(formely M-Cell Limited) - Business Report 2003 - MTN Group

THE MTN GROUP SHARE OPTION AND INCENTIVE SCHEMES
The Company operates a share option scheme and a share incentive scheme (the schemes) and eligible employees,
including executive directors, are able to participate in accordance with the schemes’ rules. The schemes are designed
to recognise the contributions of executive directors and eligible staff and to provide additional incentives to
contribute to the Group’s continuing growth.
In terms of the Company’s schemes, the total number of shares which may be allocated for the purposes of the
schemes, shall not exceed 5% of the total issued ordinary share capital of the Company from time to time, being
81 799 691 shares when approved by shareholders in 2001.
MTN Group (formerly M-Cell) Share Option Scheme (the Option Scheme)
The following information is provided in accordance with the provisions of the Option Scheme:
Number of Number of
shares
shares
2003 2002
Options allocated and reserved at beginning of year 10 232 410 —
Add: Options allocated and reserved during the year 17 160 539 10 929 990
Less: Options no longer reserved due to participants leaving
the employ of the Group and lapsing of offers (1 364 019) (697 580)
Less: Options exercised and allotted during the year — —
Options allocated at year-end 26 028 930 10 232 410
The vesting periods under the Option Scheme are as follows: 20%, 20%, 30% and 30% at the anniversary date of each
of the second, third, fourth and fifth years after the grant date of the options. All options will expire ten years after
date of offer.
MTN Group (formerly M-Cell) Share Incentive Scheme (the Incentive Scheme)
This Incentive Scheme was established when the Company formed part of Multichoice Limited and no allocations
have been made under this scheme since 1997. All share options granted will expire by 2007.
The following information is provided in accordance with the provisions of the Incentive Scheme:
Number of Number of
shares
shares
2003 2002
Shares allotted and issued to the share trust at beginning of year 2 235 807 2 296 675
Less: Shares purchased by participants (137 536) (71 835)
Add: Shares allotted and issued to the employee share trust
during the year — 10 967
2 098 271 2 235 807
Shares allocated and reserved in previous years 3 279 317 3 285 149
Less: Shares allocated and reserved in the current year — (5 832)
Add: Shares no longer reserved due to participants leaving the employ
of the Group and participants selling shares back to the trust (2 250 216) (2 110 282)
Shares held by share trust at year-end and available for allocation 1 069 170 1 066 772
Shares held by share trust at year-end 2 098 271 2 235 807
One third of the shares allocated with deferred delivery vest at the anniversary of each of the third, fourth and fifth
year after the grant date of the shares or options with an expiry date ten years after date of offer. Unvested shares and
shares vested but not exercised are subject to cancellation upon termination of employment.
MTN BUSINESS REPORT 2003
PAGE 61