Annual Report 2013 - Mainfreight

25 Share-based Payment Plans
(a) Recognised Share-based Payment Expenses
The expense recognised for employee services received during the year from partly paid share scheme is shown in the table below:
2013
$000
Group
2012
$000
2013
$000
Parent
2012
$000
Partly Paid Shares issued July 2008 maturing July 2011 – 200 – 200
Partly Paid Shares issued July 2008 extended to July 2014 – 206 – 206
– 406 – 406
(b) Partly Paid Share Scheme
Eligibility to Participate in Scheme
From time to time the Board may offer selected executives the ability to participate in the Scheme and to acquire shares in the
Company through the Trustee. The number of shares offered to each selected executive is determined by the Board.
Issue of Shares
Where an executive accepts an offer to participate, the Company issues the relevant number of redeemable ordinary shares to the
Trustee on a partly-paid basis to hold for the benefit of the executive.
Issue Price
The issue price of the redeemable ordinary shares is the weighted average price of Company’s shares on the NZSX over the 7 trading
days prior to the issue date.
Vesting of Shares
The shares held by the Trustee on behalf of each employee vest in the employee on the earlier of:
(a) the third anniversary of the issue date; and
(b) the date on which a group of persons acting in concert acquires 50% or more of the ordinary shares in the Company on issue.
On the third anniversary of the issue date, to exercise the right to purchase the partly paid shares, the participant needs to pay the
exercise price within the exercise period less any amounts previously paid.
If a participant leaves before the shares vest they do not receive the shares.
(c) Summary of Partly Paid Shares Issued
The following table illustrates the number (No.) and weighted average exercise prices (WAEP) of, and movements in, partly paid shares
issued during the year:
2013
No.
2013
WAEP
2012
No.
2012
WAEP
Outstanding at the Beginning of the Year. 550,000 7.24 1,830,000 7.24
Exercised During the Year – 7.24 (1,260,000) 7.24
Forfeited During the Year – 7.24 (20,000) 7.24
Outstanding at the End of the Year 550,000 $7.24 550,000 $7.24
Exercisable at the End of the Year – – – –
At 31 March 2013 the following partly paid shares were outstanding.
Quantity Issue/Exercise Price Exercise Dates
550,000 724 cents 12/06/14 to 12/07/14
On 30 May 2011 the Board announced its intention to offer to buy back up to a maximum of 1,372,000 of these partly paid shares that
have been converted to ordinary shares by team members of the Partly Paid Share Scheme. In addition, as an alternative, the Board
offered to extend the exercise period of this Scheme by three years to dates between 12 June 2014 and 12 July 2014 to those team
members who desired to take this option.
Financial Statements
109