Westjet 2005 Annual Report Download - page 54

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52
YOUR OWNERS’ MANUAL
7. Share capital (continued):
(b) Issued and outstanding:
On August 30, 2005, the Corporation’s common shares were restructured into two classes of shares: common voting
shares and variable voting shares. Each issued and outstanding common share which was not owned and controlled by
a Canadian within the meaning of the Canada Transportation Act was converted into one variable voting share and the
common share was cancelled. Each issued and outstanding common share which was owned and controlled by a
Canadian within the meaning of the Canada Transportation Act was converted into one common voting share and the
common share was cancelled.
2005 2004
Number Amount Number Amount
Common and variable voting shares:
Balance, beginning of year 125,497,407 $ 390,469 123,882,490 $ 376,081
Exercise of options 1,333,791 3,389 1,611,721 13,949
Stock-based compensation expense – 488 – 445
Issued from treasury (see note 7(e)) 2,743,901 35,410 – –
Issued on rounding of stock split – – 3,196 –
Share issuance costs – (215) – (10)
Tax benefit of issue costs – 72 – 4
Balance, end of year 129,575,099 $ 429,613 125,497,407 $ 390,469
As at December 31, 2005, the number of common voting shares and variable voting shares amounted to 119,378,637 and
10,196,462 respectively.
(c) Stock Option Plan:
The Corporation has a Stock Option Plan, whereby up to a maximum of 12,683,000 common voting shares may be issued
to officers and employees of the Corporation subject to the following limitations:
(i) the number of common voting shares reserved for issuance to any one optionee will not exceed 5% of the issued
and outstanding common and variable voting shares at any time;
(ii) the number of common voting shares reserved for issuance to insiders shall not exceed 10% of the issued and
outstanding common and variable voting shares; and
(iii) the number of common voting shares issuable under the Stock Option Plan, which may be issued within a one-year
period, shall not exceed 10% of the issued and outstanding common and variable voting shares at any time.
Stock options are granted at a price that equals the market value, have a term of four years and vest on either the first,
second or third anniversary from the date of grant.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
WestJet Airlines Ltd.
Years ended December 31, 2005 and 2004
(Tabular Amounts are Stated in Thousands of Dollars, Except Share and Per Share Data)