Stock Option Grant (Mar. 25, 2002)
2002-04-01On March 22, 2002, the Board of Directors has approved and ratified to grant options to the directors and employees of Kookmin Bank to buy the registered common stock of Kookmin Bank as follows.
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 by conditioning performance clauses in connection with the number of options.
2. List of grantees and the number of options
| Name |
Position |
The number of granted shares |
|---|---|---|
| Choulju Lee |
Auditor & Executive Director |
30,000 common shares |
| Henry Cornell |
Non-Executive Director |
10,000 common shares |
| Jongkyoo Yoon |
Executive Vice President |
30,000 common shares |
| Jongyoung Yoon and ten other employees |
Head of Regional Headquarters |
15,000 common shares per each person |
| Total |
38 persons |
622,000 common shares |
3. Calculation for the number of stock options for Executive Vice Presidents and Head of Regional Headquarters
Calculation for the number of stock options to Executive Vice Presidents and Head of Regional Headquarters is based on the score they achieve from the key performance indicators of the relevant divisions, business units and the regional headquarters they belong to.
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.
| Average score |
Calculation |
|---|---|
| Less than 60 points |
Cancel 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 average scores. • Number of exercisable options = Number of options granted×average score / 100 |
| Over 80 points |
Exercise the entire number of stock options |
4. Exercise Method
Kookmin Bank may choose to grant shares by means of: 1) issuing new shares; 2) granting treasury shares; or 3) granting cash or treasury shares for the difference between the exercise price and the market price.
5. Exercise Price
5.1 For Executive Vice Presidents and the Heads of Regional Headquarters: 57,100 Won
5.2 For Auditor & Executive Directors and Non-Executive Directors
Calculation formula
Exercise price = 57,100 Won x (1 + the increase rate of KOSPI banking industry Index x 0.4)
The increase rate of KOSPI banking industry Index = (KOSPI banking industry Index as of the starting date of exercise period* ) – KOSPI banking industry Index as of the grant date) / KOSPI banking industry Index as of the grant date.
If the increase rate of KOSPI banking industry index is less than zero, it shall be regarded as zero for the calculation.
6. Exercise Period
The exercise period is from March 23, 2005 to March 22, 2010.
7. Adjustment of 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 of 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.
*When the grantee retires prior to the three years as of grant date, KOSPI banking industry index shall be calculated as of the date of the retirement