Cogeco 2003 Annual Report Download - page 36

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
34 Cogeco Cable Inc. 2003
11 Capital stock (continued)
During the year, subordinate voting share transactions were as follows:
During 2003, the Corporation issued 12,480 shares (6,618 shares in 2002) pursuant to its Employee Stock Purchase Plan for a
cash consideration of $121,000 ($132,000 in 2002). Also, the Corporation issued 1,449 shares pursuant to its Employee Stock
Option Plan for a cash consideration of $13,000. Finally, pursuant to a normal course issuer bid, the Corporation purchased for
cancellation 6,600 subordinate voting shares for an amount of $118,000, while the book value of purchased shares amounted to
$145,000. The excess of the book value of purchased shares over the purchase price increased retained earnings by $27,000.
Stock-based plans
The Corporation established, for the benefit of its employees and those of its subsidiaries, an Employee Stock Purchase Plan
and a Stock Option Plan for certain executives. Under these plans, no more than 10% of the outstanding subordinate voting shares
are available.
Stock Purchase Plan
The Employee Stock Purchase Plan is accessible to all employees up to a maximum of 5% of their annual salary. The subscription
date is December 31 and the subscription price is based on the average market price of the shares of the last five business days
of November less 10%. A maximum of 167,500 shares are available, up to 40,000 annually, under this plan.
Stock Option Plan
A total of 1,832,500 subordinate voting shares are reserved for the purpose of the Stock Option Plan. The minimum purchase
price at which options are granted is not less than the market value of such shares at the time the option is granted. Granted
options vest 20% per year beginning the day such options are granted and are exercisable over 10 years.
Under the Stock Option Plan, the following options were granted by the Corporation and are outstanding as at August 31:
Issued 2003 2002
15,691,100 multiple voting shares $98,346 $98,346
24,190,043 subordinate voting shares (24,182,714 in 2002) 530,669 530,680
$629,015 $629,026
2003 2002
Number Number
of shares Amount of shares Amount
Balance at beginning 24,182,714 $ 530,680 24,176,096 $ 530,548
Shares issued for cash under the Employee Stock
Purchase Plan and the Stock Option Plan 13,929 134 6,618 132
Purchase of shares for cancellation (6,600) (145) ——
Balance at end 24,190,043 $ 530,669 24,182,714 $ 530,680
2003 2002
Weighted Weighted
average average
exercise exercise
Options price Options price
Outstanding, beginning of year 254,910 $ 22.76 154,398 $ 25.79
Granted 141,020 7.22 161,909 23.27
Exercised (1,449) 9.35 ——
Forfeited (15,599) 23.57 (61,397) 31.73
Outstanding, end of year 378,882 $ 16.99 254,910 $ 22.76
Exercisable, end of year 167,555 $ 19.18 98,425 $ 20.77