77 3. Other disclosures to the income statement continued b) Directors’ remuneration  c) Interest income and interest expense  d) Government grants  The highest paid director exercised 329,940 (2011: 370,820) share options during the year.  Interest income and expenses comprise the following items:  The Group receives government grants for research and development activities of its Dutch design centre. Under the condition that technologies are  new to the company and performed by the Group’s employees, grants can be received for its development. The grants are based on an estimated  number of hours spent on these R&D activities. In 2012 the Group received grants in the amount of US$1,078,000 (2011: US$1,493,000). In the profit  and loss account the grants received were deducted from research and development expenses. In addition in 2012 the company received a grant in the  form of a tax relief, an amount of US$2,356,000 can be deducted from a positive taxable income in the Netherlands.  2012 US$000 2011 US$000 Aggregate remuneration in respect of qualifying services  1,690 1,514 2012 No. 2011 No. Number of directors who received shares in respect of qualifying services  8 8 Number of directors who exercised share options  5 3 2012 US$000 2011 US$000 In respect of the highest paid director:  Aggregate remuneration  1,046 869 Of which pension contribution for the year  56 42 2012 US$000 2011 US$000 Interest income  1,360 376 Interest expense  (6,466) (235) (5,106) 141 Of which: from financial instruments relating to categories in accordance with IAS 39  Loans and receivables  204 239 Financial liabilities measured at amortised cost  (5,310) (98) (5,106) 141