<SEC-DOCUMENT>0000950123-10-018280.txt : 20151208
<SEC-HEADER>0000950123-10-018280.hdr.sgml : 20151208

<ACCEPTANCE-DATETIME>20100226170108

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0000950123-10-018280

CONFORMED SUBMISSION TYPE:	PRE 14A

PUBLIC DOCUMENT COUNT:		2

CONFORMED PERIOD OF REPORT:	20100426

FILED AS OF DATE:		20100226

DATE AS OF CHANGE:		20130215


FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			TAIWAN FUND INC

		CENTRAL INDEX KEY:			0000804123

		IRS NUMBER:				042942862

		STATE OF INCORPORATION:			DE

		FISCAL YEAR END:			0831



	FILING VALUES:

		FORM TYPE:		PRE 14A

		SEC ACT:		1934 Act

		SEC FILE NUMBER:	811-04893

		FILM NUMBER:		10640363



	BUSINESS ADDRESS:	

		STREET 1:		TWO AVENUE DE LAFAYETTE

		STREET 2:		PO BOX 5049 (02206-5049)

		CITY:			BOSTON

		STATE:			MA

		ZIP:			02111

		BUSINESS PHONE:		6176622789



	MAIL ADDRESS:	

		STREET 1:		TWO AVENUE DE LAFAYETTE

		STREET 2:		PO BOX 5049 (02206-5049)

		CITY:			BOSTON

		STATE:			MA

		ZIP:			02111



</SEC-HEADER>

<DOCUMENT>
<TYPE>PRE 14A
<SEQUENCE>1
<FILENAME>b79817a1pre14a.htm
<DESCRIPTION>THE TAIWAN FUND, INC.
<TEXT>
<HTML>
<HEAD>
<TITLE>The Taiwan Fund, Inc.</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: 10pt"><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</B></DIV>
<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>Proxy Statement Pursuant to Section&nbsp;14(a) of the Securities</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 0pt"><B>Exchange Act of 1934 (Amendment No. )</B></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="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Filed by the Registrant
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="Wingdings">&#254;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="white-space: nowrap">Filed by a party other than the Registrant</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#254;</FONT> Preliminary Proxy Statement<BR>
<FONT face="Wingdings">&#111;</FONT> Confidential, For Use of the Commission Only (as permitted by Rule&nbsp;14a-6(e)(2))<BR>
<FONT face="Wingdings">&#111;</FONT> Definitive Proxy Statement<BR>
<FONT face="Wingdings">&#111;</FONT> Definitive Additional Materials<BR>
<FONT face="Wingdings">&#111;</FONT> Soliciting Material Pursuant to &#167;240.14a-12

</DIV>
<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>THE TAIWAN FUND, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt">(Name of Registrant as Specified in Its Charter)</DIV>


<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 100%; border-top: 1px solid #000000">&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 style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No fee required.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(1) and 0-11.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Title of each class of securities to which transaction applies:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Aggregate number of securities to which transaction applies:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Proposed maximum aggregate value of transaction:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Total fee paid:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fee paid previously with preliminary materials.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amount Previously Paid:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form, Schedule or Registration Statement No.:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Filing Party:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Date Filed:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE TAIWAN FUND, INC.<BR>
c/o State Street Bank and Trust Company<BR>
P.O. Box 5049, 2 Avenue de Lafayette<BR>
Boston, Massachusetts 02206-5049</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>For questions about the Proxy Statement, please call (800)&nbsp;636-9242</B>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">March&nbsp;12, 2010
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Stockholder:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, April&nbsp;26, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The matters on which you, as a stockholder of the Fund, are being asked to vote are: (1)&nbsp;the
election of the Fund&#146;s directors; (2)&nbsp;the approval of the proposed Investment Advisory and
Management Agreement (the &#147;Proposed Agreement&#148;) between the Fund and Martin Currie Inc. (&#147;Martin
Currie&#148; or the &#147;Proposed Adviser&#148;); and (3)&nbsp;the approval of an amendment to the Fund&#146;s Restated
Certificate of Incorporation, increasing the number of authorized shares of Common Stock from
20,000,0000 to 100,000,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After reviewing each matter carefully, the Board of Directors recommends that you vote FOR
each of the proposals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Your vote is important, regardless of the number of shares you own. Please take a few minutes
to review this material and cast your vote by telephone, by Internet or by using the enclosed form
of proxy card. Your prompt response is needed to avoid follow-up mailings which would increase the
costs paid by all stockholders.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thank you very much for your assistance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Sincerely,

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%"><FONT style="font-variant: SMALL-CAPS">Harvey Chang</FONT><BR>
<I>Chairman</I>

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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE TAIWAN FUND, INC.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Notice of the Annual Meeting of Stockholders<BR>
April&nbsp;26, 2010</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>To the Stockholders of The Taiwan Fund, Inc.:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTICE IS HEREBY GIVEN that the Annual Meeting of Stockholders (the &#147;Meeting&#148;)of The
Taiwan Fund, Inc. (the &#147;Fund&#148;) will be held at the offices of Clifford Chance US LLP, 31 West
52<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> Street, New York, New York 10019, on Monday, April&nbsp;26, 2010 at 10:30&nbsp;a.m., local
time, for the following purposes:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To elect seven directors to serve for the ensuing year.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To approve the proposed Investment Advisory and Management
Agreement (the &#147;Proposed
Agreement&#148;) between the Fund and Martin Currie Inc. (&#147;Martin Currie&#148; or the &#147;Proposed
Adviser&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To approve an amendment to the Fund&#146;s Restated Certificate of Incorporation,
increasing the number of authorized shares of Common Stock from 20,000,000 to
100,000,000.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To transact such other business as may properly come before the Meeting or any
adjournments thereof.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has fixed the close of business on March&nbsp;5, 2010 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You are cordially invited to attend the Meeting. Stockholders who do not expect to attend the
Meeting in person are requested to vote by telephone, by Internet or by completing, dating and
signing the enclosed form of proxy and returning 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE MEETING ON APRIL 26,
2010: </B>This Notice and the Proxy Statement are available on the Internet at
&#091;www.edocumentview.com/TWN&#093;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">By order of the Board of Directors

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%"><FONT style="font-variant: SMALL-CAPS">Elizabeth A. Watson</FONT><BR>
<I>Assistant Secretary</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">March&nbsp;12, 2010
</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="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE TAIWAN FUND, INC.<BR>
c/o State Street Bank and Trust Company<BR>
P.O. Box 5049, 2 Avenue de Lafayette<BR>
Boston, Massachusetts 02206-5049</B>
</DIV>

<!-- link1 "PROXY STATEMENT" -->

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PROXY STATEMENT</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>
<!-- link1 "INTRODUCTION" -->

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INTRODUCTION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
(the &#147;Meeting&#148;), to be held at the offices of Clifford Chance US LLP, 31 West 52<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP>
Street, New York, New York 10019, on Monday, April&nbsp;26, 2010 at 10:30&nbsp;a.m., local time, and at any
adjournments thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Proxy Statement and the form of proxy card are being mailed to stockholders on or about
March&nbsp;12, 2010. Any stockholder giving a proxy has the power to revoke it by executing a
superseding proxy by telephone, Internet or mail following the process described on the proxy card
or by submitting a notice of revocation to the Fund or in person at the Meeting. 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, for the approval of the Proposed Agreement
and for the amendment to the Fund&#146;s Restated Certificate of Incorporation, as described in this
Proxy Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;For purposes of determining the presence of a quorum for transacting business at the Meeting,
executed proxies returned without marking a vote on Proposals 1, 2 and 3 will be treated as shares
that are present for quorum purposes. Abstentions are included in the determination of the number
of shares present at the Meeting for purposes of determining the presence of a quorum. <B>If a
stockholder is present in person or by proxy at the Meeting but does not cast a vote, the
stockholder&#146;s shares will count towards a quorum but will have no effect on Proposal 1, for which
the required vote is a plurality of the votes cast and no effect on Proposals 2 and 3, for which
the required vote is a majority of the votes cast.&#093;</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has fixed the close of business on March&nbsp;5, 2010 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 &#091;18,574,946&#093; shares of common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management of the Fund knows of no business other than those mentioned in Proposals 1, 2 and 3
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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Fund will furnish, without charge, a copy of its annual report for its fiscal year ended
August&nbsp;31, 2009 to any stockholder requesting such report. Requests for the annual report should
be made in writing to The Taiwan Fund, Inc., c/o State Street Bank
and Trust Company, P.O. Box 5049, 2 Avenue de Lafayette, Boston, Massachusetts 02206-5049, Attention: William C. Cox, or
by accessing the Fund&#146;s website at www.thetaiwanfund.com or by calling &#091;(800) 636-9242&#093;.</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "IMPORTANT INFORMATION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>IMPORTANT INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Proxy Statement discusses important matters affecting the Fund. Please take the time to
read the proxy statement, and then cast your vote. <B>You may obtain additional copies of the Notice
of Meeting, Proxy Statement and form of proxy card by calling &#091;1-800-249-7105&#093; or by accessing
&#091;www.edocumentview.com/TWN&#093;. </B>There are multiple ways to vote. Choose the method that is most
convenient for you. To vote by telephone or Internet, follow the instructions provided on the
proxy card. To vote by mail simply fill out the proxy card and return it in the enclosed
postage-paid reply envelope. <B>Please do not return your proxy card if you vote by telephone or
Internet. </B>To vote in person, attend the Meeting and cast your vote. The Meeting will be held at
the offices of Clifford Chance US LLP, 31 West 52nd Street, New York, New York 10019. To obtain
directions to the Meeting, go to: www.cliffordchance.com, click on <I>About Us, </I>and select <I>Offices</I>,
then select <I>USA </I>from the drop down menu for the country and select <I>New York </I>from the drop down menu
for office. Finally, click on <I>View Location Map </I>to see a map of the location. You may also obtain
directions by calling 1-212-878-8000.
</DIV>
<!-- link1 "PROPOSAL 1" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>PROPOSAL 1</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ELECTION OF DIRECTORS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Persons named in the accompanying form of proxy intend in the absence of contrary instruction
to vote all proxies for the election of the seven 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>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Information Concerning Nominees</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. None of the directors are
&#147;interested persons&#148; of the Fund (each an &#147;Independent
Director&#148;) as that term is defined in the Investment Company Act
of 1940, as amended (the &#147;1940 Act&#148;).
</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="24%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Position(s)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Other Directorships in</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Name, Address, and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Held with</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Director</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal Occupation(s) or Employment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Publicly-Held</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Age</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Fund</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Since</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>During Past Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Companies or Funds</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Independent Current Directors</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">M. Christopher Canavan, <br>Jr.
(70) &#134;#<br>
73 Brook Street<br>
Wellesley, MA 02482
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2003</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Independent Consultant
(2000-present).</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Harvey Chang (58) &#134;#<br>
21/F, No.&nbsp;172-1,<br>
Section&nbsp;2, <BR>

