Salary and Compensation Committee

Our company established a Compensation and Remuneration Committee in May 2016. The Compensation and Remuneration Committee shall perform the following duties and submit its recommendations to the Board of Directors for discussion:

1. Regularly review the "Organizational Regulations of the Salary and Compensation Committee" and propose amendments.
2. Establish and regularly review the policies, systems, standards and structures for the annual and long-term performance targets and compensation of the Company’s directors and managers.
3. The Company regularly assesses the achievement of performance targets by its directors and managers and determines the content and amount of their individual remuneration.
   When exercising the powers mentioned above, this committee shall act in accordance with the following principles:
   1. Ensure that the company's salary and compensation arrangements comply with relevant laws and regulations and are sufficient to attract outstanding talent.
   2. The performance evaluation and remuneration of directors and managers should refer to the usual level of payment in the industry, and take into account the individual performance evaluation results, the time invested, the responsibilities undertaken, the achievement of personal goals, the performance in other positions, the remuneration paid by the company to those in equivalent positions in recent years, and the reasonableness of the relationship between individual performance and company operating performance and future risks, based on the achievement of the company's short-term and long-term business goals and the company's financial situation.
   3. Directors and managers should not be encouraged to engage in activities that exceed the company's risk tolerance in pursuit of compensation.
   4. The proportion of short-term performance-based compensation for directors and senior managers, as well as the timing of payments for certain variable salaries, should be determined with consideration of industry characteristics and the nature of the company's business.
   5. The reasonableness of the content and amount of directors' and managers' remuneration should be taken into consideration. The determination of directors' and managers' remuneration should not be significantly contrary to financial performance. If there is a significant decline in profits or long-term losses, their remuneration should not be higher than that of the previous year. If it is still higher than that of the previous year, an explanation of the reasonableness should be disclosed in the annual report.
   6. Members of this committee shall not participate in the discussion or voting on decisions concerning their personal salaries and compensation.
      The compensation mentioned in the first two items includes cash compensation, stock options, profit sharing, retirement benefits or severance pay, various allowances and other measures with substantial incentives; its scope should be consistent with the provisions on the remuneration of directors, supervisors and managers in the guidelines for matters to be recorded in the annual reports of publicly traded companies.
      If the remuneration of directors and managers of the Company’s subsidiaries is a matter that requires approval by the Company’s Board of Directors, the Committee shall make a recommendation before submitting it to the Board of Directors for discussion.

Salary Committee Academic and Professional Background:

Attendance at this committee meeting:

The term of office for this committee is from June 28, 112 to June 27, 115, ending on March 4, 114. Five meetings have been held so far. The attendance of committee members as observers is as follows:

Salary and Compensation Committee Meeting Information

The following is information regarding the Company's Compensation and Remuneration Committee's meetings, reviews, and evaluations of the Company's compensation and remuneration over the past year: