Cogeco 2006 Annual Report Download - page 57

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Notes to Consolidated Financial Statements COGECO CABLE INC. 2006 55
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.
During fi scal year 2006, the Corporation granted 136,059 stock options (140,766 in 2005) with an exercise price ranging
from $24.15 to $29.05 ($21.50 in 2005) of which 31,743 stock options (38,397 in 2005) were granted to COGECO Inc.’
employees. For the exercise of options granted on or after October 17, 2003, an amount equivalent to 20% of net gain after
related taxes must be kept in shares of the Corporation until termination of employment with the Corporation or retirement.
Under the Stock Option Plan, the following options were granted by the Corporation and are outstanding as at August 31:
2006 2005
WEIGHTED WEIGHTED
AVERAGE AVERAGE
OPTIONS EXERCISE PRICE OPTIONS EXERCISE PRICE
$ $
OUTSTANDING, BEGINNING OF YEAR 590,723 18.98 509,515 17.42
GRANTED 136,059 28.61 140,766 21.50
EXERCISED (7,112) 9.26 (55,462) 11.38
FORFEITED (4,099) 23.89 (4,096) 14.35
OUTSTANDING, END OF YEAR 715,571 20.88 590,723 18.98
EXERCISABLE, END OF YEAR 433,855 20.35 326,851 19.74
At August 31, 2006, the range of exercise prices, the weighted average exercise price and the weighted average remaining
contractual life of options are as follows:
Options outstanding Options exercisable
WEIGHTED
AVERAGE
REMAINING WEIGHTED WEIGHTED
NUMBER CONTRACTUAL AVERAGE NUMBER AVERAGE
RANGE OF EXERCISE PRICES OUTSTANDING LIFE (YEARS) EXERCISE PRICE EXERCISABLE EXERCISE PRICE
$ $ $
7.05 80,288 6.17 7.05 53,350 7.05
14.30 to 18.12 161,828 6.92 16.42 97,515 16.33
20.40 to 25.20 330,611 6.35 22.45 238,496 22.73
29.05 122,938 9.17 29.05 24,588 29.05
36.10 to 40.75 19,906 4.13 36.39 19,906 36.39
715,571 6.88 20.88 433,855 20.35
11. CAPITAL STOCK (continued)