HL ESopP - Employee Stock Option !-lan ESOP is a shave based payment fo Employees Incentive Scheme + He is given FRee or at a concessional, vate * Right tout not om Obligahon * Conditions ——> filfilled 2 v \ Vesting Conditione Employes will be Eu@iBLE By EsoP ce YL By ESOP < Cont Boy Sewice Performance He can Exercise Be Employee You usll be Pt LAPSE Gv «certain |ghan torgete to pesiod adie eg. 2g, 24s, > Ne wet re /~- Maveet Gased Sys Morte Candin Conditionssecede Exercise the Option (Gy ESOP) t 1 i. ao raat si-3-2n, 3153-28 L 6 ee aaa Leese ants VESTING, “oe PERIOD Mostly €50° will not be. (Be an Employer Ke 3 yeors) Free, Employers hove to Pay CASH Greont Date :- Date ot which Mut Price Exercise Price 150 Lt (eee Vesting :~ Eligibit Vestn Conditont which you hove oe Sees 7 4 LPI do be eligisle Sr ESO. eee : v Exercise Price = Concecional price at We is only shin Ego ie oP Reed ghana Emiglayee (Uabinsig Volue Hhis discout is Vacue lor Option Method called as © Foie Value of Option = bo © Vane? AP pe Seve 180 Vatve of Orrion (Drwectty giv ty Exowines) Sten Ee pre 100 v 7 Exrense Vale of 8 Volue of Shoe > Ex~ price + Value oP Option Oe eat 2 0 + bo = boyESOP - Alc TREATMENT v Salary Alc Ov. oe : %@ Cath Me To Calculate Employee Compensation Expeme v Salary Ale Dv. Pel Alc ale Te Selory OVS Ate He Employee Compentation Exp. Ae Or. xxx pela eo. ee loss ale On| ES oo ce “fe Sal : oP Every Three. Saloy Ale Pkt 2 Loss Ale Or. ee “feos To Employee Comp. Exp. Ale xX, Salavy O1S Aye Ov Te Cash © Exercising tee Oohon @ Lapse - Reverse she Lobitty Cash Gant Ale Ov. (Ex- prin) EsoP ge Ae Dy. EsoP ojs Me Or. (Value of Ophir) 7 General Resewe “To Equity Sh Gap Ae — (Fv) To Securities Premium aye (Gat. @y.)ESOP - Hlow te Solve ? ® Ps ECE enty © Idewky Vesting Revd . & Tomer to PL ae ais Mest 907 of Some Kame the hime = gen oe = ae No Becarae © Exercise Enhy a : RevFormance Condition Bare Ae Dv. — (Ex- price) ESOP 015 Ale Or. ae cf Cohn) ® no. a sor Te ese (Ey) Employees Expechd yy Shaver pev hse Cal By) to ovsil Employer @u apes Es0P ole Ae Or. Ga eos Te Geral Reseme WO Fu oR Ophon or Calculate Value of ca Sone 2 Cntanse) ® Volue_o® Optom © Caleutote Empajee Compensation Exp = veer \ at (em ESOP x Valve e® Option x lapsed pevicd Total Expense ~ aleadly vecowe) = ECE = Fe t. er, total period