Inputs for measurement of grant date fair values granted during the financial year The grant date fair value of the options granted through the employee share option plans were measured based on Monte Carlo  sampling, where an external market-based performance hurdle exists. The grant date fair value of all other share-based payment  plans were measured based on a binomial options pricing model. Expected volatility is estimated by considering historic average  share price volatility. The inputs used in the measurement of the fair values at grant date of the share-based payment plans are the  following: Series Fair value Exercise  price Grant date  share price Expected  volatility Expected  life (years) Dividend  yield Risk-free  interest rate 2012-01 - Managing Director 2.98   -  6.58  46%  3  6% 5% 2012-02 - Managing Director 1.72  6.81   6.58  46%  3  6% 5% 2012-05 DKN Replacement Options  1.66  7.50   5.07  50%  2  6% 6% 2012-04 - Executives  4.78   -  6.20  40%  3  6% 3% The breakdown of share-based payments expense for the year by recipient is as follows. This represents the expense recorded to date  and does not reflect the opportunity to transfer to retained profits the value of those legacy series that will lapse. Recipient 2012 2011 $’000 $’000 Managing Director 554  952  Includes deferred STI payments over the vesting period Senior Management 1,988  1,709  Other Key Stakeholders 471  571  3,013  3,232  Notes to the financial statements (cont’d) For the year ended 30 June 2012 page 108