AECON GROUP INC 57 24 COMMITMENTS UNDER NON CANCELLABLE OPERATING LEASES The Company has commitments for equipment and premises under operating leases which require the following future minimum payments Future minimum lease payments December 31 2012 Due within one year 10945 Due beyond one and up to fve years 22623 Due beyond fve years 7744 41312 In 2012 minimum lease payments recognized as an operating lease expense were 18318 2011 17758 25 CAPITAL STOCK December 31 2012 December 31 2011 Number Amount Number Amount Number of common shares outstanding beginning of year 53300487 291633 5 4 6 8 9 4 5 9 298613 Common shares issued on exercise of options 343650 2698 Common shares purchased by the Trust of the longterm incentive plan LTIP 674191 8435 805779 7952 Transfers by the Trust to settle LTIP obligations 385156 4373 498057 6054 Common shares purchased under Normal Course Issuer Bid 1424900 7780 Number of common shares outstanding end of year 53011452 287571 5 3 3 0 0 4 8 7 291633 The Company is authorized to issue an unlimited number of common shares The Companys shares have no par value Including common shares held by the LTIP Trust discussed below the total number of common shares outstanding as at December 31 2012 is 55812149 December 31 2011 55812149 Normal course issuer bid In the frst quarter of 2011 the Company announced a normal course issuer bid the NCIB commencing on March 16 2011 and expiring on March 15 2012 During that period the Company was permitted to acquire up to 5527277 common shares which was approximately 10 of the issued and outstanding common shares at the time of the announcement of the NCIB From March 16 2011 to March 15 2012 the Company acquired 1424900 common shares for 12038 of which 7780 was recorded as a reduction in capital stock and 4258 recorded as a reduction of retained earnings All of the shares acquired were subsequently cancelled No common shares were acquired in 2012 under the NCIB which has now expired Stock option plans The aggregate number of common shares that can be issued under the 2005 Stock Option Plan shall not exceed 5000000 Each share option issuance under the 2005 Stock Option Plan specifes the period during which the share option thereunder is exercisable which in no event shall exceed ten years from the date of grant and the date that the share option will expire The Companys Board of Directors determines the vesting period on the dates of share option grants The exercise price of share option grants equals the market price of the common shares on the grant date The Company issues common shares on exercise of the options Details of common shares issued on the exercise of share options as well as details of changes in the balance of options outstanding are detailed below For the year ended For the year ended December 31 2012 December 31 2011 Number Weighted Number Weighted of average of average share exercise share exercise options price options price Balance outstanding beginning of year 1750000 1302 1843650 1250 Granted 210000 1235 350000 966 Forfeited 50000 1495 100000 1495 Exercised 343650 625 Balance outstanding end of year 1910000 1290 1750000 1302 Options exercisable end of year 1793334 1308 1466667 1353 Share options currently outstanding have the following exercise prices and expiry dates Share options Number Exercise Expiry granted in of shares price date 2008 950000 1495 August 5 2013 2009 50000 912 March 4 2014 2009 300000 1129 May 14 2014 2010 50000 1230 November 2 2015 2011 350000 966 March 11 2016 2012 160000 1295 March 7 2017 2012 50000 1041 December 8 2017 1910000 All option grants have a term of fve years from the date of grant and vest immediately or over a threeyear period