Yinson Annual Report 2018

Notes to the Financial Statements (Cont’d) For the financial year ended 31 January 2018 29. EMPLOYEE SHARE SCHEME The Company implemented an Employees’ Share Scheme (“ESS” or “Scheme”) which came into effect on 3 November 2015 for a period of 5 years to 2 November 2020. The ESS is governed by the By-Laws which were approved by the shareholders on 3 November 2015. On 25 January 2018, the Board of Directors resolved to extend the tenure for additional five (5) years till 2 November 2025 in accordance with the terms of the ESS By-Laws. The main features of the Scheme are as follows: (a) An eligible employee shall pay a sum of RM1.00 as consideration for acceptance of that offer. An option shall be exercisable at a price which is the weighted average of the market price quotation of the shares for the five (5) market days immediately preceding the date on which the options are granted, rounded to the nearest sen, or the par value of the shares, whichever is higher. (b) Unless otherwise determined by ESS committee, each option shall become exercisable, to the extent of one-third of the shares covered thereby, on each of the first three (3) anniversaries of the date of grant, if the holder of such option shall have been in the continuous service of the Company or subsidiaries that are not dormant throughout such period. No options shall be exercisable if the exercise of such options would violate any provision of applicable laws, nor shall any options be exercisable more than five (5) years from the date on which the Scheme became effective. (c) The new shares issued upon the exercise of an option will be subject to all the provisions of the Company’s Constitution and the Main Market Listing Requirements of Bursa Malaysia Securities Berhad and shall rank pari passu in all respects with the then existing issued ordinary shares of the Company, save that they will not entitle the holders thereof to receive any rights or bonus issue or dividends or distributions the entitlement date of which precedes the date of the issue of such new shares. (d) The aggregate maximum number of Scheme Shares that may be allocated to any one category/designation of eligible Director or employee of the Group shall be determined by the ESS Committee provided that: (i) the Directors (including non-executive directors) and senior management do not participate in the deliberation and discussion of their own allocation; (ii) not more than 80% of the Scheme Shares available under the ESS on any date shall be allocated in aggregate to the Directors (including non-executive directors) and senior management of the Group; and (iii) the allocation to any individual eligible Director or employee of who, either singly or collectively through persons connected with the eligible Director or employee, holds twenty percent (20%) or more of the issued and paid-up share capital (excluding treasury shares) of the Company, does not exceed ten percent (10%) of the shares available under the ESS. The fair value of share options granted were determined using the Trinomial valuation model, taking into account the terms and conditions upon which the options were granted. The inputs to the model used were as follows: Dividend yield (%) 0.70 Expected volatility (%) 24.78 Risk-free interest rate (%) 3.34 - 3.48 Expected life of option (years) 2.50 - 3.50 Share price at date of grant (RM) 3.03 Exercise price of option (RM) 2.80 Fair value of option at date of grant (RM): - 1st tranche (RM) 0.65 - 2nd tranche (RM) 0.71 - 3rd tranche (RM) 0.76 The expected average life of options is based on historical information, which may not necessarily be indicative of the future exercise pattern that may occur. The expected volatility reflects the assumptions based on the historical volatility on the assumptions that this is indicative of future trends which may also not necessarily be the actual outcome. 162 Yinson Holdings Berhad Annual Report 2018 Accountability