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WestJet 2010 Annual Report 79
10. Share capital (continued)
(c) Per share amounts (continued)
For the year ended December 31, 2010, 6,580,005 (2009 – 10,455,457) employee stock options were not included in the calculation of dilutive
potential shares as the result would be anti-dilutive.
(d) Stock option plan
The Corporation has a stock option plan, whereby at December 31, 2010, 11,693,868 (2009 – 12,228,611) voting shares were reserved for issuance
to offi cers 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 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 voting shares; and
(iii) the number of common voting shares issuable under the stock option plans, which may be issued within a one-year period, shall not exceed
10% of the issued and outstanding voting shares at any time.
Stock options are granted at a price that equals the market value of the Corporation’s voting shares, have a term of up to fi ve years and vest on
either the fi rst, second or third anniversary from the date of grant.
Changes in the number of options, with their weighted average exercise prices, are summarized below:
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
For the years ended December 31, 2010 and 2009
(Stated in thousands of Canadian dollars,
except share and per share amounts)
Outstanding options Exercisable options
Range of
exercise prices Number outstanding
Weighted average
remaining life (years)
Weighted average
exercise price
Number
exercisable
Weighted average
exercise price
$11.00–$12.50 2,813,635 2.38 $ 12.47 56,818 $ 12.49
$12.51–$15.50 2,017,658 3.33 12.81 39,208 14.51
$15.51–$19.99 3,252,138 0.90 16.58 3,252,138 16.58
8,083,431 2.03 $ 14.21 3,348,164 $ 16.49
2010 2009
Number of options
Weighted average
exercise price Number of options
Weighted average
exercise price
Stock options outstanding, beginning of year 11,521,844 $ 13.42 11,918,168 $ 13.90
Granted 2,024,143 12.78 3,011,148 12.47
Exercised (5,100,279) 11.83 (376,596) 11.83
Forfeited (32,607) 12.58 (34,487) 13.25
Expired (329,670) 14.77 (2,996,389) 14.61
Stock options outstanding, end of year 8,083,431 $ 14.21 11,521,844 $ 13.42
Exercisable, end of year 3,348,164 $ 16.49 6,647,525 $ 12.90
Under the terms of the Corporation’s stock option plan, with the approval of the Corporation, option holders can either (i) elect to receive shares
by delivering cash to the Corporation in the amount of the options, or (ii) choose a cashless settlement alternative, whereby they can elect to
receive a number of shares equivalent to the market value of the options over the exercise price. For the year ended December 31, 2010, option
holders exercised 5,056,288 (2009 – 376,596) options on a cashless settlement basis and received 697,023 (2009 – 29,685) shares. For the year
ended December 31, 2010, 43,991 options (2009 – nil) were exercised on a cash basis.
The following table summarizes the options outstanding and exercisable as at December 31, 2010: