| |
| For the year ended June 30, 2007 |
|
|
|
| (In thousands of United States Dollars) |
|
|
|
| |
2007 |
|
2006 |
| |
$ 000 |
|
$ 000 |
| The contributed surplus is comprised as follows: |
|
|
|
| Balance June 30, 2006 (2005) |
1,947 |
|
– |
| Stock-based compensation expense |
2,288 |
|
1,947 |
| Transfer to share capital for exercise of stock options |
(48) |
|
– |
| Balance June 30, 2007 (2006) |
4,187 |
|
1,947 |
Participation in the Group’s stock based compensation plan is voluntary. Share appreciation rights granted under the plan are non-transferable other than in accordance with the rules of the plan and must be exercised no later than eight years after the date of the grant or such shorter period as determined by the Compensation Committee of the Board of Directors. All grants are subject to a vesting schedule whereby 40% of any award will vest on the second anniversary of the grant with 30% of any award vesting on each of the third and fourth anniversaries of the date of the grant except for grants to non-executive directors, which vest on date of grant.
A maximum of 5,352,000 (2006:4,752,000) common shares are available for issuance upon the exercise of share appreciation rights granted under the plan. Certain restrictions on the plan apply, including the maximum number of common shares that may be granted to any individual within a 12 month period cannot exceed 5% of the number of outstanding common shares.
The contributed surplus arose from the issue of share appreciation rights to employees of the Company adjusted to fair value as follows:
| |
Number |
|
Exercise |
|
Fair |
| |
of |
|
price |
|
value |
| |
rights |
|
(Cdn$) |
|
(Cdn$) |
| *Rights granted November 15, 2005 |
4,594,136 |
|
2.25 |
|
1.59 |
| Rights granted February 9, 2006 |
94,496 |
|
3.03 |
|
2.14 |
| Rights granted May 29, 2006 |
36,222 |
|
4.92 |
|
3.48 |
| Balance June 30, 2006 |
4,724,854 |
|
2.29 |
|
1.62 |
| Rights granted July 1, 2006 |
164,907 |
|
4.74 |
|
2.81 |
| Rights granted July 17, 2006 |
26,278 |
|
4.54 |
|
2.69 |
| Rights granted August 1, 2006 |
36,896 |
|
4.60 |
|
2.73 |
| Rights granted August 29, 2006 |
24,631 |
|
4.51 |
|
2.67 |
| Rights granted November 14, 2006 |
524,445 |
|
4.13 |
|
2.45 |
| Rights granted January 30, 2007 |
145,000 |
|
3.98 |
|
2.36 |
| Rights granted March 16, 2007 |
41,256 |
|
3.99 |
|
2.37 |
| Rights granted March 29, 2007 |
58,781 |
|
3.94 |
|
2.34 |
| Rights granted April 23, 2007 |
35,547 |
|
3.79 |
|
2.19 |
| Rights forfeited during the year |
(681,778) |
|
2.25 |
|
1.59 |
| Rights exercised during the year |
(20,000) |
|
2.25 |
|
1.59 |
| Balance June 30, 2007 |
5,080,817 |
|
2.69 |
|
1.80 |
| * |
Includes 393,335 rights granted to non-executive directors, which is exercisable from date of grant. Of these, 20,000 vested rights have been exercised during the year.
|
The fair value of share appreciation rights granted to directors, officers, employees and non-employees of TEAL is estimated on the date of grants using the Black-Scholes option pricing model with the following assumptions used for the grants made during the year:
| For the year ended June 30, 2007 |
|
|
|
| (In thousands of United States Dollars) |
|
|
|
| |
2007 |
|
2006 |
| |
% |
|
% |
| Risk-free interest rate |
4% |
|
4% |
| Expected volatility |
77% |
|
100% |
| Expected life (years) |
4 |
|
4 |
| Expected dividend yield |
0% |
|
0% |
|