Annual Report 2010 - Leeden Limited

Notes to the Financial Statementsfor the Financial Year ended 31 December 2010Leeden Limited Annual Report 201032. Asset revaluation reserve, capital reserve, employee share option reserve and foreign currency translationreserve (cont’d)Foreign currency translation reserveThe foreign currency translation reserve represents exchange differences arising from the translation of the financialstatements of foreign operations whose functional currencies are different from that of the Group’s presentationcurrency.Employee share option reserveEmployee share option reserve represents the equity settled share options granted to employees. The reserve is made upof the cumulative value of services received from employees recorded over the vesting period commencing from the grantdate of equity-settled share options, and is reduced by the expiry or exercise of the share options.33. Equity compensation benefitsShare Option SchemesAce Dynamics Share Option Scheme (“Scheme I”)At the Extraordinary meeting held on 19 February 2000, shareholders approved the adoption of Scheme I. Under SchemeI, options may be granted to selected employees of the Group including employees of its associated companies, executiveand non-executive Directors. Controlling shareholders and their associated companies are not eligible to participate inScheme I. Further details of Scheme I are set out in the circular to shareholders dated 28 January 2000.Leeden Share Option Scheme 2007 (“Scheme II”)At the Extraordinary meeting held on 8 August 2007, shareholders approved the adoption of the Scheme. Under SchemeII, options may be granted to confirmed Group employees, including employees of associated companies, executive andnon-executive directors and controlling shareholders. Further details are set out in the circular to shareholders dated 17July 2007.Movements of share options:The following table illustrates the number (“No.”) and weighted average exercise prices (“WAEP”) of, and movements in,share options during the financial year:2010 2009No. of shares WAEP No. of shares WAEP‘000 $ ‘000 $Outstanding at 1 January 17,105 0.34 11,150 0.38- Granted – – 6,520 0.28- Exercised (640) 0.20 (10) 0.34- Expired (140) 0.48 (555) 0.44Outstanding at 31 December 16,325 0.34 17,105 0.34Exercisable at 31 December 9,855 0.38 9,175 0.36In 2009, the weighted average fair value of options granted was $0.28. There are no grants in the current year.The weighted average share price at the date of exercise of the options exercised during the financial year was $0.36(2009: $0.34).The range of exercise prices for options outstanding at the end of the year was $0.20 to $0.48 (2009: $0.20 to $0.48).The weighted average remaining contractual life for these options is 6.08 years (2009: 6.99 years).89