[Kingpak Technology] The Board of Directors has approved the issuance of employee stock option certificates with an exercise price below market value.

1. Date of Board of Directors resolution: 2026/04/14
2. Issuance period: To be issued once or in installments within two years from the date of receiving the notice of effective registration from the competent authority, based on actual needs. The actual issuance date is to be determined by the Chairman of the company.
3. Eligibility requirements for optionees:
(1) Limited to full-time employees of the company and its domestic and foreign subsidiaries (where "domestic and foreign subsidiaries" refers to entities in which the company directly or indirectly holds more than 50% of the voting shares) who are employed on the date the Board of Directors approves the grant of employee stock option certificates.
(2) The actual employees eligible to be optionees and the number of options they receive will be determined based on allocation standards considering factors such as seniority, work performance, overall contribution (including potential future contributions), special achievements, or job level. This will be approved by the Chairman and subsequently confirmed by the Board of Directors. However, for individuals who are directors or managers, prior approval from the Remuneration Committee is required. For employees who are not directors or managers, the proposal must first be submitted to the Audit Committee for approval before being presented to the Board of Directors for approval.
(3) In accordance with Article 56-1, Paragraph 1 of the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, the cumulative number of shares that a single optionee can subscribe to through employee stock option certificates, plus the total number of restricted employee shares acquired by the optionee, shall not exceed 0.3% of the total number of issued shares. Furthermore, including the cumulative number of shares a single optionee can subscribe to through employee stock option certificates issued under Article 56, Paragraph 1 of the same regulations, the total shall not exceed 1% of the total number of issued shares.
4. Total number of employee stock option certificate units to be issued: 8,000,000 units
5. Number of shares that can be subscribed to per option certificate unit: 1 share
6. Total number of new shares to be issued upon exercise of stock options or the number of shares to be repurchased according to Article 28-2 of the Securities and Exchange Act: The total number of new common shares is 8,000,000 shares.
7. Exercise price: The exercise price will be no less than 60% of the closing price of the company's common stock on the issuance date of these employee stock option certificates.
8. Vesting period:
(1) Optionees may exercise their stock options according to the following schedule after two years have passed since the grant date. The duration of the stock option certificates is six years from the date of issuance. The stock option certificates and the rights thereof may not be transferred, pledged, gifted to others, or otherwise disposed of, except in the case of inheritance. After the duration expires, unexercised employee stock option certificates will be deemed forfeited, and the optionee may no longer claim their subscription rights.
Vesting Schedule | Cumulative Exercisable Percentage
After 2 years | 20%
After 3 years | 40%
After 4 years | 70%
After 5 years | 100%
(2) Taxes: When an optionee acquires shares by exercising stock options and is required to pay any taxes in any country or region according to law, such taxes, including but not limited to the optionee's personal income tax and taxes withheld by the company, shall be borne by the optionee.
(3) If an optionee violates their labor contract, appointment contract, or work rules after being granted employee stock option certificates, the company has the right to reclaim and cancel both unvested stock option certificates and vested but unexercised stock option certificates.
9. Type of shares to be subscribed: The company's common stock.
10. Handling procedures upon employee departure or inheritance:
(1) Voluntary Resignation or Layoff: Vested stock option certificates may be exercised within ten working days from the effective date of resignation/layoff (inclusive) or within the duration of the stock option certificate (whichever is earlier). If this period falls within a non-exercisable period as stipulated in these regulations, the exercise period may be extended. Rights not exercised within the aforementioned period will be deemed forfeited. Unvested employee stock option certificates are deemed forfeited on the effective date of resignation/layoff.
(2) Dismissal: If an optionee is dismissed by the company due to a major violation of the labor contract or work rules, their granted stock option certificates will be deemed forfeited on the day of dismissal.
(3) Retirement: Vested employee stock option certificates may be exercised during the duration of the stock option certificate according to the vesting schedule in Section 2 of this article. If this period falls within a non-exercisable period as stipulated in these regulations, the exercise period may be extended. Rights not exercised within the aforementioned period will be deemed forfeited. Unvested employee stock option certificates are deemed forfeited on the day of retirement.
(4) Death: When an optionee passes away, vested stock option certificates must be exercised by the heir(s) within one year from the date of the deceased's death, subject to the vesting schedule in Section 2 of this article. The heir(s) must complete the legal procedures and provide relevant documentation in accordance with the inheritance laws of the optionee's country and the "Regulations Governing the Administration of Shareholder Services of Public Companies" before they can apply to exercise the stock options within the duration of the employee stock option certificate. Unvested employee stock option certificates will lose all rights and obligations on the day of the optionee's death.
