Rotate Company adopted the following share-based compensation plans for its senior executives. Each senior executive has a unique plan basing on his/her functions in the company. The par value of Rotate's ordinary share is P20. The following share-based grants were declared by the entity. 1. On January 1, 2021, it granted 1,000 share options each to 200 of its employees. The exercise price of the option is P25. The vesting of said shares is conditional upon the employees staying for three years, after which they have two years to exercise such before the options expire. During 2021, 5 employees resigned and an additional 15 employees are expected to leave on the next two years. During 2022, actual resignations totalled 8 and another 10 is expected to resign next year. No employees left during 2023. Sixty percent of the share options were exercised at yearend 2024 and the balance at yearend 2025. 2. On January 1, 2022, it granted 100 of its employees 1,000 share appreciation rights conditional upon the completion of three years of service and average annual sales increase of more than 5%. If the average annual sales increase is more than 10%, an additional 500 share appreciation rights will be received by the employees. The annual sales increase for 2022, 2023 and 2024 are 11%, 12% and 7%, respectively. The rights were exercised in this manner: 30% on December 31, 2024, 50% on December 31, 2025 and 20% on December 31, 2026. 3. On January 1, 2023, Ultimate Company granted to several employees the right to choose either shares or cash payment. The choices are as follows: Share alternative - equal to 60,000 shares, or Cash alternative - cash payment equal to the market value of 45,000 phantom shares. The grant is conditional upon the completion of three years of service. After taking into account the effect of vesting restrictions, the entity has estimated that the fair value of the share alternative is P28. On December 31, 2026, all of these rights were exercised. 4. On December 31, 2024, an employee was granted 10,000 share options to purchase the entity's shares at P27.50. Such options are exercisable immediately but were only exercised by the employee on the last day of its three-year exercise period. The fair value of the Rotate's ordinary share are as follows: January 1 December 31 2021 2022 2023 2024 2025 2026 25.00 28.00 28.50 30.00 32.00 32.50 28.00 28.50 30.00 32.00 32.50 33.50