REGULATION FOR THE ADMINISTRATION OF INVESTMENT PLANS INSIDE A SCIENCE PARK (Promulgated on June 9, 2003 by National Science Council,

the Executive Yuan per Order Tai-Hui-Kuei-Tze No.0920028130-3. Amended on February 9, 2006 and April 10, 2009.) Article 1 The Rules are adopted pursuant to Article 10, Paragraph 4 of the Act for Establishment and Administration of Science Parks, hereinafter referred to as the Act. Article 2 Businesses approved for making investment inside the Science Park shall, within two months of approval, post a guarantee bond of 3% 0 of the total approved capital in cash or government bond with the Science Park Administration (hereinafter referred to as the Administration). In addition, the business is required to proceed with the Administration for company registration or branch office registration within six months of the approval. Failure to comply with the foregoing requirements by the deadline shall result in revocation of the investment by the Administration with the originally posted investment guarantee bond refunded and ordered withdrawal from the Park for companies without renting land or factory. However, with proper cause, application for extension may be granted. Any business with the Park Enterprise Registration License issued by the Administration for less than a year that needs further expansion due to business needs shall post a bond of 3% 0 of the total approved capital increase as does the original investment, except companies reviewed as investment completion by the Science Park Administration. Article 3 Once the investment plan is completed, the concerned business may apply with the Administration for refund of the investment guarantee bond. Upon receipt of the application, the Administration shall organize an evaluation team to make an on-site evaluation that includes: 1. Status of paid-in capital: The amount of paid-in capital
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required to complete the investment; and if the status of operation, profit/ loss and the debt ratio are satisfactory. Production equipment: Whether the equipment are properly installed and meet the investment plan and if the test run has been successful. Product items: Whether product items meet the original approved range and if the originally planned major product has been developed and sold in the marketplace. Hi-tech personnel: The high-tech personnel ratio should meet the original investment plan. R&D: Whether the R&D plan has been fully implemented. Safety, hygiene, and working condition: That must meet the requirements as prescribed in related laws and acts concerning safety, hygiene and working condition. Environmental protection: Generated waste water, waste gas, waste and noise vibration, use of toxic chemical substances and recovery rate of water used shall all meet with the established requirements and the environmental impact assessment as well. All other matters subject to evaluation according to the characteristics of the business as may be determined by the Administration.

Article 4 The deadline for completion of the investment plan inside the park shall, as of the very next day following the company registration, be three years. Prior to the expiry, application for extension may be filed on condition that it shall not exceed six years, being the maximum. With proper cause, however, the Administration may notify the concerned business for correction in a given time limit and, subject to approval by the Administration, another three-year extension may be granted to the extent that the total time of completion shall not exceed nine years. Park business that have completed the company registration formalities for over three years shall, as of the very next day following the company registration, complete the investment plan within three years following implementation of these Regulations. In case, the investment plan has not been completed by then, the provisions mentioned above shall govern.

Article 5 Once the investment plan is being carried out, operation of Park business shall operate by the plan; any extension or change shall be subject to approval by the Administration. The Administration may on a regular basis send its inspectors to check the park business whether operation has been carried out by the original investment plan. Any non-compliance found to exist shall be notified for correction within a given time limit by the Administration. Within two months from the very next day upon receipt of the notice for improvement, the park business shall file the improvement plan with the Administration, which in turn may retain experts specialized in technology, finance, and marketing to review the improvement plan. In case the review results deem said improvement plan infeasible, the Administration may set a one-month deadline requiring the concerned park business to revise said improvement plan. Should the revised improvement plan fail to pass the rereview that deems it again infeasible, or the concerned park business fail to file the revised improvement plan by the deadline, or fail to pragmatically execute according to the improvement plan, the Administration may bring up the case to the Park Supervisory Committee of the Science Park for permission to void the approval for investment. Article 6 Once the investment becomes null and void, the Park business shall, within two months, move from the Park and, according to the Company Act, proceed with the formalities for relocation of company registration or cancellation of company registration with the Administration. The machinery, equipment, raw materials, materials, fuel, and semi-finished products originally imported or purchased duty-free from businesses outside the bonded area shall, in accordance with Article 20 of the Act, should be subject to payment for import duty, commodity tax and sales tax at the moment when they are moved from the Park to an area outside the bonded area. Article 7 This Regulation shall become effective as of the date of its promulgation. Article 2 revised on April 10, 2009 became effective since April 13, 2009.
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(In case of disputes over the interpretation of this Act, the original Chinese text shall prevail.)