content_image/6330.jpg content_image/6328.jpg
## Share option schemes 16 

During the year a total of 405,812 ordinary shares in the company, having a nominal value of € 0.02m, were allotted in connection with the exercise of share options. The net consideration received by the company was € 3m. 

Share options are granted under the Reed Elsevier Group plc Executive Share Option Scheme, the Reed Elsevier Group plc Senior Executive Long Term Incentive Scheme, and, prior to 1999, under the Reed Elsevier NV share option scheme. In addition nil cost options were granted to certain senior executives. Share options will generally be met by the issue of new Reed Elsevier NV shares. Certain share options will be met by the Reed Elsevier Employee Benefit Trust ("EBT") from shares purchased in the market. 

A summary of the movement in share options is presented in the table below: 

<img src='content_image/6330.jpg'>

The average exercise price of share options outstanding at the end of the year was € 11.62 (2002: € 12.36) and the average term of these options is four years (2002: four years). 

## Called up share capital 17 

<img src='content_image/6328.jpg'>

The R-shares are held by a subsidiary company of Reed Elsevier PLC. The R-shares are convertible at the election of the holder into ten ordinary shares each. They have otherwise the same rights as the ordinary shares, except that Reed Elsevier NV may pay a lower dividend on the R-shares. 

