Article 21 -  The fiscal year of the Company shall be from January 1 to December 31 of each year. Article 22 -  After the Company has paid all taxes due at the end of each fiscal year, the Company shall offset  its accumulated losses and set aside ten percent (10 %) of the net profit as the statutory revenue  reserve before distribution of profits, except when the accumulated amount of such legal reserve  equals to the Company’s total authorized capital. The Company may also set aside special  reserve(s) according to the business need or laws and regulations. A minimum of fifty percent  (50%) of the total amount of the balance, including the accumulated retained profits from the  previous year, shall be distributed in the following manner: (1)  Report of Operations; (2)  Financial statements; (3)  Resolution governing the distribution of profit or the making-up of losses. 1)  Employee bonuses between two percent (2%) to five percent (5%); 2)  Remuneration for directors and supervisors not higher than 0.2%. 3)  The remainder after deducting amounts in subparagraphs 1) and 2) shall be shareholders’  dividends. Cash dividends shall not be below fifty percent (50%) of the total dividends, but  when the cash dividends fall below NT$0.1 per share, dividends shall be distributed in the  form of stocks. At the end of each fiscal year, the Board of Directors shall prepare the following statements  and reports, and submit the same to the supervisor(s) for examination thirty (30) days prior to  the annual general meeting, and then shall submit the same to the annual general meeting for  adoption. Subparagraphs 1) and 2) of the preceding paragraph shall apply upon the privatization of the  Company, however, with respect to the year in which privatization occurred; the dividends shall  be distributed based on the profits derived during the period after privatization. The percentage of distribution stipulated in paragraph 1 shall take into consideration of the actual  profitability of the year, capital budgeting, and status of finance, and shall be executed following  the resolution of shareholders’ meeting. Dividends and bonuses shall not be distributed where the Company has no profits, provided  that where the statutory revenues reserve exceeds fifty percent (50%) of paid-up capital of the  Company, the portion in excess may be distributed as shareholders’ dividends. Chapter VII - Supplementary Provisions Article 23 -  In the event that the Company issues new shares, excluding ad hoc ratification by the central  competent authority, the Company shall reserve ten percent (10%) to fifteen percent (15%) of the  total newly issued shares for preemptive subscription by employees of the Company. Article 24 -  The regulations with regard to the organization of the Board of Directors and the Company shall  be separately adopted. Article 25 -  Matters not specified herein shall be resolved in accordance with the Company Law. Article 26 -  This Articles of Incorporation was adopted on June 11, 1996. 7