32 Borders & Southern Petroleum plc Annual Report & Accounts 2014 FOR THE YEAR ENDED 31 DECEMBER 2014 5 STAFF COSTS  CONTINUED NOTES TO THE FINANCIAL STATEMENTS  CONTINUED 6 DIRECTORS’ EMOLUMENTS 7 SHARE-BASED PAYMENT The average number of employees (including Directors) employed during the year by the Company was six (2013 – six) and  for the Group was six (2013 – six). All employees and Directors of the Group and the Company are considered to be the key  management personnel. Of the $244,715 (2013 – $427,109) share-based payment charge included in the consolidated statement of comprehensive  income, $201,053 (2013 – $427,109) has been charged in respect of share options granted to staff (including Directors) in the  current and prior years. The remaining $43,662 (2013 – $nil) relates to share options granted to external parties, see note 7 for  further details. The Directors’ emoluments for the year are as follows: The fees and share-based payments made to each Director are disclosed in the Remuneration Committee Report. During the  year, the highest paid Director received total remuneration of $475,457 (2013 – $391,333). In 2011, the Group granted to two Directors of Borders and Southern Petroleum Plc, for nil consideration, 1,000,000 share  options each, with a total fair value of $774,447. Of this amount $123,234 has been expensed during the year. In July 2014, the Group granted 1,400,000 share options to an employee of the Group. The options vest after three years and  expire after 10 years. Because of the difficulty in measuring the fair value of the services received, this has been determined  by reference to the fair value of the options granted. A Black-Scholes model has been used to determine the fair value of the  options granted (see below). The weighted average contractual life of the options outstanding at the year end was seven years (2013 – eight years). The range of exercise prices of share options outstanding at the end of the year is 11.25–74p (2013: 15p – 74p). The following information is relevant in the determination of the fair value of the options granted during the year under the  scheme operated by the Company. The expected volatility used to calculate the share-based remuneration expense was based on the standard deviation of the  Company’s monthly close share prices since inception. 2014  $ 2013  $ Directors’ fees 861 814 Share-based payments – equity settled 123 267 984 1,081 2014  Weighted  average  exercise  price 2014  Number 2013  Weighted  average  exercise  price 2013  Number Outstanding at the beginning of the year 56p 6,150,000 50p 5,500,000 Granted during the year 11.25p 1,400,000 15p 600,000 Cancelled during the year 52p 1,400,000 Outstanding at the end of the year 39p 6,150,000 47p 6,150,000 Exercisable at the end of the year 52p 3,750,000 56p 2,250,000 2014 2013 Equity-settled scheme Option pricing model used Black-Scholes Black-Scholes Weighted average share price at grant date 11.25p 15p Exercise price Weighted average contractual life (days) 1,460 1,460 Expected volatility 60% 75% Risk-free interest rate 1.5% 1.25% Fair value of options 5p 9p