Notes to the Consolidated Financial Statements
(Years ended December 31, 2007 and 2006 (In thousands of dollars, except per share amounts)

12.  Shareholders’ equity:

The authorized capital of the Company consists of an unlimited number of common shares and an unlimited number of preference shares, issuable in series. No preference shares have been issued.

Each common share of the Company entitles its holder to one vote at all meetings of shareholders subject to certain restrictions with respect to the voting rights and the transferability of the shares. No person or combination of persons acting jointly or in concert is permitted to beneficially own or exercise control or direction over more than 10% of any class or series of voting shares of the Company without the prior approval of the Ontario Securities Commission.

Each common share of the Company is also entitled to receive dividends if, as and when declared by the Board of Directors of the Company. All dividends that the Board of Directors of the Company may declare and pay will be declared and paid in equal amounts per share on all common shares, subject to the rights of holders of the preference shares. Holders of common shares will participate in any distribution of the net assets of the Company upon liquidation, dissolution or winding-up on an equal basis per share, but subject to the rights of the holders of the preference shares.

There are no pre-emptive, redemption, purchase or conversion rights attaching to the common shares, except for the compulsory sale of shares or redemption provision described in connection with enforcing the restriction on ownership of voting shares of the Company.

Details of capital transactions are as follows:

    Number               Total
    of common   Share       Share   shareholders'
    shares   Capital   Deficit   option plan   equity
Balance, December 31, 2005   68,093,018 $ 380,925 $ (205,799) $ 2,669 $ 177,795
Net income   -   -   131,524   -   131,524
Dividends   -   -   (90,213)   -   (90,213)
Exercised options   328,246   6,576   -   -   6,576
Share option costs   -   -   -   1,273   1,273
Balance, December 31, 2006   68,421,264   387,501   (164,488)   3,942   226,955
                     
Net income   -   -   148,697   -   148,697
Dividends   -   -   (103,465)   -   (103,465)
Exercised options   256,968   5,581   -   -   5,581
Share option costs   -   -   -   1,118   1,118
Transitional adjustment (note 1)   -   -   621   -   621
Normal course issuer bid   (2,399,862)   (13,712)   (93,885)   -   (107,597)
Balance, December 31, 2007 $ 66,278,370 $ 379,370 $ (212,520) $ 5,060 $ 171,910

On August 1, 2007, the Company received approval from Toronto Stock Exchange to repurchase up to 6,841,051 of its common shares under a normal course issuer bid (“NCIB”). Purchases may be made over a one year period to end on August 6, 2008. Common shares purchased under the NCIB are cancelled. From August 7, 2007 to December 31, 2007, the Company purchased 2,399,862 common shares at an aggregate cost of $107,597 of which $13,712 was charged to share capital and the excess of the cost of the NCIB over the stated value of the common shares of $93,885 was charged to the
deficit. On December 10, 2007, the Company announced termination of the pre-defined plan with its appointed broker to automatically repurchase its common shares.