benign offered directors an option scheme based on a three year period of service .

the number of rights taken up by directors at the inception of the scheme was 100 million.

the options were exercisable shortly after the end of the third year. The fair value of the options and the number of rights expected to vest at each relevant point:

Year Rights exp to vest FV of the option

0 97m 40c

1 90m 45c

2 93m 37c

3 94m 56c

Required

Show Financial Statement effect

Share Appreciation Right

Equity option