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<SEC-DOCUMENT>0000950135-08-007823.txt : 20081208
<SEC-HEADER>0000950135-08-007823.hdr.sgml : 20081208
<ACCEPTANCE-DATETIME>20081205193915
ACCESSION NUMBER:		0000950135-08-007823
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20090112
FILED AS OF DATE:		20081208
DATE AS OF CHANGE:		20081205
EFFECTIVENESS DATE:		20081208

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TAIWAN FUND INC
		CENTRAL INDEX KEY:			0000804123
		IRS NUMBER:				042942862
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-04893
		FILM NUMBER:		081234348

	BUSINESS ADDRESS:	
		STREET 1:		225 FRANKLIN STREET
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02110
		BUSINESS PHONE:		6176622789

	MAIL ADDRESS:	
		STREET 1:		225 FRANKLIN STREET
		STREET 2:		PO BOX 9110
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02110
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>b72929a2def14a.htm
<DESCRIPTION>THE TAIWAN FUND, INC.
<TEXT>
<HTML>
<HEAD>
<TITLE>def14a</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>SCHEDULE 14A</B></DIV>
<DIV align="center" style="font-size: 12pt; margin-top: 0pt"><b>(Rule&nbsp;14a-101)</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>INFORMATION REQUIRED IN PROXY STATEMENT<BR>
SCHEDULE 14A INFORMATION<BR>
Proxy Statement Pursuant to Section&nbsp;14(a) of the Securities<BR>
Exchange Act of 1934 (Amendment No. )</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Filed by the Registrant &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#254;</FONT><BR>
Filed by a party other than the Registrant&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT>

</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box:

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom" style="font-size:1pt">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-family: Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preliminary Proxy Statement</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-family: Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Confidential, For Use of the Commission Only (as permitted by Rule&nbsp;14a-6(e)(2))</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-family: Wingdings">&#254;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Definitive Proxy Statement</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-family: Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Definitive Additional Materials</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-family: Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Soliciting Material Pursuant to &#167;240.14a-12</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>THE TAIWAN FUND, INC.<BR>
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></B>
</DIV>
<DIV align="center" style="font-size: 3pt">&nbsp;</DIV>
<DIV align="center" style="font-size: 10pt">(Name of Registrant as
Specified in Its Charter)<br><br style="font-size:3pt">
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt">(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Payment of Filing Fee (Check the appropriate box):

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-family: Wingdings">&#254;</FONT>
<FONT style="font-family: Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No fee required.
<BR>
Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(1) and 0-11.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">(1)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title of each class of securities to which transaction applies:</TD>
</TR>
<TR style="font-size: 3pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">(2)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Aggregate number of securities to which transaction applies:</TD>
</TR>
<TR style="font-size: 3pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">(3)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule&nbsp;0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):</TD>
</TR>
<TR style="font-size: 3pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">(4)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Proposed maximum aggregate value of transaction:</TD>
</TR>
<TR style="font-size: 3pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">(5)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Total fee paid:</TD>
</TR>
<TR style="font-size: 3pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-family: Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fee paid previously with preliminary materials.</TD>
</TR>
<tr>
<TD style="font-size:6pt">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-family: Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Check box if any part of the fee is offset as provided by Exchange
Act Rule&nbsp;0-11(a)(2) and identify the filing for which the
offsetting fee was paid previously. Identify the previous filing
by registration statement number, or the Form or Schedule and the
date of its filing.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">(1)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amount Previously Paid:</TD>
</TR>
<TR style="font-size: 3pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">(2)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form, Schedule or Registration Statement No.:</TD>
</TR>
<TR style="font-size: 3pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">(3)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Filing Party:</TD>
</TR>
<TR style="font-size: 3pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">(4)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date Filed:</TD>
</TR>
<TR style="font-size: 3pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    TAIWAN FUND, INC.</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="white-space: nowrap">c/o&#160;State</FONT>
    Street Bank and Trust&#160;Company, P.O.&#160;Box&#160;5049,<BR>
    2 Avenue de Lafayette, Boston, Massachusetts
    <FONT style="white-space: nowrap">02206-5049</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B> For questions about the Proxy Statement, please call
    <FONT style="white-space: nowrap">(800)&#160;636-9242</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">December&#160;5,
    2008
    </FONT>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dear Stockholder:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Enclosed you will find a Notice and Proxy Statement for the
    Annual Meeting of Stockholders of The Taiwan Fund, Inc. (the
    &#147;Fund&#148;) to be held on Monday, January&#160;12, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The matters on which you, as a stockholder of the Fund, are
    being asked to vote are: (1)&#160;the election of the
    Fund&#146;s directors and (2)&#160;the approval of a new form of
    Discretionary Investment Management Contract (the &#147;New
    Management Agreement&#148;) between the Fund and HSBC Global
    Asset Management (Taiwan) Limited (&#147;HSBC Taiwan&#148; or
    the &#147;Adviser&#148;), the Fund&#146;s current Adviser.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After reviewing each matter carefully, the Board of Directors
    recommends that you vote FOR each of the proposals.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    YOUR VOTE IS IMPORTANT, REGARDLESS OF THE NUMBER OF SHARES YOU
    OWN. PLEASE TAKE A FEW MINUTES TO REVIEW THIS MATERIAL, CAST
    YOUR VOTE ON THE ENCLOSED PROXY CARD AND RETURN IT IN THE
    ENCLOSED POSTAGE-PAID ENVELOPE. YOUR PROMPT RESPONSE IS NEEDED
    TO AVOID
    <FONT style="white-space: nowrap">FOLLOW-UP</FONT>
    MAILINGS WHICH WOULD INCREASE COSTS PAID BY ALL STOCKHOLDERS.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Thank you very much for your assistance.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 70%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sincerely,
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 70%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="display:inline; text-align:left;"><FONT style="font-variant: SMALL-CAPS">Andrew
    Chen</FONT></DIV><FONT style="font-variant: SMALL-CAPS">
    </FONT>
</DIV>

<DIV align="left" style="margin-left: 70%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>President</I>
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    TAIWAN FUND, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-size: 12pt; font-family: 'Times New Roman', Times">Notice
    of Annual Meeting of Stockholders<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-size: 10pt; font-family: 'Times New Roman', Times">January&#160;12,
    2009</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the Stockholders of THE TAIWAN FUND, INC.:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    NOTICE IS HEREBY GIVEN that the Annual Meeting of Stockholders
    of The Taiwan Fund, Inc. (the &#147;Fund&#148;) will be held at
    the offices of HSBC Global Asset Management (Hong Kong) Limited,
    HSBC Main Building, Level&#160;22, 1 Queen&#146;s Road, Central,
    Hong Kong, on Monday, January&#160;12, 2009 at 1:00&#160;p.m.,
    local time, for the following purposes:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="5%"></TD>
    <TD width="84%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (1)&#160;
</TD>
    <TD align="left">
    To elect eight directors to serve for the ensuing year.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (2)&#160;
</TD>
    <TD align="left">
    To approve a new form of Discretionary Investment Management
    Contract (the &#147;New Management Agreement&#148;) between the
    Fund and HSBC Global Asset Management (Taiwan) Limited
    (&#147;HSBC Taiwan&#148; or the &#147;Adviser&#148;), the
    Fund&#146;s current Adviser.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (3)&#160;
</TD>
    <TD align="left">
    To transact such other business as may properly come before the
    meeting or any adjournments thereof.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors has fixed the close of business on
    December&#160;1, 2008 as the record date for the determination
    of stockholders entitled to notice of and to vote at the meeting
    or any adjournments thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You are cordially invited to attend the meeting. Stockholders
    who do not expect to attend the meeting in person are requested
    to complete, date and sign the enclosed form of proxy and return
    it promptly in the envelope provided for that purpose. The
    enclosed proxy is being solicited by the Board of Directors of
    the Fund.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By order of the Board of Directors
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="display:inline; text-align:left;"><FONT style="font-variant: SMALL-CAPS">Adelina
    Louie</FONT></DIV><FONT style="font-variant: SMALL-CAPS">
    </FONT>
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Secretary</I>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    December&#160;5, 2008
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROXY
    STATEMENT<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    TAIWAN FUND, INC.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>INTRODUCTION</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This Proxy Statement is furnished in connection with the
    solicitation of proxies by the Board of Directors of THE TAIWAN
    FUND, INC. (the &#147;Fund&#148;) for use at the Annual Meeting
    of Stockholders, to be held at the offices of HSBC Global Asset
    Management (Hong Kong) Limited, HSBC Main Building,
    Level&#160;22, 1 Queen&#146;s Road, Central, Hong Kong, on
    Monday, January&#160;12, 2009 at 1:00&#160;p.m., local time, and
    at any adjournments thereof. The Fund&#146;s investment adviser
    is HSBC Global Asset Management (Taiwan) Limited (the
    &#147;Adviser&#148;), 99 Tun Hwa South Road, Section&#160;2,
    Taipei, Taiwan, ROC.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The approximate date on which this Proxy Statement and the form
    of proxy will be mailed to stockholders is on or about
    December&#160;5, 2008. Any stockholder giving a proxy has the
    power to revoke it by mail (addressed to the Secretary of the
    Fund
    <FONT style="white-space: nowrap">c/o&#160;the</FONT>
    Fund&#146;s administrator, State Street Bank and
    Trust&#160;Company, at the Fund&#146;s address at
    P.O.&#160;Box&#160;5049, 2 Avenue de Lafayette, Boston,
    Massachusetts
    <FONT style="white-space: nowrap">02206-5049)</FONT>
    or in person at the meeting, by executing a superseding proxy or
    by submitting a notice of revocation to the Fund. All properly
    executed proxies received in time for the meeting will be voted
    as specified in the proxy or, if no specification is made, for
    the election of directors and for the approval of the New
    Management Agreement described in this Proxy Statement.
    Abstentions are included in the determination of the number of
    shares present at the meeting for purposes of determining the
    presence of a quorum.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors has fixed the close of business on
    December&#160;1, 2008 as the record date for the determination
    of stockholders entitled to notice of and to vote at the meeting
    and at any adjournment thereof. Stockholders on the record date
    will be entitled to one vote for each share held, with no shares
    having cumulative voting rights. As of the record date, the Fund
    had outstanding 18,574,946&#160;shares of common stock.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Management of the Fund knows of no business other than those
    mentioned in Proposals&#160;1 and 2 of the Notice of Meeting
    which will be presented for consideration at the meeting. If any
    other matter is properly presented, it is the intention of the
    persons named in the enclosed proxy to vote in accordance with
    their best judgment.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund will furnish, without charge, a copy of its annual
    report for its fiscal year ended August&#160;31, 2008 to any
    stockholder requesting such report. Requests for the annual
    report should be made in writing to The Taiwan Fund, Inc.,
    <FONT style="white-space: nowrap">c/o&#160;State</FONT>
    Street Bank and Trust&#160;Company, P.O.&#160;Box&#160;5049, 2
    Avenue de Lafayette, Boston, Massachusetts
    <FONT style="white-space: nowrap">02206-5049,</FONT>
    Attention: William C. Cox, or by calling
    <FONT style="white-space: nowrap">(800)&#160;636-9242.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>


<!-- link1 "PROPOSAL 1 -- ELECTION OF DIRECTORS" -->


<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;1&#160;&#151;
    ELECTION OF DIRECTORS</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Persons named in the accompanying form of proxy intend in the
    absence of contrary instruction to vote all proxies for the
    election of the eight nominees listed below as directors of the
    Fund to serve for the next year, or until their successors are
    elected and qualified. Each of the nominees for director has
    consented to be named in this Proxy Statement and to serve as a
    director of the Fund if elected. The Board of Directors of the
    Fund has no reason to believe that any of the nominees named
    below will become unavailable for election as a director, but if
    that should occur before the Annual Meeting for the Fund, the
    persons named as proxies in the proxy cards will vote for such
    persons as the Board of Directors of the Fund may recommend.
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Information
    Concerning Nominees and Officers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth certain information concerning
    each of the nominees as a director, each of whom is currently
    serving as a director of the Fund, and officers of the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="7%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="22%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="19%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Principal <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Occupation(s)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Other <BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>or Employment<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Directorships<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Name, Address, and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Position(s) Held with<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Director<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>During Past Five<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>in Publicly-Held<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Age</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fund</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Since</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Companies or Funds</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <B>Independent Current Directors</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    M.&#160;Christopher Canavan,&#160;Jr.&#160;(69)&#160;&#134;#<BR>
    73 Brook Street<BR>
    Wellesley, MA 02482
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2003
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Independent Consultant<BR>
    (2000-present).
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Harvey Chang (57) &#134;#<BR>
    21/F,
    <FONT style="white-space: nowrap">No.&#160;172-1,</FONT>
    Section&#160;2,<BR>
    Ji-Lung Road <BR>
    Taipei, Taiwan, ROC
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chairman of the Board (since July 2005) and Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2005
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    President and Chief Executive<BR>
    Officer, Taiwan Mobile Company Limited (September 2003-present).
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Director, Taiwan Mobile Co. Ltd.; Director, CX Technology Corp.;
    Director, Lite-On Technology Corp.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 7pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Michael F. Holland (64) &#134;# <BR>
    375 Park Avenue,<BR>
    New York, New York  10152
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chairman, Holland &#038;<BR>
    Company LLC <BR>
    (1995-present).
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Director, The Holland Balanced Fund, Inc., The China Fund, Inc.,
    Scottish Widows Investment Partnership Trust and Reaves Utility
    Income Fund; Trustee, State Street Master Funds and State Street
    Institutional Investment Trust.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 7pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Benny T. Hu (59) &#134;#<BR>
    6/F, 76 Tun Hwa<BR>
    South Road, Section&#160;2,<BR>
    Taipei, Taiwan, ROC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    1993
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chairman, CDIB Bioscience<BR>
    Venture Management, Inc.<BR>
    (August 2001-present);<BR>
    Chairman, China Development<BR>
    Industrial Bank (June 2003-May<BR>
    2004); Chairman, China<BR>
    Development Asset<BR>
    Management Corp. (June 2001-<BR>
    May 2004); Ambassador-at-<BR>
    Large, Republic of China (May<BR>
    2001-May 2006).
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Director, Yangming Marine Transport Corp.; Supervisor, Taiwan
    High Speed Rail Corp.; Director, T-Join Transportation Co.,
    Ltd.; Chairman, Whitesun International.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 7pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Anthony Kai Yiu Lo (60) &#134;#<BR>
    2/F, Hong Villa<BR>
    12 Bowen Street,<BR>
    Hong Kong
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2003
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chairman and Co-CEO,<BR>
    Shanghai Century Acquisition<BR>
    Inc. (January 2006-present);<BR>
    Founder and Managing Director, Prime Credit Ltd. (2001-January
    2006).
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="7%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="22%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="19%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Principal <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Occupation(s)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Other <BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>or Employment<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Directorships<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Name, Address, and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Position(s) Held with<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Director<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>During Past Five<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>in Publicly-Held<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Age</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fund</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Since</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Companies or Funds</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Christina Liu (51) &#134;#<BR>
    13 fl. No.&#160;200<BR>
    Keelung Road, Section&#160;1,<BR>
    Taipei, Taiwan, ROC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2005
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Economic Advisor, Daiwa Institute of Research (DIR)
    (2008-present); Legislator (People First Party, Two Consecutive
    Terms, First Chair National Legislative Representative),
    Legislative Yuan of the Republic of China (2002-2007); Finance
    Committee Chair,<BR>
    Legislative Yuan of the Republic of China (2005-2007); Financial
    Law Reform Committee Chair, Legislative Yuan of the Republic of
    China (2005-present); Professor of Finance, National Taiwan
    University (1993-present); Adjunct Professor of Economics and
    Management, Tsinghua University of Beijing (2001-present).
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 7pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Joe O. Rogers (59) &#134;#<BR>
    2477 Foxwood Drive<BR>
    Chapel Hill, NC 27514
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    1986
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Manager, The Rogers Team LLC (July 2001-present).
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Director and Member of the Audit Committee, The China Fund, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 7pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Bing Shen (59) &#134;#<BR>
    1755 Jackson Street, #405<BR>
    San&#160;Francisco, CA 94109
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Independent Consultant (2005-present); President CDIB &#038;
    Partners Investment Holding Corporation (May&#160;2004-August
    2005); Executive Vice President, China<BR>
    Development Industrial Bank<BR>
    (March 1999-May 2004).
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Supervisor, CTCI Corporation; Independent Non-Executive
    Director, Delta Networks, Inc., Chairman, Audit Committee, Delta
    Networks, Inc.; Chairman, Audit Committee, CTCI Corporation.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="27%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="35%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="15%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Principal<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Position(s)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Occupation(s) <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Other Directorships<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Name, Address, and <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Held with<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Officer<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>or Employment<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>in Publicly-Held<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Age</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fund</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Since</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>During Past Five Years</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Companies or Funds</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <B>Officers</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    *Andrew Chen (44)<BR>
    24<SUP style="font-size: 85%; vertical-align: top">th</SUP>/F,