Ji-Lung Road<br>
Taipei, Taiwan, ROC
</DIV></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="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2005</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive
Officer, Taiwan Mobile Company
Limited (September&nbsp;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>
<!-- 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="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="24%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Position(s)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Other Directorships in</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Name, Address, and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Held with</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Director</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal Occupation(s) or Employment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Publicly-Held</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Age</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Fund</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Since</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>During Past Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Companies or Funds</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Michael F. Holland (65) &#134;#
<br>375 Park Avenue,<br>
New York, New York <BR>
10152
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2007</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman, Holland &#038; Company LLC
(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"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Anthony Kai Yiu <BR>
Lo (61) &#134;# <br>
2/F, Hong Villa<br>
12 Bowen Street, <BR>
Hong Kong
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2003</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman and Co-CEO, Shanghai
Century Acquisition Inc. (January
2006-present); Founder and Managing
Director, Prime Credit Ltd.
(2001-January&nbsp;2006).</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Christina Liu (52) &#134;#<br>
13 fl. No.&nbsp;200 Keelung <BR>

Road, Section&nbsp;1, <BR>

Taipei, Taiwan, ROC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2005</TD>
    <TD nowrap valign="top">&nbsp;</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, 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 align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Joe O. Rogers, Ph.D. (60) &#134;#<br>
2477 Foxwood Drive<br>
Chapel Hill, NC 27514
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1986</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Manager, The Rogers Team LLC (July
2001-present); President, Rogers International
LLC (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"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bing Shen (60) &#134;#<br>
1755 Jackson Street, #405<br>
San Francisco, CA 94109
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2007</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Independent Consultant
(2005-present); President CDIB &#038;
Partners Investment Holding
Corporation (May&nbsp;2004-August&nbsp;2005).
</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>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

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

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

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

</TABLE>



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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Board of Directors has a separately designated Audit Committee established in
accordance with Section&nbsp;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&nbsp;A. The current members of the Audit Committee are Messrs.&nbsp;Canavan, Holland,
Lo, Rogers and Shen. The Audit Committee convened four times during the fiscal year ended August
31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Board of Directors has determined that the Fund has at least one audit committee
financial expert. Mr.&nbsp;M. Christopher Canavan, Jr., an independent director, is the audit
committee&#146;s financial expert.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 non-director stockholder. The Fund&#146;s Nominating Committee is composed of
directors who are not interested persons of the Fund (as defined in Section&nbsp;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&nbsp;B. The current members of the Nominating
Committee are Messrs.&nbsp;Canavan, Chang and Lo and Ms.&nbsp;Liu. The Nominating Committee convened once
during the fiscal year ended August&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 and/or to satisfy any independence requirements imposed by law, regulation or any listing
requirements of the NYSE.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, HSBC Global Asset Management (Taiwan) Limited.
The
</DIV>

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

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">current Directors who are members of the Fair Valuation Committee are Messrs.&nbsp;Holland, Lo and
Rogers. The Fair Valuation Committee met once during the fiscal year ended August&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;Chang and Shen and Ms.&nbsp;Liu. The Investment Management
Oversight Committee convened four times during the fiscal year ended August&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Board of Directors has a Share Repurchase Program Committee which is responsible
for overseeing and evaluating the Fund&#146;s program to repurchase its shares on the market. The
current members of the Share Repurchase Program Committee are Messrs.&nbsp;Rogers, Holland and Shen.
The Share Repurchase Program Committee convened twice during the fiscal year ended August&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of the Fund held four regular meetings during the fiscal year ended
August&nbsp;31, 2009. For the fiscal year ended August&nbsp;31, 2009, 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, all of the Directors attended the
meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stockholder Communications</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders may send communications to the Fund&#146;s Board of Directors by addressing the
communication directly to the Board (or individual Board members) and/or 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"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Ownership of Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth information regarding the ownership of securities in the Fund
by the current directors, each of whom is a nominee for election as director, as of February&nbsp;16,
2010.
</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="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Aggregate Dollar Range of Equity</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Securities in All Funds Overseen or to be</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Name of Director or</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Overseen by Director or Nominee in</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Nominee</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Dollar Range of Equity Securities in the Fund</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Family of Investment Companies</B>&#134;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Current Directors/Nominees</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">M. Christopher Canavan, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">$1 - $10,000</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">$1 - $10,000</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Harvey Chang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">None</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">None</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael F. Holland</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">$10,001 - $50,000</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">$10,001 - $50,000</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Christina Liu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">None</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">None</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Anthony Kai Yiu Lo</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">None</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">None</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joe O. Rogers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><FONT style="white-space: nowrap">$10,001 - $50,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><FONT style="white-space: nowrap">$10,001 - $50,000</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bing Shen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">None</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">None</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 the Proposed
Advisor, or a person directly or indirectly controlling, controlled by, or under common control
with the Adviser or the Proposed Adviser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Transactions with and Remuneration of Officers and Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 $528,274
during the fiscal year ended August&nbsp;31, 2009. 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" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the aggregate compensation from the Fund paid to each director
during the fiscal year ended August&nbsp;31, 2009, 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 Complex&#148;).
</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="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Pension or</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Retirement</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total Compensation</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Aggregate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Benefits Accrued</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Estimated Annual</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>From Fund and Fund</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>As Part of Fund</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Benefits Upon</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Complex Paid to</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name of Person</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>From Fund(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Expenses</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Retirement</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Directors(2)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">M. Christopher Canavan, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">45,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">45,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Harvey Chang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">45,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">45,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael F. Holland</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">45,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">45,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Benny T. Hu(3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">37,500.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">37,500.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Christina Liu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">45,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">45,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Anthony Kai Yiu Lo</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">42,500.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">42,500.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joe O. Rogers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">50,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">45,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bing Shen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">52,500.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">52,500.00</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>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="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>There is one fund in the Fund Complex.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Hu resigned as a director as of February&nbsp;23, 2010.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Required Vote</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B>THE BOARD OF DIRECTORS OF THE FUND RECOMMENDS THAT YOU VOTE &#147;FOR&#148; THE
ELECTION OF THE SEVEN NOMINEES FOR DIRECTORS.</B>
</DIV>
<!-- link1 "PROPOSAL 2" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>PROPOSAL 2</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>APPROVAL
OF PROPOSED INVESTMENT ADVISORY AND<BR>
MANAGEMENT AGREEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;20, 2010, the Board of Directors, all of whom are Independent Directors, voted to
approve and recommend to shareholders an Investment Advisory and Management Agreement (the
&#147;Proposed Agreement&#148;) between the Fund and the proposed investment advisor for the Fund, Martin
Currie Inc., (&#147;Martin Currie&#148; or the &#147;Proposed Adviser&#148;). The Proposed Agreement, if approved,
will replace the current Discretionary Investment Management Agreement, dated &#091;April 3&#093;, 2009 (the
&#147;Current Agreement&#148;) pursuant to which HSBC Global Asset Management (Taiwan) Limited (the
&#147;Adviser&#148;) manages the assets of the Fund. The Current Agreement was approved by a vote of the
Fund&#146;s stockholders during an annual meeting of the Fund&#146;s stockholders on March&nbsp;24, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Proposed Agreement provides for the Proposed Adviser to provide substantially the same
investment advisory and management services as provided under the Current Agreement. The Proposed
Adviser&#146;s duties under the Proposed 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>

