(a) Stock option plan
The Company maintains a Stock Option Plan, as amended, for the benefit of directors, officers, employees and service providers, pursuant to which granted options are exercisable for Subordinate Voting Shares. As at December 29, 2012, the Company has reserved 620,167 Subordinate Voting Shares for issuance under its Stock Option Plan. The granting of options and the related vesting periods are at the discretion of the Board of Directors, on the advice of the Governance, Compensation, Human Resources and Nominating Committee of the Board (the "Committee"), at exercise prices determined as the weighted average of the trading prices of the Company's Subordinate Voting Shares on the TSX for the five trading days preceding the effective date of the grant. In general, options granted to officers, employees and service providers under the Stock Option Plan typically vest over a period of between three years and four years from the grant date and expire no later than the tenth anniversary of the date of grant (subject to extension in accordance with the Stock Option Plan if the options would otherwise expire during a black-out period).
A summary of the status of the Company's Stock Option Plan as of December 29, 2012 and December 24, 2011 and changes during the respective 26 week periods ended on those dates is presented below:
December 29, 2012 December 24, 2011 -------------------------------------------------------- Weighted Weighted Average Average Exercise ExerciseStock Options Shares Price Shares Price----------------------------------------------------------------------------Outstanding at beginning of period 357,767 $ 7.14 348,434 $ 6.65 Granted - - - - Exercised - - (3,700) $ 3.15 Forfeited (58,000) $ 15.85 - - --------------------------------------------------------Outstanding at end of period 299,767 $ 5.45 344,734 $ 6.69 --------------------------------------------------------Options exercisable at end of period 271,667 $ 4.91 338,067 $ 6.74 --------------------------------------------------------
The following table summarizes the distribution of these options and the remaining contractual life as at December 29, 2012:
Options Outstanding Options Exercisable ---------------------------------------------------------------- Weighted Average Weighted Weighted Remaining Average # of AverageExercise # Contractual Exercise Shares Exercise Prices Outstanding Life Price Exercisable Price----------------------------------------------------------------------------$3.15 157,667 5.8 years $ 3.15 157,667 $ 3.15$6.25 50,000 5.5 years $ 6.25 50,000 $ 6.25$7.80 45,000 4.1 years $ 7.80 45,000 $ 7.80$8.68 15,000 4.3 years $ 8.68 15,000 $ 8.68$10.68 28,100 9.5 years $ 10.68 - $ 10.68$10.96 4,000 0.6 years $ 10.96 4,000 $ 10.96 ---------------------------------------------------------------- 299,767 5.7 years $ 5.45 271,667 $ 4.91 ---------------------------------------------------------------- ----------------------------------------------------------------
