Cogeco 2010 Annual Report Download - page 64

Consolidated Financial Statements COGECO CABLE INC. 2010 63
Issued
2010 2009
(in thousands of dollars, except number of shares) $ $
15,691,100 multiple voting shares 98,346 98,346
32,885,337 subordinate voting shares (32,867,426 in 2009) 892,332 891,715
990,678 990,061
57,409 subordinate voting shares held in trust under the Incentive Share Unit Plan (1,848) –
988,830 990,061
During the year, subordinate voting shares transactions were as follows:
2010 2009
Number o
f
shares Amount
Number o
f
shares Amount
(in thousands of dollars, except number of shares) $ $
Balance, beginning of year 32,867,426 891,715 32,826,611 890,543
Shares issued for cash under the employee stock purchase plan and the stock option plan 17,911 481 40,815 964
Compensation expense previously recorded in contributed surplus for options exercised – 136 – 208
Balance, end of year 32,885,337 892,332 32,867,426 891,715
During fiscal year 2010, the Corporation issued 17,911 subordinate voting shares (28,785 shares in 2009) pursuant to its Employee Stock
Option Plan for a cash consideration of $481,000 ($640,000 in 2009). During fiscal year 2009, 12,030 subordinate voting shares were issued
pursuant to the Employee Stock Purchase Plan for a cash consideration of $324,000.
During the year, subordinate voting shares held in trust under the Incentive Share Unit Plan transactions were as follows:
2010 2009
Number o
f
shares Amount
Number o
f
shares Amount
(in thousands of dollars, except number of shares) $ $
Balance, beginning of year – – – –
Subordinate voting shares acquired 62,436 2,008 – –
Subordinate voting shares distributed to employees (5,027) (160) – –
Balance, end of year 57,409 1,848 – –
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. Furthermore, the
Corporation offers an Incentive Share Unit Plan for senior executive and designated employees.
Stock purchase plan
The Corporation offers, for the benefit of its employees and those of its subsidiaries, an Employee Stock Purchase Plan, which has been
modified effective January 1st, 2010. The new plan is accessible to all employees up to a maximum of 7% of their base annual salary and the
Corporation contributes 25% of the employee contributions. The subscriptions are made monthly and employee shares are purchased on the
stock market. Prior to January 1st, 2010, the Plan was accessible to all employees up to a maximum of 5% of their annual salary. The
subscription date was December 31 and the subscription price was based on the average market price of the share of the last five business
days of November less 10%.
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. Options granted after September 1, 2009,
vest equally over a period of five years beginning one year after the day such options are granted and are exercisable over ten years. Prior to
September 1, 2009, options granted vest at the rate of 20% per year beginning the day such options are granted and are exercisable over ten
years, except for conditional stock options granted in 2007, which vested equally over a period of three years beginning one year after the day
such options were granted and are exercisable over ten years. During fiscal year 2010, the Corporation granted 66,174 stock options (153,381
in 2009) with an exercise price of $31.82 to $38.86 ($28.95 to $34.46 in 2009) of which 33,266 stock options (29,711 in 2009) were granted to
COGECO Inc.’s employees.