HSBC 2003 Annual Report Download - page 295

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be exchanged for 91,000 HSBC Holdings ordinary shares on the fifth anniversary of the award. During 2003,
options over 100 (2002 and 2001: nil) CCF shares lapsed. During 2003, 2,500 (2002: 5,000; 2001: 4,000) CCF
shares previously issued in connection with the exercise of employee share options were exchanged for 32,500
(2002: 65,000; 2001: 52,000) HSBC Holdings ordinary shares. At 31 December 2003, 10,000 (2002: 5,500; 2001:
10,500) CCF shares were in issue and will be exchanged for HSBC Holdings ordinary shares on the fifth anniversary
of the award of the options. There are 2,615,660 CCF employee share options exchangeable for HSBC Holdings
ordinary shares outstanding at 31 December 2003 (2002: 2,848,760; 2001: 3,077,826). At 31 December 2003, The
HSBC Holdings Employee Benefit Trust 2001 (No. 1) held 32,775,055 (2002: 35,745,555; 2001: 38,788,413) HSBC
Holdings ordinary shares which may be exchanged for CCF shares arising from the exercise of options.
CCF options (including shares issued but not exchanged) effectively outstanding over HSBC Holdings ordinary
shares under this arrangement are as follows:
Number of CCF
shares exchangeable
for HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2003 .................................................... 2,625,660 2004 to 2010 €32.78 – €142.5
31 December 2002 ..................................................... 2,854,260 2003 to 2010 €32.78 – €142.5
31 December 2001 ..................................................... 3,088,326 2002 to 2010 €32.78 – €142.5
There also exist outstanding options over the shares of various CCF subsidiaries, the details of which are set out in
the Directors’ Report on pages 195 to 197 and summarised below. On exercise of options over shares of Sinopia
Asset Management (‘Sinopia’ ) the Sinopia shares are exchangeable for HSBC Holdings ordinary shares. The shares
are exchangeable in the ratio of 2.143 HSBC Holdings ordinary shares for each Sinopia share. During 2003, 94,400
(2002: 91,200; 2001: nil) Sinopia shares were issued in connection with the exercise of employee share options and
exchanged for 202,296 (2002: 195,439; 2001: nil) HSBC Holdings ordinary shares. At 31 December 2003, The CCF
Employee Benefit Trust 2001 held 483,253 (2002: 685,549; 2001: nil) HSBC Holdings ordinary shares which may
be exchanged for Sinopia shares arising from the exercise of options.
Sinopia options effectively outstanding over HSBC Holdings ordinary shares under this arrangement are as follows:
Number of Sinopia
shares exchangeable
for HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2003 ................................................. 221,500 2004 to 2005 €8.61 – €21.85
31 December 2002 .................................................. 315,900 2003 to 2005 €8.61 – €21.85
31 December 2001 .................................................. 432,100 2002 to 2005 €6.13 – €21.85
Following the mergers of HSBC Bank France S.A., Banque Eurofin, Banque du Louvre and CCF Banque Privée
Internationale on 1 October 2003 options held over shares of Banque Eurofin, Banque du Louvre and CCF Banque
Privée Internationale were converted into options over the shares of the merged entity, HSBC Private Bank France.
On exercise of these options HSBC Private Bank France shares will be exchanged for HSBC Holdings ordinary
shares in the ratio of 1.83 HSBC Holdings shares for each HSBC Private Bank France share. At 31 December 2003,
1,125 HSBC Private Bank France shares were in issue and will be exchanged for HSBC Holdings ordinary shares on
the fourth anniversary of the awards of the options. At 31 December 2003, The CCF Employee Benefit Trust 2001
held 1,900,000 HSBC Holdings ordinary shares which may be exchanged for HSBC Private Bank France shares
arising from the exercise of options.