    99 Tun Hwa<BR>
    South Road, Section&#160;2,<BR>
    Taipei, Taiwan ROC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    President
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    CEO, HSBC Global Asset Management (Taiwan) Limited&#094;
    (November 2004-present); Research Director, JF Asset Management
    (Taiwan) Limited (November&#160;2002-2004).
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 7pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    *Adelina Louie (42)<BR>
    HSBC Global Asset<BR>
    Management<BR>
    (Hong Kong) Limited<BR>
    Level&#160;22 HSBC Main<BR>
    Building <BR>
    1 Queen&#146;s Road,<BR>
    Central, Hong Kong
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Secretary and Treasurer
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2004
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Deputy Chief Operating Officer, Asia Pacific, HSBC Global Asset
    Management (Hong Kong) Limited (May 2006-present); Chief
    Operating Officer, HSBC Global Asset Management (Taiwan)
    Limited&#094; (March 2004-April 2006); Area Commercial Manager,
    HSBC (U.K.) Ltd. (February 2002-March 2004).
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 7pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Richard F. Cook, Jr. (57)<BR>
    Foreside Compliance<BR>
    Services, LLC<BR>
    Three Canal Plaza, Suite&#160;100,<BR>
    Portland, Maine 04101
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Compliance Officer
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employee of Foreside Fund Services, LLC<BR>
    (November 2005-January 2006); Director of Foreside Compliance
    Services, LLC (January 2006-present); Chief Compliance Officer,
    Guinness Atkinson Funds (November 2005-present); Chief
    Compliance Officer, The Japan Fund, Inc. (April 2007-present);
    Managing Member of NorthLake, LLC (2002-present).
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 7pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Mary Moran Zeven (47)<BR>
    2 Avenue de Lafayette,<BR>
    2<SUP style="font-size: 85%; vertical-align: top">nd</SUP>

    Floor, Boston, Massachusetts 02111
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Assistant Secretary
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2005
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President and Senior Managing Counsel, State Street
    Bank and Trust Company (2002-present).
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 7pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Elizabeth A. Watson (54)<BR>
    4 Copley Place,<BR>
    5<SUP style="font-size: 85%; vertical-align: top">th</SUP>&#160;Floor,<BR>

    Boston, MA 02116
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Assistant Secretary
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Vice President and Managing Counsel, State Street Bank and Trust
    Company (August 2007-present); Vice President and General
    Counsel (May 2004-July 2007) and Chief Compliance Officer (July
    2004-October 2006), Quantitative Investment Advisors, Inc.;
    Clerk (July 2004-July 2007), Chief Legal Officer (January
    2007-July 2007), Chief Compliance Officer (July 2004-December
    2005), Quantitative Group of Funds; President and General
    Counsel, U.S. Boston Capital Corporation (May 2004-July 2007);
    Principal, Watson &#038; Associates (2002-2004).
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 17%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=347 length=60 -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    &#094;</TD>
    <TD></TD>
    <TD valign="bottom">
    As of June&#160;2, 2008, HSBC Investments (Taiwan) Limited
    changed its name to HSBC Global Asset Management (Taiwan)
    Limited.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    &#134; </TD>
    <TD></TD>
    <TD valign="bottom">
    Nominee for director.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    # </TD>
    <TD></TD>
    <TD valign="bottom">
    There is one Portfolio in the Fund&#160;Complex overseen by the
    Directors.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Officer is considered to be an &#147;interested person&#148; (as
    defined in the Investment Company Act of 1940, as amended (the
    &#147;1940 Act&#148;)) of the Fund or of the Adviser.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s Board of Directors has a separately designated
    Audit Committee established in accordance with
    Section&#160;3(a)(58)(A) of the Securities Exchange Act of 1934,
    as amended (the &#147;Exchange Act&#148;) which is responsible
    for reviewing financial and accounting matters. The Fund&#146;s
    Audit Committee is composed of directors who are independent (as
    defined in the New York Stock Exchange, Inc. (&#147;NYSE&#148;)
    listing standards, as may be modified or supplemented) and not
    interested persons of the Fund and its actions are governed by
    the Fund&#146;s Audit Committee Charter, which is attached as
    Appendix&#160;A. The current members of the Audit Committee are
    Messrs.&#160;Canavan, Holland, Lo, Rogers and Shen. The Audit
    Committee convened four times during the fiscal year ended
    August&#160;31, 2008.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s Board of Directors has determined that the Fund
    has at least one Audit Committee financial expert. Mr.&#160;M.
    Christopher Canavan,&#160;Jr., an independent director, is the
    Audit Committee&#146;s financial expert.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s Board of Directors has a Nominating Committee,
    which is responsible for recommending individuals to the Board
    for nomination as members of the Board and its Committees. The
    Nominating Committee does not consider nominees recommended by
    the security holders. The Board believes that it is appropriate
    for the Fund to have such a policy regarding nominees
    recommended by security holders because the Committee has not
    previously received any director candidate recommendations from
    a
    <FONT style="white-space: nowrap">non-director</FONT>
    stockholder. The Fund&#146;s Nominating Committee is composed of
    directors who are not interested persons of the Fund (as defined
    in Section&#160;2(a)(19) of the Investment Company Act of 1940,
    as amended (the &#147;1940 Act&#148;) (&#147;Independent
    Directors&#148;), and independent (as defined in the NYSE
    listing standards), and its actions are governed by the
    Fund&#146;s Nominating Committee Charter, attached hereto as
    Appendix&#160;B. The current members of the Nominating Committee
    are Messrs.&#160;Canavan, Chang, Lo and Ms.&#160;Liu. The
    Nominating Committee convened once during the fiscal year ended
    August&#160;31, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Persons recommended by the Fund&#146;s Nominating Committee as
    candidates for nomination as directors are required to possess
    such knowledge, experience, skills, expertise and diversity so
    as to enhance the Board&#146;s ability to manage and direct the
    affairs and business of the Fund, including, when applicable, to
    enhance the ability of committees of the Board to fulfill their
    duties
    <FONT style="white-space: nowrap">and/or</FONT> to
    satisfy any independence requirements imposed by law, regulation
    or any listing requirements of the NYSE.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s Board of Directors has a Fair Valuation
    Committee which is responsible for establishing and monitoring
    policies and procedures reasonably designed to ensure that the
    Fund&#146;s assets are valued appropriately, objectively and
    timely, reflecting current market conditions. The Fund&#146;s
    Fair Valuation Committee is composed of directors who are not
    interested persons of the Fund as well as certain employees of
    the Fund&#146;s Adviser. The current Directors who are members
    of the Fair Valuation Committee are Messrs.&#160;Holland, Lo and
    Rogers. The Fair Valuation Committee met once during the fiscal
    year ended August&#160;31, 2008.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s Board of Directors has an Investment Management
    Oversight Committee which is responsible for overseeing and
    evaluating the nature and quality of the investment services
    provided to the Fund by the Adviser in order to assist the Board
    in overseeing the investment services being provided to the Fund
    by the Adviser. The current members of the Investment Management
    Oversight Committee are Messrs.&#160;Chang and Hu and
    Ms.&#160;Liu. The Investment Management Oversight Committee
    convened four times during the fiscal year ended August&#160;31,
    2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors of the Fund held four regular meetings
    and two special meeting during the fiscal year ended
    August&#160;31, 2008. For the fiscal year ended August&#160;31,
    2008, each Director attended at least seventy-five percent of
    the aggregate number of meetings held during the fiscal year of
    the Board and of any committee on which he or she served.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For annual or special stockholder meetings, directors may but
    are not required to attend the meetings; and for the Fund&#146;s
    last annual stockholder meeting, eight Directors attended the
    meeting.
</DIV>


<!-- link2 "Stockholder Communications" -->


<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stockholder
    Communications</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stockholders may send communications to the Fund&#146;s Board of
    Directors by addressing the communication directly to the Board
    (or individual Board members)
    <FONT style="white-space: nowrap">and/or</FONT>
    clearly indicating that the communication is for the Board (or
    individual Board members). The communication may be sent to
    either the Fund&#146;s office or directly to such Board
    member(s) at the address specified for each Director above.
    Other stockholder communications received by the Fund not
    directly addressed and sent to the Board will be reviewed and
    generally responded to by management, and will be forwarded to
    the Board only at management&#146;s discretion based on the
    matters contained therein.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->


<!-- link2 "Ownership of Securities" -->


<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Ownership
    of Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth information regarding the
    ownership of securities in the Fund by directors and nominees
    for director as of November&#160;17, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="21%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Aggregate Dollar Range<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>of Equity Securities in<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>All Funds Overseen or<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>to be Overseen by<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Director or Nominee in<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name of Director or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Dollar Range of Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Family of Investment<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Nominee</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Securities in the Fund</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Companies&#134;</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Current Directors</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    M. Christopher Canavan, Jr.&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $1-$10,000
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $1-$10,000
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    Harvey Chang
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    None
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    None
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Michael F. Holland
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $10,001-$50,000
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $10,001-$50,000
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Benny T. Hu
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    None
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    None
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    Christina Liu
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    None
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    None
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Anthony Kai Yiu Lo
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    None
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    None
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Joe O. Rogers
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $10,001-$50,000
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $10,001-$50,000
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    Bing Shen
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    None
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    None
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 17%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=347 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    &#134; </TD>
    <TD></TD>
    <TD valign="bottom">
    The term &#147;Family of Investment Companies&#148; means two or
    more registered investment companies that share the same
    investment adviser or principal underwriter and hold themselves
    out to investors as related companies for the purposes of
    investment and investor services. The Fund is the only
    investment company in the Family of Investment Companies.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No director or nominee for election as director who is not an
    interested person of the Fund, or any immediate family member of
    such person, owns securities in the Adviser, or a person
    directly or indirectly controlling, controlled by, or under
    common control with the Adviser.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transactions
    with and Remuneration of Officers and Directors</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The aggregate remuneration, including expenses relating to
    attendance at board meetings reimbursed by the Fund, paid in
    cash to directors not affiliated with the Adviser was $528,833
    during the fiscal year ended August&#160;31, 2008. The Fund
    currently pays each director that is not affiliated with the
    Adviser an annual fee of $20,000 plus $2,500 for each
    directors&#146; meeting and committee meeting attended in
    person, and $2,500 for each meeting attended by telephone.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the aggregate compensation from
    the Fund paid to each director during the fiscal year ended
    August&#160;31, 2008, as well as the total compensation earned
    by each director from the Fund and other funds advised by the
    Adviser or its affiliates (collectively, the
    &#147;Fund&#160;Complex&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="28%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="19%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pension or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Retirement<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Aggregate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Benefits Accrued<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimated Annual<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>From Fund and Fund<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>As Part of Fund<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Benefits Upon<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Complex Paid to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name of Person</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>From Fund(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Expenses</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Retirement</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Directors(2)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    M. Christopher Canavan, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    45,000.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    45,000.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
    Harvey Chang
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    37,500.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    37,500.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
    Michael F. Holland
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    47,500.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    47,500.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
    Benny T. Hu
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33,380.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33,380.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
    Christina Liu
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32,500.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32,500.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
    Anthony Kai Yiu Lo
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    44,190.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    44,190.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
    Joe O. Rogers
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    47,500.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    47,500.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
    Bing Shen
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    45,000.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    45,000.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 17%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=347 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes all compensation paid to directors by the Fund. The
    Fund&#146;s directors do not receive any pension or retirement
    benefits as compensation for their service as directors of the
    Fund.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    There is one fund in the Fund&#160;Complex.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Required
    Vote</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The election of each director will require the affirmative vote
    of a plurality of the votes of the shares present in person or
    represented by proxy at the meeting and entitled to vote for the
    election of the directors. For this purpose, votes that are
    withheld will have no effect on the outcome of the elections.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE BOARD OF DIRECTORS OF THE FUND&#160;RECOMMENDS THAT YOU VOTE
    &#147;FOR&#148; THE ELECTION OF THE EIGHT NOMINEES FOR DIRECTORS.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>


