ESR Group Limited Annual Report 2022 Notes to the Consolidated Financial Statements 31 December 2022 219 42. SHARE-BASED COMPENSATION PLAN (continued) B. Share Option Plan by a subsidiary of the Company (continued) Provided that the holders remain in continuous employment at the subsidiary between the date of entry into the ESOP Plan and the relevant vesting date of the options, the holders are only entitled to exercise the vested options on the occurrence of an exit event stipulated in the ESOP Plan. In September 2021, a total of 790.13 options were granted under the ESOP Plan to certain eligible employees. These options vest equally in 4 tranches in September 2021 and in December of each year from 2021 to 2023. In September 2022, a total of 102.20 options were granted under the ESOP Plan to certain eligible employees. These options vest equally in 5 tranches in September 2022 and in December of each year from 2022 to 2025. The fair value of the share options has been measured using the Black-Scholes option-pricing model. The following table lists the inputs to the model used: As at 31 December 2022 As at 31 December 2021 Expected dividend yield (%) — — Exercise price (US$) 14,545 14,545 Volatility (%) 33.1% 29.1% Risk-free interest rate (%) 4.23% 0.25% Expected life (years) 3.3 years 3.4 years The number and exercise price of share options under the ESOP Plan is as follows: Weighted average exercise price Number of options US$ At 31 December 2021 and at 1 January 2022 — Acquisition of subsidiary 14,545 790.13 Granted during the year 14,545 102.20 Cancelled during the year 14,545 (112.93) At 31 December 2022 779.40 STRATEGIC REPORT FINANCIAL STATEMENT CORPORATE GOVERNANCE
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