Annual Report for the year ended 31 December 2008

19. emPloYee sHaRe sCHemes (CONTINuED)
The share options outstanding at the end of the year have a weighted average exercise price and expected remaining life as follows:
2008 2007
Weighted Weighted Weighted Weighted
Number average average Number average average
Range of exercise prices of share exercise price expected of share exercise price expected
(pence) options (pence) remaining life options (pence) remaining life
1.00 3,150,000 1.00 6.41 2,100,000 1.00 6.01
52.3 1,500,000 52.30 2.49 2,000,000 49.58 3.89
58.67 3,091,565 58.67 2.36 3,091,565 58.67 3.36
7,741,565 7,191,565
The Evolution Group Plc 2006 Performance Share Plan (“PSP”)
This plan was approved by shareholders of the parent company on the 25 May 2006 at its Annual General Meeting.
Eligibility
Any Director of the company, or a Group company, and any employee of the company, or a Group company, may be invited to participate in the plan.
Nature of Plan
The plan provides for participants to be awarded free shares in the parent company subject to achievement of specific performance criteria.
Performance criteria
The performance conditions determine the number of shares with reference to the average mid-market share price as derived from the Daily official list
of the london stock exchange on all dealing days over any period of 60 consecutive days during the performance period, which is from 1 April 2006 to
31 March 2009. The prescribed performance growth is derived from a base share price of £1.42 at 31 December 2005.
if the average share price equals or exceeds £2.13 (an increase of 50% from base price) within the performance period then an award may be exercised
over one-third of the shares granted. however if the average share price equals or exceeds £2.84 (an increase of 100% from base price) then the full award
of the shares granted may take place. Additionally, the satisfactory employment by the individual within a Group company throughout the period following
grant of an award is required. The earliest exercise date is 30 June 2009.
Scheme Limits
The number of shares, which may be issued to satisfy awards under this plan is limited 25,000,000 shares. The scheme additionally restricts the maximum
number of shares available to Directors of the company to 10,000,000 shares. individuals who fall within the definition of a Director of the company before
31 December 2006 are not eligible for awards after 31 December 2006. An amount of 2,000,000 shares not awarded to Directors of the company before
31 December 2006 up to the 10,000,000 share limit have become available to award to employees or to future Directors of the company.
Awards granted
At 31 December 2008, awards of 6,000,000 shares were outstanding. Following vesting the shares can be exercised between 30 June 2009 and
30 June 2016 subject to achievement of relevant performance conditions.
The Evolution Group Plc 2002 Executive Share Incentive Plan
This plan was approved by the Board on 13 March 2002 and it was approved by shareholders on 10 october 2003.
Eligibility
Any Director of the company, or a Group company, and any employee of the company, or a Group company, may be invited to participate in the plan.
Nature of Plan
The plan provides for participants to be awarded shares in the company at their nominal cost. subject to achievement of performance criteria, awards of
shares convert into call rights over such shares. The plan is operated in conjunction with an employee benefit trust on three levels.
it is operated as a standalone plan and it is also used as the framework for the Key performers share incentive plan (“Kpsip”) introduced for employees
of evolution securities limited in January 2003, and the Market Making and Trading share incentive plan (“MMTsip”), which was introduced for the market
making team of esl in January 2005, where it forms the method of delivery of such awards made within the Kpsip framework.
notes to tHe FinanCial statements CONTINuED
FOR THE YEAR ENDED 31 DECEMBER 2008
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