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## NOTE 15: CONTRIBUTED EQUITY (continued) 

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Rights over shares are provided to employees under the Employee Share Option Plan (ESOP). The cost of these equity-settled transactions with employees is measured by reference to the fair value at the date at which they are granted. The fair value is determined using a Black-Scholes model. In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares of Benitec Biopharma Limited (‘market conditions’). 

The following information was factored in to the Black-Scholes model for the options issued under ESOP this year: 

i. weighted average share price as shown above 

ii. exercise prices were as shown above 

iii. expected volatility was as shown above and was determined by reference to Bloomberg for the Benitec share price based on historical volatility 

iv. option life is 5 years 

v. The risk-free interest rate used was as shown above 

There were no options issued to staff or directors in the period from 30 June 2014 to the date this report was issued. 

