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14. EMPLOYEES’ SHARE OPTION SCHEME (“ESOS”) (CONTINUED)(c)ESOS of Dialog (continued)The total number of shares granted was 88,841,218. As at 31 December 2009, 59,717,218 shares have beenexercised or forfeited and 29,124,000 shares remain unexercised and are exercisable before 12 July 2010.The movement in the number of ESOS shares is as follows:2009Fair valueExercise At At 31 at grantGrant date price 1 January Granted Exercised Forfeited* December dateSLR ‘000 ‘000 ‘000 ‘000 ‘000 SLR11 July 2005 12 35,008 — — (5,884) 29,124 4.42008Fair valueExercise At At 31 at grantGrant date price 1 January Granted Exercised Forfeited* December dateSLR ‘000 ‘000 ‘000 ‘000 ‘000 SLR11 July 2005 12 37,529 — (793) (1,728) 35,008 4.4* Options forfeited are allocated back to the ESOS Trust for future reallocation. Total reallocated shares as at31 December 2009 is 8,614,000.The fair values of options granted in which FRS 2 applies, were determined using the Black Scholes Valuationmodel. The significant inputs into the model are as follows:Exercise priceSLR12Option life (number of days to expiry) 1,826Weighted average share price at grant dateSLR12Expected dividend yield 2.1%Risk free interest rates (Yield of treasury bond of Central Bank of Sri Lanka) 10.0%Expected volatility 28.2%The above volatility rate was derived after considering the pattern and level of historical volatility of entities inthe same industry since Dialog does not have sufficient information on historical volatility as it was only listed onthe Colombo Stock Exchange in July 2005 during the grant date.The volatility measured at the standard deviation of continuously compounded share return is based on statisticalanalysis of daily share prices of these entities over the last two (2) years from the grant date.Axiata Group Berhad • 220