Westjet 1999 Annual Report Download - page 27

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(d) Share option plan:
The Corporation has a share option plan, whereby up to a maximum of
2,650,000 common shares may be issued to directors, officers and employees
of the Corporation subject to the following limitations:
(i) the number of common shares reserved for issuance to any one
optionee will not exceed 5% of the issued and outstanding common
shares at any time;
(ii) the number of common shares reserved for issuance to insiders shall not
exceed 10% of the issued and outstanding common shares; and
(iii) the number of common shares issuable under the Plan which may be
issued within a one year period shall not exceed 10% of the issued and
outstanding common shares at any time.
Changes in the number of options, with their weighted average exercise prices, are summarized below:
1999 1998
Number Weighted average Number Weighted average
of options exercise price of options exercise price
Stock options outstanding,
beginning of year 2,265,503 $ 3.16 1,825,500 $ 2.87
Granted 649,653 6.50 567,920 4.00
Exercised (744,772) 2.87 - -
Cancelled (22,167) 4.09 (127,917) 2.76
Stock options outstanding,
end of year 2,148,217 $ 4.26 2,265,503 $ 3.16
Exercisable at year end 550,478 $ 2.91 432,166 $ 3.00
The following table summarizes the stock options outstanding and exercisable at December 31, 1999 and the year of expiry:
Outstanding Exercisable Options
Exercise Number Year of Exercise Year of
Price Outstanding Vesting Exercisable Price Expiry
$ 2.50 200,761 1999 200,761 $ 2.50 2000
$ 3.00 751,217 one third per year 299,717 $ 3.00 One year after vesting
beginning 1998
$ 4.00 552,086 2001 - $ 4.00 2002
$ 4.00 50,000 1999 50,000 $ 4.00 2003
$ 6.00 488,583 2002 - $ 6.00 2003
$ 10.00 105,570 2002 - $ 10.00 2003
$ 4.26 2,148,217 550,478 $ 2.91
Upon filing the Corporation’s initial public offering, 105,570 options were re-priced from $6.00 per share to $10.00 per share. In 1999, the Corporation has
committed to the holders of the options that it will pay the differential up to $4.00 per share upon exercise of those options.
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WestJet Airlines 1999 Annual Report