Sasbadi Annual Report 2021

105 ANNUAL REPORT 2021 FINANCIAL STATEMENTS (continued) 105 18. SHARE CAPITAL AND RESERVES (continued) (f) Share option reserve (continued) Employees’ share option scheme (“ESOS”) (continued) iv) Not more than 80% of the options available under the ESOS shall be allocated, in aggregate to executive directors and senior management; v) The ESOS shall be in force for a period of five (5) years from the effective date of 1 September 2016, and may be extended for a further five (5) years or a shorter period from the expiry of the first five (5) years; and vi) The exercise price shall be fixed based on the higher of a discount of not more than 10% to the five (5)-day volume weighted average market price of the shares of the Company immediately preceding the date of offer or the par value of the shares of the Company; The Company has received all the relevant approvals, complied with the requirements pertaining to the ESOS, and submitted the final copy of the By-Laws of the ESOS to Bursa Malaysia Securities Berhad (“Bursa Securities”) pursuant to paragraph 6.42 of the Bursa Securities Listing Requirements on 1 September 2016. The implementation of ESOS is thus effective from 1 September 2016. On 17 February 2021, the Board of Directors has approved the extension of the ESOS which will be expiring on 31 August 2021, for a further period of five (5) years from 1 September 2021 to 31 August 2026. On 6 December 2019, the Company offered 10,000,000 options at an exercise price of RM0.17 each to its eligible employees under the ESOS. These options were not exercised and had lapsed on 5 December 2020. Subsequently, on 17 February 2021, the Company offered 10,000,000 options at an exercise price of RM0.12 each to its eligible employees under the ESOS. In accordance with the ESOS, holders of vested ESOS options are entitled to purchase the Company’s shares at the exercise price at the date of grant. The terms and conditions related to the grants of the share option programme are as follows: Number Contractual Group of options life of (’000) Vesting conditions option Grant date 6 December 2019 10,000 No vesting conditions 1 year 17 February 2021 10,000 No vesting conditions 2 years