Announcement of the Board of Directors resolution on the issuance of New Restricted Employee Shares
|Resolution date of the board of directors||April 19, 2017|
|Expected issue price||The issue price is NTD0|
Expected total amounts (shares) of issuance
A total of 500,000 common shares, each share having a par value of NTD10, for a total amount of NTD5,000,000.
Employees who are granted with the restricted employees shares should remain employed by EASTECH Group within 1 year or more from the time of the award of the new restricted employee shares and have achieved the required individual performance rating.
The proportions of shares are granted to employees according to the respective vesting conditions reached as follows:
|Measures to be taken when employees fail to meet the vesting conditions or in the event of inheritance|
EASTECH will withdraw issued shares without compensation and cancel all shares granted to employees who fail to meet the vesting conditions.
|Other terms and conditions of issuance||None|
|Qualification requirements for employees|
|The reason why it is necessary to issue restricted stocks for employees||To attract and retain professional talents needed by EASTECH, and to provide incentive to employees and enhance employee commitment, so as to jointly create benefit to the company and its shareholders.|
|Calculated expense amount|
The current issuance of the restricted employee shares is a total of 500,000 common shares which are not allowed to transfer before meeting the vesting conditions.The estimated total possible expenses for the issuance of the restricted employee shares is approximately NTD16,800,000 calculated based on the closing share price on April 11, 2017 being NTD33.60 per share.
|Dilution of EPS||According to the vesting conditions, the annual amortized expenses from 2017 to 2021 will be projected as NTD1,575,000, NTD4,200,000, NTD4,200,000, NTD4,200,000 and NTD2,625,000 respectively. The EPS dilution from 2017 to 2021 will be projected as NTD0.03, NTD0.07, NTD0.07, NTD0.07 and NTD0.04. [Based on the number of current outstanding shares 60,749,000 shares (after deducting the treasury shares held by EASTECH or its subsidiaries)]. Since the potential impact to EPS is limited, we do not expect any material impact to shareholders’ equity.|
|Other factors affecting shareholder’s equity||Apart from the above impact, the issuance of the new restricted employees shares will increase the share capital. According to the current outstanding 60,749,000 shares issued, the % of share capital increment is 0.82% and thus it does not cause a material impact to shareholders’ equity.|
|Restricted rights before employees meet the vesting conditions|
|Other important stipulations||After issuance, the new restricted employee shares must immediately be deposited in trust. Before achieving to the conditions to grant, the employees should delegate the trust agent or custodian banks to attend, propose, speak, vote and execute other matters related to shareholders’ rights in the shareholders’ meeting.|
|Any other matters that need to be specified||None|