Europtronic Employees’ Share Option Scheme (the “Share Option Scheme”)

The Share Option Scheme, administrated by the RC, is opened to confirmed employees, associates of substantial shareholders and any director (including non-executive and independent directors) except for those who are the Company’s substantial shareholders or any employee who has been selected by RC.

Details of the Share Option Scheme are set out in the latest Annual Report under the Report of the Directors.

No share options were offered and granted by the RC in FY2008.

Performance Share Scheme (the “Scheme”)

The purpose of adopting the Scheme in addition to the existing Share Option Scheme is to give the Group greater flexibility to align the interests of employees, especially key executives, with those of shareholders as well as to reward, retain and motivate employees to achieve superior performance.

Under the Scheme, awards represent the right of a Participant to receive fully paid ordinary shares in the Company (“Shares”) free of charge, upon the Participant achieving prescribed performance targets.

The selection of a Participant and the number of shares which are the subject of each award to be granted to a Participant in accordance with the Scheme shall be determined at the absolute discretion of the RC, which shall take into account criteria such as his rank, job performance, years of service and potential for future development, his contribution to the success and development of the Group and the extent of effort required to achieve the performance target within the performance period.

No shares were granted by the RC in FY2008.