KENANGA ANNUAL REPORT 2019

317 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 55. EQUITY COMPENSATION BENEFITS (CONT’D.) Kenanga’s Group Employees’ Share Scheme (“ESS”) (cont’d.) (1) ESOS (cont’d.) ESOS Third Offer Tranches of vesting: First tranche Second tranche Third tranche Fourth tranche Fair value of share options (RM) 0.1103 0.1156 0.1217 0.1183 Share price at offer date (RM) 0.580 0.580 0.580 0.580 Exercise price (RM) 0.605 0.605 0.605 0.605 Expected volatility (%) 28.10% 27.98% 29.57% 28.72% Risk free rate (%) 3.610% 3.610% 3.610% 3.610% Expected dividend yield (%) 1.80% 1.80% 1.80% 1.80% The exercise period is 3 years from vesting date or 20 September 2022, whichever is earlier. ESOS Fourth Offer Tranches of vesting: First tranche Second tranche Third tranche Fair value of share options (RM) 0.1090 0.1110 0.1141 Share price at offer date (RM) 0.570 0.570 0.570 Exercise price (RM) 0.595 0.595 0.595 Expected volatility (%) 27.67% 28.21% 29.08% Risk free rate (%) 3.460% 3.460% 3.460% Expected dividend yield (%) 1.80% 1.80% 1.80% The exercise period is 3 years from vesting date or 20 September 2022, whichever is earlier. (2) ESGP Under the ESGP award, the ESS Committee may, within the period of the Scheme and at its discretion, grant to the eligible employees an ESGP awards, in the form of Restricted Share Plan (“RSP”) and/or Performance Share Plan (“PSP”). Subject to acceptance, the awards will be vested to the grantees at no consideration, provided all the vesting conditions as determined by the ESS Committee are fulfilled, in accordance with the terms of the by-laws and taking into account the objectives of the RSP and the PSP as stipulated.