<!-- link1 "PROPOSAL 2 -- APPROVAL OF A NEW FORM OF DISCRETIONARY INVESTMENT MANAGEMENT AGREEMENT" -->


<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;2&#160;&#151;
    APPROVAL OF A NEW FORM&#160;OF DISCRETIONARY INVESTMENT
    MANAGEMENT AGREEMENT</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;27, 2008, the Board and all of the Independent
    Directors, voted to approve and recommend to stockholders a new
    form of Discretionary Investment Management Contract (the
    &#147;New Management Agreement&#148;) between the Fund and
    Adviser. The New Management Agreement, if approved, will replace
    the two agreements pursuant to which the Adviser currently
    manages the assets of the Fund: 1)&#160;the Securities
    Investment Trust-Investment Management and Custodian Contract,
    dated August&#160;22, 2001 (the &#147;Current Management
    Contract&#146;&#146;), and 2)&#160;the Investment Advisory and
    Management Agreement, dated August&#160;22, 2001 (the
    &#147;Current Advisory Agreement,&#148; and together with the
    Current Management Contract, the &#147;Current
    Agreements&#148;). The Current Agreements were approved by a
    vote of the Fund&#146;s stockholders during a special meeting of
    the Fund&#146;s stockholders on August&#160;22, 2001. The
    Current Management Contract provides for
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     management of the assets of the Fund held through an investment
    trust (the &#147;Trust&#148;) established by the Current
    Management Contract. Assets held in the Trust are invested in
    Taiwan, primarily in equity securities listed on the Taiwan
    Stock Exchange (the &#147;TSE&#148;). Assets of the Fund held
    outside of the Trust are managed by the Adviser under the
    Current Advisory Agreement, which has been supplemented by a
    Direct Investment Management Agreement (the &#147;DIM
    Agreement&#148;) between the Fund and the Adviser. The DIM
    Agreement supplements the Current Advisory Agreement with
    provisions required by Taiwan law to permit the Adviser to
    manage the assets of the Fund that are invested in Taiwan but
    not through the Trust.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund is in the process of redeeming its interest in the
    Trust&#160;&#151; in other words, removing assets from the Trust
    so that those assets can be invested directly by the Fund. The
    Fund is doing this so that it can have greater flexibility in
    how it invests its assets in the future&#160;&#151; for example,
    investing in securities of Taiwan companies that are listed on
    stock exchanges other than the TSE. The Fund anticipates that it
    will have fully redeemed its interest in the Trust during 2009,
    at which point the Trust and the Current Management Contract
    will terminate. The Fund is proposing to enter into the New
    Management Agreement with the Adviser to take the place of the
    Current Agreements at the time that the Current Management
    Contract terminates.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The New Management Agreement provides for the Adviser to provide
    the same investment advisory and management services as it
    provides under the Current Agreements except that it would apply
    to all of the assets of Fund regardless of where they are held.
    The Adviser&#146;s duties under the New Management Agreement
    include making investment decisions, supervising the acquisition
    and disposition of investments and selecting brokers or dealers
    to execute these transactions in accordance with the Fund&#146;s
    investment objective and policies and within the guidelines and
    directions established by the Fund&#146;s Board of Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under both the New Management Agreement and the Current
    Agreements, the Fund bears expenses for (i)&#160;the acquisition
    costs of assets of the Fund, (ii)&#160;the disposal cost arising
    on the disposal of assets of the Fund, (iii)&#160;stamp and
    similar duties and charges in respect of the Fund, (iv)&#160;the
    cost of registering assets in the name of the Fund&#146;s
    custodian, (v)&#160;expenses incurred in the collection and
    distribution of income derived from assets held in the Fund,
    (vi)&#160;expenses of any auditors or legal advisers in
    connection of the Fund&#146;s assets, (vii)&#160;all taxation
    payable in respect of income of (including stock dividends), or
    the holdings of or dealing with assets held in, the Fund,
    (viii)&#160;all proper expenses incurred by the custodian in
    connection with the acquisition or disposal of any assets held
    in the Fund, (ix)&#160;any compensation payable to the Adviser
    or the custodian, (x)&#160;the cost relating to the publication
    of Unit prices of the net assets of the Fund, (xi)&#160;the
    costs for any regular report sent to stockholders of the Fund,
    (xii)&#160;the expenses incurred by the Fund in connection with
    its organization, the public offering of its shares to investors
    in the United States and elsewhere, its registration and
    operation as a registered investment company under the
    Investment Company Act of 1940 and its qualification as a
    regulated investment company under the United States Internal
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Revenue Code and (xiii)&#160;all other expenses incurred by the
    Adviser on behalf of the Fund in the course of performing its
    duties. Under both the New Management Agreement and the Current
    Agreements, the Adviser bears all other expenses associated with
    the performance of its duties (including employee salaries and
    overhead) other than expenses to be paid by the Fund, as
    specifically provided above. The Adviser is also required to
    bear the fees and expenses of the Fund&#146;s officers and
    directors who are interested persons of the Adviser, if any.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The New Management Agreement may be terminated by the Fund upon
    the vote of a majority of the directors or by the vote of a
    majority of the Fund&#146;s outstanding shares of common stock
    as defined in the 1940 Act, without payment of any penalty, upon
    60&#160;days&#146; written notice to the Adviser, and will
    terminate automatically in the event of its assignment (as
    defined in the 1940 Act) by the Adviser. The New Management
    Agreement will also terminate (i)&#160;if required by Taiwan
    regulators, (ii)&#160;if in the opinion of the Adviser further
    operation of the Fund in accordance with the New Management
    Agreement is illegal, impractical or inadvisable having regard
    solely to the interests of the Fund, or (iii)&#160;upon the
    removal of the Adviser (liquidation or bankruptcy or revocation
    of the ROC license of the Adviser being deemed to be a removal
    of the Adviser).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If approved by stockholders, the New Management Agreement would
    remain in effect for an initial period of two years from the
    date of its execution by the Fund. Thereafter, the New
    Management Agreement would continue in effect from year to year
    if its continuance is specifically approved at least annually by
    (i)&#160;a vote of a majority of the Independent Directors, cast
    in person at a meeting called for the purpose of voting on such
    approval, and (ii)&#160;either a vote of a majority of the Board
    of Directors as a whole or a majority of the Fund&#146;s
    outstanding shares of common stock as defined in the 1940 Act.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Fee
    Provisions of the New Management Agreement</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The compensation to be paid to the Adviser under the New
    Management Agreement is identical to the compensation currently
    being paid to the Adviser under the Current Agreements. Under
    the terms of the Current Management Contract, the Adviser is
    entitled to receive for its services, a monthly basic fee,
    payable in NT dollars, at an annual rate of 1.30% of the
    Fund&#146;s average daily net assets (including both Taiwan and
    U.S.&#160;assets). In addition, the basic fee payable to the
    Adviser is subject to performance adjustments which may increase
    or decrease the basic fee (up to 0.30% per annum of the
    Fund&#146;s average net assets) on a monthly basis, depending on
    the performance of the Fund&#146;s investment compared to the
    performance of the Taiwan Stock Exchange Index during a rolling
    performance period of 36&#160;months. Effective for the period
    from January&#160;1, 2008 to August&#160;31, 2008, the Adviser
    pursuant to a written agreement began waiving a portion of the
    basic fee so that the basic fee will not exceed an annual rate
    of 1.00% of the Fund&#146;s average daily net assets (the
    &#147;Waiver&#148;). On September&#160;1, 2008, the Waiver
    automatically renewed for an additional 12&#160;months. The
    Adviser must provide 90&#160;days&#146; advance notice of its
    intention to terminate the Waiver. Under the New Management
    Agreement, the basic fee will be 1.00% of the Fund&#146;s
    average daily net
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    assets and the base fee will be subject to the same performance
    adjustment as under the Current Agreements, as described above.
    The aggregate amount of advisory fees paid by the Fund to the
    Adviser were US $3,445,557.39, for the fiscal year ended
    August&#160;31, 2008. There were no additional payments made to
    the Adviser by the Fund for the fiscal year ended
    August&#160;31, 2008.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Factors Considered by The Board of Directors Regarding The New
    Management&#160;Agreement</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board was asked to approve a New Management Agreement with
    substantially the same terms and conditions as the Current
    Agreements, including fees. The Board was assured by the Adviser
    that the Fund would continue to be managed in substantially the
    same manner by the same personnel under the New Management
    Agreement as under the Current Agreements. The New Management
    Agreement is legally required to be reviewed and re-approved by
    the Board once a year, after its initial two year term.
    Throughout the year, the Board considers a wide variety of
    materials and information about the Fund&#146;s investment
    management arrangements, including, for example, the Fund&#146;s
    investment performance, adherence to stated investment
    objectives and strategies, assets under management, expenses,
    regulatory compliance and management. The Board periodically
    meets with senior management and portfolio managers of the
    Adviser and reviews and evaluates their professional experience,
    credentials and qualifications. This information supplements the
    materials the Board received in preparation for the meeting
    described below.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Approval
    Process</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board, including a majority of Independent Directors,
    unanimously approved the New Management Agreement at an &#147;in
    person&#148; meeting held on October&#160;27, 2008 (the
    &#147;Meeting&#148;). The Board also approved renewal of the
    Current Agreements at the Meeting. In determining whether it was
    appropriate to approve the New Management Agreement, the Board
    reviewed the same information, provided by the Adviser, as it
    reviewed in connection with the renewal of the Current
    Agreements and which it believed to be reasonably necessary to
    reach its conclusion. At the Meeting, the Board discussed issues
    pertaining to the proposed approval of the New Management
    Agreement with representatives from the Adviser and with legal
    counsel. This information together with the information provided
    to the Directors throughout the course of the year formed the
    primary basis for the Directors&#146; determinations.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the Meeting, the Board met in an executive session for
    the purpose of considering the approval of the New Management
    Agreement. During that executive session, the Directors reviewed
    a memorandum which detailed the duties and responsibilities of
    the Directors. The Directors reviewed the contract approval
    materials provided by the Adviser, including, but not limited to
    (1)&#160;an organizational overview of the Adviser and
    biographies of those personnel providing services to the Fund,
    (2)&#160;a draft of the New Management Agreement, (3)&#160;a
    profitability analysis of the Adviser under the Current
    Agreements, (4)&#160;financial statements of the Adviser,
    (5)&#160;Form&#160;ADV of
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     the Adviser, and (6)&#160;performance and fee comparison data
    provided by Fundamental Data, a third party vendor of such
    information.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In deciding whether to approve the New Management Agreement, the
    Directors considered various factors, including (1)&#160;the
    nature, extent and quality of the services to be provided by the
    Adviser under the New Management Agreement and currently
    provided under the Current Agreements, (2)&#160;the investment
    performance of the Fund, (3)&#160;the costs to the Adviser of
    its services and the profits realized by the Adviser under the
    Current Agreements from its relationship with the Fund, and
    (4)&#160;the extent to which economies of scale would be
    realized if and as the Fund grows and whether the fee levels in
    the New Management Agreement reflect these economies of scale.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Nature,
    Extent and Quality of the Services provided by the
    Adviser</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In considering the nature, extent and quality of the services
    provided by the Adviser, the Directors relied on their prior
    experience as Directors of the Fund as well as on the materials
    provided at the Meeting. They noted that under the New
    Management Agreement as well as the Current Agreements the
    Adviser is responsible for managing the investment operations of
    the Fund in accordance with the Fund&#146;s investment objective
    and policies, applicable legal and regulatory requirements, and
    the instructions of the Directors, for providing necessary and
    appropriate reports and information to the Directors, for
    maintaining all necessary books and records pertaining to the
    Fund&#146;s securities transactions, and for furnishing the Fund
    with the assistance, cooperation, and information necessary for
    the Fund to meet various legal requirements regarding
    registration and reporting. They noted the distinctive nature of
    the Fund as investing primarily in equity securities listed on
    the Taiwan Stock Exchange. They also noted the experience and
    expertise of the Adviser as appropriate as an adviser to the
    Fund.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Directors reviewed the background and experience of the
    Adviser&#146;s senior management, including those individuals
    responsible for the investment and compliance operations of the
    Fund, and the responsibilities of the latter with respect to the
    Fund. They also considered the resources, operational structures
    and practices of the Adviser in managing the Fund&#146;s
    portfolio, in monitoring and securing the Fund&#146;s compliance
    with its investment objective and policies and with applicable
    laws and regulations, and in seeking best execution of portfolio
    transactions. The Directors also considered information about
    the Adviser&#146;s overall investment management business,
    noting that the Adviser manages other funds in the Asia Pacific
    region. Drawing upon the materials provided and their general
    knowledge of the business of the Adviser, the Directors took
    into account the fact that the Adviser&#146;s experience,
    resources and strength in these areas are deep, extensive and of
    high quality. On the basis of this review, the Directors
    determined that the nature and extent of the services provided
    by the Adviser to the Fund were appropriate, had been of high
    quality, and could be expected to remain so under the New
    Management Agreement.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Performance of the Fund</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Directors noted that, in view of the distinctive investment
    objective of the Fund, the investment performance of the
    Fund&#146;s investments was satisfactory. Of importance to the
    Directors was the extent to which the Fund achieved its
    objective. Drawing upon information provided at the Meeting and
    upon reports provided to the Directors by the Adviser throughout
    the preceding year, the Directors determined that the Fund had
    outperformed the TAIEX for the three, five and ten-year periods
    ending August&#160;31, 2008. They further determined that the
    Fund&#146;s performance since its inception compared well to the
    TAIEX benchmark. They further concluded, on the basis of the
    limited universe of comparable funds, that the expense ratio of
    the Fund was similar, or lower than, those of their direct
    competitors. Accordingly, they concluded that the performance of
    the Fund was satisfactory.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">3.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">The Costs
    to the Adviser of its Services and the Profits realized by the
    Adviser from its Relationship with the Fund</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Directors considered the profitability of the advisory
    arrangement with the Fund to the Adviser under the Current
    Agreements and noted that a similar profitability could be
    expected under the New Management Agreement. The Directors had
    been provided with data on the Fund&#146;s profitability to the
    Adviser for the Fund&#146;s last fiscal year. They first
    discussed with representatives of the Adviser the methodologies
    used in computing the costs that formed the bases of the
    profitability calculations. After extensive discussion and
    analysis they concluded that, to the extent that the
    Adviser&#146;s relationship with the Fund had been profitable,
    the profitability was in no case such as to render the advisory
    fee excessive. In considering whether the Adviser benefits in
    other ways from its relationship with the Fund, the Directors
    noted that other than the advisory fee, there is no other
    investment advisory and brokerage fee received or receivable by
    the Adviser or its affiliates from the Fund. The Directors
    concluded that, to the extent that the Adviser derives other
    benefits from its relationship with the Fund, those benefits are
    not so significant as to render the Adviser&#146;s fees
    excessive.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">4.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">The
    Extent to which Economies of Scale would be Realized if and as
    the Fund Grows and whether the Fee Levels in the New Management
    Agreement Reflect these Economies of Scale</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On the basis of their discussions with management and their
    analysis of information provided at the Meeting, the Directors
    determined that the nature of the Fund and its operations is
    such that the Adviser would not at this time realize economies
    of scale in the management of the Fund. In order to better
    evaluate the Fund&#146;s advisory fee, the Directors had
    requested comparative information with respect to fees paid by
    similar funds&#160;&#151; i.e., closed-end funds that invest in
    equity securities listed on stock exchanges in the Asia-Pacific
    region. The Directors noted that, although the Fund&#146;s
    effective management fee was higher than the management fees
    paid by similar funds, the Fund&#146;s total expense ratio was
    lower than or comparable to four of the 18 comparable
    funds&#146; total expense ratio. The Directors concluded that
    the limited data available provided
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     some indirect confirmation of the reasonableness of the
    Adviser&#146;s fees. The Directors also considered that, in
    addition to the monthly basic fee to be paid to the Adviser at
    an annual rate of 1.00% of the Fund&#146;s average daily net
    assets, the basic fee is subject to performance adjustments
    which may increase or decrease the basic fee (up to 0.30% per
    annum of the Fund&#146;s average net assets) on a monthly basis,
    depending on the performance of the Fund&#146;s investments
    compared to the performance of the Taiwan Stock Exchange Index
    during a rolling performance period of 36&#160;months.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Approval
    of The New Management Agreement</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Directors approved the New Management Agreement after
    weighing the foregoing factors. They reasoned that, considered
    in themselves, the nature and extent of the services provided by
    the Adviser were appropriate, that the performance of the Fund
    had been satisfactory, and that the Adviser could be expected to
    provide services of high quality. As to the Adviser&#146;s fees
    for the Fund, the Directors determined that the fees, considered
    in relation to the services provided, were fair and reasonable,
    that the Fund&#146;s relationship with the Adviser was not so
    profitable as to render the fees excessive, and that any
    additional benefits to the Adviser were not of a magnitude
    materially to affect the Directors&#146; deliberations.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Information
    About The Adviser</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    HSBC Global Asset Management (Taiwan) Limited (&#147;HSBC
    Taiwan&#148;) currently serves as the Adviser to the Fund
    pursuant to the Current Agreements. HSBC Taiwan will continue to
    serve as the adviser to the Fund under the New Management
    Agreement. HSBC Taiwan was incorporated in Taipei, Taiwan in
    1986 and registered as an investment adviser under the
    Investment Advisers Act of 1940. HSBC Taiwan was formerly known
    as China Securities Investment Trust&#160;Corporation (CSITC).
    In August&#160;2001, CSITC was acquired by HSBC Asset Management
    (Europe) Limited and renamed HSBC Asset Management (Taiwan)
    Limited. HSBC Asset Management (Taiwan) Limited changed its name
    to HSBC Investments (Taiwan) Limited, effective April&#160;29,
    2005, and as of June&#160;2, 2008, HSBC Investments (Taiwan)
    Limited changed its name to HSBC Global Asset Management
    (Taiwan) Limited. The Adviser&#146;s offices are located at
    24<SUP style="font-size: 85%; vertical-align: top">th</SUP>&#160;Floor,

    Section&#160;2, 99 Tun Hwa South Road, Taipei, Taiwan ROC.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    HSBC Taiwan is a wholly-owned subsidiary of HSBC Holdings plc,
    one of the largest banks and financial services companies in the
    world with assets of US$2.547&#160;billion as of June&#160;30,
    2008. HSBC Holdings plc is incorporated in England, with its
    head office in London. As of October&#160;30, 2008, HSBC Taiwan
    managed NT$84.1&#160;billion (approximately
    US$2.63&#160;billion) in assets. HSBC Holdings plc has
    335,000&#160;employees worldwide and maintains 9,500 offices in
    85 countries and territories. The principal address of HSBC
    Holdings plc is 8 Canada Square, London, E14&#160;5HQ, United
    Kingdom.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth certain information concerning
    the principal executive officer and each of the directors of the
    Adviser.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="30%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="42%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Position(s)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Principal<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Held with<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Occupation(s)<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name and Address</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>the Adviser</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Since</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>or Employment</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Andrew Chen<BR>
    24<SUP style="font-size: 85%; vertical-align: top">th</SUP>/F,

    99 Tun <BR>
    Hwa South Road, Section&#160;2, <BR>
    Taipei, Taiwan ROC
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Executive Officer and<BR>
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2005
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    CEO, HSBC Global Asset Management<BR>
    (Taiwan) Limited&#094;.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 8pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Eva SL Lo <BR>
    24<SUP style="font-size: 85%; vertical-align: top">th</SUP>/F,

    99 Tun <BR>
    Hwa South Road, Section&#160;2, <BR>
    Taipei, Taiwan&#160;ROC
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Compliance Officer and Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2006
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Compliance Officer, HSBC Global Asset Management (Taiwan)
    Limited&#094;.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Chen Hung Jerry Lee<BR>
    24<SUP style="font-size: 85%; vertical-align: top">th</SUP>/F,

    99 Tun <BR>
    Hwa South Road, Section&#160;2, <BR>
    Taipei, Taiwan ROC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President, HSBC Global Asset Management (Taiwan)
    Limited&#094;.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Winnie W.T. Yu <BR>
    24<SUP style="font-size: 85%; vertical-align: top">th</SUP>/F,

    99 Tun <BR>
    Hwa South Road, Section&#160;2,<BR>
    Taipei, Taiwan&#160;ROC
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Operating Officer and Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Operating Officer, HSBC Global Asset Management (Taiwan)
    Limited&#094;.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Rudolf Eduard Walter Apenbrink HSBC Main Building, Level 22,
    1&#160;Queen&#146;s Road, Central,<BR>
    Hong Kong
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Chairman and<BR>
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2007
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Executive Officer of Asia, HSBC Global Asset Management
    (Hong Kong) Limited.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 17%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=347 length=60 -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    &#094; </TD>
    <TD></TD>
    <TD valign="bottom">
    As of June&#160;2, 2008, HSBC Investments (Taiwan) Limited
    changed its name to HSBC Global Asset Management (Taiwan)
    Limited.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Required
    Vote</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The 1940 Act requires that an investment advisory contract
    between an investment company and an investment adviser be in
    writing, that such contract specify, among other things, the
    compensation payable to the adviser pursuant thereto and that
    such contracts be approved by the holders of a majority of the
    Fund&#146;s outstanding shares of common stock as defined in the
    1940 Act and discussed below.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Approval of the New Management Agreement will require the
    affirmative vote of a majority of the Fund&#146;s outstanding
    shares of common stock. As defined in the 1940 Act, a
    &#147;majority of the outstanding shares&#148; means the lesser
    of 67% of the voting securities present at the Annual Meeting of
    Stockholders, if a quorum is present, or 50% of the outstanding
    securities. For this purpose, both abstentions and broker
    non-votes will have the effect of a vote to disapprove the
    proposed amendment. The Fund will continue under the Current
    Agreements if this proposal is not approved by stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A form of the New Management Agreement is attached as
    Appendix&#160;C.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE BOARD RECOMMENDS THAT THE STOCKHOLDERS VOTE &#147;FOR&#148;
    THE PROPOSAL&#160;TO APPROVE THE NEW MANAGEMENT AGREEMENT
    BETWEEN THE FUND&#160;AND HSBC TAIWAN.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
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<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->


<!-- link2 "Audit Committee Report" -->


<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Audit
    Committee Report</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee has reviewed and discussed the Fund&#146;s
    audited financial statements for the fiscal year ended
    August&#160;31, 2008 with management, the Adviser and Tait
    Weller&#160;&#038; Baker LLP, the Fund&#146;s independent
    registered public accounting firm, and has discussed with Tait
    Weller &#038; Baker LLP the matters required to be discussed by
    Statement on Auditing Standards No.&#160;61 (Codification of
    Statements on Auditing Standards, AU Section&#160;380), as may
    be modified or supplemented. The Audit Committee has received
    the written disclosures and letter from Tait Weller &#038; Baker
    LLP required by Independence Standards Board Standard No.&#160;1
    (Independence Standards Board Standard No.&#160;1, Independence
    Discussions with Audit Committees), as may be modified or
    supplemented, and has discussed with Tait Weller &#038; Baker
    LLP its independence. Based on the Audit Committee review and
    discussions referred to in the two preceding sentences, the
    Audit Committee recommended to the Board of Directors that the
    audited financial statements of the Fund for the fiscal year
    ended August&#160;31, 2008 be included in its annual report to
    stockholders and the Fund&#146;s annual report filed with the
    Securities and Exchange Commission.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 27%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    M.&#160;Christopher Canavan, Jr., <I>Chairman of the Audit
    Committee<BR>
    </I>Joe O. Rogers, <I>Member of the Audit Committee<BR>
    </I>Anthony Kai Yiu Lo, <I>Member of the Audit Committee<BR>
    </I>Michael F. Holland, <I>Member of the Audit Committee<BR>
    </I>Bing Shen, <I>Member of the Audit Committee</I>
</DIV>


<!-- link2 "Independent Registered Public Accounting Firm" -->


<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Independent
    Registered Public Accounting Firm</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Tait Weller &#038; Baker LLP serves as the Fund&#146;s
    independent registered public accounting firm, auditing and
    reporting on the annual financial statements of the Fund and
    reviewing certain regulatory reports and the Fund&#146;s federal
    income tax returns. Tait Weller &#038; Baker LLP also performs
    other professional audit and certain allowable non-audit
    services, including tax services, when the Fund engages it to do
    so. Representatives of Tait Weller &#038; Baker LLP are expected
    to be available via telephone at the meeting and will have an
    opportunity to make a statement if they desire. Such
    representatives are expected to be available to respond to
    appropriate questions at the meeting.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Audit Fees.</I>&#160;&#160;For the fiscal years ended
    August&#160;31, 2008 and August&#160;31, 2007, Tait Weller
    &#038; Baker LLP billed the Fund aggregate fees of US$57,500 and
    US$55,000, respectively, for professional services rendered for
    the audit of the Fund&#146;s annual financial statements and
    review of financial statements included in the Fund&#146;s
    annual report to stockholders.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Audit-Related Fees.</I>&#160;&#160;For the fiscal years ended
    August&#160;31, 2008 and August&#160;31, 2007, Tait Weller
    &#038; Baker LLP billed the Fund aggregate fees of US$6,800 and
    US$6,500, respectively, for assurances and related services that
    are reasonably related to the performance of the audit or review
    of the Fund&#146;s financial statements and are not reported
    under the section&#160;Audit Fees above. Audit-Related Fees
    represent procedures
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    applied to the semi-annual financial statement amounts (reading
    the semi-annual report and valuation and existence procedures on
    investments) as requested by the Fund&#146;s audit committee.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Tax Fees.</I>&#160;&#160;For the fiscal years ended
    August&#160;31, 2008 and August&#160;31, 2007, Tait Weller
    &#038; Baker LLP billed the Fund aggregate fees of US$13,200 and
    US$12,500, respectively, for professional services rendered for
    tax compliance, tax advice, and tax planning. The nature of the
    services comprising the Tax Fees was the review of the
    Fund&#146;s income tax returns and tax distribution requirements.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>All Other Fees.</I>&#160;&#160;For the fiscal years ended
    August&#160;31, 2008 and August&#160;31, 2007, Tait Weller
    &#038; Baker LLP did not bill the Fund any fees for products and
    services other than those disclosed above.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s Audit Committee Charter requires that the Audit
    Committee pre-approve all audit and non-audit services to be
    provided to the Fund by the Fund&#146;s independent registered
    public accounting firm; provided, however, that the pre-approval
    requirement with respect to non-auditing services to the Fund
    may be waived consistent with the exceptions provided for in the
    Exchange Act. All of the audit and tax services described above
    for which Tait Weller &#038; Baker LLP billed the Fund fees for
    the fiscal years ended August&#160;31, 2008 and August&#160;31,
    2007 were pre-approved by the Audit Committee. For the fiscal
    years ended August&#160;31, 2008 and August&#160;31, 2007, the
    Fund&#146;s Audit Committee did not waive the pre-approval
    requirement of any non-audit services to be provided to the Fund
    by Tait Weller &#038; Baker LLP.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Tait Weller &#038; Baker LLP did not bill any non-audit fees for
    services rendered to the Fund&#146;s Adviser, or any entity
    controlling, controlled by, or under the common control with the
    Adviser that provides ongoing services to the Fund, for the
    fiscal years ended August&#160;31, 2008 and August&#160;31, 2007.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Security
    Ownership of Certain Beneficial Owners</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Set forth below is information with respect to persons who, to
    the knowledge of the management of the Fund, owned beneficially
    more than 5% of the Fund&#146;s outstanding shares as of
    December&#160;3, 2008. The information is based on publicly
    available Schedule&#160;13D and 13G disclosures filed with the
    Securities and Exchange Commission.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="19%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="35%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="35%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Name and Address of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Amount and Nature of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title of Class</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Beneficial Owner</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Beneficial Ownership</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>of Class*</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common Stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Credit Suisse<BR>
    11&#160;Madison Avenue,<BR>
    New York, New York 10010
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Has sole power to vote and dispose of 1,306,341&#160;shares.
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    7.03%
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common Stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Lazard Asset Management LLC<BR>
    30&#160;Rockefeller Plaza<BR>
    New York, New York 10112
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Has sole power to vote and dispose of 1,274,764&#160;shares.
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    6.86%
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 17%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=347 length=60 -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    Percentages are based on the number of outstanding shares of the
    Fund as of December&#160;3, 2008.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->


<!-- link2 "Section 16(a) Beneficial Ownership Reporting Compliance" -->


<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Section&#160;16(a)
    Beneficial Ownership Reporting Compliance</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;16(a) of the Exchange Act requires that the
    Fund&#146;s officers and directors, and beneficial owners of
    more than 10% of any class of equity security registered
    pursuant to Section&#160;12 of the Exchange Act, make certain
    filings on a timely basis under Section&#160;16(a) of the
    Exchange Act. Based solely on a review of copies of such reports
    of ownership furnished to the Fund, the Fund believes that
    during the past fiscal year all of its officers, directors and
    greater than 10% beneficial holders complied with all applicable
    filing requirements.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Proxies will be solicited by mail and may be solicited in person
    or by telephone or telegraph by officers of the Fund or
    personnel of the Adviser. The Fund has retained Georgeson, Inc.
    to assist in the proxy solicitation. The total cost of proxy
    solicitation services, including legal and printing fees, is
    estimated at $60,000, plus out-of-pocket expenses. The expenses
    connected with the solicitation of these proxies and with any
    further proxies which may be solicited by the Fund&#146;s
    officers or Georgeson, Inc., in person, by telephone, by
    facsimile, or by telegraph will be borne by the Fund. The Fund
    will reimburse banks, brokers, and other persons holding the
    Fund&#146;s shares registered in their names or in the names of
    their nominees for their expenses incurred in sending proxy
    material to and obtaining proxies from the beneficial owners of
    such shares.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No business other than as set forth herein is expected to come
    before the meeting, but should any other matter requiring a vote
    of stockholders arise, the persons named in the enclosed proxy
    will vote thereon according to their best judgment in the
    interests of the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>


<!-- link2 "Stockholder Proposals" -->


<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stockholder
    Proposals</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to submit a stockholder proposal to be considered for
    inclusion in the Fund&#146;s proxy statement for the Fund&#146;s
    2010 Annual Meeting of Stockholders, stockholder proposals must
    be received by the Fund (addressed to The Taiwan Fund&#160;Inc.,
    <FONT style="white-space: nowrap">c/o&#160;State</FONT>
    Street Bank and Trust&#160;Company, P.O.&#160;Box&#160;5049, 2
    Avenue de Lafayette, Boston, Massachusetts
    <FONT style="white-space: nowrap">02206-5049)</FONT>
    not later than August 8, 2009. Any stockholder who desires to
    bring a proposal at the Fund&#146;s 2010 Annual Meeting of
    Stockholders without including such proposal in the Fund&#146;s
    proxy statement, must deliver written notice thereof to the
    Secretary of the Fund (addressed to The Taiwan Fund, Inc.,
    <FONT style="white-space: nowrap">c/o&#160;State</FONT>
    Street Bank and Trust&#160;Company, P.O.&#160;Box&#160;5049, 2
    Avenue de Lafayette, Boston, Massachusetts
    <FONT style="white-space: nowrap">02206-5049),</FONT>
    not before October 15, 2009 and not later than November 13, 2009.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By order of the Board of Directors,
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Adelina Louie
    </FONT>
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Secretary</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">c/o&#160;State</FONT>
    Street Bank and Trust&#160;Company
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    P.O.&#160;Box&#160;5049
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2 Avenue de Lafayette,
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Boston, Massachusetts
    <FONT style="white-space: nowrap">02206-5049</FONT>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    December&#160;5, 2008
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->


<!-- link1 "Appendix A" -->


<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Appendix&#160;A</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Taiwan Fund, Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">AMENDED
    AUDIT COMMITTEE CHARTER</FONT></B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">I.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Composition
    of the Audit Committee</FONT></U></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee shall be composed of at least three
    Directors:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;each of whom shall not be an &#147;interested
    person&#148; of the Fund, as defined in Section&#160;2(a)(19) of
    the Investment Company Act of 1940, as amended, or an
    &#147;affiliated person&#148; of the Fund, as described in
    Section&#160;10A(m) of the Securities Exchange Act of 1934, as
    amended (the &#147;1934&#160;Act&#148;);
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;each of whom shall not accept any consulting, advisory,
    or other compensatory fee from the Fund (other than fees for
    serving on the Board of Directors or any committee thereof) or
    have any other relationship to the Fund that may interfere with
    the exercise of such person&#146;s independence from the Fund
    and Fund management;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;each of whom shall otherwise satisfy the applicable
    independence requirements for any stock exchange or market
    quotation system on which Fund shares are listed or quoted;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;each of whom shall be financially literate, as such
    qualification is interpreted by the Board of Directors in its
    business judgment, or shall become financially literate within a
    reasonable period of time after his or her appointment to the
    Audit Committee;&#160;and
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;at least one of whom shall have accounting or related
    financial management expertise as the Board of Directors
    interprets such qualification in its business judgment.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee shall determine whether at least one member
    of the Audit Committee is a &#147;financial expert&#148; as
    defined in rules promulgated by the U.S.&#160;Securities and
    Exchange Commission (the &#147;SEC&#148;) under the
    Sarbanes-Oxley Act of 2002 and shall consider whether any member
    thereof serves on the audit committee of any other public
    companies.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">II.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Purposes
    of the Audit Committee</FONT></U></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee, in its capacity as a committee of the Board
    of Directors, is directly responsible for the appointment,
    compensation, retention and oversight of the Fund&#146;s
    independent accountants, including the resolution of
    disagreements regarding financial reporting between Fund
    management and such independent accountants. The Audit Committee
    should report regularly to the Board of Directors with respect
    to the matters described in Section&#160;III of this Audit
    Committee Charter. The Fund&#146;s independent accountants are
    required to report directly to the Audit Committee.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">III.
    <U>Responsibilities and Duties of the Audit
    Committee</U></FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The policies and procedures of the Audit Committee shall remain
    flexible to facilitate its ability to react to changing
    conditions and to generally discharge its
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-1
</DIV><!-- END PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    functions. The following listed responsibilities describe areas
    of attention in broad terms.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To carry out its purposes, the Audit Committee shall have the
    following responsibilities and duties:
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;upon submission of an application form by the
    Fund&#146;s independent accountants to the Public Company
    Accounting Oversight Board, to request information which would
    be material to the Audit Committee regarding: (i)&#160;such
    application form; (ii)&#160;any material amendments to such
    application form; and (iii)&#160;the written findings of the
    Public Company Accounting Oversight Board in connection with
    that Board&#146;s inspection of the Fund&#146;s independent
    accountants;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;to preapprove all auditing services to be provided to
    the Fund by the Fund&#146;s independent accountants*;
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;to pre-approve all non-auditing services, including tax
    services, to be provided to the Fund by the Fund&#146;s
    independent accountants; provided, however, that the preapproval
    requirement with respect to the provision of non-auditing
    services to the Fund by the Fund&#146;s independent accountants
    may be waived by the Audit Committee under the circumstances
    described in the 1934&#160;Act**;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;to ensure that the Fund&#146;s independent accountants
    submit on a periodic basis to the Audit Committee a formal
    written statement delineating all relationships between such
    independent accountants and the Fund, consistent with
    Independence Standards Board Standard No.&#160;1, to actively
    engage in a dialogue with the Fund&#146;s independent
    accountants with respect to any disclosed relationships or
    services that may affect the objectivity and independence of
    such independent accountants, including relationships with or
    services provided to the Fund&#146;s other service providers,
    and, if deemed appropriate by the Audit Committee, to recommend
    that the Board of Directors take appropriate action in response
    to the report of such independent accountants to satisfy itself
    of the independence of such independent accountants;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;to receive and consider specific representations from
    the Fund&#146;s independent accountants with respect to the
    independence of such accountants, audit partner rotation, and
    conflicts of interest described in Section&#160;10A(l) of the
    1934&#160;Act, and to consider whether the provision of any
    non-audit services to the Fund by the Fund&#146;s independent
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV><DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    * The Audit Committee may delegate to one or more designated
    members of the Audit Committee the authority to grant such
    preapprovals; provided, however, that the Audit Committee shall
    not delegate preapproval of the audit required by the
    1934&#160;Act. The decisions of any member or members of the
    Audit Committee to whom such authority has been given shall be
    reported to the full Audit Committee at each of its scheduled
    meetings.
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    ** The Audit Committee may delegate to one or more designated
    members of the Audit Committee the authority to grant such
    preapprovals. The decisions of any member or members of the
    Audit Committee to whom such authority has been given shall be
    reported to the full Audit Committee at each of its scheduled
    meetings.
</DIV>

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    <BR>
    A-2
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    accountants as described in Section&#160;III(c) of this Audit
    Committee Charter is compatible with maintaining the
    independence of those accountants;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;to review arrangements for annual and special audits
    and the scope of such audits with the Fund&#146;s independent
    accountants;
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;to review and discuss the Fund&#146;s audited financial
    statements with Fund management;
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;to discuss with the independent accountants those
    matters required by Statement of Accounting Standards Nos. 61
    and 90 relating to the Fund&#146;s financial statements,
    including, without limitation, any adjustment to such financial
    statements recommended by such independent accountants, or any
    other results of any audit;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;to cause to be prepared and to review and submit any
    report, including any recommendation of the Audit Committee,
    required by SEC Rules to be included in the Fund&#146;s annual
    proxy statement;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (j)&#160;to review legal and regulatory matters presented by
    counsel and the Fund&#146;s independent accountants that may
    have a material impact on the Fund&#146;s financial statements;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (k)&#160;to establish and administer policies and procedures
    relating to: (i)&#160;the hiring of employees or former
    employees of the Fund&#146;s independent accountants; and
    (ii)&#160;the resolution of any disagreements between Fund
    management and the Fund&#146;s independent accountants regarding
    accounting
    <FONT style="white-space: nowrap">and/or</FONT>
    financial reporting policies and procedures;
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (l)&#160;to consider with the Fund&#146;s independent
    accountants their comments with respect to the quality and
    adequacy of the Fund&#146;s accounting and financial reporting
    policies, practices and internal controls and management&#146;s
    responses thereto, including, without limitation, the effect on
    the Fund of any recommendation of changes in accounting
    principles or practices by management or the independent
    accountants;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (m)&#160;to receive and consider reports from the Fund&#146;s
    independent accountants regarding: (i)&#160;all critical
    accounting policies and practices to be used; (ii)&#160;all
    alternative treatments of financial information within generally
    accepted accounting principles that have been discussed with
    Fund management, ramifications of the use of such alternative
    disclosures and treatments, and the treatment preferred by the
    independent accountants; and (iii)&#160;other material written
    communications between the independent accountants and Fund
    management, such as any management letter or schedule of
    unadjusted differences;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (n)&#160;to receive reports from the principal executive officer
    and the principal financial officer, or persons performing
    similar functions, regarding: (i)&#160;all significant
    deficiencies in the design or operation of Fund internal
    controls that could adversely affect the Fund&#146;s ability to
    record, process, summarize, and report financial data and have
    identified for the Fund&#146;s independent accountants any
    material weaknesses in internal controls; (ii)&#160;any fraud,
    whether or not material, that involves Fund management or other
    employees who have a significant role in the Fund&#146;s
    internal controls; and (iii)&#160;whether or not there were
    significant changes in the Fund&#146;s internal controls or in
    other factors that could significantly affect the Fund&#146;s
    internal controls subsequent to the
</DIV>

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    <BR>
    A-3
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    date of their evaluation, including any corrective actions with
    regard to significant deficiencies and material weaknesses;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (o)&#160;to establish procedures for: (i)&#160;the receipt,
    retention, and treatment of complaints received by the Fund
    regarding accounting, internal accounting controls, or auditing
    matters; and (ii)&#160;the confidential, anonymous submission of
    concerns regarding questionable accounting or auditing matters;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (p)&#160;to discuss with Fund management and the Fund&#146;s
    independent auditors policies with respect to risk assessment
    and risk management and the quality and adequacy of the
    Fund&#146;s internal controls and processes that could
    materially affect the Fund&#146;s financial statements and
    financial reporting;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (q)&#160;to assist the Fund, if necessary, in preparing any
    written affirmation or written certification required to be
    filed with any stock exchange on which Fund shares are listed;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

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    (r)&#160;to at least annually, obtain and review a report by the
    independent auditor describing: the firm&#146;s internal
    quality-control procedures; any material issues raised by the
    most recent internal quality-control review, or peer review (if
    any peer review is conducted), of the firm, or by inquiry or
    investigation by governmental or professional authorities,
    within the preceding 5&#160;years, respecting one or more
    independent audits carried out by the firm, and any steps taken
    to deal with any such issue; and (to assess the auditor&#146;s
    independence) all relationships between the independent auditor
    and the Fund;
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (s)&#160;to review and reassess the adequacy of this Charter on
    an annual basis and recommend any changes to the Board of
    Directors;&#160;and
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (t)&#160;to perform such other functions consistent with this
    Audit Committee Charter, the Fund&#146;s Certificate of
    Incorporation, the Fund&#146;s By-laws, and applicable law, as
    the Audit Committee or the Board of Directors deems necessary or
    appropriate.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In fulfilling their responsibilities under this Audit Committee
    Charter, it is recognized that members of the Audit Committee
    are not full-time employees of the Fund. As such, it is not the
    duty or responsibility of the Audit Committee or its members to
    conduct &#147;field work&#148; or other types of auditing or
    accounting reviews or procedures. Each member of the Audit
    Committee shall be entitled to rely on (i)&#160;the integrity of
    those persons and organizations inside and outside the Fund from
    which the Audit Committee receives information and (ii)&#160;the
    accuracy of the financial and other information provided to the
    Audit Committee by such persons or organizations, absent actual
    knowledge to the contrary (which actual knowledge shall be
    promptly reported to the Board of Directors).
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Fund management is responsible for maintaining appropriate
    systems for accounting. The Fund&#146;s independent accountants
    are responsible for conducting a proper audit of the Fund&#146;s
    financial statements and are ultimately accountable to the Audit
    Committee. The Audit Committee has the ultimate authority and
    responsibility to select (subject, if applicable, to shareholder
    approval) and evaluate the Fund&#146;s independent accountants,
    to determine the compensation of the Fund&#146;s independent
    accountants and, where appropriate, to replace the Fund&#146;s
    independent accountants.
</DIV>

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    <BR>
    A-4
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">IV.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Meetings</FONT></U></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee shall meet regularly with the Fund&#146;s
    independent accountants (outside the presence of Fund
    management) and at least once annually with the representatives
    of Fund management responsible for the financial and accounting
    operations of the Fund. The Audit Committee shall hold special
    meetings at such limes as the Audit Committee believes
    appropriate. Members of the Audit Committee may participate in a
    meeting of the Audit Committee by means of conference call or
    similar communications equipment by means of which all persons
    participating in such meeting can hear each other.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">V.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">Assistance
    from Fund&#160;Management; Authority to Engage Advisers;
    Funding</FONT></U></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The appropriate officers of the Fund shall provide or arrange to
    provide such information, data and services as the Audit
    Committee may request. The Audit Committee shall have the power
    and authority to take all action it believes necessary or
    appropriate to discharge its responsibilities, including the
    power and authority to retain independent counsel and other
    advisers. The Fund shall provide for appropriate funding, as
    determined by the Audit Committee as a committee of the Board of
    Directors, for payment of compensation to: (i)&#160;the
    Fund&#146;s independent accountants and (ii)&#160;any advisers
    employed by the Audit Committee under this Section&#160;V.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Adopted
    10/20/03</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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    <BR>
    A-5
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<!-- link1 "Appendix B" -->


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    <B><FONT style="font-family: 'Times New Roman', Times">Appendix&#160;B</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Taiwan Fund, Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOMINATING
    COMMITTEE CHARTER</FONT></B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">Purpose
    of Committee</FONT></U></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purpose of the Nominating Committee (the
    &#147;Committee&#148;) of the Board of Directors (the
    &#147;Board&#148;) of The Taiwan Fund, Inc. (the
    &#147;Fund&#148;) is to recommend individuals to the Board for
    nomination as members of the Board and its committees. The
    Committee shall report to the Board on a regular basis and not
    less than once a year.
</DIV>


<!-- link1 "Committee Membership" -->


<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">Committee
    Membership</FONT></U></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee shall consist solely of three or more members of
    the Board, each of whom is, in the business judgment of the
    Board, &#147;independent&#148; under the rules of the New York
    Stock Exchange, Inc. (the &#147;NYSE&#148;) and
    &#147;non-interested&#148; under the Investment Company Act of
    1940.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Members shall be appointed by the Board and shall serve at the
    pleasure of the Board and for such term or terms as the Board
    may determine. In appointing members of the Committee, the Board
    will take into consideration such factors as it deems
    appropriate including, but not limited to, judgment, skill,
    business experience and diversity.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">Committee
    Structure and Operations</FONT></U></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board shall designate one member of the Committee as its
    chairperson. In the event of a tie vote on any issue, the
    chairperson&#146;s vote shall decide the issue. The Committee
    shall meet in person or telephonically at least once a year at a
    time and place determined by the Committee chairperson, with
    further meetings to occur when deemed necessary or desirable by
    the Committee or its chairperson. The Committee may request
    members of management or others to attend meetings and provide
    pertinent information as necessary.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">Committee
    Duties and Responsibilities</FONT></U></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following are the duties and responsibilities of the
    Committee:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;Make recommendations to the Board from time to time as
    to changes that the Committee believes to be desirable to the
    size of the Board.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Identify individuals believed to be qualified to become
    Board members, and to recommend to the Board the nominees to
    stand for election as directors at the annual meeting of
    stockholders or, if applicable, at a special meeting of
    stockholders. In the case of a vacancy in the office of a
    director (including a vacancy created by an increase in the size
    of the Board), the Committee shall recommend to the Board an
    individual to fill such vacancy either through appointment by
    the Board or through election by stockholders. In nominating
    candidates, the Committee shall take into consideration such
    factors as it deems appropriate. These factors may include
    judgment, skill, diversity, experience with businesses and other
    organizations of comparable size, the interplay of the
    candidate&#146;s experience with the experience of other Board
    members, requirements of the NYSE and the Securities and
    Exchange Commission (the &#147;SEC&#148;) to maintain a minimum
    number of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-1
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    independent or non-interested directors, requirements of the SEC
    as to disclosure regarding persons with financial expertise on
    the Fund&#146;s audit committee and the extent to which the
    candidate generally would be a desirable addition to the Board
    and any committees of the Board. In the event the Fund is
    legally required, by contract or otherwise, to provide a third
    party with the ability to nominate a director, the selection and
    nomination of such director need not be subject to the
    Committee&#146;s review.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;Identify Board members qualified to fill vacancies on
    any committee of the Board (including the Committee) and to
    recommend that the Board appoint the identified member or
    members to the respective committee. In nominating a candidate
    for committee membership, the Committee shall take into
    consideration the factors set forth in the charter of the
    committee, if any, as well as any other factors it deems
    appropriate, including without limitation the consistency of the
    candidate&#146;s experience with the goals of the committee, the
    interplay of the candidate&#146;s experience with the experience
    of other committee members, requirements of the NYSE for
    independent members to serve on the Fund&#146;s audit and
    compensation committees and the Committee, and requirements of
    the SEC as to disclosure regarding persons with financial
    expertise on the Fund&#146;s audit committee.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;To periodically review director and committee member
    compensation and recommend any appropriate changes in
    compensation to the Board.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;To fulfill any other duties or responsibilities
    expressly delegated to the Committee by the Board from time to
    time relating to the nomination of Board and committee members.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">Performance
    Evaluation</FONT></U></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee shall produce and provide to the Board an annual
    performance evaluation of the Committee, which evaluation shall
    compare the performance of the Committee with the requirements
    of this charter and set forth the goals and objectives of the
    Committee for the upcoming year. The performance evaluation
    shall also recommend to the Board any improvements to the
    Committee&#146;s charter deemed necessary or desirable by the
    Committee. The performance evaluation by the Committee shall be
    conducted in such manner as the Committee deems appropriate. The
    report to the Board may take the form of an oral report by the
    chairperson of the Committee or any other member of the
    Committee designated by the Committee to make this report.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">Delegation
    to Subcommittee</FONT></U></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee may, in its discretion, delegate all or a portion
    of its duties and responsibilities to a subcommittee of the
    Committee.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">Resources
    and Authority of the Committee</FONT></U></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee shall have the resources and authority appropriate
    to discharge its duties and responsibilities, including the
    authority to retain counsel and other experts or consultants at
    the expense of the Fund. The Committee shall have the sole
    authority to select and retain a consultant or search firm, to
    terminate any consultant or search firm retained by it, and to
    approve the consultant or search firm&#146;s fees and other
    retention terms.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-2
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<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>


<!-- link1 "Appendix C" -->


<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Appendix&#160;C</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Taiwan Fund, Inc.</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Form of
    Discretionary Investment Management Contract</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This Discretionary Investment Management Contract (this
    &#147;<B>Contract</B>&#148;) dated as of
    [&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;2009]
    is made by and between The Taiwan Fund, Inc., a corporation
    organized under the Delaware laws of the United States with a
    registered office at
    <FONT style="white-space: nowrap">c/o&#160;State</FONT>
    Street Bank and Trust&#160;Company, P.O.&#160;Box&#160;5049, 2
    Avenue de Lafayette, Boston, MA
    <FONT style="white-space: nowrap">02206-5049</FONT>
    (the &#147;<B>Fund</B>&#148;) and HSBC Global Asset Management
    (Taiwan) Limited, a corporation organized under the laws of the
    Republic of China (&#147;<B>R.O.C.</B>&#148;) with a registered
    office at 24 Floor, No.&#160;99, Sec. 2, Tun Hwa S. Rd., Taipei
    106, Taiwan (&#147;<B>HSBC Taiwan</B>&#148;).
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of the parties named above shall be referred to
    collectively as the &#147;Parties&#148; and individually as a
    &#147;Party&#148;.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WITNESSETH:</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>WHEREAS</B>, the Fund is a diversified, closed-end investment
    management company registered under the U.S.&#160;Investment
    Company Act of 1940 (the &#147;<B>1940 Act</B>&#148;);
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>WHEREAS</B>, HSBC Taiwan is a licensed securities investment
    trust enterprise registered and validly existing under the laws
    of the R.O.C. which has been approved by the Financial
    Supervisory Commission, Executive Yuan of the R.O.C. (the
    &#147;<B>FSC</B>&#148;) to carry out securities discretionary
    investment business (Business License Number: 2102255), and is
    also an investment adviser registered under the
    U.S.&#160;Investment Advisers Act of 1940 (the &#147;<B>Advisers
    Act</B>&#148;);
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>WHEREAS</B>, the Fund, HSBC Taiwan and the International
    Commercial Bank of China (the name of which has been changed to
    Mega International Commercial Bank Co., Ltd.) have entered into
    a Securities Investment Trust-Investment Management and
    Custodian Contract dated August&#160;22, 2001 (the
    &#147;<B>Management Contract</B>&#148;) providing for management
    by HSBC Taiwan of assets of the Fund held in the R.O.C. under a
    trust fund structure (the <B>&#147;Trust&#148;</B>);
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>WHEREAS</B>, the Fund and HSBC Taiwan have also entered into
    an Investment Advisory and Management Agreement dated
    August&#160;22, 2001 (&#147;<B>Advisory Agreement</B>&#148;) to
    retain HSBC Taiwan to furnish investment advisory and management
    services for the Fund&#146;s assets which may be held in the
    United States, either pending remittance to the R.O.C. of the
    net proceeds of any offering of the Common Stock of the Fund, or
    after distribution to the Fund under the Management Contract, or
    upon borrowing by the Fund from a bank in the United States for
    temporary or emergency purposes, or otherwise as permitted under
    applicable R.O.C. law and regulations (such assets of the Fund
    being referred to herein as the
    &#147;<B>U.S.&#160;Assets</B>&#148;);&#160;and
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>WHEREAS</B>, the Fund and HSBC Taiwan have entered into a
    Discretionary Investment Management Contract, dated
    December&#160;&#160;&#160;, 2008 (the <B>&#147;Interim DIM
    Contract&#148;</B>) to provide for management of the Fund&#146;s
    assets held in the R.O.C. (the
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-1
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</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B> &#147;R.O.C. Assets&#148;</B>) in accordance with the
    Advisory Agreement by setting forth therein provisions, in
    addition to the provisions in the Advisory Agreement, necessary
    to comply with the R.O.C. laws and relevant regulations
    regarding discretionary investment management to permit HSBC
    Taiwan to provide investment advisory and management services
    for the Fund&#146;s R.O.C. Assets under a discretionary and
    non-trust-fund structure in accordance with the R.O.C. laws and
    other applicable laws;&#160;and
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>WHEREAS</B>, the Fund is redeeming its units in the Trust and
    anticipates the termination of the Trust upon the redemption of
    all of its units in the Trust, at which time the Management
    Contract will also terminate;&#160;and
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>WHEREAS</B>, the Fund desires to provide for the management
    of all of its assets by HSBC Taiwan under one agreement upon
    termination of the Trust and the Management Contract, and the
    Fund and HSBC Taiwan desire to enter into this contract for that
    purpose.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>NOW THEREFORE</B>, in consideration of the premises and
    mutual covenants herein contained, the Parties hereby agree as
    follows:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;1&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Procedure
    Prior to, and affect of, the Execution of this
    Contract)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.1&#160;Pursuant to the Securities Investment Trust and
    Consulting Act (the &#147;<B>SITC Act</B>&#148;), HSBC Taiwan
    has already interpreted and delivered to the Fund the terms and
    conditions of this Contract and the &#147;Discretionary
    Investment Prospectus and Risk Disclosure Statement&#148;
    attached hereto as Appendix&#160;I seven (7)&#160;days prior to
    the execution of this Contract.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.2&#160;HSBC Taiwan has thoroughly understood the financial
    capability, investment experiences, objectives and requirements
    of the Fund and informed the Fund of the trading characteristics
    of securities-related products, possible risks or legal
    restrictions associated with it. Taking the above matters into
    consideration, HSBC Taiwan has also consulted with the Fund and
    deliberated on the amount or price of DIM Assets (as defined in
    Article&#160;3.1) as well as basic guidelines for investment or
    trading and the scope of investment or trading with the Fund
    prudently.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.3&#160;Upon execution of this Contract, each of the Management
    Contract, Advisory Agreement and Interim DIM Contract shall
    terminate. This Contract shall be deemed as a continuation of
    the Advisory Agreement and the Interim DIM Contract and shall
    supersede the Advisory Agreement and the Interim DIM Contract.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;2&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Retaining
    of Discretionary Investment Services)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has read and confirmed the contents of this Contract
    and hereby agrees to retain HSBC Taiwan to conduct securities
    investment and securities-related products trading for the
    Fund&#146;s R.O.C. Assets and non-R.O.C. Assets (together, the
    Fund&#160;Assets&#148;) and HSBC Taiwan agrees to provide such
    services, based on its professional investment judgment and
    within the scope of authorization provided by this Contract,
    under a non-trust-fund structure and on a discretionary basis,
    in accordance with this Contract,
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-2
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</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     relevant R.O.C. laws and regulations and rules stipulated by
    the Securities Investment Trust and Consulting Association of
    the R.O.C. (the &#147;<B>SITCA</B>&#148;).
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;3&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(The
    Content, Amount or Price of Discretionary Investment
    Assets)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.1&#160;The Parties agree that the assets to be delivered to
    the R.O.C. Custodian (as defined in Article&#160;7.1) for
    discretionary investment management by HSBC Taiwan under this
    Contract (&#147;<B>DIM Assets</B>&#148;) shall be in the form of
    cash upon delivery and the initial amount of the DIM Assets
    accepted by HSBC Taiwan is stated in Appendix&#160;II, which
    shall be delivered upon execution of this Contract by both
    parties in an amount of no less than NTD five million or any
    other amount required under the R.O.C. laws (&#147;<B>Minimum
    DIM Amount</B>&#148;). The Parties agree that the Fund may, at
    any time as it deems necessary and appropriate, increase or
    decrease the DIM Assets by sending a prior written notice to
    HSBC Taiwan and the R.O.C. Custodian and delivering to or
    returning from the R.O.C. Custodian the relevant amount of DIM
    Assets, provided that the amount of DIM Assets upon the time of
    such increase and decrease of the DIM Assets shall not be less
    than the Minimum DIM Amount. Such written notice of increasing
    or decreasing the DIM Assets shall be incorporated hereto as
    part of this Contract at the time when the following two
    conditions have been met: (i)&#160;the Fund serves such written
    notice on HSBC Taiwan and the R.O.C. Custodian, and
    (ii)&#160;the Fund delivers to or is returned from the R.O.C.
    Custodian the increased or decreased portion of DIM Assets.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.2&#160;The DIM Assets referred to in Article&#160;3.1 hereof
    shall include the assets delivered by the Fund
    (&#147;<B>Delivered Assets</B>&#148;) and any proceed and profit
    derived from the Delivered Assets and the management of them
    during the term of this Contract.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;4&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Agreement
    of Basic Guidelines and Scope of Investment or Trading and the
    Amendment thereof)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.1&#160;HSBC Taiwan shall conduct the investment, trading and
    management of Fund Assets with full discretion in accordance
    with the basic guidelines and scope of investment or trading and
    management of idle funds as stipulated in the Appendix&#160;III.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.2&#160;During the term of this Contract, the basic guidelines
    and scope of investment or trading and management of idle funds
    referred to in Article 4.1 may be amended by the Fund by written
    notice to HSBC Taiwan in accordance with Article&#160;23 hereof
    and such amendment shall be incorporated hereto as part of this
    Contract.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;5&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Authorization
    of Right of Investment or Trading Decision-making and Right of
    Instruction on Assets Management and the Restriction
    thereof)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise provided in this Contract or relevant laws and
    regulations, subject to the basic guidelines and scope of
    investment or trading specified in the preceding Article, the
    Fund authorizes HSBC Taiwan the right to make the investment or
    trading decision-making, to conduct trading of securities or
    securities-related products, to
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-3
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     instruct the appropriate Custodian (as defined below) to
    conduct required settlement of funds and certificates or payment
    of margins and premiums, account-opening, disposition of the
    Fund&#160;Assets and any rights required for assets management
    of the Fund&#160;Assets, with full authority and discretion. A
    separate consent or authorization from the Fund is not required.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;6&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Designation
    and Change of Investment Manager)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.1&#160;Before the execution of this Contract, HSBC Taiwan has
    prepared information related to the education background and
    experience of each investment manager for the Fund and delivered
    such information to the Fund for review. The Parties agree to
    designate the persons listed in the Appendix&#160;IV as the
    investment manager and his deputy of the discretionary
    investment management under this Contract. During the term of
    this Contract, HSBC Taiwan may notify the Fund in writing of a
    change in the investment manager and re-designate a person
    acceptable to both Parties as the new investment manager.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.2&#160;If the investment manager leaves office or for some
    reasons cannot perform
    <FONT style="white-space: nowrap">his/her</FONT>
    duties, HSBC Taiwan shall notify the Fund immediately and the
    designated deputy shall perform the duties of the investment
    manager before the new investment manager is designated
    according to Article&#160;6.1.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.3&#160;The investment manager and the deputy referred to in
    Articles&#160;6.1 and 6.2 shall be responsible for conducting,
    for and on behalf of HSBC Taiwan, the investment or trading
    analysis, judgment, decision making and other obligations of
    HSBC Taiwan related to the DIM Assets in accordance with the
    basic guidelines and scope of investment or trading stipulated
    in Appendix&#160;III and based on his professional knowledge and
    exercising due care of a prudent person.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;7&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Designation
    and Change of Custodian)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.1&#160;The Fund has designated Mega International Commercial
    Bank Co., Ltd, a financial institution organized under the laws
    of the R.O.C. with its principal place of business at 11 Floor,
    No.&#160;100, Chi Lin Rd., Taipei, Taiwan, as the custodian to
    take custody of the DIM Assets <B>(&#147;R.O.C.
    Custodian</B>&#148;) and has entered into, or been the
    beneficiary of, a custody contract <B>(&#147;R.O.C. Custody
    Contract</B>&#148;) with the R.O.C. Custodian under which the
    DIM Assets shall be placed with the R.O.C. Custodian for custody
    and R.O.C. Custodian shall carry out the account-opening for
    securities investment or securities-related products trading,
    custody of funds and certificates, payment of margins and
    premiums, trading settlement, handling custody account matters
    and any other relevant matters in accordance with the R.O.C.
    Custody Contract and relevant R.O.C. laws and regulations. The
    Fund has also designated State Street Bank and Trust Company, a
    financial institution organized under the laws of the State of
    Massachusetts as custodian of the Fund&#160;Assets (the
    <B>&#147;Fund&#160;Custodian&#148; </B>and, together with the
    R.O.C. Custodian, the <B>&#147;Custodians&#148;</B>).
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.2&#160;The Fund, HSBC Taiwan and the R.O.C. Custodian has
    entered into a Tripartite Agreement of Discretionary Investment.
    The above-mentioned R.O.C. Custody Contract and the Tripartite
    Agreement of Discretionary Investment, which have been a part of
    the Interim DIM Contract, shall constitute a part of this
    Contract upon the execution of this Contract.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.3&#160;In the event that the R.O.C. Custodian is unable to
    perform the obligations under the R.O.C. Custody Contract due to
    certain reasons or unable to continuously providing custody
    services due to the cancellation or termination of the R.O.C.
    Custody Contract, the Fund shall notify or cause the R.O.C.
    Custodian to notify HSBC Taiwan immediately. It shall be the
    responsibilities of the R.O.C. Custodian to conduct, in
    accordance with R.O.C. Custody Contract, the clearance and
    settlement, payment and collection of margins and premiums in
    connection with the trading or transactions of the DIM Assets
    concluded prior to HSBC Taiwan&#146;s receipt of the notice of
    the Fund or the R.O.C. Custodian under this paragraph. HSBC
    Taiwan shall not be liable for any loss incurred due to the
    R.O.C. Custodian&#146;s failure to conduct such clearance,
    settlement, payment or collection of margins or premiums.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.4&#160;During the term of this Contract, the Fund may change a
    Custodian provided that the Fund shall notify HSBC Taiwan in
    writing and, if the R.O.C. Custodian is changed, the execution
    of the new R.O.C. Custody Contract shall be handled in
    accordance with Article&#160;7.1 and Article&#160;19 of this
    Contract. The transfer of DIM Assets from the original R.O.C.
    Custodian to the newly appointed R.O.C. Custodian, and relevant
    settlement, clearance, disposition or any other relevant matter
    required to be handled by the R.O.C. Custodian in connection
    with the DIM Assets during the transition period shall be
    negotiated and jointly determined by the Fund, HSBC Taiwan, the
    original R.O.C. Custodian and the newly- appointed R.O.C.
    Custodian.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;8&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Method
    of Custody of the DIM Assets)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The custody of the DIM Assets shall be made by the R.O.C.
    Custodian in accordance with the R.O.C. Custody Contract and the
    SITC Act and the relevant R.O.C. laws and regulations.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    HSBC Taiwan or any of its representatives, employees or agents
    may not keep, or have any third party other than the R.O.C.
    Custodian keep, custody of the DIM Assets.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;9&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Opening
    of Accounts)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.1&#160;After entering into the Tripartite Agreement of
    Discretionary Investment with the Fund and the R.O.C. Custodian,
    HSBC Taiwan shall instruct the R.O.C. Custodian to enter into
    relevant account-opening and brokerage agreements or other
    contracts, if necessary, with the securities firm(s), futures
    commission merchant(s) or any other transaction counterparty
    (the &#147;<B>Trading Counterparty</B>&#148;) on behalf of the
    Fund, and to open the relevant investment trading accounts,
    futures trading accounts, a centralized securities depository
    account, bank deposit accounts, the custody account and any
    other accounts necessary for executions of transaction of DIM
    Assets.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-5
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.2&#160;HSBC Taiwan shall cooperate with the R.O.C. Custodian
    in the account opening, execution of contracts and other related
    procedures referred to in Article&#160;9.1 in accordance with
    the <I>Operation Rules for the Conduct of Discretionary
    Investment Business by Securities Investment Trust Enterprises
    and Securities Investment Consulting Enterprises of Securities
    Investment Trust and Consulting Association of the R.O.C.
    </I>(the &#147;<B>Operation Rules</B>&#148;). The account
    opening and brokerage agreement referred to in Article&#160;9.1
    shall stipulate clearly the responsibility of HSBC Taiwan in the
    Ultra Vires Transactions as referred to in Article&#160;12 of
    this Contract.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.3&#160;The opening of the discretionary investment account
    (&#147;<B>DIM Account</B>&#148;) shall comply with the
    provisions of the Operation Rules and this Contract. HSBC Taiwan
    may not start the discretionarily investment or trading until
    the execution of all of the contracts and the completion of
    procedures for account-opening prescribed in Article&#160;9.1.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.4&#160;During the term of this Contract, the Fund may not use
    the investment trading account and futures trading account
    referred to in Article&#160;9.1 for purposes other than those
    under this Contract.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.5&#160;The Fund agrees that HSBC Taiwan may place an order via
    the omnibus account at the securities firm when engaging the
    securities firm to trade securities on behalf of the Fund. The
    Fund shall issue a power of attorney to the securities firm for
    recordation.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;10&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Designation
    or Change of Trading Counterparty)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    10.1&#160;The Fund hereby authorizes HSBC Taiwan to designate
    the Trading Counterparty. For such designation, HSBC Taiwan
    shall assess the financial, business and credit conditions of
    the designee and give due attention to appropriate
    diversification to avoid over-concentration, and shall notify
    the R.O.C. Custodian immediately after the designation. If HSBC
    Taiwan and the designated Trading Counterparty or securities
    firm have mutual investment or control and subordination
    relationship with each other, HSBC Taiwan shall notify the Fund
    of such fact promptly.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    10.2&#160;During the term of this Contract, the Fund may request
    HSBC Taiwan to change the Trading Counterparty, by sending a
    written notice to HSBC Taiwan 10&#160;days prior to said change.
    The designation of the new Trading Counterparty shall be handled
    in accordance with Article&#160;10.1, provided that the change
    shall not affect the transactions already conducted prior to
    HSBC Taiwan&#146;s receipt of the Fund&#146;s such notice.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;11&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Instruction
    on Collection and Payment)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.1&#160;After confirming the content of transaction with
    respect to the DIM Assets with the securities brokerage firm or
    other Trading Counterparty on the transaction date or any other
    applicable date, HSBC Taiwan shall immediately issue to the
    R.O.C. Custodian a settlement instruction letter that specifies
    the information of Trading Counterparty, object, transaction
    date, settlement date, method and terms of settlement, and the
    price and volume of securities to be settled.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.2&#160;If HSBC Taiwan engages in securities-related products
    transaction with respect to the DIM Assets for which it is
    required to deposit or withdraw margins or payment or collection
    of any funds, HSBC Taiwan shall issue an instruction letter of
    collection or payment to the R.O.C. Custodian. Depending on the
    nature of the amount to be collected or paid, the instruction
    letter shall specify the number and title of the futures trading
    account, account number of client&#146;s margins account, the
    Trading Counterparty, collection or payment date, amount
    receivable or payable etc.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.3&#160;The Fund shall specify in the R.O.C. Custody Contract
    the procedures to handle the disputes over the Ultra Vires
    Transaction (as defined in Article&#160;12.1) instructed by HSBC
    Taiwan in its instruction letters issued in accordance with in
    Articles&#160;11.1 and 11.2 hereof. Such procedure shall comply
    with the Operation Rules.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;12&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Handling
    of Ultra Vires Transactions)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.1&#160;In the event of an ultra vires transaction
    (&#147;<B>Ultra Vires Transaction</B>&#148;) made by HSBC Taiwan
    in connection with the investment of DIM assets in securities or
    in other financial instruments approved by the FSC or in
    engaging in securities-related products trading, HSBC Taiwan
    shall be liable for the performance of the obligation arising
    from such Ultra Vires Transaction, and shall deposit necessary
    funds, certificates or amount to be paid for the Ultra Vires
    Transaction to the relevant custody account before the
    settlement date for the R.O.C. Custodian to handle clearance and
    the settlement of the transaction or payment of margins.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.2&#160;With respect to the funds and certificates or
    securities-related products purchased or sold in an Ultra Vires
    Transaction, HSBC Taiwan shall handle in accordance with
    Article&#160;60 of the Operation Rules and any amendment
    thereof, if any.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.3&#160;If the Fund, HSBC Taiwan or the R.O.C. Custodian has a
    dispute over an Ultra Vires Transaction, the parties shall
    handle in accordance with Article&#160;59 of the Operation Rules
    and any amendment thereof, if any.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.4&#160;If HSBC Taiwan fails to handle the Ultra Vires
    Transaction in accordance Article&#160;12.3 hereof, which
    results in the failure of the R.O.C. Custodian to complete the
    settlement,
    <FONT style="white-space: nowrap">follow-up</FONT>
    payment of margins or clearance and settlement, any liability
    arising therefrom shall be borne by HSBC Taiwan to Trading
    Counterparties. The Fund shall bear no responsibility thereof.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;13&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Handling
    of Refunded Service Fee)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.1&#160;The service fee refunded from or other interests paid
    by the Trading Counterparties due to the management of DIM
    Assets by HSBC Taiwan shall be used to set off the Fund&#146;s
    transaction cost. Unless the Fund and the Trading Counterparties
    have otherwise negotiated the service fee rate, HSBC Taiwan
    shall negotiate the service fee rate with Trading Counterparties
    on behalf of the Fund based on the principle of fairness and
    faithfulness. The Fund shall cause the R.O.C. Custodian to
    stipulate the refunding method of the service fee in the
    account-opening agreement to be entered into with the Trading
    Counterparties.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.2&#160;HSBC Taiwan shall disclose in the reports or financial
    statements of DIM Assets the amount of service fee refunded from
    or other interests paid by the Trading Counterparties to the
    Fund&#146;s DIM Account with an individual account title.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;14&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Ownership
    of Proceeds and Profits of DIM Assets and Exercise of
    Shareholder&#146;s Voting Rights)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    14.1&#160;During the term of this Contract, the proceeds and
    profits derived from the DIM Assets shall be collected by the
    R.O.C. Custodian, who shall notify HSBC Taiwan in writing of
    such proceeds and profits and the collection thereof. The
    aforementioned proceeds and profits, during the term of this
    Contract, shall belong to the DIM Assets.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    14.2&#160;Proceeds, share interest, dividends, bonus share or
    other interests derived from the securities of DIM Assets shall
    be distributed to each discretionary investment account of the
    Fund by the issuer or the centralized securities depository
    enterprise in accordance with the applicable laws and
    regulations. The Fund agrees that the right to subscribe
    securities with consideration or the right to convert
    securities, which are derived from DIM Assets, shall be
    exercised by HSBC Taiwan in accordance with the content of
    Appendix&#160;V. However, if relevant laws and regulations
    provide otherwise, such laws and regulations shall apply.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    14.3&#160;Unless otherwise provided by the R.O.C. laws,
    regulations or government rulings, the right to attend
    shareholder&#146;s meeting and the voting right of the stocks
    held in the investment accounts of the DIM Assets shall be
    exercised by the R.O.C. Custodian in accordance with the
    instruction of HSBC Taiwan who is herein authorized by the Fund
    to make such instruction in accordance with policies established
    by the Fund from time to time.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    14.4&#160;Relevant procedures with regard to title transfer and
    exercise of right of the securities held by the DIM Account
    shall be carried out by the R.O.C. Custodian according to the
    R.O.C. Custody Contract, relevant securities laws and
    regulations and rules governing the operation of the centralized
    securities depository institution of the place where the
    investment is made.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;15&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Due care
    of a Prudent Person and Confidentiality Obligations)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    15.1&#160;In conducting discretionary investment business of
    this Contract, HSBC Taiwan shall act in accordance with the
    principle of good faith and comply with relevant laws and
    regulations, and faithfully perform the obligations hereunder
    with due care of a prudent person.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    15.2&#160;HSBC Taiwan and its directors, supervisors, officers,
    employees and agents shall keep strictly confidential with
    regard to the Fund, DIM Assets and other relevant information
    learned from the execution and performance of this Contract,
    except for inquiry conducted in accordance with the laws of the
    R.O.C. or U.S.A. or the Operation Rules or by a Party&#146;s
    group internal audit rules for internal auditing purpose.
    However, aforementioned confidentiality rules shall not apply if
    the Fund provides a separate written consent to HSBC Taiwan each
    time for the latter to publicly disclose or use the
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-8
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     above information, in which the scope, method and circumstances
    of the agreed use shall be specified.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;16&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Accounts,
    Statements and Reporting Obligations)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    16.1&#160;HSBC Taiwan shall maintain in its principal office in
    Taipei sufficient accounts and records to enable a complete and
    accurate view to be formed of the assets and liabilities and the
    income and expenditure and all transactions of the DIM Accounts.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    16.2&#160;HSBC Taiwan shall prepare a monthly report and an
    annual report containing trading record and current status of
    the DIM Assets. The monthly report shall be delivered to the
    Fund within 7 business days after the end of every month; the
    annual report shall be delivered to the Fund within 15 business
    days after the end of every year during the term of this
    Contract.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    16.3&#160;HSBC Taiwan shall comply with Article&#160;47 of the
    Operation Rules and any amendment thereof, if any, for report to
    the Fund of the decrease of net assets value of the DIM Assets.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    16.4&#160;The service of the reports referred to in this
    Articles&#160;16 on the Fund shall be made by mail, facsimile
    and any other methods as agreed by both Parties.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    16.5&#160;The Fund may request in writing or other manner agreed
