omnia holdings annual report 2010 omnia holdings annu

120 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
Sakhile 2 Share Initiative
The Sakhile 2 Share Initiative allows the talented black employees/executives of the Group to become part owners in the company
and share in its future growth and development. Employees will receive the benefits of share ownership as a result of the Group
facilitating a loan, enabling such employees to acquire shares.
The Sakhile 2 Share Initiative has a fixed term of 7 years. The plan is classified as equity-settled.
The weighted average fair value for awards granted has been calculated using the Monte Carlo option pricing model, using the
following inputs and assumptions:
Weighted average share price (R) 56,21
Weighted average expected volatility (%)* 30,70
Weighted average option life (years) 7
Weighted average risk-free interest rate (%) 8,82
Weighted average vesting period (years) 7
* The expected weighted average volatility is determined using historical daily share prices.
Executive Scheme (Nanotron)
Nanotron allows the senior executives of the Group to become part owners in the company and share in its future growth and
development. The executives purchased N preference shares in Nanotron Investments (Pty) Limited. The N preference shares
shall be redeemable at the instance of Nanotron at any time after 30 June 2014, such redemption shall be subject thereto that
Nanotron shall have sufficient reserves available. Redemption shall take place by delivering and transferring to the existing
employee as many Omnia shares as may be purchased at a price equal to the 30-day Omnia Share VWAP on the first business day
immediately preceding the redemption date. In addition, participating executives will receive the benefits of share ownership as a
result of the Group facilitating a loan enabling each participating executive to acquire shares dependent on the achievement of
specified real growth in the aggregate Group earnings during the 5 year scheme period ending 31 March 2014. The plan is
classified as equity-settled.
The weighted average fair value for awards granted has been calculated using the Monte Carlo option pricing model, using the
following inputs and assumptions:
Weighted average share price (R) 56,21
Weighted average expected volatility (%)* 30,70
Weighted average option life (years) 5
Weighted average risk-free interest rate (%) 8,46
Weighted average vesting period (years)
* The expected weighted average volatility is determined using historical daily share prices.
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