content_image/216664.jpg content_image/216665.jpg
Notes toConsolidatedFinancial Statements 

(Unaudited) (Expressed in Canadian dollars) 

Year ended December 31, 2014 

## 12. Share-based payment (continued): 

Prior to the acquisition of the FW Rights, the Company had a share option plan where the maximum number of common sharesissued under the Planwas 10% of the issued and outstanding common shares of the Companyat the time of grant. The Plan provide d for the granting of options for the purchase of common shares of the Company at the fair market value of the Company’s stock at the grant date. Stock optionswere granted to both employees and non -employees. The Company’s Board of Directors had discretion as to the number of stock options granted, as well as in determining the vesting period and expiry dates.During the year ended December 31, 2014, the Company issued nil stock options (year ended D ecember 31, 2013 - 1,784,400). During the year ended December 31, 2014 the share option plan was replaced by the Plan described above. Options issued under the share option plan prior to the introduction of the Plan remain outstanding. 

The following table summarizes information relating to outstanding and exercisable options at December 31, 2014: 

<img src='content_image/216664.jpg'>

The number and weighed average exercise prices of share options are as follows: 

<img src='content_image/216665.jpg'>

The options outstanding at December 31, 201 4 have an exercise price in the range of $ 1.50 to $2.12 (2013 - $1.50 to $2.12) and a weighted contractual life of 2.42 years (2013 – 3.37 years). 