    by the Parties for HSBC Taiwan&#146;s providing with trading
    status, the volume and amount of the DIM Assets in stock and the
    open position of securities-related products of the DIM Account,
    and HSBC Taiwan may not refuse&#160;it.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    16.6&#160;When receiving the request stated in
    Article&#160;16.7, HSBC Taiwan shall firstly confirm that the
    request is made by the Fund or its authorized representative
    before providing the requested information. HSBC Taiwan shall
    also fill out a request record for recordation.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;17&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Calculation,
    Method and Time of Payment of Remuneration of HSBC Taiwan and
    Expenses)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    17.1&#160;The remuneration of HSBC Taiwan for services provided
    under this Contract shall be paid by the Fund&#160;Custodian
    from the Fund&#160;Assets in accordance with the calculation,
    method and time of payment specified in Appendix&#160;VI of this
    Contract after receiving a notice from HSBC Taiwan.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    17.2&#160;The transaction fee, taxes, and the other relevant
    expenses (but not including any expenses associated with HSBC
    Taiwan&#146;s obligations under Article&#160;16)&#160;incurred
    from the discretionarily investment shall all be borne by the
    Fund and shall be paid from the Fund&#160;Assets. The Fund shall
    also be responsible to make up any deficiency.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-9
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;18&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(The
    Effective Date and the Term of the Contract)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    18.1&#160;This Contract shall take effect upon the execution of
    it by both of the Fund and HSBC Taiwan. However, HSBC Taiwan may
    exercise right of investment decision-making, and assets
    management, and the remuneration of HSBC referred to in
    Article&#160;17.1 shall start to calculate, only after the
    R.O.C. Custody Contract and the Tripartite Agreement of
    Discretionary Investment referred to in Article&#160;7.2 are
    valid and effective, and are able to be actually performed.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    18.2&#160;This Contract shall continue in effect
    until&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2011. If not sooner terminated, this Contract shall continue in
    effect for successive periods of 12&#160;months each thereafter,
    provided that each such continuance shall be specifically
    approved annually by the vote of a majority of the Fund&#146;s
    Board of Directors who are not parties to this Contract or
    interested persons (as such term is defined in the
    U.S.&#160;Investment Company Act of 1940)&#160;of any such
    party, cast in person at a meeting called for the purpose of
    voting on such approval and (a)&#160;either the vote of a
    majority of the outstanding voting securities of the Fund, or
    (b)&#160;a majority of the Fund&#146;s Board of Directors as a
    whole. As used herein the phrase &#147;majority of the
    outstanding voting securities&#148; shall have the meaning set
    forth in the U.S.&#160;Investment Company Act of 1940.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;19&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Amendment
    to the Contract)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise provided by applicable laws, the content of
    this Contract and its appendices may be amended by the written
    consent of both Parties and Article&#160;18.1 shall apply
    <I>mutatis mutandis</I>.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;20&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Termination
    of Contract)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    20.1&#160;This Contract may be terminated at any time by the
    Fund, without the payment of any penalty, upon a vote of a
    majority of the Fund&#146;s Board of Directors or a majority of
    the outstanding voting securities of the Fund, or by HSBC
    Taiwan, on sixty (60)&#160;days&#146; written notice to the
    other Party. This Contract shall automatically terminate in the
    event of its assignment (as such term is defined in the
    U.S.&#160;Investment Company Act of 1940). In addition, this
    Contract shall automatically terminate if HSBC Taiwan is removed
    by the order of the FSC in accordance with the relevant R.O.C.
    laws.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    20.2&#160;If either Party breaches the provision of this
    Contract, and fails to rectify within the period prescribed by
    the other Party in writing, the other Party may terminate this
    Contract before the expiration of this Contract.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    20.3&#160;In the event HSBC Taiwan is unable to continue
    conducting the discretionary investment business due to
    dissolution, revocation or abolishment of permission of
    conducting discretionary investment business, HSBC Taiwan shall
    inform the Fund, the R.O.C. Custodian and the Trading
    Counterparties immediately. This Contract will be terminated
    automatically upon HSBC Taiwan&#146;s incapability to conduct
    the discretionary investment business.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-10
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;21&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Obligations
    to Settle Pending Affairs after Termination of this
    Contract)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    21.1&#160;If this Contract is terminated due to expiration of
    this Contract without renewal or according to provisions of
    Article&#160;20, HSBC Taiwan shall settle the pending affairs
    immediately, make a final report for current status of the DIM
    Assets and the loss or profit of investment of the DIM Account
    and deliver it to the Fund.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    21.2&#160;This Contract shall be deemed to be valid and
    effective within the period of settlement of the pending affairs
    by HSBC Taiwan referred to in Article 21.1.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;22&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Provisions
    for Handling Breach of Contract)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Either Party who breaches provisions of this Contract and fails
    to rectify it within the period prescribed by the other Party in
    writing shall compensate the other Party for the damages and
    losses suffered by such other Party therefrom.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;23&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Notice
    of Change of Important Matters and the Method thereof)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event there is any change in the basic information
    provided by the Fund, the Fund shall inform HSBC Taiwan of such
    change promptly. Unless otherwise provided by this Contract, any
    notification by either Party pursuant to this Contract shall be
    made in writing and delivered to addresses of parties set forth
    in this Contract or in such other manner agreed by both Parties.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;24&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Prohibition
    of Re-commission and Assignment)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise provided by laws and regulations, HSBC Taiwan
    may not, in entirety or in part, designate any third party to
    perform its obligations under this Contract, or assign its right
    hereof to any third party.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;25&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(Dispute
    Settlement and Jurisdiction of Litigation)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to any contrary requirement of the U.S.&#160;Investment
    Company Act of 1940 or the rules thereunder, both Parties agree
    that any dispute arising out of or in connection with this
    Contract shall be first resolved in accordance with the
    regulations governing disputes mediation procedures stipulated
    by SITCA. If such mediation fails, both Parties agree that the
    dispute shall be subject to the non-exclusive jurisdiction of
    the Taiwan Taipei District Court.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Article&#160;26&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">(The
    Governing Law and Supplementary Provisions)</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    26.1&#160;This Contract shall be governed and construed in
    accordance with the laws of the R.O.C., but subject to any
    contrary requirement of the U.S.&#160;Investment Company Act of
    1940 or the rules thereunder.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    26.2&#160;In the event there is any amendment to laws related to
    securities investment trust or consulting, futures-related laws,
    articles of incorporation of SITCA or other relevant rules or
    regulations after execution of this Contract, unless otherwise
    provided
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-11
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     by this Contract, the rights and obligations between the
    Parties hereto shall be subject to the provisions of the amended
    laws.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    26.3&#160;Matters not provided herein shall be subject to the
    provisions of the SITC Act, Futures Trading Act, the Management
    Regulations, the Operation Rules, articles of incorporation of
    SITCA, and other related laws and regulations of the R.O.C.; in
    the absence of such provision in the above-mentioned
    regulations, the matters shall be subject to the negotiation
    between Parties of this Contract in accordance with the
    principle of good faith.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-12
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    IN WITNESS WHEREOF, this contract has been duly executed by both
    Parties.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Taiwan Fund, Inc.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="47%"></TD>
    <TD width="49%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    By&#160;
</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=121 iwidth=160 length=0 -->Name:&#160;&#160;&#160;&#160;&#160;<BR>
    Title:&#160;&#160;&#160;&#160;&#160;<BR>
    Date:&#160;&#160;&#160;&#160;&#160;
</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    HSBC Global Asset Management (Taiwan) Limited
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="47%"></TD>
    <TD width="49%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    By&#160;
</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=121 iwidth=160 length=0 -->Name:&#160;&#160;&#160;&#160;&#160;<BR>
    Title:&#160;&#160;&#160;&#160;&#160;<BR>
    Date:&#160;&#160;&#160;&#160;&#160;
</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-13
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="17%"></TD>
    <TD width="83%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Appendix&#160;I:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Discretionary
    Investment Prospectus and Risk Disclosure Statement</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">[to be
    completed at the time of execution]
    </FONT>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-14
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="17%"></TD>
    <TD width="83%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Appendix&#160;II:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Initial
    Amount of the Discretionary Investment Management
    Assets</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>[to be completed at the time of execution]</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="15%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    Cash:&#160;&#160;NT$&#160;</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 2pt; margin-left: 0%; width: 28%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=293 length=84 -->
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-15
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="19%"></TD>
    <TD width="81%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Appendix&#160;III:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Basic
    Guidelines and Scope of Discretionary Investment or Trading and
    Management of Idle Funds</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;The investment objective is to seek long-term capital
    appreciation through investment primarily in equity securities
    of Republic of China companies listed on the Taiwan Stock
    Exchange. Investment may also be made in debt securities listed
    on the Taiwan Stock Exchange and in debt securities traded on
    the over-the-counter market.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;The DIM Assets after having been remitted into the
    Republic of China and delivered to the Custodian, shall be
    invested only in securities and money market instruments
    denominated in NT Dollars and in NT Dollars cash and banking and
    similar accounts, except to the extent otherwise permitted by
    Republic of China law and regulations.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;The HSBC Taiwan agrees that it will not, using the
    Fund&#160;Assets:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;purchase any security (other than obligations of the
    U.S.&#160;Government, its agencies or instrumentalities), if as
    a result: (i)&#160;as to 75% of the Fund&#160;Assets, more than
    5% of the total Fund&#160;Assets (taken at their current value)
    would then be invested in securities of a single issuer,
    (ii)&#160;as to the remaining 25% of the Fund&#160;Assets, more
    than 10% of the total Fund&#160;Assets (taken at their current
    value) would then be invested in the securities of a single
    issuer (except that the HSBC Taiwan may invest not more than 25%
    of the Fund&#160;Assets in obligations of the Republic of China
    Government or its agencies or instrumentalities),
    (iii)&#160;more than 10% of the voting equity securities (at the
    time of such purchase) of any one issuer would be held in the
    Fund&#160;Assets, and (iv)&#160;more than 25% of the total
    Fund&#160;Assets (taken at their current value) would be
    invested in a single industry;&#160;or
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;purchase any equity securities which, at the time the
    purchase is made, are not (i)&#160;listed and traded on the
    Taiwan Stock Exchange, (ii)&#160;purchased in initial public
    offerings and secondary public offerings but only if such
    securities will be listed on the Taiwan Stock Exchange
    immediately following such offering, or (iii)&#160;traded in the
    over-the-counter market in Taiwan;&#160;or
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;purchase partnership interests;&#160;or
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;borrow money or pledge the DIM Assets; or
    (e)&#160;purchase securities on margin, except for short-term
    credits as may be necessary for clearance of
    transactions;&#160;or
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;make short sale of securities or maintain a short
    position;&#160;or
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;buy or sell commodities or commodity contracts or real
    estate or interests in real estate, except that it may enter
    into foreign currency exchange contracts, foreign currency
    futures contracts, and options on foreign currencies and foreign
    currency futures contracts for bona fide hedging
    purposes;&#160;or
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;act as an underwriter of securities of other
    issuers;&#160;or
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-16
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<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;make loans, including loans of cash or portfolio
    securities, to any person; for purposes of this investment
    restriction, the term &#147;loans&#148; does not include
    distributed bonds, debentures of other securities;&#160;or
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (j)&#160;purchase securities issued by any issuer which owns,
    whether directly or indirectly or in concert with another
    person, more than 5% of the equity securities (whether voting or
    non-voting) of HSBC Taiwan or which takes a significant role in
    the management of HSBC Taiwan;&#160;or
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (k)&#160;issue senior securities;&#160;or
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (l)&#160;purchase beneficiary certificates representing
    interests in a ROC securities investment trust fund or effect
    any transaction in securities with a ROC securities investment
    trust fund managed by HSBC Taiwan.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;Nothing in Point 3 above shall require the sale or
    disposition of any relevant DIM Assets where any of the
    restrictions there set out is breached as a result of any event
    outside the control of HSBC Taiwan and occurring after the
    investment in the relevant assets is made (including not limited
    to any reorganization or amalgamation of any company and the
    suspension of any listing), but no further relevant assets shall
    be acquired until the relevant limitation can again be complied
    with, except pursuant to the exercise of subscription rights to
    purchase securities of an ROC issuer at a time when the
    Fund&#146;s holding of securities of that issuers (or that
    issuer&#146;s industry) would otherwise exceed the limits set
    forth in clause (i), (ii), (iii)&#160;or (iv)&#160;of Point 3(a)
    above, where prior to such exercise and after the announcement
    of such rights, HSBC Taiwan sells at least the number of
    securities which it subsequently purchases through the exercise
    of the rights.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;To not less than the extent (if any) from time to time
    required by the FSC a proportion of the DIM Assets shall be
    retained at all times in liquid form in assets of a type
    specified by the FSC.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;HSBC Taiwan shall not hold or have an interest in
    securities issued by the Fund or securities issued by any
    investment fund investing in Republic of China securities in the
    management of which HSBC Taiwan participates or has an interest.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.&#160;To the maximum possible extent all transactions in
    discretionary investment assets shall be carried out through
    stock exchanges and other officially designated markets. Subject
    to any limitations which may be imposed under the
    U.S.&#160;Investment Company Act of 1940 and any rules and
    regulations adopted thereunder, such transactions may be carried
    out through a broker who is a connected person of HSBC Taiwan to
    such extent as HSBC Taiwan may think fit provided that the cost
    thereof is not greater than it would have been had the
    transactions been carried out through a broker who was not a
    connected person.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-17
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="18%"></TD>
    <TD width="82%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Appendix&#160;IV:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Information
    of Designated Investment Manager and His Deputy Agreed by Both
    Parties<BR>
    <BR>
    [ to be completed at the time of execution ]</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 18%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 31%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 31%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name of the Investment
    Manager:&#160;<FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=128 iwidth=239 length=0 -->
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 31%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 31%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Year of
    Birth:&#160;<FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=128 iwidth=239 length=0 -->
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 31%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 31%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Education:&#160;<FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=128 iwidth=239 length=0 -->
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 31%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 31%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Experience:&#160;<FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=128 iwidth=239 length=0 -->
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 31%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 31%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name of the
    Deputy:&#160;<FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=128 iwidth=239 length=0 -->
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 31%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 31%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Year of
    Birth:&#160;<FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=128 iwidth=239 length=0 -->
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 31%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 31%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Education:&#160;<FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=128 iwidth=239 length=0 -->
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 31%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 31%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Experience:&#160;<FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=128 iwidth=239 length=0 -->
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-18
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="17%"></TD>
    <TD width="83%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Appendix&#160;V:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Exercise
    of Rights on Subscription for Securities with Consideration or
    Conversion of Securities</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    HSBC Taiwan has full discretion to exercise the rights on
    subscription with consideration for securities or conversion of
    securities managed by it under this Contract in the best
    interest of Fund and subject to the Basic Guidelines and Scope
    of Discretionary Investment or Trading and Management of Idle
    Funds as specified in Appendix&#160;III of this Contract.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-19
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="19%"></TD>
    <TD width="81%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Appendix&#160;VI:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Calculation,
    Method and Time of Payment of Remuneration of HSBC Taiwan and
    Expenses</FONT></B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As compensation for the discretionary investment management
    services and expenses borne by HSBC Taiwan pursuant to this
    Contract, HSBC Taiwan shall be entitled to receive out of the
    Fund&#160;Assets a monthly fee payable in NT Dollars. Such fee
    shall consist of a basic fee (the &#147;<B>Basic Fee</B>&#148;)
    and performance adjustments (the &#147;<B>Performance
    Adjustments</B>&#148;), which may serve either to increase or
    decrease the Basic Fee.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The Basic Fee shall be computed promptly after the end
    of each month by multiplying (i)&#160;the average daily Net
    Value (as defined below) for such month by (ii)&#160;an annual
    rate of 1%. For any period of less than a full month during
    which this Contract is in effect, the Basic Fee shall be
    calculated by multiplying (i)&#160;the average daily Net
    Fund&#160;Value for such period prorated according to the
    proportion that the number of business days in such period bears
    to the number of business days in such month times (ii)&#160;an
    annual rate of 1%. As used herein, &#147;Net Value&#148; shall
    mean the value of the net assets of the Fund (including the
    discretionary investment assets) calculated as described under
    &#147;Net Asset Value&#148; in the Prospectus of the Fund.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;The Basic Fee shall be subject to upward or downward
    Performance Adjustments on the basis of investment performance,
    as follows:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Performance Adjustment shall be made by multiplying
    (x)&#160;the Applicable Performance Adjustment Rate times
    (y)&#160;the average Net Value over the performance period. The
    resulting Performance Adjustments shall then be added to or
    subtracted from the Basic Fee. The Performance periods and the
    Applicable Performance Adjustment Rates shall be calculated as
    follows:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 11%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;First, the performance period shall commence with the
    first business day of the first full month following the date
    upon which 75% or more of the assets constituting the Net Value
    are invested in equity securities. During the first eleven
    (11)&#160;months thereafter there shall be no Performance
    Adjustment. Starting with the twelfth month of operation, the
    Performance Adjustment shall be take effect. Following the
    twelfth month a new month shall be added to the performance
    period until the performance period equals 36&#160;months.
    Thereafter the performance period shall consist of the current
    month plus the previous 35&#160;months. Notwithstanding the
    provisions of Point 1 (b)(1), Performance Adjustments under this
    Contract shall be made as if this Contract were a continuation
    of the Management Contract, rather than a new Investment
    Contract. In addition, the termination of the Management
    Contract shall not, for purpose of the last paragraph of Point
    9.1 (b)&#160;of the Management Contract be deemed a termination
    thereof and thereby result in any prorated fee calculation.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 11%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;Second, compute the percentage difference between
    (a)&#160;the opening Net Value of the Fund on the first business
    day of the performance period and (b)&#160;the sum of
    (1)&#160;the closing Net Value on the last business day of such
    period
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-20
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 11%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     plus (ii)&#160;the value of the Fund&#146;s cash distributions
    made during the performance period plus (iii)&#160;the value of
    capital gains taxes paid or payable by or on behalf of the Fund
    on undistributed realized long-term capital gains during the
    performance period.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 11%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;Third, compute the percentage change in Taiwan Stock
    Exchange Index (the <B>&#147;Index&#148;</B>) during such
    period. In making such computation the value of cash
    distributions made during the performance period by companies
    whose securities comprise the Index shall be accumulated to the
    end of such period and added to the closing value of the Index,
    with cash distributions of the securities comprising the Index
    being treated as reinvested in the Index as of the end of each
    calendar quarter following the payment of the cash distribution.
    (In both such computations of percentages, the percentage rate
    shall be rounded to the nearest full basis point (0.01%)
    (rounding up if a computation produces a result of exactly
    one-half basis point (0.005%))).
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 11%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;Fourth, the Applicable Performance Adjustment Rate
    shall be the Applicable Adjustment Percentage (as defined in
    (5)&#160;below) times the number (whether positive or negative)
    obtained by subtracting the percentage change in the Index
    during the performance period from the percentage change in the
    Net Value of during that period, provided that if the number
    thus obtained is greater than ten (either positive of negative)
    the Applicable Performance Adjustment Rate shall be the
    Applicable Performance Adjustment Percentage times ten (positive
    or negative, as appropriate).
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 11%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;The Applicable Adjustment Percentage shall be an annual
    rate of 0.03%.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In computing the investment performance of the Net Value and the
    investment record of the Index, distributions of realized
    capital gains, dividends paid out of investment income, the
    value of capital gains&#146; taxes per share paid or payable on
    undistributed realized long-term capital gains, and all cash
    distributions of the companies whose stocks comprise the Index
    shall be treated as reinvested in accordance with
    <FONT style="white-space: nowrap">Rule&#160;205-1</FONT>
    or any other applicable rules under the United Sated Investment
    Advisers Act of 1940.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the case of termination of this Contract, the transfer of the
    discretionary investment assets to another securities investment
    trust enterprise, the fee for that month shall be reduced
    proportionately on the basis of the number of business days
    during which this Contract is in effect during that month. The
    Basic Fee rate in that month shall be computed on the basis of
    and applied to the Net Value, averaged over that month and
    ending on the last business day on which this Contract is in
    effect. The amount of the performance Adjustment (or
    Adjustments) shall be computed on the basis of and applied to
    the Net Value, averaged over the
    <FONT style="white-space: nowrap">36-month</FONT>
    period ending on the last business day on which this Contract is
    in effect, provided that if this Contract has been in effect for
    last than 36&#160;months, the computation shall be made on the
    basis of the period of time during which this Contract has been
    in effect.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-21
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-family: 'Times New Roman', Times">PROXY</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-family: 'Times New Roman', Times">
    PROXY</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    TAIWAN FUND, INC.<BR>
    THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS<BR>
    ANNUAL MEETING OF STOCKHOLDERS&#160;&#151; JANUARY 12,
    2009</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned hereby appoints Joe O. Rogers, Adelina Louie and
    Elizabeth A. Watson, and each of them, the proxies of the
    undersigned, with full power of substitution to each of them, to
    vote all shares of The Taiwan Fund, Inc. which the undersigned
    is entitled to vote at the Annual Meeting of Stockholders of The
    Taiwan Fund, Inc. to be held at the offices of HSBC Global Asset
    Management (Hong Kong) Limited, HSBC Main Building,
    Level&#160;22, 1 Queen&#146;s Road, Central, Hong Kong, on
    Monday, January&#160;12, 2009 at 1:00&#160;p.m., local time, and
    at any adjournments thereof, unless otherwise specified in the
    boxes provided on the reverse side hereof, for the election of
    the directors named on the reverse side, for the approval of the
    Discretionary Investment Management Agreement and in their
    discretion, on any other business which may properly come before
    the meeting or any adjournments thereof. The undersigned hereby
    revokes all proxies with respect to such shares heretofore
    given. The undersigned acknowledges receipt of the Proxy
    Statement dated December&#160;5, 2008.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

    <DIV style="font-size: 12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=128 iwidth=347 length=0 -->
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    PLEASE VOTE, DATE AND SIGN ON OTHER SIDE AND RETURN PROMPTLY IN
    ENCLOSED ENVELOPE.
</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=347 length=0 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Please sign exactly as your name(s) appear(s). When signing as
    attorney, executor, administrator, trustee or guardian, please
    give your full title as such.
</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=347 length=0 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="47%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="45%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    HAS YOUR ADDRESS CHANGED?
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    DO YOU HAVE ANY COMMENTS?
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=158 length=0 -->
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=158 length=0 -->
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=158 length=0 -->
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=158 length=0 -->
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=158 length=0 -->
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=158 length=0 -->
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">FRONT OF
    PROXY CARD
    </FONT>
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 78%; margin-left: 11%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Electronic
    Voting Instructions</FONT></B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">You can
    vote by Internet or telephone!<BR>
    Available 24&#160;hours a day, 7&#160;days a week!</FONT></B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Instead
    of mailing your proxy, you may choose one of the two voting<BR>
    methods outlined below to vote your proxy.</FONT></B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">VALIDATION
    DETAILS ARE LOCATED BELOW IN THE TITLE&#160;BAR.
    </FONT>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proxies
    submitted by the Internet or telephone must be received by<BR>
    1:00&#160;a.m., Central Time, on January&#160;12,
    2009.</FONT></B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Vote by
    internet</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Log on to the internet and go to<BR>
    <B>www.investorvote.com/TWN</B>
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Follow the steps outlined on the secured website.
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Vote by
    telephone</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Call toll free
    <FONT style="white-space: nowrap">1-800-652-VOTE</FONT>
    (8683)&#160;within the United<BR>
    States, Canada&#160;&#038; Puerto Rico any time on a touch
    tone<BR>
    telephone. There is <B>NO CHARGE </B>to you for the call.
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Follow the instructions provided by the recorded message.
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 9pt">THE TAIWAN FUND, INC.
    </FONT>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 9pt">C/O COMPUTERSHARE
    </FONT>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 9pt">P.O. BOX 8694
    </FONT>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 9pt">EDISON, NJ
    <FONT style="white-space: nowrap">08818-8694</FONT>
    </FONT>
</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt"><FONT style="font-family: Wingdings; font-variant: normal">&#254;</FONT>&#160;&#160;Please
    mark your votes as in this example.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-right: 29%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=347 length=0 -->

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 29%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE TAIWAN FUND, INC.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-right: 40%; width: 69%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=347 length=240 -->

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Proposals&#160;&#151; The Board of Directors recommends a
    vote <U>FOR</U> all the nominees listed and <U>FOR</U>
    proposal&#160;2.</B>
</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;The election of the following persons to serve as
    directors of the Taiwan Fund, Inc. for the next year or until
    their successors are elected and qualified.
</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Nominees:</B> (01)&#160;Harvey Chang, (02)&#160;Benny T. Hu,
    (03)&#160;Michael F. Holland, (04)&#160;Christina Liu,
    (05)&#160;Joe O. Rogers, (06)&#160;Bing Shen, (07)&#160;M.
    Christopher Canavan,&#160;Jr. and (08)&#160;Anthony Kai Yiu Lo
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 9pt">FOR&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;WITHHELD<BR>
    ALL&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;FROM
    ALL<BR>
    NOMINEES&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;NOMINEES
    </FONT>
</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 29%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 9pt">&#160;<FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=128 iwidth=243 length=192 -->
    </FONT>
</DIV>

<DIV align="left" style="margin-left: 29%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 9pt"><FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;For
    all nominees except as noted above
    </FONT>
</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;The approval of a new Discretionary Investment
    Management Contract between the Fund and HSBC Global Asset
    Management (Taiwan) Limited.
</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 9pt">FOR&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;AGAINST&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ABSTAIN&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>    </FONT>
</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 9%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 9pt">Mark box at right if an address
    change or
    comment&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT><BR>
    has been noted on the reverse side of this card.
    </FONT>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="48%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="46%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Please be sure to sign and date this Proxy.
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Date:&#160;<FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt"><U>&#173;
    &#173;</U></FONT><!-- callerid=208 iwidth=162 length=0 -->
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=162 length=0 -->
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=162 length=0 -->
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Stockholder sign here
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Co-owner sign here
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    RECORD DATE SHARES:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    BACK OF CARD
</DIV>
</TD>
</TR>
</TABLE>

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