(5) Disability due to Occupational Hazard: For individuals who are unable to continue employment due to physical disability from an occupational hazard, their granted employee stock option certificates may be exercised during the duration of the stock option certificate according to the vesting schedule in Section 2 of this article.
(6) Unpaid Leave or Continuous Leave of 30 Days or More (including weekends and holidays): For optionees approved for unpaid leave or continuous leave of 30 days or more, their vested employee stock option certificates must be exercised within one month from the start date of the leave (inclusive). If not exercised by the deadline, the right to exercise the options will be frozen and deferred until resumption of work. However, the duration of the stock option certificate will not be extended due to the leave period. For unvested stock option certificates, the rights will be restored upon returning to work, but the exercise schedule will be postponed by the duration of the leave, still limited by the original duration of the stock option certificate.
(7) Transfer: If an optionee is transferred to another company that is a domestic or foreign subsidiary in which the company directly or indirectly holds more than 50% of the voting shares, and it is approved by the Chairman, the rights and obligations of their granted employee stock option certificates will not be affected by the transfer.
(8) Other reasons not listed above, or when adjustments are necessary to comply with relevant laws and regulations during the execution of the above provisions, will be determined or adjusted individually by the Chairman based on the actual situation.
11. Other subscription conditions: Employee stock option certificates for which the subscription rights have been forfeited will be canceled by the company and will not be re-issued.
12. Method of fulfillment:
(1) By issuing new shares of the company. The company will deliver the new shares via book-entry transfer.
(2) If the new shares are delivered to employees of overseas subsidiaries, they will be delivered to an "Employee Collective Investment Account" opened by the company or the overseas subsidiary at a custodian institution. This account is limited to selling the shares obtained by employees through exercising their subscription rights and shares received through transfer or allotment, and cannot be used for other securities trading.
13. Adjustment of the exercise price:
(1) After the issuance of these stock option certificates, except for the issuance of common shares from the conversion or exercise of various securities with conversion or subscription rights, or the issuance of new shares as employee compensation, if there is a change in the company's common stock (i.e., cash capital increase (including private placement), capitalization of retained earnings, capitalization of capital reserves, company merger, issuance of new shares for acquiring another company's shares, stock split, and cash capital increase for participating in the issuance of global depositary receipts), the exercise price will be adjusted on the ex-rights date of the new share issuance according to the following formula and principles (calculated to the nearest NT dollar tenth, with rounding for lower denominations). If the number of issued common shares increases due to a change in par value, the adjustment will be made on the new share exchange record date, but if there is an actual payment process, the adjustment will be made on the date the payment is fully made. However, if the adjusted exercise price has an adverse tax impact on the optionee, the company shall not bear any liability towards the optionee.
Adjusted exercise price = Pre-adjustment exercise price × [Number of issued shares + (Payment per share × Number of new shares issued ÷ Market price per share)] ÷ (Number of issued shares + Number of new shares issued)
In case of a change in par value:
Adjusted exercise price = Pre-adjustment exercise price × (Number of common shares issued before par value change ÷ Number of common shares issued after par value change)
(a) "Number of issued shares" refers to the total number of issued common shares (including public offerings and private placements), excluding treasury shares repurchased by the company but not yet canceled or transferred.
(b) If it is a stock dividend (bonus issue) or stock split, the payment per share is zero.
(c) When the company merges with another company or issues new shares to acquire another company's shares, the payment per share for the new shares will be the average closing price of the company's common stock for the thirty business days preceding the record date of the merger or acquisition.
(d) If the adjusted exercise price is higher than the pre-adjustment exercise price, no adjustment will be made.
(e) If the adjusted exercise price is lower than the par value of the common stock, the par value will be the exercise price.
(f) The "market price per share" mentioned above shall be the simple arithmetic mean of the closing prices of the common stock for one, three, or five business days chosen before the ex-rights date, pricing date, or stock split record date.
(g) For any changes in shares not listed above, the Board of Directors is authorized to decide whether to make an adjustment.
(h) In case of circumstances requiring an adjustment to the exercise price, it will be adjusted according to the above formula and approved by the Chairman, without requiring another Board resolution.
