This excerpt taken from the LPL 20-F filed Apr 11, 2005.
Article 10. (Preemptive Rights)
(1)
The Company may issue additional shares with the resolution of the Board of Directors setting forth the detailed terms of the issue within the authorized share capital.
(2)
The Company’s shareholders shall have preemptive rights to subscribe to new shares in proportion to their respective shareholding ratios; provided that the names and addresses
of such shareholders shall be registered in the Register of Shareholders as of the date designated by the Company in the public notice made two (2) weeks prior thereto.
(3)
Notwithstanding Paragraph (2) above, the Company may allocate new shares to persons other than existing shareholders of the Company by a resolution of the Board of Directors in any
of the following cases, provided that the aggregate number of shares issued pursuant to items 1 through 7 below shall not exceed 10% of the total number of issued and outstanding shares:
1.
Where the Company invites or cause underwriters to invite subscriptions for new shares;
2.
Where the Company issues new shares through a method of general public offering under Article 189-3 of the Securities and Exchange Act (the “SEA”);
3.
Where the Company allocates new shares to any member of its Employee Stockownership Association pursuant to Article 191-7 of the SEA or pursuant to the Employee Welfare Basic Act;
4.
Where the Company issues new shares by exercise of stock options under Article 189-4 of the SEA;
5.
Where the Company issues new shares for the issuance of a depositary receipt (DR) under Article 192 of the SEA;
6.
Where the Company issues new shares to a domestic or overseas financial institution for an urgent need for funds; or
7.
Where the Company issues new shares for the purpose of drawing foreign investment, when it deems necessary for its management; or
8.
Where the Company issues new shares through a public offering or cause underwriters to underwrite the new shares and/or DR for the purpose of initial listing on the Korea Stock
Exchange and/or the New York Stock Exchange.
(4)
If shares are not subscribed for as the result of a shareholder waiving or losing his/her pre-emptive right, or if fractional shares result from the allocation of new shares, such
shares shall be disposed of in accordance with a resolution of the Board of Directors.
(5)
The recipient of the new shares shall become a shareholder of the Company the succeeding day of the payment date.
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