Regulations Governing the Offering and Issuance of Securities by Securities Issuers Article 42

The face value of a corporate bond with equity warrants is limited to NT$100,000 or multiples thereof.In cases where it is necessary to issue new shares in connection with exercise of warrants, the total number of new shares multiplied by the exercise price per share may not exceed the total issued amount, in terms of face value, of the subject corporate bonds.The exercise price for the corporate bonds with equity warrants issued by an emerging stock company may not be lower than the weighted average trade price for the company's common shares during the period preceding the price determination date, nor may it be lower than the company's net value per share as reported in the financial report audited and attested or reviewed by CPAs for the most recent fiscal period, and a recommending securities firm shall be retained to give an opinion on the reasonableness of the issue price.The exercise price for corporate bonds with warrants issued by a company whose shares are neither listed on an exchange nor traded on an OTC market may not be lower than its net value per share as reported in the financial report audited and attested or reviewed by CPAs for the most recent fiscal period, and a CPA shall be retained to give an opinion on the reasonableness of the issue price.