L a p o r a n T a h u n a n 2 0 0 0 A n n u a l R e p o r t - ChartNexus

Directors’ Report (continued)For the financial period of seventeen months ended 31 December 2000RESERVES AND PROVISIONSThere were no material transfers to or from reserves and provisions during the financial period other than those as disclosedin the financial statements.EMPLOYEES’ SHARE OPTION SCHEMEThe Company has implemented an Employees’ Share Option Scheme (“ESOS”) for eligible employees and ExecutiveDirectors of the Group.The ESOS was approved by the shareholders at an Extraordinary General Meeting held on 9 October 1997.The main features of the ESOS are as follows:(a)(b)(c)(d)The maximum number of shares to be allotted under the ESOS shall not exceed 10% of the issued and paid-up sharecapital of the Company at any time during the duration of the ESOS;Eligible employees (including full-time Executive Directors) must be at least eighteen years of age and have beenconfirmed in service and served at least a continuous period of one year in the Group including the service during theprobation period as at the Date of Offer. For an employee of one of the subsidiary companies of the Group, theemployee must complete at least one year continuous service following the date such company is deemed to be asubsidiary company of the Group, provided that the subsidiary company is not dormant;The options granted must be exercised within a period of five years from the Date of Offer of the options to therespective employees or before the expiry of the ESOS, which shall continue to be in force for a period of five yearsfrom 19 March 1998 (the date the options over shares were first granted to the eligible employees) subject to the ESOSnot being extended for an additional five years;The price at which the eligible employees are entitled to subscribe for the shares under the ESOS shall be the averageof the mean market quotation (calculated as the average of the highest and lowest prices transacted) of the shares asshown in the Daily Official List issued by the Kuala Lumpur Stock Exchange for the five market days preceding theDate of Offer or at the par value of the shares, whichever is higher.The movements during the financial period in the options over shares of the Company were as follows:Group and CompanyOption price Option priceper share per shareat RM3.37 at RM3.52At beginning of the financial period 4,577,000 –Granted – 4,118,000Exercised (134,000) (9,000)Lapsed/cancelled (645,000) (189,000)At end of the financial period 3,798,000 3,920,000UNITED MALAYAN LAND BHD33