In 2005, the Company reserved and set aside for issuance a total of 850,000 shares to be allocated to key personnel. At  September 30, 2005, a total of 350,000 shares had been allocated to two senior executives. These shares were priced at  $4.33 per share, representing the average market price for the five business days before the granting of the options to the  two senior executives. A further 400,000 shares were allocated on October 24, 2005 to the new President and CEO of  Lantic.These shares were priced at $3.61 per share, representing the average market price for the five business days before  the granting of the options to the President and CEO. On December 17, 2009, 100,000 shares were granted to a senior  executive. These shares were priced at $4.70 per share representing the average market price for the five business days  before the grant of the options. These shares are exercisable to a maximum of twenty percent per year, starting after the  first anniversary date of the granting of the options and will expire after a term of ten years. In fiscal 2013, a total of 23,500  shares were exercised while 100,000 shares were exercised in fiscal 2012. Upon termination, resignation, retirement, death  or long-term disability, all shares granted under the Share Option Plan not vested are forfeited. Further to the departure of a  senior executive in fiscal 2011, a total of 80,000 shares, priced at $4.70, were forfeited while a further 150,000 shares priced  at $4.33, were forfeited in fiscal 2008 following the departure of another senior executive. On March 19, 2012, the 230,000  forfeited shares were allocated at a price of $5.61 to certain executives subject to the approval of the shareholders to amend  the Share Option Plan eligible person definition to include all senior personnel at the next Annual General Meeting. The  approval was obtained on January 30, 2013. The preparation of the Company’s audited consolidated financial statements in conformity with IFRS requires us to make  estimates and judgements that affect the reported amounts of assets and liabilities, net revenue and expenses, and the related  disclosures.We base the estimates on historical experience, knowledge of economics and market factors, and various other  assumptions that we believe to be reasonable under the circumstances.  We test goodwill for possible impairment on an annual basis, and at any other time if events occur or circumstances indicate  that the carrying amount of goodwill may not be recoverable.  The impairment test consists of comparing the carrying amount of each reporting unit to its fair value, which is calculated  using the reporting unit’s market capitalization and discounted cash flow. When the fair value exceeds the carrying amount,  goodwill is considered not to be impaired.  There was no impairment in goodwill in fiscal 2013. We regularly assess the likelihood that the deferred tax assets will be realized from recoverable income taxes or recovered  from deferred taxable income, and we record a valuation allowance to reduce the deferred income tax assets to the amount  that we believe to be more likely than not realizable.  The plan obligations and related assets of the defined benefit and medical retirement plans are presented in Note 19 to  the audited consolidated financial statements. Plan assets, equity and debt investments are valued using market quotations.  Plan obligations and annual pension expenses are determined by independent actuaries and are based in part on a number  of assumptions we provide. Key assumptions in measuring the plan obligations include the discount rate, the rate of salary  increases, the long-term health care trend rate, mortality rates and the estimated future return on plan assets.  CRITICAL ACCOUNTING ESTIMATES  Goodwill Valuation  Deferred Income Taxes  Defined Benefit Pension Plans and Employees’ Future Benefits  27 Annual Report 2013 ManageMent’s Discussion anD analysis