Air Canada 2007 Annual Report Download - page 117

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Consolidated Financial Statements and Notes
117
Range of
Exercise Prices
Expiry
Dates
2007 Outstanding Options 2007 Exercisable Options
Number
of Options
Outstanding
Weighted
Average
Remaining Life
(Years)
Weighted
Average Exercise
Price/Share
Number of
Exercisable
Options
Weighted
Average Exercise
Price/Share
$ 11.05 2011 129,077 4 $ 11.05 129,077 $ 11.05
$ 19.10 - $ 20.04 2013 194,677 6 19.12 194,677 19.12
323,754 $ 15.90 323,754 $ 15.90
Range of
Exercise Prices
Expiry
Dates
2006 Outstanding Options 2006 Exercisable Options
Number
of Options
Outstanding
Weighted
Average
Remaining Life
(Years)
Weighted
Average Exercise
Price/Share
Number of
Exercisable
Options
Weighted
Average Exercise
Price/Share
$ 18.70 2011 1,085,803 5 $ 18.70 210,742 $ 18.70
$ 31.89 - $ 38.91 2012 339,604 6 38.52 80,220 38.91
$ 30.61 - $ 33.89 2013 184,734 7 32.14 - -
1,610,141 $ 24.42 290,962 $ 24.27
Air Canada Long-Term Incentive Plan
As approved by the Board of Directors, concurrent with the Air Canada IPO described in Note 3, certain of the Corporation’s
employees participate in the Air Canada Long-term Incentive Plan (the “Long-term Incentive Plan”) administered by the
Board of Directors of Air Canada. The Long-term Incentive Plan provides for the grant of options and performance share
units to senior management and offi cers of Air Canada.
The options to purchase shares granted under the Long-term Incentive Plan have a maximum term of 10 years and an
exercise price based on the fair market value of the shares at the time of the grant of the options. Options granted under
the Long-term Incentive Plan will vest over four years and will incorporate performance vesting features. The performance
vesting conditions are based on operating margin (operating income over operating revenues) and net income targets
established by the Air Canada Board over the same time period. The terms of the Long-term Incentive Plan specify that
upon the retirement of the employee, options granted may be exercised as the rights to exercise accrue within three years
from the retirement date.