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Annual Report & Accounts 2006 - Notes to the Consolidated Financial Statements
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Gaming VC Annual Report 2006:Trade and Other Payables The fair value of services received in return for share options granted are measured by reference to the fair value of share options granted. The estimate of the fair value of the services received is measured on a Black-Scholes valuation model. The contractual life of the option (10 years) is used as an input into this model. Expectations of early exercise are incorporated into the Black-Scholes model. The option exercise price for individuals who were employed at 21 December 2004 was the market price on admission to AIM of GBP 4.20 and for all other individuals the average market price on grant date. 16 May 2006 23 January 2006 28 September 2005 2004 Fair value of share options and assumptions GBP GBP GBP GBP GBP GBP Fair value at measurement date 1.23 1.10 0.94 1.95 1.58 1.33 Share price 3.83 3.89 3.89 5.50 5.50 4.20 Exercise price 4.20 2.98 3.59 4.20 5.50 4.20 Expected volatility (expressed as weighted average volatility used in the modelling under Black-Scholes model) 65% 65% 65% 45% 45% 45% Option life (expressed as weighted average life used in the modelling under Black-Scholes model) 4.8 4.8 4.8 4.8 4.8 4.8 Expected dividends 8% 8% 8% 5% 5% 4% Risk-free interest rate (based on national government bonds) 4.70% 4.16% 4.16% 4.22% 4.22% 4.51% The expected volatility is based on the historic volatility (calculated based on the weighted average remaining life of the share options), adjusted for any expected changes to future volatility due to publicly available information. There are no market conditions associated with the share option grants. 12 Trade and other payables 31 December 31 December In thousands of euro 2006 2005 Other trade payables 1,317 1,140 Accrued expenses 1,101 1,316 Withholding tax on dividends 1,203 ^ 3,621 2,456