Outstanding

10. Investments [cont’d]
Prior to the disposition of the Nuvo common shares and common share purchase warrants, the Company had recorded an
unrealized gain on Nuvo common shares pursuant to applicable accounting regulations in the amount of $260 [2008 — $260
loss], and an unrealized gain on Nuvo common share purchase warrants in the amount of $15 [2008 — $26] during the year
ended December 31, 2009.
11. Capital Stock
Authorized
100,000,000 common shares without nominal or par value.
Issued and outstanding
Number of
shares
2009 2008
Amount
$
Number of
shares
Amount
$
Balance, beginning of year 14,921,446 60,664 14,902,784 59,797
Issued during the year:
Issued upon common share offering 3 3,450,000 56,680 — —
Exercise of stock options 184,453 2,144 234,906 1,668
Employee share purchase plan 11,851 193 10,481 111
Purchase of shares for cancellation (4,500) (29) (226,725) (912)
Balance, end of year 18,563,250 119,652 14,921,446 60,664
Stock Option Plan
The Company has a Stock Option Plan [“Plan”] in place for the benefit of key employees, directors, officers and consultants of
the Company to purchase an aggregate maximum of 3,000,000 common shares. Options issued to employees under the plan
expire seven years from the grant date and generally vest equally over four years. Certain options to employees under the Plan
vest in accordance with certain pre-established performance criteria and are recorded in accordance with management’s regular
assessments of the likelihood of the pre-established performance criteria’s attainment. Options issued to the Board of Directors
under the Plan expire seven years from the grant date, vest immediately upon grant and are expensed in the year they are granted.
In addition, stock options issued to non-employees vest immediately and are expensed in the year they are granted.
Stock-based compensation is accounted for using the fair value method using the Black-Scholes option-pricing model. The attributed
exercise price for option grants cannot be less than the closing price per common share on the date of the grant per Company policy.
As at December 31, 2009, 709,979 [2008 — 1,073,002] common share options remain available under the Plan.
The changes to the number of stock options granted by the Company and their weighted average exercise price are as follows:
2009 2008
Weighted
average
exercise
price
Weighted
average
exercise price
# $ # $
Balance, beginning of year 1,067,948 9.03 1,002,844 7.73
Granted 443,500 13.41 366,935 10.88
Exercised (184,453) 7.46 (234,906) 6.04
Forfeited (80,477) 11.84 (66,925) 10.10
Balance, end of year 1,246,518 10.65 1,067,948 9.03
Options exercisable, end of year 533,767 8.84 391,746 6.73
3 On June 11, 2009, the Company issued 3,450,000 common shares including an amount of 450,000 comprising of the underwriters’ over-allotment option in the
form of a bought deal share offering at a price of $17.00 per common share for total gross proceeds to the Company in the amount of $58,650. In conjunction with
the offering, the Company incurred share issue costs of approximately $1,970, net of taxes, and recorded these as a reduction of capital stock.
Notes to Consolidated Financial Statements —47