KY Group Futures Announces Board Approval for Issuance of Secured Subordinated Corporate Bonds

1. Board Resolution Date: 115/06/16

2. Name (e.g., XX Company's Xth Secured/Unsecured Corporate Bond): KY Group Futures Co., Ltd. Secured Subordinated Ordinary Corporate Bonds

3. Whether Aggregate Filing for Corporate Bond Issuance (Yes/No): No

4. Total Issuance Amount: Up to NT$3 billion, to be issued in one or multiple tranches depending on market conditions

5. Face Value per Bond: NT$1 million

6. Issue Price: Tentatively at par value

7. Issue Tenor: Not exceeding ten years in principle

8. Issue Interest Rate: If fixed-rate, coupon rate not exceeding 4% per annum; if floating-rate, initial rate not exceeding 4% per annum, with subsequent adjustments based on a floating-rate formula

9. Type, Name, Amount, and Terms of Collateral: Bank Guarantee

10. Use and Allocation Plan for Raised Proceeds: To strengthen capital and financial structure and improve the adjusted net capital ratio

11. Underwriting Method: Authorized to be determined by the Chairman or designated representative based on actual circumstances

12. Bond Trustee: Authorized to be determined by the Chairman or designated representative based on actual circumstances

13. Underwriting or Distribution Institution: Authorized to be determined by the Chairman or designated representative based on actual circumstances

14. Issuance Guarantor: Authorized to be determined by the Chairman or designated representative based on actual circumstances

15. Agent for Principal and Interest Payment: Authorized to be determined by the Chairman or designated representative based on actual circumstances

16. Certification Institution: Not applicable

17. Conversion Terms for Convertible Bonds: Not applicable

18. Put Option Terms: Not applicable

19. Call Option Terms: Authorized to be determined by the Chairman or designated representative based on actual circumstances

20. Share Conversion Benchmark Date (if applicable): Not applicable

21. Potential Equity Dilution (if applicable): Not applicable

22. Justification and Necessity of Fundraising Following Cash Capital Reduction: Not applicable

23. Other Matters to be Disclosed: After the issuance becomes effective upon filing with the Financial Supervisory Commission or its authorized agency, the Chairman or designated representative is authorized to apply for over-the-counter trading at the Taiwan OTC Exchange, provided all legal requirements are met.