In April 2007, the Corporation formed the Compensation Committee to meet as required and review senior
management compensation and the overall compensation policies and practises of the Corporation. The members of
the Compensation Committee are Messrs. Brugh, Stewart and Davis, all of whom are independent directors.
The Compensation Committee is responsible for determining the compensation of the Corporation's executive
officers. The Compensation Committee is also responsible for determining all forms of compensation, including
long-term incentive in the form of stock options, to be granted to the Named Executive Officers of the Corporation
and to the directors, and for reviewing the recommendations respecting compensation for any other officers of the
Corporation from time to time, to ensure such arrangements reflect the responsibilities and risks associated with
each position. When determining the compensation of its officers, the Compensation Committee considers: (i)
recruiting and retaining executives critical to the success of the Corporation and the enhancement of shareholder
value; (ii) providing fair and competitive compensation; (iii) balancing the interests of management and the
Corporation's shareholders; and (iv) rewarding performance, both on an individual basis and with respect to
operations in general.
Option Based Awards
Long-term incentive in the form of options to purchase common shares of the Corporation are intended to align the
interests of the Corporation directors and its executive officers with those of its shareholders, to provide a long term
incentive that rewards these individuals for their contribution to the creation of shareholder value, and to reduce the
cash compensation the Corporation would otherwise have to pay. The Corporation's Stock Option Plan is
administered by the Board of Directors. In establishing the number of the incentive stock options to be granted to the
Named Executive Officers, reference is made to the number of stock options granted to officers of other publicly
traded companies that, similar to the Corporation, are involved in the similar industries, as well as those of other
publicly traded Canadian companies of a comparable size to that of the Corporation in respect of assets. The Board
of Directors also considers previous grants of options and the overall number of options that are outstanding relative
to the number of outstanding common shares in determining whether to make any new grants of options and the size
and terms of any such grants, as well as the level of effort, time, responsibility, ability, experience and level of
commitment of the executive officer in determining the level of incentive stock option compensation.