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

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under both the Proposed Agreement and the Current Agreement, the Fund bears expenses for legal
fees and expenses of counsel to the Fund; auditing and accounting expenses; taxes and governmental
fees; New York Stock Exchange listing fees; dues and expenses incurred in connection with
membership in investment company organizations; fees and expenses of the Fund&#146;s custodian,
sub-custodian, transfer agents and registrars; fees and expenses with respect to administration
(except as may be expressly provided otherwise in the Proposed Agreement); expenses for portfolio
pricing services by a pricing agent, if any; expenses of preparing share certificates and other
expenses in connection with the issuance, offering and underwriting of shares issued by the Fund;
expenses relating to investor and public relations; expenses of registering or qualifying
securities of the Fund for public sale; freight, insurance and other charges in connection with the
shipment of the Fund&#146;s portfolio securities; brokerage commissions or other costs of acquiring or
disposing of any portfolio holding of the Fund; expenses of preparation and distribution of
reports, notices and dividends to shareholders; expenses of the Fund&#146;s dividend reinvestment and
cash purchase plan; costs of stationery; any litigation expenses; and costs of stockholder&#146;s and
other meetings. Under the Proposed Agreement, as is the case under the Current Agreement, the
Proposed 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 Proposed Adviser also would pay the salaries and expenses of such of the
Fund&#146;s officers and employees and any fees and expenses of such of the Fund&#146;s directors who are
managers, members, officers or employees of the Proposed Adviser or any of its affiliates,
<I>provided</I>, <I>however</I>, that the Fund, and not the Proposed Adviser, shall bear travel expenses or an
appropriate fraction thereof of directors and officers of the Fund who are managers, members,
officers or employees of the Proposed Adviser to the extent that such expenses relate to attendance
at meetings of the Board or any committee thereof, and <I>provided</I>, <I>further</I>, that such expenses are
incurred in accordance with the Fund&#146;s travel policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Proposed Agreement may be terminated at any time, without payment of penalty by the
Proposed Adviser or by the Fund acting pursuant to a vote of the Board of Directors or by a vote of
a majority of the Fund&#146;s outstanding securities (as defined in the 1940 Act) upon sixty (60)&nbsp;days&#146;
written notice, and will terminate automatically in the event of its assignment (as defined in the
1940 Act) by the Proposed Adviser. The Proposed Agreement will also terminate (i)&nbsp;automatically if
the Proposed Adviser ceases to be a member of the Financial Services Authority of the United
Kingdom (the &#147;FSA&#148;) or any successor organization or (ii)&nbsp;upon proper notice if the Proposed
Adviser is required to terminate the Proposed Agreement on the FSA&#146;s instructions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If approved by stockholders, the Proposed Agreement would remain in effect for an initial
period of two years from the date of its execution by the Fund. Thereafter, the Proposed Agreement
would continue in effect from year to year if its continuance is specifically approved at least
annually by (i)&nbsp;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)&nbsp;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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Fee Provisions of the Proposed Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The advisory fee rate to be paid by the Fund under the Proposed Agreement is lower than the
base fee rate currently being paid by the Fund under the Current Agreement and, unlike the Current
Agreement, would not increase or decrease under the Proposed Agreement if the Fund outperformed or
underperformed its benchmark.
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of the Current Agreement, the Adviser is entitled to receive for its services,
a monthly basic fee, payable in NT dollars, at an annual rate of 1.00% of the Fund&#146;s average daily
net 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&nbsp;months. Under the Proposed Agreement, the Proposed Adviser would be entitled to receive a
fee for its services, computed weekly and payable monthly in US dollars, at the annual rate of
0.90% on the first $150&nbsp;million in total net assets under management, 0.80% on the next $150
million in total net assets under management and 0.70% on total net assets under management over
$300&nbsp;million. The proposed fee would not be subject to a performance adjustment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below shows the aggregate amount of advisory fees paid by the Fund for the fiscal
year ended August&nbsp;31, 2009, along with the amount that would have been paid during the same period
had the Proposed Agreement been in effect (&#147;Pro Forma&#148;), and the percentage decrease that the pro
forma fee represents. The average daily net assets for the Fund during the fiscal year ended
August&nbsp;31, 2009 were US$&#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;. The average weekly net assets for the Fund during the
fiscal year ended August&nbsp;31, 2009 were US$&#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;.
</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="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Current Advisory Fee</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Pro Forma Advisory Fee</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Difference</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Base Fee</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">US$&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">US$&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;&nbsp;&nbsp;&#093;%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Adjusted Fee</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">US$&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">US$&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;&nbsp;&nbsp;&#093;%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There were no additional payments made to the Adviser by the Fund for the fiscal year ended August
31, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;If the Fund&#146;s stockholders approve the Proposed Agreement, the proposed fees are expected to
go into effect on or about May&nbsp;1, 2010 or such later date following stockholder approval as is
reasonably practicable if the stockholder meeting is held on or adjourned to a later date than
currently expected.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Factors Considered by The Board of Directors Regarding the Proposed Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board was asked to approve the Proposed Agreement with substantially the same terms and
conditions as the Current Agreement, except with respect to advisory fees as described above. The
Board was assured by the Proposed Adviser that the Fund would continue to be managed in
substantially the same manner under the Proposed Agreement as under the Current Agreement. The
Proposed Agreement is legally required to be reviewed and re-approved by the Board once a year,
after its initial two year term.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Approval Process</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At its meeting in July&nbsp;2009, the Board of Directors of the Fund (the &#147;Board&#148;), all of whom are
Independent Directors, determined that it would be appropriate for the Board to review the
arrangements for the management of the Fund&#146;s assets and consider engaging a different investment
adviser for the Fund. At that time, the Board appointed a committee (the &#147;Committee&#148;) to oversee
the process of reviewing alternative investment advisers. The Committee retained a consultant to
assist the Committee in identifying appropriate candidates to serve as investment adviser for the
Fund and in preparing a request for proposal to be sent to the candidates. Approximately eight
candidates were identified, on the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">basis that each candidate was known to have experience managing portfolios consisting of
Taiwan equity securities and was believed to have performed well in managing those portfolios, and
requests for proposals were sent to those candidates. Four candidates (each a &#147;Candidate&#148; and
together the &#147;Candidates&#148;) submitted responses to the requests for proposals. After reviewing the
responses, the Committee requested additional information from each Candidate. After reviewing the
additional information provided by the Candidates, the Committee determined that each should make a
presentation at the January&nbsp;20, 2010 meeting of the Board of Directors. In advance of that
meeting, each of the Directors was supplied with all of the information provided by each Candidate
in response to the request for proposal and the request for additional information. Included in
the information supplied by each Candidate was information addressing its compliance structure and
its ability to provide the Fund with certain administrative services, and this information was
reviewed by the Fund&#146;s Chief Compliance Officer and Assistant Treasurer, respectively, each of whom
provided his respective preliminary assessment of the Candidate&#146;s compliance structure and administrative
capabilities based on such information. Throughout the process, the Board and the Committee were advised by counsel.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Board meeting on January&nbsp;20, 2010, each of the Candidates made a presentation to the
Board and responded to questions from the Board. Following the presentations, the Board discussed
the relative merits of each Candidate and, after Martin Currie, Inc., the Proposed Adviser, agreed
to reduce its proposed advisory fee and agreed to reductions in its
fee as the Fund&#146;s assets grow, the Board approved the selection of the Proposed Adviser as
the investment adviser for the Fund, approved the Proposed Agreement and agreed to submit the
selection of the Proposed Adviser for approval by the Fund&#146;s stockholders at the next annual
stockholder meeting in April&nbsp;2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In making this selection, the Board noted the Proposed Adviser&#146;s above average performance in
managing a portfolio of Taiwan equity securities, the considerable experience of the proposed
portfolio manager for the Fund in managing portfolios of equity securities of companies in the
China region and the Proposed Adviser&#146;s commitment to on-the-ground research of portfolio
companies. The Board also noted that the advisory fee agreed to by the Proposed Adviser compared
favorably with fees charged by advisers of other U.S. registered closed-end funds that invest in
the China region and with the base advisory fee of the Adviser. The Board also considered the
terms and conditions of the Proposed Agreement and the nature, scope and quality of services that
the Proposed Adviser is expected to provide to the Fund, including compliance services. The Board
also based its decision on the following considerations, among others, although the Board did not
identify any consideration that was all important or controlling, and each Director attributed
different weights to the various factors.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Nature, Extent and Quality of the Services provided by the Adviser</I><B>. </B>The Board reviewed and
considered the nature and extent of the investment management services to be provided by the
Proposed Adviser under the Proposed Agreement. The Board also reviewed and considered the nature
and extent of the non-investment management, administrative services to be provided by the Proposed
Adviser under the Proposed Agreement. The Board determined that the Proposed Adviser appeared to
be capable of providing the Fund with investment management and administrative services of above
average quality.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Performance, Fees and Expenses of the Fund</I><B><I>. </I></B>The Board noted that the Proposed Adviser had not yet
begun providing services to the Fund and, therefore, that there were limitations on the Board&#146;s
ability to evaluate the Proposed Adviser&#146;s performance. Based, however, on the performance of the
Proposed Adviser in managing a fund of Taiwan equity securities, the Board concluded that there was
reason to
</DIV>




