Act for the Development of Biotech and Pharmaceutical Industry Article 10

Biotech and Pharmaceutical Companies may issue stock options to their top executives and technology investors referred to in the preceding article, provided that the proposal on the issuance of such stock options has been approved by (i) a majority vote at a board meeting attended by at least two-thirds (2/3) of all the directors; and (ii) the Competent Authority.Holders of the stock options as described in the preceding paragraph may subscribe for a specific number of shares at the stipulated price, which may be lower than the par value of the share, as prescribed under Article 140 of the Company Act.Article 267 of the Company Act shall not apply in the event that a Biotech and Pharmaceutical Company issues new shares pursuant to Paragraph 1 of the preceding article.The stock options obtained by top executives or technology investors under Paragraph 1 of this article shall not be sold or gifted. The same restriction applies to those who inherited such stock options.The income tax payable on the shares acquired by the top executives or technology investors via the exercise of their stock options, as well as the Biotech and Pharmaceutical Company's submission for certification and recordation with the Competent Authority, shall be governed by Paragraphs 1 to 3, 5 to 7, and 8 of the preceding article. The procedure for declaring deferral of the income tax payable on the shares acquired through the exercise of stock options, the required documents, and other relevant matters shall be prescribed by the Ministry of Finance.The requirements, required documents, and other relevant matters for applying for the Competent Authority’s approval to issue stock options pursuant to Paragraph 1, shall be prescribed by the Competent Authority.