Compensation and Allowances for Expatriates

1. Employees assigned to work overseas for a period of more than 3 months are
considered as expatriates whose compensation shall be arranged according to the
following formula:

1) Expatriate Allowance for overseas expatriates

1-1. To Grade A: U.S.A., Canada, Europe and Japan and other similar living standard
countries. (GDP-per capita>US$ 25,000)
35 - 40% of the Base salary

1-2. To Grade B: Hong Kong, Singapore, South Korea, Taiwan, Australia and other
similar living standard countries. (US$ 10,000<GDP-per capita<US$ 24,999)
25 - 30% of the Base salary

1-3. To Grade C: China, Malaysia, Philippines, Thailand and other similar living
standard countries (US$ 4,500<GDP-per capita<US$ 9,999)
20 - 25% of the Base salary

1-4. To Grade D: Indonesia, Vietnam and other similar living standard countries
(GDP-per capita<US$ 4,499)
15 - 20% of the Base salary

Note: Above GDP-per capita based on Purchasing Power Parity

2) Housing Allowance for overseas expatriates or works in a different city

2-1. A company apartment will be provided at the expense of the company; or

2-2. A housing allowance: 1/3 equivalency to the expatriate’s total amount of salary
plus expatriate allowance for the P&L head and 1/4 equivalency to the expatriate’s
total amount of salary plus expatriate allowance for others, as follows:
For the P&L: 1/3 x (expatriate’s total amount of salary + expatriate allowance)
For Others: 1/4 x (expatriate’s total amount of salary + expatriate allowance)

2-3. This allowance will be fixed and granted for a maximum of 8 years and will
automatically expire thereafter.

DIMERCO Manual 1/2 Version 3.0

Chapter 3-Section 15 March, 2006
 3) Transportation Allowance for overseas expatriates or work in a different city

3-1. A company car will be provided based on company policy at the expense of the
company; or

3-2. A transportation allowance: 1/4 equivalency to the expatriate’s total amount of

salary plus expatriate allowance for the P&L head and no more than 1/5
equivalency to the expatriate’s total amount of salary plus expatriate allowance for
others, as follows:
For the P&L: 1/ 4 x (expatriate’s total amount of salary + expatriate allowance)
For others: 1/ 5 x (expatriate’s total amount of salary + expatriate allowance)

3-3. This allowance will be fixed until the assignment is completed.

4) Insurance

4-1. Health Insurance including spouse and eligible dependent(s) will be provided as
per the package local company or the country of origin up to the choice of the
expatiate.

4-2. Business Travel Accident Insurance will be arranged per the company's global
package.

5) Working Permit

The company will apply a working permit at the expense of the company for the
expatriate to have legal working status until the assignment is completed.

6) Moving Expenses

The expatriate’s household goods will be shipped in primary by surface transport to the
newly assigned location at the expense of the company.

7) Family Travel

Expatriate’s spouse and eligible dependent(s) could be offered once a year the round
trip ticket by Economy class from home city to the newly assigned location or from the
newly assigned location to home city at the expense of the company.

2. When an expatriate returns to his country of origin, his compensation shall be

proportionally adjusted as per the formula stated above and all his expatriate,
housing, and transportation allowances shall be suspended thereafter.

DIMERCO Manual 2/2 Version 3.0

Chapter 3-Section 15 March, 2006