NOTES  TO CONSOLIDATED FINANCIAL STATEMENTS A summary of the status of the Company’s stock options at December 31, 2012 and 2011 and changes during the years ended on those dates is as follows: Subsequent to December 31, 2012, the Company granted 1,400,000 stock options at an exercise price of $0.10 per common share to directors and employees of the Company. The Company entered into Canadian Agricultural Adaptation Program (‘‘CAAP’’) repayable contribution agreements for total possible funding of $1,339,625 receivable over the period from October 7, 2010 through September 30, 2012. During the year ended December 31, 2012, the Company voluntarily decommitted $668,557 as a result of lower anticipated project expenditures resulting in amended maximum possible funding under the agreement of $671,068. The end date for project expenditures and start date for repayments were also extended one year to September 30, 2013 and December 31, 2014 respectively. All amounts claimed under the program are repayable interest free over eight years beginning in 2014. As the contributions are non-interest bearing, the fair value at inception is estimated as the present value of the principal payments required, discounted using the prevailing market rates of interest for a similar instrument estimated to be 15% per annum. The difference between the fair value of the contributions and the cash received is accounted for as a government grant. 11. CAAP LOAN 46 CEAPRO Annual Report 2012 2012 2011 Weighted Weighted Average Average Number of Exercise Price Number of Exercise Price Options $ Options $ Outstanding at beginning of year 3,170,000 0.16 3,105,000 0.16 Granted 300,000 0.10 400,000 0.15 Expired (490,000) 0.28 (225,000) 0.28 Forfeited (40,000) 0.10 (110,000) 0.11 Outstanding at end of year 2,940,000 0.13 3,170,000 0.16 Exercisable at end of year 2,606,667 0.13 2,713,333 0.16 Weighted Average December 31 December 31 Fair Value at Exercise Contractual 2012 2011 grant dates Price Year of Life Remaining Number of Number of $ $ Expiration (years) Options Options 0.09 0.10 2022 9.5 300,000 – 0.11 0.15 2016 3.5 400,000 400,000 0.06 0.10 2015 2.7 530,000 570,000 0.10 0.13 2014 1.5 900,000 900,000 0.08 0.12 2013 0.7 600,000 600,000 0.15 0.25 2013 0 210,000 210,000 0.19 0.28 2012 0 – 390,000 0.22 0.30 2012 0 – 100,000 2.5 2,940,000 3,170,000 E. STOCK OPTIONS OUTSTANDING ARE AS FOLLOWS: