Act for the Development of Biotech and Pharmaceutical Industry Article 16

For any top executive or technology investor who chooses to exclude the shares from their taxable income for the year in which such shares are acquired pursuant to Paragraph 1, Article 9, or Paragraph 5, Article 10 hereof, the Biotech and Pharmaceutical Company shall, prior to January 31 following the year in which such shares are transferred (including a book-entry transfer), submit a declaration detailing the transfer of such shares to the competent taxation authority in the prescribed format. Failure to submit the report by the deadline or the submission of an inaccurate declaration will result in the taxation authority ordering a supplemental report within a specified period and imposing a fine on the representative of the Biotech and Pharmaceutical Company a fine equivalent to ten percent (10%) of the unreported or underreported income; provided that the fine does not exceed NT$500,000 and is no less than NT$50,000. The fine shall be reduced by fifty percent (50%) for the delayed submission if the Biotech and Pharmaceutical Company submits the declaration before being ordered to do so by the taxation authority.Where a Biotech and Pharmaceutical Company fails to submit a supplemental declaration by the deadline as ordered by the taxation authority, the representative of the company shall be subject to a fine equivalent to fifteen percent (15%) of the unreported or underreported income; provided that the fine does not exceed NT$1 million and is no less than NT$100,000.