A. Under Aleees’s Articles of Incorporation, we may distribute the profits according to the distribution plan approved by the Board of Directors with the sanction of an Ordinary Resolution. The Board shall develop the following manner profit distribution plan:
(a) Profits will first be used to offset the Company’s losses of the current year or prior years;
(b) 10% of the remaining profits may then be set aside as legal reserve until the legal reserve amounts to the authorized capital;
(c) A portion of the remaining profits may then be set aside as a special reserve, if so required by Applicable Public Company Rules or government authorities; and
(d) Of the remainder, after deductions have been made in accordance with (a) to (c) above, plus any sum outstanding to the credit of any of the Company’s reserve accounts (including share premium account and capital redemption reserve) or otherwise available for distribution in accordance with the applicable law plus undistributed retained earnings of the previous years, in part or in whole, (collectively, the “Remaining Profits”), shall be distributed in the following manner:
(i) up to 1% of the Remaining Profits as bonuses to the Directors; and
(ii) 1% to 10% of the Remaining Profits as bonus of the employees of the Company and its Subsidiaries.
The Board of Directors shall specify the percentages of the bonuses payable to the Directors and employees in the distribution plan which may subsequently be subject to the amendment by the Shareholders by way of resolutions. Thereafter, having considered the financial, business and operational factors, including the Company being in the growing stage during the business life cycle and the future expansion projects, any Remaining Profits may be distributed as dividends in accordance with the dividend policy aiming to strike a balance between different forms of dividends and the shareholders interests by cash or by applying such sum in paying up in full unissued Shares for allotment and distribution credited as fully paid-up pro rate to the Members or combination of both, or bonuses which the Board of Directors is authorized to determine according to the Companies Law and Applicable Public Company Rules; provided, that the amount to be distributed as dividends shall not be less than 10% of the Remaining Profits and provided further that the cash dividends shall be no less than 10% of such Remaining Profits to be distributed.