Cogeco 2009 Annual Report Download - page 72

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Consolidated financial statements COGECO CABLE INC. 2009 71
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. On April 6, 2009, the Corporation cancelled 206,180 of these options of which 112,662 were still
conditional. 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.
Under the Stock Option Plan, the following options were granted by the Corporation and are outstanding as at August 31:
OPTIONS
2009
WEIGHTED
AVERAGE
EXERCISE
PRICE
OPTIONS
2008
WEIGHTED
AVERAGE
EXERCISE
PRICE
$
$
OUTSTANDING, BEGINNING OF YEAR
834,724
28.55
932,714
24.89
GRANTED
153,381
33.85
113,084
48.71
EXERCISED
(28,785)
22.24
(157,481)
21.77
FORFEITED / CANCELLED
(242,575)
27.27
(53,593)
27.25
OUTSTANDING, END OF YEAR
716,745
30.37
834,724
28.55
EXERCISABLE, END OF YEAR
432,246
27.45
316,551
25.54
At August 31, 2009, 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
RANGE OF EXERCICE PRICES
$
NUMBER
OUTSTANDING
WEIGHTED
AVERAGE
REMAINING
CONTRACTUAL
LIFE (YEARS)
WEIGHTED
AVERAGE
EXERCICE
PRICE
$
NUMBER
EXERCISABLE
WEIGHTED
AVERAGE
EXERCICE
PRICE
$
7.05
3,610
3.13
7.05
3,610
7.05
15.70 TO 16.80
45,790
4.18
16.41
45,790
16.41
21.50 TO 26.63
329,029
6.35
25.33
251,287
24.95
28.95 TO 34.46
230,665
8.18
32.24
87,707
30.79
36.10 TO 45.59
17,665
8.16
41.69
7,858
41.28
49.82
89,986
8.15
49.82
35,994
49.82
716,745
7.06
30.37
432,246
27.45
The Corporation recorded compensation expense for options granted on or after September 1, 2003. As a result, a compensation
expense of $1,008,000 ($1,721,000 in 2008) was recorded for the year ended August 31, 2009.