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ValleyCrest Holding Co. and Subsidiaries Notes to Consolidated Financial Statements (continued) 12. Employee Benefit Plans and Stock Options (continued) value measurement method as of the date of the grant. Under the fair value method, the estimated fair value of the options that are expected to vest is charged to income on a straight -line basis over the requisite service period. The weighted average fair value of the options granted was $92.49 for the year ended April 30, 2008, and share -based compensation expense charged to income was $25,000 in fiscal 2008. Including options granted in the prior fiscal year, share - based compensation expense charged to fiscal 2008 income totaled $909,000. Summarized stock option activity for the year ended April 30, 2008, is as follows: 2008 Options outstanding beginning of year 107,500 Options granted 3,050 Options exercised or expired Options outstanding end of year 110,550 The following assumptions were used in the valuation of stock options granted for the year ended April 30, 2008: 2008 Expected dividend yield 0% Expected volatility 13% Risk -free interest rate 4.20% and 4.57% Expected lives 6 years Weighted- average exercise price of options granted $ 358.11 during the year 13. Workers' Compensation Insurance The Company currently maintains a deductible of $500,000 through a third -party insurance carrier in all states with respect to workers' compensation insurance. Losses are accrued and based upon the accumulation of estimates for reported losses and includes a provision, based on past experience and using actuarial assumptions, for losses incurred but not reported. The method of determining such estimates and establishing the resulting reserves is continually to-it-01 # 133 VallevCrest Landscape Maint, 16400 NW 127th Ave, 21 Miami, FL 33018-1051