23 EQUITY COMPENSATION BENEFITS
(continued)
a)
Employee share options
(continued)
Post-IPO Scheme
(continued)
During 2014, options exercised resulted in 368,000 shares being issued at an exercise price of $0.2079 each. The total
amount received from the issue of these shares were $77,000. Options were exercised on a regular basis throughout the
year. The weighted average share price during the dates when the share options were exercised was $0.25 per share.
There were no share options outstanding at the end of the year (2014: Nil).
The fair value of services received in return for share options granted are measured by reference to the fair value of
share options granted. The estimate of the fair value of the services received was measured based on the Black-Scholes
model. The expected life used in the model has been adjusted, based on management’s best estimate, for the effects
of non-transferability, exercise restrictions and behavioural considerations.
Date of grant of options
18/05/2004
18/05/2004
18/05/2004
18/05/2004
Vesting date
18/05/2005
18/05/2006
18/05/2007
18/05/2008
Fair value of share options and
assumptions:
Fair value at measurement date
$0.059
$0.053
$0.048
$0.044
Share price
$0.29
$0.29
$0.29
$0.29
Exercise price
$0.2079
$0.2079
$0.2079
$0.2079
Expected volatility
20%
20%
20%
20%
Expected option life
2.0 years
3.0 years
4.0 years
5.0 years
Expected dividends
6.9%
6.9%
6.9%
6.9%
Risk-free interest rate
1.50%
1.75%
1.75%
2.07%
The expected volatility was based on the historic valuation of shares based on net assets values, adjusted for any
expected changes to future volatility to those net assets values.
There were no market conditions associated with the share option grants.
b)
TeleChoice Restricted Share Plan and Performance Share Plan
The TeleChoice Restricted Share Plan (the “TeleChoice RSP”) and TeleChoice Performance Share Plan (the “TeleChoice
PSP”) (collectively referred to as the “Plans”), were approved and adopted by the members at an Extraordinary General
Meeting of the Company held on 27 April 2007.
Information regarding the Plans is set out below:
(i)
The Plans were established with the objective of motivating senior executives to strive for superior performance
and sustaining long-term growth for the Company.
(ii)
The Plans are administered by the Committee.
99
TELECHOICE INTERNATIONAL LIMITED
2015 ANNUAL REPORT
NOTES TO THE
FINANCIAL STATEMENTS