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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">believe that the Proposed Adviser could achieve above average performance over the long term in
managing the Fund. The Board also considered that advisory fee rates under the Proposed Agreement
would be lower than the base fee rate under the Current Agreement and, unlike the Current
Agreement, would not increase under the Proposed Agreement if the Fund outperformed its benchmark.
The Board also noted that other expenses of the Fund were not expected to increase as a result of
the retention of the Proposed Adviser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Economies of Scale</I>. The Board considered the economy of scale benefits that the Fund&#146;s
stockholders would be afforded as the management fee rate under the Proposed Investment Management
Agreement declines as the Fund&#146;s assets grow.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Other Benefits of the Relationship. </I>The Board considered whether there were other benefits that
the Proposed Adviser and its affiliates may derive from their relationship with the Fund and
concluded that any such benefits were likely to be minimal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Resources of the Proposed Investment Adviser. </I>The Board considered whether the Proposed Adviser is
financially sound and has the resources necessary to perform its obligations under the Proposed
Agreement, noting that the Proposed Adviser appears to have the financial resources necessary to
fulfill its obligations under the Proposed Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>General Conclusions</I><B>. </B>After considering and weighing all of the above factors, the Board concluded
that it would be in the best interest of the Fund and its stockholders to approve the Proposed
Agreement. In reaching this conclusion, the Board did not give particular weight to any single
factor referenced above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Information About the Proposed Adviser</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Martin Currie Inc., the Proposed Adviser, was incorporated in New York in 1978 and registered as an
investment adviser under the Investment Advisers Act of 1940. Martin Currie, Inc. is part of the
Martin Currie group which is an independent investment management business based in Edinburgh,
Scotland managing US$19.1&nbsp;billion (as of December&nbsp;31, 2009) in specialist active equity portfolios
for clients in Europe, North America and Asia. Martin Currie has 260 employees worldwide and
maintains 7 offices in 6 countries and territories. Martin Currie&#146;s principal offices are located
at Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2ES, UK.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth certain information concerning the principal executive officer and
each of the directors of Martin Currie Inc.
</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="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
<TD nowrap align="center"><DIV style="border-bottom: 1px solid #000000; font-size: 8pt"><B>Name/Address</B></DIV></TD>
<TD></TD>
<TD nowrap align="center"><DIV style="border-bottom: 1px solid #000000; font-size: 8pt"><B>Position Held<BR>with
Proposed<BR>Adviser</B></DIV></TD>
<TD></TD>
<TD nowrap align="center" colspan="3"><DIV style="border-bottom: 1px solid #000000; font-size: 8pt"><B>Since</B></DIV></TD>
<TD></TD>
<TD nowrap align="center"><DIV style="border-bottom: 1px solid #000000; font-size: 8pt"><B>Principal Occupation<BR>or Employment</B></DIV></TD>

</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Willie Watt<br><BR>

Saltire Court<br>
20 Castle Terrace,<br>
Edinburgh<BR>
EH1 2ES<BR>
Scotland
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive<BR>Officer, President
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2001</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Willie joined
Martin Currie as
chief executive in
January&nbsp;2001.
Before that, he
spent 16&nbsp;years with
3i Group, latterly
as a managing
director
responsible for UK
business. Willie&#146;s
remit at Martin
Currie was to lead
a programme of
change,
transforming the
well-respected
Scottish investment
management company
into a dynamic
international
business. With a
&#145;Big Boutique&#146;
vision for Martin
Currie, Willie
assembled an
outstanding team,
which re-focused
the business</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

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

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">on specialist active
equities, created a
robust operational
platform and
reinvigorated the
company&#146;s culture.
Today, Martin
Currie is a truly
international
business, with a
multicultural team
based in Edinburgh,
London, New York,
Shanghai,
Melbourne,
Singapore and &#150;
from January&nbsp;2010 &#150;
Zurich; two-thirds
of the firm&#146;s
clients are based
outside the UK.
Under Willie&#146;s
stewardship Martin
Currie has won
numerous awards,
including several
national prizes for
innovation, Global
Money Management&#146;s
Equity Manager of
the year (2007),
and the prestigious
Queen&#146;s Award for
Enterprise (2005) &#150;
in recognition of
the company&#146;s
success
internationally.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Grant Spence<br>
Saltire Court<br>
20 Castle Terrace <BR>
Edinburgh
EH1 2ES<br>
Scotland
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Compliance<BR>
Officer
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2010</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Beginning his
career at the
Inland Revenue in
1984, Grant joined
Scottish Amicable
in 1988 in the
Human Resources
department. He
undertook a variety
of roles in sales
operations,
customer service
and communications,
and was latterly
responsible for
leading regulatory
reviews and
managing the sales
and advice
complaints
function. He then
joined Martin
Currie as policy
manager, with
responsibility for
identifying
forthcoming
regulatory change,
for communicating
that within Martin
Currie and for
ensuring that
Martin Currie&#146;s
policies and
procedures were
revised to reflect
the change. In
2008, he was
appointed head of
governance, taking
on additional
responsibilities
including managing
the compliance
oversight
programme. In
January&nbsp;2010, Grant
was appointed as
chief compliance
officer and as
acting head of the
risk and compliance
team while Jacqui
Hughes is on
maternity leave. In
this role he has
responsibility for
ensuring the
business maintains
a strong framework
of internal
controls and has
embedded a sound
control environment
throughout the
organisation. He
has specific
reporting
obligations, both
externally and
internally, with
respect to the
achieving of
regulatory
compliance and
managing business
risks effectively.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Jacqui Hughes<br>
Saltire Court<br>
20 Castle Terrace <BR>
Edinburgh <BR>
EH1 2ES<br>
Scotland
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director/Head of
Risk and Compliance
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2006</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Jacqui has
responsibility for
ensuring our funds
operate within a
strong framework of
controls. She has
internal and
external
obligations to
ensure regulatory
compliance and the
effective
management of
Martin Currie&#146;s
business risk.
Having been an
assistant director
for risk and
compliance since
2002, Jacqui was
appointed director
in 2006. She joined
the firm&#146;s
compliance team in
1997, having held a
number of roles in
Martin Currie&#146;s
unit trust division
since joining the
firm 1993. Jacqui
began her career in
the investment
support department
of Scottish
Equitable.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ralph Campbell<br>
Saltire Court<br>
20 Castle Terrace <BR>
Edinburgh <BR>
EH1 2ES<br>
Scotland
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director / Vice<BR>
president Chief<BR>
Finance Officer
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2005</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ralph joined Martin
Currie as director
of finance in 2005
and was appointed
to the main board
that year. Earlier,
he was commercial
director of GE
Consumer Finance
and financial
director of
Prudential
Portfolio Managers.
He began his career
as an accountant
with Coopers &#038;
Lybrand, where he
spent five years as
a senior consultant
and financial
controller in
Australia. Ralph is
a member of the
Institute of
Chartered
Accountants of
Scotland.</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="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">James Fairweather<br><BR>

Saltire Court<br>
20 Castle Terrace <BR>
Edinburgh <BR>
EH1 2ES<br>
Scotland
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director / Vice<BR>
president Chief<BR>
investment officer
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1997</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">James joined Martin
Currie&#146;s global
equity team in 1984
and was promoted to
team head in 1997.
In 1989, he was
appointed to the
main board. Today,
he heads a team of
six who manage
US$4.8&nbsp;billion in
both global and
global
ex-home-market
strategies for a
worldwide client
base. Before
joining Martin
Currie, James
worked for
Kleinwort Benson
and Montague Loebl
Stanley &#038; Co.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Tim Hall<br>
Saltire Court<br>
20 Castle Terrace <BR>
Edinburgh <BR>
EH1 2ES<br>
Scotland
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director / Vice
president , Head of
the investment
floor
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2003</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tim is responsible
for the management,
resourcing and
development of our
investment team. He
is also chairman of
the Martin Currie
Pension Fund
Trustee Board and
the Martin Currie
Charitable
Foundation. Tim
joined Martin
Currie in 1984 as a
graduate trainee,
gaining experience
in the different
geographic
investment teams
before becoming a
director in the UK
team, where he was
responsible for the
income growth and
charitable
accounts. In 1996
he joined client
services, becoming
head of the team in
1999. He was
appointed head of
UK and US
institutional sales
in 2003 and became
a member of Martin
Currie&#146;s executive
board in the same
year. Tim was
appointed to the
main board in 2005.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Allan MacLeod<br>
Saltire Court<br>
20 Castle Terrace <BR>
Edinburgh <BR>
EH1 2ES<br>
Scotland
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director / Vice
president, Managing
director, sales,
marketing and
client service
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2003</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Allan has joint
responsibility for
sales, marketing
and client service
and has been a main
board member since
2004. He became
head of sales and
client service in
2003, when he was
appointed to the
executive board.
Before that, he
worked in the sales
team for two years
and in the client
service team for
four years. Allan
set up Martin
Currie&#146;s range of
equity long/short
funds in 2000 and
has continued to
play a major
role in the
development of this
part of the
business. He took
charge of Martin
Currie&#146;s offshore
funds and
investment trusts
in 1999, having
previously worked
for seven years as
an investment
manager for the
company&#146;s Asian
portfolios. Allan
joined Martin
Currie in 1990 as
an investment
assistant.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Jamie Sandison<br>
1350 Avenue of
<BR>
 the
Americas
Suite&nbsp;3010<BR>

