page 111 Bombardier Inc. Annual Report 2003-04 NOTE 14. SHARE CAPITAL (CONT ’ D) 9,400,000 Series 4 Cumulative Redeemable Preferred Shares Redemption: Redeemable, at the Corporation’s option, any time on or after March 31, 2007, at $26.00 per share if redeemed prior  to March 31, 2008; $25.75 if redeemed on or after March 31, 2008 but prior to March 31, 2009; $25.50 if redeemed on or after March 31, 2009 but prior to March 31, 2010; $25.25 if redeemed on or after March 31, 2010 but prior to March 31, 2011; and $25.00 if redeemed on or after March 31, 2011. Conversion: On or after March 31, 2007, the Corporation may, subject to the approval of the Toronto Stock Exchange and such other stock exchanges on which the Series 4 Cumulative Redeemable Preferred Shares are then listed, at any time convert all or any of the outstanding Series 4 Cumulative Redeemable Preferred Shares into fully paid and non-assessable Class B Shares (Subordinate Voting) of the Corporation. The number of Class B Shares (Subordinate Voting) into which each Series 4 Cumulative Redeemable Preferred Shares may be so converted will be determined by dividing the then applicable redemption price together with all accrued and unpaid dividends to, but excluding the date of conversion, by the greater of $2.00 and 95% of the weighted average trading price of such Class B Shares (Subordinate Voting) on the Toronto Stock Exchange for the period of 20 consecutive trading days, which ends on the fourth day prior to the date specified for conversion or, if that fourth day is not a trading day, on the trading day immediately preceding such fourth day. The Corporation may, at its option, at any time, create one or more further series of Preferred Shares of the Corporation, into which the holders of Series 4 Cumulative Redeemable Preferred Shares could have the right, but not the obligation, to convert their shares on a share- for-share basis. Dividend: The holders of Series 4 Cumulative Redeemable Preferred Shares are entitled to fixed cumulative preferential cash dividends, if declared, at a rate of 6.25% or $1.5625 per share per annum, payable quarterly on the last day of January, April, July and October of each year at a rate of $0.390625 per share. On March 8, 2002, the Corporation issued 9,400,000 Series 4 Cumulative Redeemable Preferred Shares. The net proceeds from this issue amounted to $228 million. On August 1, 2002, 9,402,093 Series 2 Cumulative Redeemable Preferred Shares were converted into 9,402,093 Series 3 Cumulative Redeemable Preferred Shares, leaving 2,597,907 Series 2 Cumulative Redeemable Preferred Shares issued and outstanding out of the authorized 12,000,000 Series 2 Cumulative Redeemable Preferred Shares, which had all been issued and outstanding until that date. The following classes of common shares, without nominal or par value, were authorized: 1,892,000,000 (1,792,000,000 in 2003) Class A Shares (Multiple Voting) 1,892,000,000 (1,792,000,000 in 2003) Class B Shares (Subordinate Voting) Voting rights: 10 votes each. Conversion: Convertible, at any time, at the option of the holder, into one Class B Share (Subordinate Voting). Voting rights: One vote each. Conversion: Convertible, at the option of the holder, into one Class A Share (Multiple Voting): (i) if an offer made to Class A (Multiple Voting) shareholders is accepted by the present controlling shareholder (the Bombardier family); or (ii) if such controlling shareholder ceases to hold more than 50% of all outstanding Class A Shares (Multiple Voting) of the Corporation. Dividend: Annual non-cumulative preferential dividend of $0.0015625 per share, in priority to the Class A Shares (Multiple Voting), payable quarterly on the last day of January, April, July and October of each year at a rate of $0.000390625 per share,  if declared. On April 17, 2003, the Corporation issued 370,000,000 Class B Shares (Subordinate Voting) at a price of $3.25 per share. The net proceeds from this issue amounted to $1,170 million, net of issue costs of $33 million. Common shares