Enforcement Rule of the Privatization of Government-Owned Enterprises Act Article 23

The term "specific amount of shares set aside" as referred to in Article 12 of the Act contains the following particulars and these shares shall in total not exceed 35% of the total shares issued by the respective enterprises.1. The amount for subscription: To be determined by dividing the total amount equivalent to 24 times the aggregate average salary amount paid by the enterprise concerned by the initial subscription price.2. The amount for additional subscription: Upon the sale of shares at the time the government-owned enterprise concerned is privatized, the competent authority in charge of the enterprises may, within the amount for subscription, offer the shares to the employees of the enterprise for additional subscription.3. Reserved shares in favor of long-term shareholders: The number of shares in the first sale of government-owned shares as reserved for subscription by employees, who hold the shares preemptively subscribed by them for longer than the period prescribed by the competent authority in charge of the enterprises, according to the ratio specified by the competent authority in charge of the enterprises.The term "aggregate average salary amount" referred to in subparagraph 1 of the preceding paragraph shall mean the average of the monthly total amount of salaries paid to all employees based on the salary rate provided for in Article 14 hereof for the period of twelve months before the month in which the government-owned shares of the enterprise concerned are sold for the first time (exclusive of the month of the sale) after the implementation of the Act as amended on November 29, 2000. The term "initial selling price" shall mean the selling price of the government-owned shares sold for the first time by each enterprise concerned, or the lowest trading price if there are several trading prices, after the implementation of the Act as amended on November 29, 2000. Each enterprise concerned shall take into consideration the service seniority, the rank and the performance of service or other factors of the employees and separately specify the number of shares that each employee may subscribe or additionally subscribe.