notes to the Consolidated Financial Statements (cont’d) performance Share unit plan performance Share unitS For the fifty-two weeks ended December 31, 2011:  In the first quarter of 2011, a new long-term incentive compensation arrangement, a Performance Share Unit (PSU) plan was approved  by the Directors. As approved by shareholders at the 2011 Annual General Meeting, the Company is permitted to issue up to 200,000  shares from treasury in settling bonus entitlements under the PSU plan.  Grants of PSUs will be at the discretion of the Human Resources and Corporate Governance Committee of the Board (HR Committee),  within the limitations of the PSU plan and subject to the rules and policies of applicable regulatory authorities. PSUs may be issued  under the PSU plan to any eligible employee of the Company or its subsidiaries who have rendered meritorious services that  contributed to the success of the Company or any of its subsidiaries, as determined by the HR Committee. Directors who are not  full-time employees of the Company may not participate in the PSU plan. The PSU plan is expected to reward Management  Committee members for performance, which is expected to drive long-term shareholder value. The amount payable to each participant under the PSU plan in respect of a particular grant of PSUs shall be determined by  multiplying the number of PSUs (which will be adjusted in connection with the payment of dividends by the Company as if such PSUs  were common shares held under a dividend reinvestment plan) by a performance multiplier to be determined by the Board of  Directors and by the fair market value of a common share at the vesting date. The PSUs will vest at the end of a three-year period if  agreed upon performance measures are met. The measures for the plan will be approved annually by the HR Committee.  The PSU plan shall be paid by one or more of the following forms: (i) cash; (ii) common shares; or (iii) non-voting equity shares.  Common shares and non-voting equity shares may be obtained from the market or from treasury of the Company in order to pay out  PSUs in accordance with their terms. Issuances of PSUs also may not result in the following limitations being exceeded: (a) the  aggregate number of shares issuable to insiders pursuant to the PSU plan, the share option plan or any other security-based  compensation arrangement of the Company exceeding 10% of the aggregate of the issued and outstanding shares at any time; and (b) the issuance from treasury to insiders, within a 12-month period, of an aggregate number of shares under the PSU plan, the share  option plan and any other security-based compensation arrangement of the Company exceeding 10% of the aggregate of the issued  and outstanding shares. The Company has issued 16,459 performance share units to named executive officers during the first quarter of 2011. The carrying  amount of the liability and the compensation expense recognized relating to the performance share units as at, and for, the fiscal  2011 reporting period was as follows:  The assumptions used in determining the fair value of the liability and related compensation expense for the performance share  units were as follows: (Amounts in $000s) Fair value of liability  $   104  Compensation expense recognized   110   December 31, 2011 Share price at reporting date $  16.35 Expected life of the PSU (years)  3  Forfeiture rate 0% Expected % vesting  110% 87 AnnuAl RepoRt 2011