For options and share awards granted for stock-based compensation, $3.3 million (2010 - $3.9 million) has been recognized in the financial statements as an expense with a corresponding offset to contributed surplus. The fair value of options granted has been estimated using the Black-Scholes model and the following assumptions: The expected life of the stock options is estimated by observing general historical stock option holder behaviour. Expected volatility is estimated based on the historical patterns of volatility of the Company’s shares. A summary of the status of the Company’s employee stock option plan as of December 31, 2011 and 2010 and changes during the years ended on those dates is presented below. 2011 2010 Risk-free interest rate 1.41% 2.51% Expected life 4.5 years 4.5 years Expected volatility 31% 31% Expected dividends $ 0.70 $ 0.67 2011 2010 Shares (000’s) Weighted average exercise price Shares (000’s) Weighted average exercise price Outstanding, beginning of year 1,572 $ 25.34 1,335 $ 24.54 Granted 25 30.50 500 26.97 Exercised (403) 20.89 (238) 23.95 Forfeited (100) 27.27 — — Expired — — (25) 28.45 Outstanding, end of year 1,094 $ 26.93 1,572 $ 25.34 Options exercisable, end of year 567 $ 27.62 668 $ 23.19 Options outstanding Options exercisable Range of exercise prices Options outstanding (000’s) Weighted average remaining contractual life Weighted average exercise price Options exercisable (000’s) Weighted average exercise price $18.51 - $19.00 122 0.9 years $ 18.51 122 $ 18.51 $19.01 - $25.00 253 2.2 years 20.90 123 20.88 $25.01 - $30.00 419 3.5 years 26.92 100 26.99 $30.01 - $38.00 135 2.4 years 31.34 70 31.83 $38.01 - $44.25 165 1.1 years 38.77 152 38.80 $18.51 - $44.25 1,094 2.4 years $ 26.93 567 $ 27.62 The weighted average share price at the date of exercise in 2011 was $29.69 (2010 - $29.17). The following table summarizes information about the employee stock options outstanding at December 31, 2011. CCL Industries Inc. 2011 Annual Report 75