Letter To Shareholders - Mitac

April 30, 2010
Type of employees’ stock
options
8 th employees’ stock option
(2 nd term)
9th employees’ stock option
(1 st term)
9th employees’ stock option
(2 st term)
10th employees’ stock option
(1 st term)
10th employees’ stock option
(2 st term)
Date approved by authorities 09.30, 2008 01.06, 2009 01.06, 2009 09.22, 2009 09.22, 2009
Issuing (processing) date 10.27, 2008 04.29, 2009 07.03, 2009 10.05, 2009 04.19, 2010
Issuance (Note 1) 42,500units 21,500 units 21,500 units 47,500 units 23,000 units
Ratio of stock option to outstanding
shares
2.77% 1.4% 1.4% 3.09% 1.50%
Valid Duration 6 years 6 years 6 years 6 years 6 years
Performance Issue stock shares Issue stock shares Issue stock shares Issue stock shares Issue stock shares
Limited stock option period and ratio
(%)
Employees hold stock options
over two years can exercise their
options until ten days before
their expiration, except for any
suspension by law.
Time Exercise Percentage
More than 2 years 50%
More than 3 years 75%
More than 4 years 100%
Employees hold stock
options over two years can
exercise their options until
ten days before their
expiration, except for any
suspension by law.
Time Exercise Percentage
More than 2 years 25%
More than 3 years 50%
More than 4 years 100%
Employees hold stock options
over two years can exercise their
options until ten days before
their expiration, except for any
suspension by law.
Time Exercise Percentage
More than 2 years 25%
More than 3 years 50%
More than 4 years 100%
Employees hold stock options
over two years can exercise their
options until ten days before
their expiration, except for any
suspension by law.
Time Exercise Percentage
More than 2 years 30%
More than 3 years 60%
More than 4 years 100%
Employees hold stock options
over two years can exercise their
options until ten days before
their expiration, except for any
suspension by law.
Time Exercise Percentage
More than 2 years 30%
More than 3 years 560%
More than 4 years 100%
Stock shares exercised 0 0 0 0 0
Stock value exercised 0 0 0 0 0
Unexercised stocks (note 3) 39,437,000shares 20,380,000 shares 20,406,000 shares 47,500,000 shares 23,000,000 shares
Stock option price of outstanding
stock option
$11.2 $14.1 $13.1 $13.9 $14.45
Ratio of outstanding stock option to
outstanding shares (%)
2.57% 1.33% 1.33% 3.09% 1.50%
Impact on shareholder’s equity
All employees cannot exercise
their stock options for two
years; therefore, it does not
cause significant dilution effect
on shareholder’s equity.
All employees cannot
exercise their stock options
for two years; therefore, it
does not cause significant
dilution effect on
shareholder’s equity.
All employees cannot exercise
their stock options for two
years; therefore, it does not
cause significant dilution effect
on shareholder’s equity.
All employees cannot exercise
their stock options for two
years; therefore, it does not
cause significant dilution effect
on shareholder’s equity.
Note 1: Each stock option can exercise 1,000 common shares of MiTAC.
Note 2: Followed the merger agreement to make the shares-subscription amount and price per unit in a ratio of (MiTAC: TYAN = 1: 1.26).
Note 3: After deduction of given-up shares.
All employees cannot exercise
their stock options for two
years; therefore, it does not
cause significant dilution effect
on shareholder’s equity.
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