New York<BR>
New York 10019
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director / Vice
president North
American client
services and sales
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2005</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Jamie joined Martin
Currie in 2003. He
moved to the US to
head our New York
office in 2005,
having spent two
years working from
the company&#146;s
Edinburgh base as
director of client
services. He came
to us from
Edinburgh Fund
Managers where he
had worked since
1993 as head of
European equities.
In addition to
managing money,
Jamie was
extensively
involved in client
relationships and
helping to develop
new business.
Before that, Jamie
was a UK fund
manager with Ivory
&#038; Sime and an
investment analyst
with General
Accident. Jamie
became an associate
of the Institute of
Investment
Management and
Research in 1991
and is registered
with the NASD as a
general securities
representative.</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="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Christine Montgomery <BR>
Saltire Court<BR>
20 Castle Terrace<BR>
Edinburgh<BR>
EH1 2ES<BR>
Scotland
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director/Vice<BR>
president,<BR>
Portfolio manager,<BR>
global
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2009</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Christine joined
Martin Currie in
2009 as a director
in our global team
with responsibility
for EAFE and ACWI
ex US mandates. She
joined us from
Edinburgh Partners,
where she was an
investment partner,
managing global and
international
portfolios for
institutional
clients, mostly in
North America.
Before that, she
was a
global-equities
fund manager at
Franklin Templeton
Investments.
Christine began her
investment career
at Aegon Asset
Management
(formerly Scottish
Equitable). During
her 12&nbsp;years with
the company, her
roles included head
of equities, head
of fixed-income and
deputy CIO. Before
joining Aegon, she
had worked in the
Department of
Accounting at the
University of
Edinburgh.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Required Vote</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The 1940 Act requires that an investment advisory contract between an investment company and
an investment adviser be in writing, that such contact 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" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approval of the Proposed 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
Agreement. If this proposal is not approved by stockholders, the Fund
will continue under the Current Agreement while the Board of
Directors considers other steps.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A form of the Proposed Agreement is attached as Appendix&nbsp;C.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B>THE BOARD RECOMMENDS THAT THE SSTOCKHOLDERS VOTE &#147;FOR&#148; THE PROPOSAL TO
APPROVE THE PROPOSED AGREEMENT BETWEEN THE FUND AND MARTIN CURRIE</B>.
</DIV>
<!-- link1 "PROPOSAL 3" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>PROPOSAL 3</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>APPROVAL OF AN AMENDMENT TO THE FUND&#146;S RESTATED<BR>
CERTIFICATE OF INCORPORATION, INCREASING THE NUMBER<BR>
OF AUTHORIZED SHARES OF COMMON STOCK FROM 20,000,000<BR>
TO 100,000,000</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;19, 2010, the Board and all of the Independent Directors, voted to approve and
recommend to stockholders an amendment to Article&nbsp;Fourth of the Fund&#146;s Restated Certificate of
</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="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Incorporation to increase the number of authorized shares of Common Stock from 20,000,000 to
100,000,000 (the &#147;Share Increase Amendment&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The text of the proposed amendment is set forth below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RESOLVED, that Article&nbsp;Fourth of the Fund&#146;s Restated Certificate of Incorporation be
amended to read as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;FOURTH: Capital Stock. The total number of shares of stock which the Corporation
shall have authority to issue is 100,000,000 shares of Common Stock, par value $.01 per
share (&#147;Common Stock&#148;).&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Share Increase Amendment will not change any other aspect of Article&nbsp;Fourth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At March&nbsp;5, 2010, the Fund had &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; shares of Common Stock outstanding. The
Board has determined that the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of presently authorized but unissued Common Stock
may be insufficient to permit the Fund to pay dividends in stock or to make additional offerings of
its Common Stock in order to raise cash to take advantage of certain investment opportunities, if
and as they become available. The Fund has a dividend reinvestment and cash purchase plan (the
&#147;Plan&#148;) pursuant to which the Fund may issue additional shares to participants in the Plan. In
addition, the Fund anticipates that it may, in the future, engage in equity offerings of its
securities for cash through either rights offerings to existing stockholders or secondary public or
private offerings, although the Fund does not have any current plans to make any such additional
offerings. In order to permit the Fund greater flexibility to effect stock dividends, authorize
issuance pursuant to the Plan or issue additional shares of Common Stock from time to time in order
to raise capital in public offerings, private offerings or rights offerings, as well as for other
similar purposes, the Board of Directors considers it advisable that the Fund be in a position to
issue up to approximately &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; additional shares without the requirement of
stockholder approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of capital stock of the Fund do not have any preemptive rights to subscribe for or
purchase any shares of capital stock of the Fund, which means that current stockholders do not have
a prior right to purchase any new issue of Common Stock of the Fund in order to maintain their
proportionate ownership. Consequently, the issuance of additional shares of capital stock may
dilute the interest of a current stockholder if additional shares are issued at less than the then
current net asset value and the stockholder does not purchase, or is not offered the opportunity to
purchase, additional shares. Under the 1940 Act, the Fund is not permitted to issue additional
shares below their then current net asset value except by means of a rights offering made to the
Fund&#146;s stockholders. Pursuant to any such rights offering, each stockholder would be given the
opportunity to purchase an additional number of shares such that the stockholder&#146;s proportionate
interest in the Fund would not be diluted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Required Vote</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approval of the Share Increase Amendment will require the affirmative vote of a majority of
the outstanding stock entitled to vote thereon. For this purpose, abstentions and broker non-votes
will have the effect of a vote to disapprove the Share Increase Amendment.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE BOARD RECOMMENDS THAT THE STOCKHOLDERS VOTE<BR>
&#147;FOR&#148; THE SHARE INCREASE AMENDMENT.</B>
</DIV>

<!-- link1 "GENERAL INFORMATION" -->

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>GENERAL INFORMATION</B>
</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="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Officers of the Fund</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table provides information concerning the officers of the Fund. It is anticipated
that if the Proposed Agreement is approved by stockholders, Mr.&nbsp;Chen and Ms.&nbsp;Louie will resign.
</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="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Name, Address, and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Position(s) Held</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Officer</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal Occupation(s) or Employment</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Age</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>with Fund</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Since</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>During Past Five Years</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Current Officers</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*Andrew Chen (45)<br>
24<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>/F, 99 Tun Hwa<br>
 South Road,<br>
Section&nbsp;2,<br>
Taipei, Taiwan ROC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">President
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2007</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CEO, HSBC Global Asset Management
(Taiwan) Limited (November
2004-present).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*Adelina Louie (43)<br>
HSBC Global Asset Management<BR>
(Hong Kong) Limited<br>
Level 22<br>
HSBC Main Building<br>
1 Queen&#146;s Road Central, <BR>
Hong Kong
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Secretary and
Treasurer
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2004</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Deputy Chief Operating Officer, Asia
Pacific, HSBC Investments (Hong
Kong) Limited (May&nbsp;2006-present);
Chief Operating Officer, HSBC Global
Asset Management (Taiwan) Limited
(March&nbsp;2004-April&nbsp;2006).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Richard F. Cook, Jr. (59)<br>
Foreside Compliance <BR>

Services, LLC<br>
Three Canal Plaza, Suite&nbsp;100
<br>Portland, ME 04101
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Chief Compliance<BR>
Officer
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2007</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employee of Foreside Fund Services,
LLC (November&nbsp;2005-January&nbsp;2006);
Director of Foreside Compliance
Services, LLC (January
2006-present); Chief Compliance
Officer, Guinness Atkinson Funds
(November&nbsp;2005-present); Chief
Compliance Officer, Nomura Partners Funds,
Inc. (April&nbsp;2007-present); Founder
and Managing Member of Northlake,
LLC (2002-present).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">William C. Cox (43)<br>
2 Avenue de Lafayette, 4th
Floor<br>
Boston, MA 02111
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Assistant<BR>
Treasurer
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2009</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President and Senior Director,
State Street Bank and Trust Company
(1997-present).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Elizabeth A. Watson (55)<br>
4 Copley Place,<br>
5<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor
Boston, MA 02116
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Assistant Secretary
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2007</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President and Managing Counsel,
State Street Bank and Trust Company
(August&nbsp;2007-present); Vice
President and General Counsel (May
2004-July&nbsp;2007), Quantitative
Investment Advisors, Inc.; Clerk
(July&nbsp;2004-July&nbsp;2007), Chief Legal
Officer (January&nbsp;2007-July&nbsp;2007),
Chief Legal Officer (January
2007-July&nbsp;2007), Chief Compliance
Officer (July&nbsp;2004-December&nbsp;2005),
Quantitative Group of Funds;
President and General Counsel, U.S.
Boston Capital Corporation (May
2004-July&nbsp;2007).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Proposed
New Officers</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Jamie Skinner (49)<br>
Martin Currie Investment <BR>
Management<br>
Saltire Court<br>
20 Castle Terrace<BR>
Edinburgh <BR>
EH1 2ES<br>
Scotland <BR>
United Kingdom
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">President
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2010</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director, Head of Client Services,
Martin Currie Investment Management
Limited (October&nbsp;2004 &#150; present).
President of the China Fund, Inc.</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="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Name, Address, and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Position(s) Held</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Officer</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal Occupation(s) or Employment</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Age</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>with Fund</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Since</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>During Past Five Years</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Chris Ruffle (51)<br>
Martin Currie Investment <BR>
Management Limited<br>
Saltire Court<br>
20 Castle Terrace <BR>
Edinburgh, EH12ES<br>
Scotland
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Vice President
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2010</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director, MC China Limited (2006 &#150;
present); Director, Heartland
Capital Management Limited, (2006 &#150;
present); Director, Martin Currie
Investment Management Limited (1995
&#150;2006).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Cynthia Morse-Griffin (34)<br>
Foreside Compliance <BR>

