New World Development Company Limited
100
Report of the Directors
Directors’ Interests in Shares, Underlying Shares and Debentures
(continued)
(B) Long Position in Underlying Shares — Share Options
(continued)
Share Option Schemes of New World China Land Limited (“NWCL”)
(continued)
Share options granted to other eligible participants
(continued)
NWCL 2011 Share Option Scheme
(continued)
The fair value of the share options granted during the year with exercise price per share of HK$4.504 is estimated at
HK$1.37 using the Binomial pricing model. Value is estimated based on the risk-free rate of 1.28% per annum with reference
to the rate prevailing on the Exchange Fund Notes, a five-year period historical volatility of 38.32%, assuming dividend yield
of 0.63% and an expected option life of five years.
The Binomial pricing model required input of subjective assumptions such as the expected stock price volatility. Change in
the subjective input may materially affect the fair value estimates.
Share Option Scheme of NWS Holdings Limited (“NWSH”)
The existing share option scheme of NWSH (“NWSH Share Option Scheme”) was adopted at the annual general meeting of
NWSH held on 21 November 2011. A summary of the share option scheme of NWSH disclosed in accordance with the Listing
Rules is as follows:
NWSH Share Option Scheme
Purpose of the scheme
To reward directors and employees of NWSH and its subsidiaries (“NWSH
Group”) for their past service or performance; providing incentive and
motivation or reward to eligible participants for optimising their
performance or making contribution to NWSH Group; attracting and
retaining persons of right caliber with the necessary experience to work
for or make contribution to NWSH Group; and fostering a sense of
corporate identity.
Participants of the scheme
Eligible participant may be a person or an entity belonging to any of the
following classes:
(i)
any eligible employee;
(ii)
any non-executive director (including independent non-executive
director) of NWSH Group or any invested entity of NWSH Group (the
“Invested Entity”);
(iii) any supplier of goods or services to any member of NWSH Group or
any Invested Entity;
(iv) any customer of any member of NWSH Group or any Invested Entity;
(v)
any person or entity that provides research, development or other
technological support to NWSH Group or any Invested Entity;
(vi) any shareholder of any member of NWSH Group or any Invested
Entity or any holder of any securities issued by any member of
NWSH Group or any Invested Entity;
(vii) any adviser (professional or otherwise) or consultant to any area of
business or business development of any member of NWSH Group
or any Invested Entity; and
(viii) any joint venture partner or business alliance that co-operates with
any member of NWSH Group or any Invested Entity in any area of
business operation or development.
