NOTES TO THE FINANCIAL STATEMENTS 18. CAPITAL AND RESERVES (CONTINUED) Share option reserve The share option reserve comprises the cumulative value of employee services received for the issue of share options. When the option is exercised, the amount from the share option reserve is transferred to share capital. When the share option expires, the amount from the share option reserve is transferred to retained earnings. The Employee Share Option Scheme of the Company (“ESOS”) is governed by the ESOS By-Laws and was approved by shareholders on 1 April 2021. A variation of the then existing ESOS into the Long-Term Incentive Plan (“LTIP”) was approved by shareholders on 26 June 2025. Consequently, the ESOS By-Laws was amended into the LTIP By-Laws to allow for the granting of both ESOS options and Share grants within the existing 5% limit of the issued share capital of DNeX as approved under the existing ESOS. The salient features of the LTIP are, inter alia, as follows: i) The allocation to any eligible Directors and employees of the Company and its subsidiaries (excluding dormant subsidiaries) (“Eligible Persons”), who either individually or collectively, through persons connected with them, hold 20% or more of the total number of ordinary shares of the Company (excluding treasury shares), must not exceed 10% of the total number of ESOS options. ii) Not more than 50% of the total ordinary shares in the Company available under the LTIP could be allocated, in aggregate to the Eligible Persons. iii) The LTIP shall be in force for a period of five (5) years from the implementation date of 6 April 2021 and may be extended by the Board of Directors at its absolute discretion, without having to obtain approval from the shareholders of the Company for a further period of up to 5 years, but not in aggregate exceeding 10 years from the implementation date or such longer period as may be allowed by the relevant authorities. iv) Subject to compliance with the Listing Requirements, guidelines or directives issued by Bursa Malaysia Securities Berhad and/or any of the relevant authorities, the Company may at any time during the duration of the LTIP terminate the LTIP and shall immediately announce to Bursa Malaysia Securities Berhad the effective date, number of options and reasons for the termination. On 16 January 2026, the LTIP has been extended for another 5 years, expiring on 5 April 2031, in accordance with the terms of the LTIP By-Laws. 179 OPERATIONAL REVIEW SUSTAINABILITY STATEMENT GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION INTELLIGENCE POWERING
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