Services, LLC<br>
Three Canal Plaza, Suite&nbsp;100
<br>Portland, ME 04101
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Treasurer
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2010</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Manager, Foreside Compliance
Services, LLC (2008-present);
Assistant Vice President, Citigroup
Fund Services, LLC (2001-2008).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Elizabeth A. Watson (55)<br>
4 Copley Place,<br>
5<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor Boston,<BR>
 MA 02116
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Secretary
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2010</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President and Managing Counsel,
State Street Bank and Trust Company
(August&nbsp;2007-present); Vice
President and General Counsel (May
2004-July&nbsp;2007), Quantitative
Investment Advisors, Inc.; Clerk
(July&nbsp;2004-July&nbsp;2007), Chief Legal
Officer (January&nbsp;2007-July&nbsp;2007),
Chief Legal Officer (January
2007-July&nbsp;2007), Chief Compliance
Officer (July&nbsp;2004-December&nbsp;2005),
Quantitative Group of Funds;
President and General Counsel, U.S.
Boston Capital Corporation (May
2004-July&nbsp;2007).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Tracie A. Coop (33)<br>
4 Copley Place,<br>
5th Floor <BR>

Boston, MA 02116
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Assistant Secretary
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2010</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President and Senior Counsel,
State Street Bank and Trust Company
(2007 &#150; present); Associate Counsel
and Manager, Natixis Asset
Management Advisors, L.P. (2006 &#150;
2007); Associate Counsel, Natixis
Asset Management Advisors, L.P.
(2005 &#150; 2006).</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-family: Symbol">&#217;</FONT></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>As of June&nbsp;2, 2008, HSBC Investment (Taiwan) Limited changed its name
to HSBC Global Asset Management (Taiwan) Limited.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>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, of the Adviser or of the
Proposed Adviser.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Fund Administration</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State Street Bank and Trust Company acts as Administrator to the Fund pursuant to an
Administration Agreement between the Administrator and the Fund. The principal business address of
the Administrator is State Street Financial Center, One Lincoln Street, Boston, Massachusetts
02111.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Audit Committee Report</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee has reviewed and discussed the Fund&#146;s audited financial statements for the
fiscal year ended August&nbsp;31, 2009 with management, the Adviser and Tait, Weller &#038; Baker LLP, the
Fund&#146;s independent registered public accounting firm (&#147;Tait Weller&#148;), and has discussed with Tait
Weller the matters required to be discussed by Statement on Auditing Standards No.&nbsp;114 (The
Auditor&#146;s Communications with Those Charged with Governance, AU Section&nbsp;380), as may be modified or
supplemented. The Audit Committee has received the written disclosures and letter from Tait Weller
required by Public Company Accounting Oversight Board (&#147;PCAOB&#148;) Rule&nbsp;3526 (Ethics and
</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="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Independence Rule&nbsp;3526, Communications with Audit Committees Concerning Independence), as may be modified or
supplemented, and has discussed with Tait Weller 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&nbsp;31, 2009 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" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">M. Christopher Canavan, Jr., <I>Chairman of the Audit Committee</I><BR>
Joe O. Rogers, <I>Member of the Audit Committee</I><BR>
Anthony Kai Yiu Lo, <I>Member of the Audit Committee</I><BR>
Michael F. Holland, <I>Member of the Audit Committee</I><BR>
Bing Shen, <I>Member of the Audit Committee</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Independent Registered Public Accounting Firm</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tait Weller 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 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 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" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Audit Fees</I>. For the fiscal years ended August&nbsp;31, 2009 and August&nbsp;31, 2008, Tait Weller
billed the Fund aggregate fees of US$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and US$57,500, 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" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Audit-Related Fees</I>. For the fiscal years ended August&nbsp;31, 2009 and August&nbsp;31, 2008, Tait
Weller billed the Fund aggregate fees of US$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and US$6,800, 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 Audit Fees above. Audit-Related
Fees represent procedures 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" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Tax Fees. </I>For the fiscal years ended August&nbsp;31, 2009 and August&nbsp;31, 2008, Tait Weller billed
the Fund aggregate fees of US$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and US$13,200, 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" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>All Other Fees. </I>For the fiscal years ended August&nbsp;31, 2009 and August&nbsp;31, 2008, Tait Weller
did not bill the Fund any fees for products and services other than those disclosed above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 billed the Fund fees for
the fiscal years ended August&nbsp;31, 2009 and August&nbsp;31, 2008 were pre-approved by the Audit
Committee. For the fiscal years
</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="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ended August&nbsp;31, 2009 and August&nbsp;31, 2008, 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tait Weller 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&nbsp;31, 2009 and August&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Security Ownership of Certain Beneficial Owners</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 January&nbsp;31,
2010.
</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="13%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Name and Address</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount and Nature of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percent</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title Of Class</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>of Beneficial Owner</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Beneficial Ownership</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>of Class*</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Common Stock
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">CEDE &#038; CO<br>
P.O. Box 20, Bowling Green Station
<br>New York, New York 10274
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">18,526,129 shares
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">99.74</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The shares
held by Cede &#038; Co. include the accounts set forth below. This information is based
on publicly available information such are Schedule&nbsp;13D and 13G disclosures filed with the SEC or
other similar regulatory filings from foreign jurisdictions.
</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="13%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Name and Address</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount and Nature of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Percent</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title Of Class</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>of Beneficial Owner</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Beneficial Ownership</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>of Class*</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Common Stock
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">City of London<br>
77 Gracechurch Street,
<br>London EC3V OAS<br>
England
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Has sole power to
vote and dispose of
4,639,490&nbsp;shares.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">25.44%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Common Stock
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Lazard Asset Management LLC<BR>
30 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
1,682,684&nbsp;shares.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">9.23%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Section&nbsp;16(a) Beneficial Ownership Reporting Compliance</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;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
12 of the Exchange Act, make certain filings on a timely basis under Section 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
with one exception. As a result of an inadvertent administrative
delay, a Form&nbsp;3 for Mr. Cox was filed late in May 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Miscellaneous</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proxies will be solicited by mail and may be solicited in person or by telephone or facsimile
or other electronic means, by officers of the Fund or personnel of the Adviser. The Fund has
retained The Altman Group, Inc. to assist in the proxy solicitation. The total cost of proxy
solicitation services,
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">including legal and printing fees, is estimated at $&#091;45,000&#093;, 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 agents in person, by telephone or
by facsimile or other electronic means 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" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that sufficient votes in favor of the proposals set forth in the Notice of this
Meeting are not received by April&nbsp;26, 2010, the persons named as attorneys in the enclosed proxy
may propose one or more adjournments of the Meeting to permit further solicitation of proxies. Any
such adjournment will require the affirmative vote of the holders of a majority of the shares
present in person or by proxy at the session of the Meeting to be adjourned. The persons named as
proxies in the enclosed proxy will vote in favor of such adjournment those proxies which they are
entitled to vote in favor of the proposal for which further solicitation of proxies is to be made.
They will vote against any such adjournment those proxies required to be voted against such
proposal. The costs of any such additional solicitation and of any adjourned session will be borne
by the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stockholder Proposals</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to submit a stockholder proposal to be considered for inclusion in the Fund&#146;s proxy
statement for the Fund&#146;s 2011 Annual Meeting of Stockholders, stockholder proposals must be
received by the Fund (addressed to The Taiwan Fund Inc., c/o State Street Bank and Trust Company,
P.O. Box 5049, 2 Avenue de Lafayette, Boston, Massachusetts 02206-5049) not later than &#091;August&nbsp;4,
2010&#093;. Any stockholder who desires to bring a proposal at the Fund&#146;s 2011 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., c/o State Street
Bank and Trust Company, P.O. Box 5049, 2 Avenue de Lafayette, Boston, Massachusetts 02206-5049),
not before &#091;January&nbsp;26, 2011&#093; and not later than &#091;December&nbsp;27, 2010&#093;.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">By order of the Board of Directors,

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%"><FONT style="font-variant: SMALL-CAPS">Elizabeth A. Watson</FONT><BR>
<I>Assistant Secretary</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">c/o State Street Bank and Trust Company<BR>
P.O. Box 5049<BR>
2 Avenue de Lafayette,<BR>
Boston, Massachusetts 02206-5049

