HTC Investors

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Board of Directors' resolution to purchase the real estate from Syuda Construction Company's, a related party
1.Name and nature of the subject matter (e.g.land located at Sublot XX, Lot XX, North District, Taichung City):Lot No. 227, Dahu Subsection, Dahu Section, Yingge Township, Taipei County. The number of the estimated lots is 24.
 
2.Date of the occurrence of the event:2008/12/31
 
3.Transaction volume (e.g.XX square meters, equivalent to XX p'ing), unit price, total transaction price:
Total area of Land : 39,030.00 M2 (approximately 11,806.575 Pings), equivalent to a total buildable floor area of approximately 76499m2 (approximately 20000 ping).
Transaction price: At a unit price of NT$67,000 per ping.
Total transaction price:NTD 791,910,000
 
4.Counterparty to the trade and its relationship with the company (if the trading counterpart is a natural person and is not an actual related party of the Company, the name of the trading counterpart is not required to be disclosed):Counterparty to the trade:Syuda Construction Company Syuda its relationship with the HTC:The only juristic shareholder is Hong Mao Investment Company. The chairwoman of Hong Mao Investment Company and the chairwoman of the Company are both Ms. Cher Wang.
 
5.Where the counterpart to the trade is an actual related party, a public announcement shall also include the reason for choosing the related party as trading counterpart and the identity of the previous owner (including its relationship with the company and the trading counterpart), price of transfer and the date of acquisition:
Reason: HTC’s Taoyuan headquarters have lacked employee dormitories, restaurants, parking lots, and entertainment spaces, which necessitated the purchase of peripheral buildings and land.  A large area for industrial use near the Taoyuan headquarters is rare. Therefore, after conducting the price appraisal by an appraisement company and found the price is reasonable, HTC decided to purchase the real estate to satisfy the company’s demand for office spaces.
After having inquired about Shi Da Construction’s intention to sell the said land, the parties proceeded with price negotiation for the sale and purchase of the said real property.
Identity of the previous owner: Participated in the court auction (property owners:Hualon Corporation)
Price of transfer: NTD 765,010,000(court auction)
Date of acquisition :2008/01/17
 
6.Where a person who owned the property within the past five years has been an actual related person of the company, a public announcement shall also include the dates and prices of acquisition and disposal by the related person and the person’s relationship to the company at those times:N/A
 
7.Anticipated loss or profit from the disposal (not applicable in cases of acquisition of assets) (where originally deferred, the status or recognition shall be stated and explained):N/A
 
8.Terms of delivery or payment (including payment period and monetary amount):Both sides agreed that the transfer ownership will occur before the end of January, 2009. Along with the transfer, a payment of NTD 791,910,000 will be made at the same time.
 
9.The manner of deciding on this transaction (such as tender invitation, price comparison, or price negotiation), the reference basis for the decision on price and the decision-making department:This transaction price is calculated in accordance with Syuda Construction Company’s previous transaction price plus required capital interest and costs required by law. Price was determined after consulting with the appraisal reports issued by Euro-Asia Real Estate Appraisers Firm and Sinyi Real Estate Appraisers Firm, respectively. The above transaction price was negotiated between Syuda Construction Company and HTC Corporation and was approved by the HTC Corporation’s Board of Directors. Additionally, Sun Rise CPAS’Firm has conducted a secondary review of the transaction price and issue a confirmation opinion.
 
10.Name of the professional appraisal institution and its appraisal amount:
Euro-Asia Real Estate Appraisers Firm appraised the property at NTD 813,784,646
Sinyi Real Estate Appraisers Firm appraised the property at NTD 821,956,619
 
11.Reason for any significant discrepancy with the transaction amount, and opinion of the certifying CPA:N/A
 
12.Is the appraisal report price a limited price or specific price?: N/A
 
13.Has an appraisal report not yet been obtained?: N/A
 
14.Reason an appraisal report has not yet been obtained: N/A
 
15.Broker and broker's fee: N/A
 
16.Concrete purpose or use of the acquisition or disposition:HTC’s Taoyuan headquarters have lacked employee dormitories, restaurants, parking lots, and entertainment spaces, which necessitated the purchase of peripheral buildings and land.
 
17.Do the directors have any objection to the present transaction?:N/A
 
18.Any other matters that need to be specified:The aforementioned appraisal value of NTD 817,870,633 was calculated using11,806.575 pings as the appraisal basis used by Euro-Asia Real Estate Appraisers Firm and Sinyi Real Estate Appraisers Firm. The appraisal values were determined to be NTD 813,784,646 and NTD 821,956,619, respectively; with the mean appraisal value taken.