Stock Option Grant(Jul. 26, 2002)
2002-07-30On July 26, 2002, the Board of Directors has approved and ratified to grant Donald H. MacKenzie, who was newly elected as Executive Vice President for the Head of Risk Management Division, stock options to buy 30,000 registered common stock of Kookmin Bank.
Pursuant to the Article 13 of the Articles of Incorporation, this resolution is subject to the approval and ratification by the shareholders at the nearest forthcoming General Shareholders’ Meeting.
1. Purpose of the grant
The purpose of the grant is to motivate the grantee to achieve the business targets.
2. Calculation for the number of stock options
Calculation for the number of stock options is based on the score he achieves from the key performance indicators of the division he is in charge of.
In case the grantee resigns or moves his position prior to three years as of the grant date, stock option calculation shall be based on the scores earned as of the end of the quarter right before the date of resignation or movement.
Evaluation Method
| Arithmetic average score for the three years | Calculation |
|---|---|
| Less than 60 points | Cancellation of the granted stock options |
| From 60 to 80 points | • Exercise the number of stock options, calculated by multiplying the number of stock options granted by the average score. t • Number of exercisable stock options = Number of options granted x average score / 100 |
| Over 80 points | Exercise the entire number of stock options |
3. Exercise method
Kookmin Bank may choose to grant stock by means of: 1) issuing new stock; 2) granting treasury stock; or 3) granting the equivalent amount of cash or treasury stock for the difference between the exercise price and the market price.
4. Exercise price: 58,800 Won
5. Exercise period
The exercise period is from July 27, 2005 to July 26, 2010.
6. Adjustment to the exercise price and the number of options
In the event of any right offering, stock dividend, transfer of reserves to capital, stock split, reverse split, or merger, which require adjustments to the price or the numbers of stock after the option grant date, the Board of Directors shall adjust the number of options and the exercise price to reflect the changes.
7. Adjustment from early retirement
If the grantee retires before his original tenure, the number of stock options shall be adjusted as follows:
Exercisable Options
Granted Options x days of employment / original tenure of office (three years)
Any share less than one shall be rounded down. In counting days of employment, starting date of tenure shall be the first date of his appointment.