Page 163 - Annual Report 2014

Notes to the Financial Statements

Year ended 31 December 2014

19 Operating Expenses (continued)
19.2.2 Share-based Payments

StarHub Share Option Plan

Under the StarHub Share Option Plan 2004, the exercise price for each ordinary share in respect of which an option is
exercisable shall be determined by the Company’s Executive Resource and Compensation Committee (“ERCC”) in its absolute
discretion on the date of grant to be either:

(i) a price which is equal to the volume-weighted average price for the Company’s shares on the Singapore Exchange
Securities Trading Limited (“SGX”) over the three consecutive trading days immediately preceding the date of grant of
that option (“Market Price”), or such higher price as may be determined by the ERCC in its absolute discretion; or

(ii) a price which is set, at the absolute discretion of the ERCC, at a discount to the Market Price so long as the maximum
discount for any option shall not exceed 20% of the Market Price in respect of that option.

At 31 December 2014, the share options outstanding under the StarHub Share Option Plan 2004 are as follows:

Number of Weighted average
share options exercise price per share

Company 2014 2013 2014 2013
‘000 ‘000 $ $

Outstanding at beginning of year 819 1,571 1.35 1.30
Exercised (499) (619) 1.33 1.27
Forfeited (133) 1.01 1.13
Outstanding at end of year (86) 819 1.52 1.35
234

Exercisable at end of year 234 819 1.52 1.35

Options were exercised throughout the year. The weighted average share price during the year was $4.15 per share
(2013: $4.21 per share).

The outstanding share options have the following exercise prices: 2014 2013
Company $ $

Exercise price: – 256
$0.88 to $0.99 234 563
$1.52 234 819
Outstanding at end of year

Weighted average remaining contractual life 0.41 year 1.18 years

The fair values 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 is measured based on a Binomial model. No options
were granted for the years ended 31 December 2014 and 31 December 2013.

160 many lives of hubbing