1. Composition

The company established Audit Committee on 4th July, 2011. The Audit Committee is composed by entirely of independent directors, at least one of the independent directors should have accounting or financial expertise.

2. Responsibilities

Responsibilities：The purpose of the Audit Committee is assist the Board of Directors to improve corporate governance performance, which duties include:

• Establish or amend the internal control system according to Article 14-1 of the Securities and Exchange Act.
• Assessment of the effectiveness of the internal control system.
• Establishment or revision of procedures for acquisition or disposal of assets, derivative transactions, lending of funds to others, endorsement of guarantees and material financial or business transactions, in accordance with Article 36-1 of the Securities and Exchange Act.
• Matters involving a director's personal interests.
• Significant asset or derivatives trading.
• Significant loaning, endorsing, or providing guarantees.
• Offering, issuing, or securities private placement of securities.
• Appointment, dismissal or remuneration of CPA.
• Appointment and dismissal of the chief financial officer, accounting officer, or internal audit officer.
• Annual financial reports signed or seal by the chairman, management, and chief accounting officer, as well as the second-quarter financial reports audited by CPA.
• Other significant matters as specified by the company or competent authority.