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2005 WESTJET ANNUAL REPORT
53
(c) Stock Option Plan (continued):
Changes in the number of options, with their weighted average exercise prices, are summarized below:
2005 2004
Weighted Weighted
Number average Number average
of exercise of exercise
options price options price
Stock options outstanding, beginning of year
10,682,082 $ 12.37 9,809,753 $ 10.78
Granted 4,474,184 14.46 2,927,875 15.73
Exercised (3,506,625) 9.82 (1,959,002) 9.42
Cancelled (147,309) 14.53 (96,544) 12.83
Repurchased (66,724) 11.99 – –
Expired (6,890) 13.79 – –
Stock options outstanding, end of year 11,428,718 $ 13.94 10,682,082 $ 12.37
Exercisable, end of year 3,920,623 $ 12.24 4,694,357 $ 10.88
The following table summarizes the options outstanding and exercisable at December 31, 2005:
Outstanding Options Exercisable Options
Weighted
Average Weighted Weighted
Range of Number Remaining Average Number Average
Exercise Prices Outstanding Life (years) Exercise Price Exercisable Exercise Price
$9.74 - $11.81 2,749,040 1.39 $ 11.21 2,380,430 $ 11.21
$11.99 - $14.60 5,838,130 2.54 14.53 1,540,193 13.82
$14.93 - $18.41 2,841,548 2.35 15.78 – –
11,428,718 2.22 $ 13.94 3,920,623 $ 12.24
Under the terms of the Corporation’s Stock Option Plan, a cashless settlement alternative is available whereby option
holders can either (a) elect to receive shares by delivering cash to the Corporation or (b) elect to receive a number of
shares equivalent to the difference between the market value of the options and the aggregate exercise price. For the
year ended December 31, 2005, options holders exercised 3,151,923 (2004 – 449,635) options on a cashless settlement
basis and received 979,089 (2004 – 102,354) shares.
Certain executives holding total options of 66,724, at an exercise price of $11.99, offered the Corporation an opportunity to
purchase and cancel their options in consideration of payment by the Corporation in cash for a fixed price of $320,000.
The agreements were accepted by the Corporation and the options were cancelled.