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## 21. CAPITAL AND OTHER COMPONENTS OF EQUITY (CONTINUED): 

Capital management (continued): 

 Having satisfied the above factors, if cash is available, it will be used to repurchase the Company’s shares and convertible debentures when the Board of Directors considers that the then current trading range does not reflect the fair trading value of the Company’s shares.As such, the Company puts in place a Normal Course Issuer Bid (“NCIB”) from time to time. As at September 28, 2013, there is no NCIB in place. 

The Company does not use equity ratios to manage its capital requirements. 

## 22. SHARE-BASED COMPENSATION: 

 The Company has reserved and set aside for issuance an aggregate of 850,000 shares at a price equal to the average market price of transactions during the last five trading days prior to the grant date. Options are exercisable to a maximum of 20% of the optioned shares per year, starting after the first anniversary date of the granting of the options and will expire after a term of ten years. Upon termination, resignation, retirement, death or long-term disability, all share options granted under the Share Option Plan not vested shall be forfeited. 

On March 19, 2012, a total of 230,000 share options were granted at a price of $5.61 to certain executives subject to the approval of the shareholders to amend the Share Option Plan eligible person definition to include all senior personnel at the next Annual General Meeting.The shareholders approved the grant of these share options on January 30, 2013. 

 During fiscal 2013, a total of 23,500 common shares (September 29, 2012 - 100,000 common shares) were issued pursuant to the exercise of share options under the Share Option Plan for total cash proceeds of $92 (September 29, 2012 - $361), which was recorded to share capital as well as an ascribed value from contributed surplus of $4 (September 29, 2012 - $15). 

 Compensation expense is amortized over the vesting period of the corresponding optioned shares and is expensed in the administration and selling expenses with an offsetting credit to contributed surplus.An income of $4 was incurred for the year ended September 28, 2013 (expense of $40 for the year ended 2012). 

The following table summarizes information about the Share Option Plan as of September 28, 2013: 

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