(2) After the issuance of these stock option certificates, if the company distributes cash dividends on its common stock, the exercise price shall be adjusted on the ex-dividend record date according to the following formula (calculated to the nearest NT dollar tenth, with rounding for lower denominations):
Adjusted exercise price = Pre-adjustment exercise price × (1 - Ratio of cash dividend per common share to market price per share)
The "market price per share" mentioned above is the simple arithmetic mean of the company's common stock closing prices for one, three, or five business days chosen before the announcement date of the ex-dividend book closure.
In the event of simultaneous distribution of cash dividends and stock dividends (including capitalization of retained earnings and capital reserves), the exercise price will first be adjusted for the cash dividend amount, and then for the stock dividend amount.
(3) After the issuance of these stock option certificates, if there is a capital reduction that reduces the number of common shares for reasons other than the cancellation of treasury stock, the exercise price will be adjusted on the capital reduction record date according to the following formula (calculated to the nearest NT dollar tenth, with rounding for lower denominations). If the reduction in common shares is due to a change in par value, the adjustment will be made on the new share exchange record date.
For capital reduction to offset losses:
Adjusted exercise price = Pre-adjustment exercise price × (Number of issued common shares before reduction / Number of issued common shares after reduction)
For cash capital reduction:
Adjusted exercise price = [Pre-adjustment exercise price × (1 - Ratio of cash returned per share to the closing price on the last trading day before the new stock exchange)] × (Number of issued common shares before reduction / Number of issued common shares after reduction)
In case of a change in par value:
Adjusted exercise price = Pre-adjustment exercise price × (Number of common shares issued before par value change / Number of common shares issued after par value change)
14. Procedure for exercising stock options:
(1) Except during periods when share transfers are legally suspended, and from three business days before the ex-rights announcement date for stock dividends, the ex-dividend announcement date for cash dividends, or the ex-rights announcement date for cash capital increases, up to the record date for rights distribution, or from the capital reduction record date to the day before trading begins for the new shares after capital reduction, optionees may submit a subscription request to the company in accordance with these regulations.
(2) Upon receiving a subscription request, the company will notify the optionee to pay the subscription price to a designated bank within a specified period. Failure to make the payment by the deadline will be considered a voluntary forfeiture of the subscription rights for that request. The portion of the request for which payment was not made will be considered unsubscribed, and the optionee must submit a new subscription request. Once payment is made, the subscription cannot be canceled.
(3) After confirming receipt of the full payment, the company will instruct its stock transfer agent to record the number of subscribed shares and the employee's name in the company's shareholder register. Within five business days, the newly issued common stock will be delivered via book-entry transfer. These common shares will be listed for trading from the date of delivery to the optionee.
(4) The company shall, within fifteen days after the end of each quarter, announce the number of shares delivered due to the exercise of employee stock options in the previous quarter. At least once per quarter, it shall apply to the competent authority for company registration to register the change in capital stock for the subscribed shares.
(5) If the optionee is an employee with household registration in Mainland China, the procedures will be carried out by an agent or representative in the Taiwan area.
15. Rights and obligations after subscription:
(1) The rights and obligations of the common shares delivered by the company under these regulations are the same as those of the company's other common shares. Taxes arising from the shares subscribed by the optionee under these regulations and their trading shall be handled in accordance with the relevant tax regulations prescribed by the competent authorities.
(2) For employees of overseas subsidiaries holding common shares delivered by the company under these regulations, the exercise of their voting rights, unless otherwise stipulated by law, shall not constitute substantial control or influence over the company's management and shall be exercised by an agent or representative in the Taiwan area.
16. For securities with conversion, exchange, or subscription rights, the conversion record date: Not applicable.
17. Potential dilution of equity for securities with conversion, exchange, or subscription rights:
Dilution effect on the company's earnings per share from year 115 (2026) to 120 (2031): NT$0.43, NT$0.86, NT$0.71, NT$0.48, NT$0.28, NT$0.08.
18. Other important matters:
(1) Confidentiality: After being granted stock option certificates, optionees must adhere to confidentiality rules. Except as required by law or competent authorities, they may not disclose the content and quantity of the granted stock option certificates. In case of violation, the company has the right to reclaim and cancel part or all of "vested but unexercised stock option certificates" and "unvested stock option certificates."
(2) These regulations must be approved by the Board of Directors with at least two-thirds of the directors present and with the consent of more than one-half of the attending directors, and shall become effective after approval by the competent authority. The same applies to any amendments before the actual issuance. The Chairman is authorized to amend these regulations during the review period in response to requests from the competent authority, but such amendments must subsequently be ratified by the Board of Directors before issuance.
(3) Any matters not covered herein shall be handled in accordance with relevant laws and regulations.
19. Other matters to be specified: None.