Examine the information in Note 18 to Husky's financial statements pertaining to the company's stock option plan and answer the following questions:

a. Describe the terms of the stock option plan.

b. How many employee stock options were outstanding on December 31, 2011? How many of the stock options could be exercised on December 31, 2011?

c. How many options were granted during fiscal 2011? What was the average exercise price of the options granted during fiscal 2011?

d. How many options were exercised during fiscal 2011? What was the average price paid for the shares purchased by the employees? Why do you think so few options were exercised?

e. How many options expired during fiscal 2011? Why would an employee allow an option to expire without exercising it?

f. What amount did Husky expense in fiscal 2011 as a result of granting stock options to employees? Why is the stock option expense added back to net income in the calculation of cash from operations?

g. What does it "cost" shareholders when a manager exercises a stock option?

h. What do you think is the purpose of Husky's share compensation plan?