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70 COGECO CABLE INC. 2009 Consolidated financial statements
15. CAPITAL STOCK
AUTHORIZED
Unlimited number of:
Class A Preference shares, without voting rights, redeemable by the Corporation and retractable at the option of the holder at any
time at a price of $1 per share, carrying a cumulative preferential cash dividend at a rate of 11% of the redemption price per year.
Class B Preference shares, without voting rights, could be issued in series.
Multiple voting shares, 10 votes per share.
Subordinate voting shares, 1 vote per share.
ISSUED
2009 2008
(in thousands of dollars, except number of shares)
$
$
15,691,100 MULTIPLE VOTING SHARES
98,346
98,346
32,867,426 SUBORDINATE VOTING SHARES (32,826,611 IN 2008)
891,715
890,543
990,061
988,889
During the year, subordinate voting shares transactions were as follows:
2009
2008
NUMBER OF
SHARES
AMOUNT
NUMBER OF
SHARES
AMOUNT
(in thousands of dollars, except number of shares)
$
$
BALANCE, BEGINNING OF YEAR
32,826,611
890,543
32,663,587
886,059
SHARES ISSUED FOR CASH UNDER THE EMPLOYEE
STOCK PURCHASE PLAN AND THE STOCK OPTION PLAN
40,815
964
163,024
3,650
COMPENSATION EXPENSE PREVIOUSLY RECORDED
IN CONTRIBUTED SURPLUS FOR OPTIONS EXERCISED
–
208
–
834
BALANCE, END OF YEAR
32,867,426
891,715
32,826,611
890,543
During 2009, the Corporation issued 12,030 subordinate voting shares (5,543 shares in 2008) pursuant to its Employee Stock
Purchase Plan for a cash consideration of $324,000 ($221,000 in 2008) and 28,785 subordinate voting shares (157,481 shares in
2008) pursuant to its Employee Stock Option Plan for a cash consideration of $640,000 ($3,429,000 in 2008).
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 2009,
the Corporation granted 153,381 stock options (113,084 in 2008) with an exercise price of $28.95 to $34.46 ($41.45 to $49.82 in
2008) of which 29,711 stock options (22,683 in 2008) were granted to COGECO Inc.’s employees. In 2007, the Corporation also