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The Board of Directors of the Company approved the following changes to be made to the share option plan during the first quarter of 2011: 

1) Permitted options to be granted for non-voting equity shares rather than only for Common shares; 

2) Added a provision that the Company may require payment of an amount equal to the withholding and remittance obligation imposed on the Company by recent tax law changes; and 

3) Changed the calculation of “fair market value” of shares to a volume weighted average consistent with TSX policy. 

In addition, the following changes were made to the share option plan by the Board of Directors with the approval of the Shareholders at the Annual General Meeting on May 17, 2011: 

1) Increased the number of shares that may be issued from treasury of the Company upon the exercise of options under the share option plan on and after May 17, 2011 to 1,300,000; and 

2) Added a cashless exercise feature whereby the participant may elect to receive the value of the option gain in the form of issued shares instead of paying for the shares or exercising the option for cash under the SAR. 

Where the share option plan holder may make the choice to either exercise the option or forfeit the option and receive a cash payment under the SAR equal to the difference between the market value of the shares on the date of exercise and the exercise price, the Company accounts for this share option plan as a cash-settled plan. The fair value of the SARs is measured at each reporting date using a binomial option pricing model taking into account the terms and conditions upon which the instruments were granted. As services are received, compensation expense and a corresponding liability to pay for those services is recognized over the expected vesting period. Until the liability is settled, it is re-measured at each reporting date with changes in fair value recognized in profit or loss over the vesting period. 

The carrying amount of the liability and the compensation expense recognized relating to the options as at and for each reporting period ended were as follows: 

## As at and for the fifty-two week periods ended: 

<img src='content_image/176422.jpg'>

Share based payment expense is recognized in the following line items in the consolidated statement of income: 

<img src='content_image/176423.jpg'>

The following inputs and assumptions were used in the binomial option pricing model in calculating the fair value of each grant of options as follows: 

<img src='content_image/176424.jpg'>

