HSBC 2006 Annual Report Download - page 393

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The maximum number of Units outstanding over HSBC Holdings ordinary shares were as follows:
Number of Units
exchangeable for
HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2006 ............................................... – – –
31 December 2005 ................................................ 1,315,140 2006 US$8.00 – US$9.60
31 December 2004 ................................................ 1,439,838 2005 to 2006 US$8.00 – US$9.60
Following the acquisition of Bank of Bermuda in 2004, all outstanding employee share options over Bank of
Bermuda shares were converted into rights to receive HSBC Holdings ordinary shares based on the consideration of
US$40 for each Bank of Bermuda share and the average closing price of HSBC Holdings ordinary shares, derived
from the London Stock Exchange Daily Official List, for the five business days preceding the closing date of the
acquisition. During 2006, options over 529,233 HSBC Holdings ordinary shares were exercised (2005: 459,091) and
delivered from the HSBC (Bank of Bermuda) Employee Benefit Trust 2004 to satisfy the exercise of these options.
During 2006, options over 126,854 (2005: 744,421) HSBC Holdings ordinary shares lapsed. At 31 December 2006,
the HSBC (Bank of Bermuda) Employee Benefit Trust 2004 held 2,266,949 (2005: 2,796,182) HSBC Holdings
ordinary shares which may be used to satisfy the exercise of options.
Options outstanding over HSBC Holdings ordinary shares under the Bank of Bermuda share plans are as follows:
Number of HSBC
Holdings
ordinary shares Period of exercise Exercise price
31 December 2006 ............................................... 2,710,368 2007 to 2013 US$7.04 – US$18.35
31 December 2005 ................................................ 3,366,455 2006 to 2013 US$7.04 – US$18.35
31 December 2004 ................................................ 4,569,967 2005 to 2013 US$3.86 – US$18.35
The maximum obligation at 31 December 2006 to deliver HSBC Holdings ordinary shares under all of the above
option arrangements, together with Performance Share and Restricted Share awards under the HSBC Holdings
Restricted Share Plan 2000 and The HSBC Share Plan, was 404,348,508 (2005: 486,436,966). The total number of
shares at 31 December 2006 held by employee benefit trusts that may be used to satisfy such obligations to deliver
HSBC Holdings ordinary shares was 133,346,569 (2005: 130,812,676).