omnia holdings annual report 2010 omnia holdings annu

118 OMNIA ANNUAL REPORT 2010 FINANCIAL STATEMENTS continued
NOTES TO THE GROUP FINANCIAL STATEMENTS continued
for the year ended 31 March 2010
36 SHARE INCENTIVE SCHEME continued
Third Partnership with Management Scheme
Details of this Scheme, which was approved by shareholders on 30 September 2004, were contained in the circular addressed to
shareholders on 8 September 2004. In terms of the Scheme, certain earning targets were reached during the period 2004 to 2009
and management became entitled to a maximum of 1 815 000 ordinary shares in Omnia Holdings Limited which was issued from
unissued share capital. The Scheme was classified as equity-settled.
Movements in terms of the Third Partnership with Management Scheme are as follows:
31 March 2010 31 March 2009
Weighted
Weighted
average
average
exercise
exercise
Shares price (R) Shares price (R)
Outstanding at 1 April 1 633 143 27,79 1 550 900 27,79
Allocated – – 148 468 27,79
Exercised (1 633 143) 27,79 – –
Forfeited – – (66 225) 27,79
Outstanding at 31 March – – 1 633 143 27,79
2005
Weighted average fair value at measurement date 27,79
The weighted average fair value for share options granted has been calculated using the Black Scholes option pricing model, using
the following inputs and assumptions:
Weighted average share price (R) 34
Weighted average exercise price (R) 1
Weighted average expected volatility (%)* 33,39
Weighted average option life (years) 5
Weighted average dividend yield (%) 4,00
Weighted average risk-free interest rate (%) 8,38
Weighted average vesting period (years) 5,00
* The expected weighted average volatility is determined using historical daily share prices.
Share Appreciation Rights Scheme
Share appreciation rights (SAR) are granted by the Group, at the discretion of the remuneration committee, to employees of
the Group.
The SAR is granted at the price ruling on the JSE Limited on the day prior to the award. SARs remain open for acceptance for a
ten-year period from the date of granting with the earliest possible delivery being 20% of the grant amount after two years of the
date of grant. Thereafter delivery may be taken cumulatively at a rate of 20% per annum for the next two years with the remaining
40% being capable of delivery on the fifth anniversary. Resignation prior to entitlement on this percentage basis terminates an
employee’s rights to take delivery. The plan is classified as cash-settled.
2005