6. Share Capital
Authorized
Unlimited number of common shares.
During the quarter ended October 31, 2011 the Company paid dividends of $0.25 per common share totaling $3.0 million (October 31, 2010 - $0.25 per common share totaling $2.9 million).
7. Stock-based Compensation Plans
a) Employee and Director Stock Option Plan (ESOP)
Pursuant the Company's ESOP, the maximum number of common shares which may currently be issued upon the exercise of stock options granted under the ESOP cannot exceed 1,560,177, of which 738,242 are issued and outstanding at October 31, 2011. The exercise price is to be fixed by the Human Resources Committee of the Board of Directors, but shall not be lower than the closing price of the common shares on the TSX on the day prior to the date of grant. Options granted under the ESOP currently expire within a period of six years of granting, with vesting periods determined by the Human Resources Committee. All options outstanding at October 31, 2011 have been granted with equal annual vesting over a four year vesting period.
A summary of the status of the ESOP as of October 31, 2011 and October 31, 2010 and changes during the periods ending on those dates are presented below:
October 31, 2011 October 31, 2010
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Weighted Weighted
Average Average
Number of Exercise Number of Exercise
Options Price Options Price
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Outstanding at start of
the year 742,992 $19.92 636,145 $17.64
Granted - - 215,050 $26.42
Exercised (4,750) $18.81 (77,040) $19.42
Forfeited - - - -
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Outstanding at end of
period 738,242 $19.93 774,155 $19.91
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Options exercisable at
period-end 379,372 $18.52 225,287 $17.91
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Period ended October 31, 2011
Options
Options Outstanding Exercisable
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Weighted
Average Weighted Weighted
Remaining Average Average
Range of Number Contractual Exercise Number Exercise
Exercise Prices Outstanding Life (Years) Price Exercisable Price
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$10.50 - $11.66 171,889 2.92 $11.65 123,480 $11.65
$14.87 - $18.88 188,275 4.07 $18.86 44,225 $18.81
$20.22 - $21.61 153,028 1.61 $20.93 150,778 $20.93
$24.50 - $29.96 225,050 4.79 $26.47 60,889 $26.26
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$10.50 - $29.96 738,242 3.51 $19.93 379,372 $18.52
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Period ended October 31, 2010
Options
Options Outstanding Exercisable
----------------------------------------------------------------------------
Weighted
Average Weighted Weighted
Remaining Average Average
Range of Number Contractual Exercise Number Exercise
Exercise Prices Outstanding Life (Years) Price Exercisable Price
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$10.50 - $11.66 175,014 3.92 $11.65 78,571 $11.65
$14.87 - $18.88 196,150 5.00 $18.83 3,750 $17.28
$20.22 - $21.61 174,441 2.53 $20.97 127,966 $21.02
$23.15 - $26.49 228,550 5.63 $26.34 15,000 $24.37
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$10.50 - $26.49 774,155 4.39 $19.91 225,287 $17.91
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The weighted average fair value of options granted during the period was calculated using the Black-Scholes option pricing model with the following assumptions:
Period ended October 31, 2011 October 31, 2010 ---------------------------------------------------------------------------- Risk free interest rate 1.35% 1.93% Expected life in years 4.1 4.8 Expected dividend yield 2.20% 3.78% Volatility 37.72% 37.17%b) Restricted share unit plan (RSUs)
