content_image/9237.jpg content_image/9238.jpg content_image/9236.jpg content_image/9239.jpg
(iii) Restrictions on transfer 

Registration of the transfer of any of the company ’s shares may jeopardize either the ability of the company to engage in broadcasting or its status as a Canadian newspaper publisher. 

(b) Summary of changes in the company’s share capital: 

## Class A (voting) and Class B (non-voting) shares 

## Class A shares 

The only changes in the Class A shares were the conversion to Class B shares of 5,700 shares (with a stated value of $1,000) in 2004 and 24,660 shares (with a stated value of $7,000) in 2003. Total Class A shares outstanding at December 31 were: 

<img src='content_image/9237.jpg'>

## Class B shares 

The changes in the Class B shares were: 

<img src='content_image/9238.jpg'>

## Totals 

The total Class A and Class B shares outstanding at December 31 were: 

<img src='content_image/9236.jpg'>

An unlimited number of Class B shares is authorized. While the number of authorized Class A shares is unlimited, the issuance of further Class A shares, may under certain circumstances, require unanimous board approval. 

(c) The company commenced a normal course issuer bid on May 7, 2004, effective for one year, to repurchase for cancellation up to 2 million Class B shares, representing approximately 2.9% of the company’s outstanding Class B shares. As at December 31, 2004 1,440,800 Class B shares were repurchased and cancelled at an average repurchase price of $24.28 for a total consideration of $34,976,000. Retained earnings were reduced by $27,287,000 representing the excess of the cost of the shares repurchased over their stated value. 

(d) Earnings per share 

Basic per share amounts have been determined by dividing income by the weighted average number of Class A and Class B shares outstanding during the year. 

The treasury stock method is used for the calculation of the dilutive effect of stock options and other dilutive securities. In calculating diluted per share amounts under the treasury stock method, the numerator remains unchanged from the basic per share calculation as the assumed exercise of the company’s stock options and employee share purchase plan does not result in an adjustment to income. The reconciliation of the denominator in calculating diluted per share amounts is as follows: 

<img src='content_image/9239.jpg'>