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">March&nbsp;12, 2010

</DIV>

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

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

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

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>APPENDIX A</I>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>The Taiwan Fund, Inc. (the &#147;Fund&#148;)</B>
</DIV>

<!-- link1 "AMENDED AUDIT COMMITTEE CHARTER" -->
<DIV align="center" style="font-size: 10pt"><B>AMENDED AUDIT COMMITTEE CHARTER</B></DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>I. </B><U><B>Composition of the Audit Committee</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee shall be composed of at least three Directors:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>each of whom shall not be an &#147;interested person&#148; of the Fund, as defined in
Section&nbsp;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&nbsp;10A(m) of the Securities Exchange Act of
1934, as amended (the &#147;1934 Act&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. 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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>II. </B><U><B>Purposes of the Audit Committee</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;III of this Audit Committee
Charter. The Fund&#146;s independent accountants are required to report directly to the Audit
Committee.
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>III. </B><U><B>Responsibilities and Duties of the Audit Committee</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 functions. The following
listed responsibilities describe areas of attention in broad terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To carry out its purposes, the Audit Committee shall have the following responsibilities and
duties:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to request information from the Fund&#146;s independent accountants which would be
material to the Audit Committee regarding: (i)&nbsp;the independent accountant&#146;s
registration with the Public Company Accounting Oversight Board (&#147;PCAOB&#148;) and (ii)&nbsp;the
written findings of the PCAOB in connection with the PCAOB&#146;s inspection of the Fund&#146;s
independent accountants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to preapprove all auditing services to be provided to the Fund by the Fund&#146;s
independent accountants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 Act;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 PCAOB Rule&nbsp;3526, 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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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&nbsp;10A(l) of the 1934 Act, and to
consider whether the provision of any non-audit services to the Fund by the Fund&#146;s
independent accountants as described in Section&nbsp;III(c) of this Audit Committee Charter
is compatible with maintaining the independence of those accountants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to review arrangements for annual and special audits and the scope of such
audits with the Fund&#146;s independent accountants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to review and discuss the Fund&#146;s audited financial statements with Fund
management;</TD>
</TR>

</TABLE>
</DIV>

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

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

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to discuss with the independent accountants those matters required by Statement
of Accounting Standards No.&nbsp;114 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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to establish and administer policies and procedures relating to: (i)&nbsp;the hiring
of employees or former employees of the Fund&#146;s independent accountants; and (ii)&nbsp;the
resolution of any disagreements between Fund management and the Fund&#146;s independent
accountants regarding accounting and/or financial reporting policies and procedures;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(l)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(m)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to receive and consider reports from the Fund&#146;s independent accountants
regarding: (i)&nbsp;all critical accounting policies and practices to be used; (ii)&nbsp;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)&nbsp;other material written communications between the
independent accountants and Fund management, such as any management letter or schedule
of unadjusted differences;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(n)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to receive reports from the principal executive officer and the principal
financial officer, or persons performing similar functions, regarding: (i)&nbsp;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)&nbsp;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)&nbsp;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 date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(o)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to establish procedures for: (i)&nbsp;the receipt, retention, and treatment of
complaints received by the Fund regarding accounting, internal accounting controls, or
auditing matters; and (ii)&nbsp;the confidential, anonymous submission of concerns regarding
questionable accounting or auditing matters;</TD>
</TR>

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

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(p)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(q)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(r)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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&nbsp;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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(s)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to review and reassess the adequacy of this Charter on an annual basis and
recommend any changes to the Board of Directors; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(t)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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)&nbsp;the integrity of those persons and organizations inside and outside the
Fund from which the Audit Committee receives information and (ii)&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>IV. </B><U><B>Meetings</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 times 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>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>V. </B><U><B>Assistance from Fund Management; Authority to Engage Advisers; Funding</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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)&nbsp;the Fund&#146;s independent
accountants and (ii)&nbsp;any advisers employed by the Audit Committee under this Section&nbsp;V.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Adopted October&nbsp;20, 2003<BR>
Revised July&nbsp;20, 2009</B>
</DIV>


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</DIV>

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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>APPENDIX B</I>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>The Taiwan Fund, Inc.</B>
</DIV>

<!-- link1 "NOMINATING COMMITTEE CHARTER" -->
<DIV align="center" style="font-size: 10pt"><B>NOMINATING COMMITTEE CHARTER</B></DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Purpose of Committee</U>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Committee Membership</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 align="left" style="font-size: 10pt; margin-top: 6pt">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 align="left" style="font-size: 10pt; margin-top: 12pt"><U>Committee Structure and Operations</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 align="left" style="font-size: 10pt; margin-top: 12pt"><U>Committee Duties and Responsibilities</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following are the duties and responsibilities of the Committee:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To periodically review director and committee member compensation and recommend
any appropriate changes in compensation to the Board.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Performance Evaluation</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 align="left" style="font-size: 10pt; margin-top: 12pt"><U>Delegation to Subcommittee</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Committee may, in its discretion, delegate all or a portion of its duties and responsibilities
to a subcommittee of the Committee.
</DIV>


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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Resources and Authority of the Committee</U>
</DIV>

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


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Adopted April&nbsp;25, 2003</B>
</DIV>


