Cogeco 2008 Annual Report Download - page 62

Notes to the Consolidated Financial Statements COGECO CABLE INC. 2008 61
ISSUED
2008 2007
(in thousands of dollars, except number of shares) $ $
15,691,100 MULTIPLE VOTING SHARES 98,346 98,346
32,826,611 SUBORDINATE VOTING SHARES (32,663,587 IN 2007) 890,543 886,059
988,889 984,405
During the year, subordinate voting shares transactions were as follows:
2008 2007
NUMBER OF
SHARES
A
MOUNT
NUMBER OF
SHARES AMOUNT
(in thousands of dollars, except number of shares) $ $
BALANCE, BEGINNING OF YEAR 32,663,587 886,059 24,308,112 532,112
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 163,024 3,650 355,475 7,014
COMPENSATION EXPENSE PREVIOUSLY RECORDED
IN CONTRIBUTED SURPLUS FOR OPTIONS EXERCISED – 834 – 983
BALANCE, END OF YEAR 32,826,611 890,543 32,663,587 886,059
During 2008, the Corporation issued 5,543 subordinate voting shares (7,344 shares in 2007) pursuant to its Employee Stock
Purchase Plan for a cash consideration of $221,000 ($198,000 in 2007) and 157,481 subordinate voting shares (348,131 shares in
2007) pursuant to its Employee Stock Option Plan for a cash consideration of $3,429,000 ($6,816,000 in 2007).
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.
STOCK-BASED PLANS
The Corporation offers, 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 2,400,000 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
at the rate of 20% per year beginning the day such options are granted and are exercisable over 10 years. During fiscal year 2008,
the Corporation granted 113,084 stock options (201,587 in 2007) with an exercise price of $41.45 to $49.82 ($26.63 to $44.54 in
2007) of which 22,683 stock options (57,247 in 2007) were granted to COGECO Inc.’s employees. In 2007, 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 equally over a period of three years beginning one year after the day
such options were granted and are exercisable over ten years. The vesting of these options is conditional to the achievement of
certain yearly financial objectives by the Portuguese subsidiary, Cabovisão, over a period of three years. For the exercise of options
granted to senior executive officers 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.