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## Emoluments of Board Members and Senior Executives (continued) 

The details of the nature and amount of each element of the emoluments of each director and each of the five executive officers of the company receiving the highest emolument are set out below: 

## Emoluments of Directors of Harvey Norman Holdings Limited (Parent Entity): 

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The listed parent entity, Harvey Norman Holdings Limited, does not have any employees. No options were issued by Harvey Norman Holdings Limited during the current financial year. 

(a) Options granted to these directors (set out under “Directors’ Interests” on page 7) were exercisable from 1 July 2002. No amortisation amount has been included in the calculation of the long-term emoluments amortisation amount for the year ending 30 June 2003 for these directors. 

(b) The number of options disclosed in the above table represents those options that have been issued to the directors of Harvey Norman Holdings Limited that have not vested as at 30 June 2003. 

(c) Options have been valued at grant date, using the Black-Scholes option pricing model which takes account of factors such as the option exercise price, the current level and volatility of the underlying share price and the time to maturity of the option. The value of the options has been apportioned over the vesting period. The amortisation amount disclosed in the above table represents the current year amortisation amount for the year ending 30 June 2003, calculated as the number of days in that financial year over the total number of days in that option vesting period multiplied by the number of options granted at the Black-Scholes value of $1.2665. The exercise price in respect of each option is $4.10. 

Details of the terms, conditions and value of options granted during the period are also set out in Notes 26 and 32 of the financial statements. 

## Emoluments of the five most highly paid executive officers of the company and consolidated entity: 

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Executives are those directly accountable and responsible for the operational management and strategic direction of the company and consolidated entity. The terms “director” and “officer” have been treated as mutually exclusive for the purposes of this disclosure. 

(a) The number of options disclosed in the above table represents those options that have been issued to the executive officers that have not vested as at 30 June 2003. These executive officers were executive officers of Rebel Sport Limited and these options represent options to subscribe for ordinary shares of Rebel Sport Limited. 

(b) Options have been valued at grant date, using the Black-Scholes option pricing model which takes account of factors such as the option exercise price, the current level and volatility of the underlying share price and the time to maturity of the option. The value of the options has been apportioned over the vesting period. The amortisation amount disclosed in the above table represents the current year amortisation amount for the year ended 30 June 2003, calculated as the number of days in that financial year over the total number of days in that option vesting period multiplied by the number of options granted at the Black-Scholes value of $0.86 for S.M. Heath and $0.23 for B.C.Y. Hui. 

