Compensation Policy

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• Directors & Supervisors

In addition to transportation and attendance allowances, in 2015, the Company paid each of its directors NT$3,000,000 to NT$9,000,000 as director compensation. In 2014, the Company paid its directors NT$3,000,000 to NT$9,000,000 per seat from surplus distribution. In 2015, the total remuneration paid by the company to its directors (excluding remuneration to part-time employees) accounted for 0.55% of the net profit after tax, and the total amount paid by companies in the consolidated financial statements of the company accounted for 1.06% of the net profit after tax. In 2014, the total remuneration paid by the company to its directors and supervisors (excluding remuneration to part-time employees) accounted for 0.56% of the net profit after tax, and the total amount paid by companies in the consolidated financial statements of the company accounted for 1.14% of the net profit after tax. The payments for transportation and attendance allowances shall be processed in accordance with the company's "Payment Guidelines for Transportation and Attendance Allowances for Directors, Supervisors, and Consultants." Moreover, in terms of director compensation, Article 36, Paragraph 1, of the Company's Articles of Incorporation provides that "in the case where this Company has made profit in the current year, this Company shall allocate one per ten thousand (10/000) of profit made in the current year distributable as employees' compensation, and not exceeding one percent (1%) of profit made in the same year distributable as compensation of directors. However, the Company's accumulated losses shall have been covered." Paragraph 3 of the same Articles noted that "the Company shall cover its accumulated losses with the profit made in the current year (i.e., pre-tax profit deducting profit distributable as compensation of employees and directors) prior to assessing compensation for its employees and directors." (The text of Article 36 of the Company's Articles of Incorporation herein is the text to be amended and approved by the Company's shareholders in the Company's shareholder annual meeting in 2016.) Under the forgoing provisions, the distribution of the aforementioned compensation is based on the Company's performance.

• President & Executive Vice Presidents

The remuneration of the President and Executive Vice Presidents of SinoPac Holdings is commensurate with their respective professional standing and reference to industry standard and subject to the company's Compensation Committee and the final approval of the Board. In addition to the basic monthly salaries and subsidies, special bonus will be payable with reference to the overall performance results, personal performance, the potential risks and related internal code of the Company. Remuneration under this structure aligns management reward and the company performance and reinforces the benefits of the investors. In 2015, the remuneration to the President and Executive Vice Presidents of SinoPac Holdings accounted for 0.59% of its corporate earnings. The remunerations to the Presidents and Executive Vice Presidents of the companies included in the consolidated financial statements of SinoPac Holdings accounted for 1.77% of its corporate earnings. In 2014, the remuneration to the President and Executive Vice Presidents of SinoPac Holdings accounted for 0.69% of its corporate earnings. The remunerations to the Presidents and Executive Vice Presidents of the companies included in the consolidated financial statements of SinoPac Holdings accounted for 1.28% of its corporate earnings.