Contents - MiTAC

The earnings allocations and shareholder cash dividend rates described above are to
be set by the Board of Directors giving due consideration to the Company's financial
condition, future financing requirements, and profit status, with cash dividends not less
than 10% of total stock dividends, and subject to adjustments approved at the
shareholder's meeting.
3.6.2 Proposal for Dividend Distribution
In accordance with the above principles, the Company's Board of Directors on
April 1, 2004 drafted a proposal for dividend distribution for the current year (2004),
with a cash dividend for each share of NT$0.5. The proposal will be presented for
approval at the shareholder's meeting on May 18, 2004.
3.7 Employee Bonuses and Renumeration for Directors, Supervisors
3.7.1 Scale and Scope of Employee Bonuses and Renumeration for Directors and Supervisors
As Set Forth in Company Regulations
(1) Employee Bonus: Where the Company has earnings at the end of the business year,
after paying all relevant taxes, deducting accumulated deficits from past years, and
setting aside a legal reserve of ten percent, it shall in accordance with the law
appropriate a special earnings surplus. After payment of interest on stocks, a
minimum of 5% of the remainder shall be appropriated for employee bonuses.
(2) Scale and Scope of Renumeration for Directors and Supervisors: Not specified in
company regulations.
3.7.2 Information on the Proposed Scheme for Distribution of Employee Bonuses as Passed
by the Board of Directors
On Apri l, 2004, the Board of Directors passed a resolution on the distribution of
the Company's earnings in 2003 as follows:
(1) Distribute to employees cash bonuses totaling NT$94,632,585, and renumeration
totaling NT$4,000,000 to directors and supervisors.
(2) Proposed number of shares to be distributed as employee stock bonuses: None. Share
of capitalized earnings: 0%.
(3) Consider using for discussion an after-tax basic earnings per share figure of NT$0.93
after distribution of employee bonuses and renumeration for directors and
supervisors.
3.7.3 Resolution of Employee Bonuses and Renumeration to Directors and Supervisors Last
Year
Actual Figures Resolved Upon at
2002 Shareholder's Meeting and by
the Board of Directors
(1)Dividend Distribution
Employee cash bonus
Employee stock bonus
A. Number of Shares
B. Value
C. Share of total shares in circulation at year-end
Remuneration to directors, supervisors
(2)Information on Earnings Per Share
Earnings Per Share
Set Earnings Per Share (See note 1.)
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NT$ 77,841,000
-
-
-
NT$ 4,000,000
NT$ 0.84
NT$ 0.76
Notes: 1. Calculated based on the following formula: (Earnings Per Share) = ((Net Profit for the
Period) – (Employee Bonus) – (Renumeration for Directors and Supervisors)) /
(Weighted Average Number of Shares in Circulation During That Year)