Cogeco 2007 Annual Report Download - page 63

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Notes to Consolidated Financial Statements COGECO CABLE INC. 2007 61
12) CAPITAL STOCK (continued)
During the year, subordinate voting shares transactions were as follows:
2007 2006
NUMBER OF NUMBER OF
SHARES AMOUNT SHARES AMOUNT
(amounts are in thousands of dollars, except number of shares) $ $
BALANCE AT BEGINNING 24,308,112 532,112 24,293,486 531,874
SHARES ISSUED FOR CASH CONSIDERATION 8,000,000 345,950 — —
SHARES ISSUED FOR CASH UNDER THE EMPLOYEE
STOCK PURCHASE PLAN AND THE STOCK OPTION PLAN 355,475 7,014 14,626 228
COMPENSATION EXPENSE PREVIOUSLY RECORDED
IN CONTRIBUTED SURPLUS FOR OPTIONS EXERCISED — 983 — 10
BALANCE AT END 32,663,587 886,059 24,308,112 532,112
On February 2, 2007, the Corporation issued 5,000,000 subordinate voting shares for a total consideration of $192,500,000.
Proceeds of this offering, net of issue costs, amounted to $184,211,000. On August 9, 2007, the Corporation issued
3,000,000 subordinate voting shares for a total consideration of $153,450,000. Proceeds of this offering, net of issue
costs, amounted to $146,899,000. During 2007, the Corporation also issued 7,344 subordinate voting shares (7,514 shares
in 2006) pursuant to its Employee Stock Purchase Plan for a cash consideration of $198,000 ($162,000 in 2006) and 348,131
subordinate voting shares (7,112 shares in 2006) pursuant to its Employee Stock Option Plan for a cash consideration of
$6,816,000 ($66,000 in 2006).
STOCK-BASED PLANS
The Corporation offers, for the benefi t 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 fi ve 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. During
fi scal year 2007, the Corporation granted 201,587 stock options (136,059 in 2006) with an exercise price of $26.63 to
$44.54 ($24.15 to $29.05 in 2006) of which 57,247 stock options (31,743 in 2006) were granted to COGECO Inc.’s
employees. The Corporation also granted 376,000 conditional stock options with an exercise price of $26.63 of which
262,400 stock options were granted to COGECO Inc.’s employees. These conditional options vest over a period of three
years beginning one year after the day such options are granted and are exercisable over ten years. The vesting of these
options is conditional to the achievement of certain yearly fi nancial objectives by the Portuguese subsidiary, Cabovisão—
Televisão por Cabo, S.A., over a period of three years. For the exercise of options granted to senior executive offi cers 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.