, the Company shall issue and allot the equivalent number of ordinary shares which rank pari passu in all respects with the existing ordinary shares of the Company as disclosed in Note 16(v). Their terms and conditions are as follows:- Grant Date / Employees Entitled Number of Options Vesting Conditions Contractual Life of Options Options granted to and accepted by eligible employees including directors of the Company and its subsidiaries on 22 April 2024 26,620,000 5 years from grant date 5 years No person to whom the share option has been granted above has any right to participate, by virtue of the option, in any share issue of any other company.
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