Eng - IOI Group

WARRANTS 1995/2003 cont’dDuring the previous financial year, the Warrants were extended for another year from 1 May 2002 to 30 April 2003 (“Warrants1995/2003”) pursuant to clause 5A of the supplemental deed poll dated 17 December 1999.On 16 October 2002, pursuant to the capital distribution of the Company of 38,583,497 ordinary shares of RM1.00 each ofPalmco Holdings Berhad (“Palmco Shares”) to the shareholders of the Company for free on the basis of one (1) Palmco Share forevery twenty four (24) ordinary shares of RM0.50 each held in the Company (“Capital Distribution”), the exercise price of theWarrants 1995/2003 was adjusted from RM3.35 to RM3.25 in accordance with condition 39(1)(c) of the second schedule of theDeed Poll.The subscription rights of the Warrants 1995/2003 expired on 30 April 2003 pursuant to the conditions stipulated in the DeedPoll and the supplemental deed polls.The movement of Warrants 1995/2003 during the financial year is as follows:No. of Warrants 1995/2003As atAs atSubscription Price 01.07.2002 Exercised Expired 30.06.2003RM3.35/RM3.25 (with effect from 16 October 2002) 181,527,431 177,928,072 3,599,359 -EXECUTIVE SHARE OPTION SCHEMEAn Executive Share Option Scheme (“ESOS”) was implemented on 5 April 1995 for the benefit of the executives and full timeexecutive directors of the Group. The committee appointed by the Board of Directors to administer the ESOS (“OptionCommittee”), may from time to time offer options to eligible executives of the Group to subscribe for new ordinary shares ofRM0.50 each in the Company.During the financial year, the Company has obtained the necessary approvals from shareholders and the relevant authorities toamend the Bye-Laws of ESOS to allow the Company to enjoy certain flexibilities introduced by the Securities Commission (“SC”)under the revised guidelines on employee share option scheme issued by the SC on 10 May 2001.The salient features of the ESOS after the amendments are as follows:iThe maximum number of shares to be offered and allotted under the ESOS shall not exceed 10% of the issued and paid-upshare capital of the Company at any point of time during the existence of the ESOS.iiEligible executives are confirmed executives with at least one year service as at date of offer including full time executivedirectors of any company comprised in the Group and foreign executives of the Group who are in service for at least fiveyears as at date of offer.117IOI Corporation BerhadAnnual Report 2003