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</DIV>

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

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>APPENDIX C</I>
</DIV>

<!-- link1 "INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement, dated as of &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010&#093; between THE TAIWAN FUND, INC., a corporation
organized under the Delaware Laws of the United States with a registered office at c/o State Street
Bank and Trust Company, P.O. Box 5049, 2 Avenue de Lafayette, Boston, MA 02206-5409 (the
&#147;<U>Fund</U>&#148;), and MARTIN CURRIE INC., a company incorporated in New York and registered as an
investment adviser with the U.S. Securities and Exchange Commission and authorized and regulated by
the Financial Services Authority of the United Kingdom, the regulator for financial services
institutions in the United Kingdom (the &#147;FSA&#148;) (the &#147;<U>Investment Manager</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is a closed-end, diversified management investment company registered under the
Investment Company Act of 1940 (the &#147;<U>1940 Act</U>&#148;), the shares of common stock of which are
registered under the Securities Exchange Act of 1934 and listed on the New York Stock Exchange. The
Fund&#146;s investment objective is long-term capital appreciation through investment primarily in
securities of Republic of China companies listed on the Taiwan Stock Exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund desires to retain the Investment Manager to provide investment management services
with respect to the Fund&#146;s assets, and the Investment Manager agrees to provide such services,
based upon its professional investment judgment and within the scope of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the mutual covenants hereafter contained, the parties
hereto hereby agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">1. <U>Appointment of Investment Manager</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Fund hereby employs the Investment Manager for the period and on the terms and
conditions set forth herein, subject at all times to the supervision of the Board of Directors of
the Fund (the &#147;<U>Board</U>&#148;), to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Make all investment decisions for the assets of the Fund (the &#147;<U>Fund
Assets</U>&#148;) and to manage the investment and reinvestment of the Fund Assets in accordance
with the investment objective and policies of the Fund, as such investment objective and
policies are amended from time to time by the Board (or with the concurrence of the Fund&#146;s
shareholders, in each case in accordance with the requirements of the 1940 Act), and subject
always to the restrictions of the Fund&#146;s Certificate of Incorporation and By-Laws, as
amended or restated from time to time. Should the Board at any time make any definite
determination as to investment policy and notify the Investment Manager thereof, the
Investment Manager shall be bound by such determination for the period, if any, specified in
such notice or until similarly notified that such determination has been revoked. The
Investment Manager shall vote the Fund&#146;s proxies in accordance with the Fund&#146;s proxy voting
policies, which may be amended from time to time by the Board and communicated to the
Investment Manager. The Investment Manager shall make such reports to the Board concerning
such proxy voting as the Board may deem necessary or advisable and as may be required by
rules and regulations under the 1940 Act. The Fund acknowledges that no assurance has been
or can be provided that the investment objective of the Fund can or will be achieved. The
Investment Manager shall take, on behalf of the Fund, all actions that the Investment
Manager deems necessary to implement the investment policies of the Fund and to place all
orders for the purchase or sale of portfolio securities for the Fund with brokers or dealers
selected by the Investment Manager, and in connection therewith, the Investment Manager is
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">authorized as agent of the Fund to give instructions to the custodians from time to
time of the Fund Assets as to deliveries of securities and payments of cash for the account
of the Fund. In connection with the selection of such brokers or dealers and the placing of
such orders, the Investment Manager is directed at all times to seek to use its best efforts
to obtain for the Fund the most favorable net results available (&#147;<U>best execution</U>&#148;).
In using its best efforts to obtain for the Fund best execution, the Investment Manager
shall consider all factors it deems relevant, including, by way of illustration, price, the
size of the transaction, the nature of the market security, the amount of the commission,
the timing of the transaction taking into account market prices and trends, the reputation,
experience and financial stability of the broker or dealer involved and the quality of
service rendered by the broker or dealer in other transactions. Subject to such policies as
the Fund may communicate to the Investment Manager in writing, the Investment Manager shall
not be deemed to have acted unlawfully or to have breached any duty created by this
Agreement solely by reason of its having caused the Fund to pay a broker or dealer that
provides brokerage and research services to the Investment Manager or its affiliates an
amount of commission for effecting a portfolio investment transaction in excess of the
amount of commission another broker or dealer would have charged for effecting that
transaction, if the Investment Manager determines in good faith that such amount of
commission was reasonable;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Assist the administrator of the Fund, as requested, in the preparation of the
Fund&#146;s periodic financial statements and in the valuation of the Fund Assets and the
determination of its liabilities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Prepare and make available to the Fund pertinent research and statistical data;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Maintain or cause to be maintained for the Fund all books and records required
under the 1940 Act, to the extent that such books and records are not maintained or
furnished by administrators, custodians or other agents of the Fund; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Provide the Fund with such other services and advice, consistent with the
foregoing, as the Board may reasonably request.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Investment Manager accepts such appointment and agrees during the term of this
Agreement to render such services, to permit any of its managers, members, officers or employees to
serve without compensation as directors or officers of the Fund if elected to such positions and to
assume the obligations herein for the compensation herein provided. The Investment Manager shall
for all purposes herein provided be deemed to be an independent contractor and, unless otherwise
expressly provided or authorized, shall have no authority to act for or represent the Fund in any
way or otherwise be deemed an agent of the Fund.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. <U>Compensation</U>. For the services and facilities described in Section&nbsp;1, the Fund agrees to
pay to the Investment Manager, a fee in U.S. dollars in accordance with the schedule set forth as
Exhibit&nbsp;A hereto. For the month and year in which this Agreement becomes effective or terminates,
there shall be an appropriate proration on the basis of the number of days that this Agreement is
in effect during such month and year, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. <U>Investment in Fund Stock</U>. The Investment Manager agrees that it will not make a short
sale of any shares of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4. <U>Non-Exclusivity of Services</U>. Nothing herein shall be construed as prohibiting the
Investment Manager or any of its affiliates from providing investment advisory services to, or
entering into
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">investment advisory agreements with, any other clients (including other registered investment
companies), including clients which may invest in Taiwanese or Chinese equity securities, so long
as the Investment Manager&#146;s services to the Fund pursuant to this Agreement are not materially
impaired thereby, except that, without the prior written consent of the Fund the Investment Manager
may not act as the investment adviser or investment manager to any other investment company that is
listed on the New York Stock Exchange and that has the same investment strategy as the Fund. The
Investment Manager is not obligated to purchase or sell for the Fund any security which the
Investment Manager or its affiliates may purchase or sell for their own accounts or the accounts of
other clients.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5. <U>Standard of Care; Indemnification</U>. The Investment Manager may rely on information
reasonably believed by it to be accurate and reliable. Neither the Investment Manager nor its
officers, managers, members, employees, agents or controlling persons (as defined in the 1940 Act)
shall be subject to any liability for any act or omission, error of judgment or mistake of law, or
for any loss suffered by the Fund, in the course of, connected with or arising out of any services
to be rendered hereunder except by reason of willful misfeasance, bad faith or gross negligence on
the part of the Investment Manager in the performance of its duties or by reason of reckless
disregard on the part of the Investment Manager of its obligations and duties under this Agreement.
Any person, even though also employed by the Investment Manager, who may be or become an employee
of the Fund shall be deemed, when acting within the scope of his employment by the Fund, to be
acting in such employment solely for the Fund and not as an employee or agent of the Investment
Manager. In no event shall the Investment Manager have any responsibility for the acts or omissions
of any other adviser of the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund shall indemnify and hold harmless the Investment Manager, its officers, managers,
members, employees, agents, controlling persons or other affiliates (each, an &#147;<U>Indemnified
Party</U>&#148;) for any losses, costs and expenses incurred or suffered by any Indemnified Party
arising from any action, proceeding or claims that may be brought against such Indemnified Party in
connection with the performance or non-performance of its functions under this Agreement, except
for such losses, costs and expenses resulting from willful misfeasance, bad faith or gross
negligence in the performance of such Indemnified Party&#146;s duties or from reckless disregard on the
part of such Indemnified Party of such Indemnified Party&#146;s obligations and duties under this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">6. <U>Allocation of Charges and Expenses</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Investment Manager shall assume and pay for maintaining its staff and personnel and
shall at its own expense provide the equipment, office space and facilities necessary to perform
its obligations hereunder. The Investment Manager shall pay the salaries and expenses of such of
the Fund&#146;s officers and employees and any fees and expenses of such of the Fund&#146;s directors who are
managers, members, officers or employees of the Investment Manager or any of its affiliates,
<I>provided</I>, <I>however</I>, that the Fund, and not the Investment Manager, shall bear travel expenses or an
appropriate fraction thereof of directors and officers of the Fund who are managers, members,
officers or employees of the Investment Manager to the extent that such expenses relate to
attendance at meetings of the Board or any committee thereof, and <I>provided</I>, <I>further</I>, that such
expenses are incurred in accordance with the Fund&#146;s travel policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In addition to the fee of the Investment Manager, the Fund shall assume and pay the
following expenses: legal fees and expenses of counsel to the Fund; auditing and accounting
expenses; taxes and governmental fees; New York Stock Exchange listing fees; dues and expenses
incurred in connection with membership in investment company organizations; fees and expenses of
the Fund&#146;s custodian, sub-custodian, transfer agents and registrars; fees and expenses with respect
to administration, except as may be herein expressly provided otherwise; expenses for portfolio
pricing services by a pricing
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">agent, if any; expenses of preparing share certificates and other expenses in connection with
the issuance, offering and underwriting of shares issued by the Fund; expenses relating to investor
and public relations; expenses of registering or qualifying securities of the Fund for public sale;
freight, insurance and other charges in connection with the shipment of the Fund&#146;s portfolio
securities; brokerage commissions or other costs of acquiring or disposing of any portfolio holding
of the Fund; expenses of preparation and distribution of reports, notices and dividends to
shareholders; expenses of the Fund&#146;s dividend reinvestment and cash purchase plan; costs of
stationery; any litigation expenses; and costs of stockholder&#146;s and other meetings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7. <U>Potential Conflicts of Interest</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to applicable statutes and regulations, managers, members, officers, employees,
agents or owners of the Investment Manager may be interested in the Fund as a director, officer,
agent or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If the Investment Manager considers the purchase or sale of securities for the Fund and
other advisory clients of the Investment Manager at or about the same time, transactions in such
securities shall be made for the Fund and such other clients in accordance with the Investment
Manager&#146;s trade allocation procedures, as they may be amended from time to time and approved by the
Board.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8. <U>Compliance with FSA requirements</U>. In order for the Investment Manager to comply with
the requirements of the FSA, the Fund and the Investment Manager will execute a Terms of Business
Letter, as such term is defined under the FSA rules. The Terms of Business Letter will serve as
the Fund&#146;s acknowledgement that the Investment Manager has made to the Fund certain prescribed
disclosures as required by the FSA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9. <U>Duration and Termination</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;This Agreement shall be effective for a period of two (2)&nbsp;years from the date hereof and
shall continue in effect from year to year thereafter, <I>provided </I>that such continuance is
specifically approved at least annually by (i)&nbsp;a majority of the members of the Board who are
neither parties to this Agreement nor interested persons of the Fund or of the Investment Manager
or of any entity regularly furnishing investment advisory services with respect to the Fund
pursuant to an agreement with the Investment Manager, cast in person at a meeting called for the
purpose of voting on such approval, and (ii)&nbsp;separately by the Board (all directors voting) or by
vote of a majority of the Fund&#146;s outstanding voting securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;This Agreement may nevertheless be terminated at any time, without payment of penalty, by
the Investment Manager or by the Fund acting pursuant to a vote of the Board or by vote of a
majority of the Fund&#146;s outstanding securities upon sixty (60)&nbsp;days&#146; written notice. This Agreement
shall automatically be terminated in the event of its assignment, <I>provided</I>, <I>however</I>, that a
transaction that does not, in accordance with the 1940 Act and applicable rules thereunder, result
in a change of actual control or management of the Investment Manager&#146;s business shall not be
deemed to be an assignment for the purposes of this Agreement. This Agreement shall automatically
be terminated if the Investment Manager ceases to be a member of the FSA or any successor
organization. In addition, this Agreement shall be terminated upon proper notice if the Investment
Manager is required to terminate the Agreement on the FSA&#146;s instructions.
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Termination of this Agreement shall not (i)&nbsp;affect the right of the Investment Manager to
receive payments of any unpaid balance of the compensation described in Section&nbsp;2 earned prior to
such termination or (ii)&nbsp;extinguish the Investment Manager&#146;s right of indemnification under Section
5.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;As used herein, the terms &#147;interested person,&#148; &#147;assignment&#148; and &#147;vote of a majority of the
outstanding voting securities&#148; shall have the meanings set forth in the 1940 Act.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10. <U>Amendment</U>. This Agreement may be amended by mutual agreement, <I>provided </I>that if
required by the 1940 Act or other applicable law any such amendment shall only become effective
after the affirmative vote of (i)&nbsp;the holders of a majority of the outstanding voting securities of
the Fund and (ii)&nbsp;a majority of the members of the Board who are not interested persons of the Fund
or of the Investment Manager, cast in person at a meeting called for the purpose of voting on such
approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11. <U>Governing Law</U>. This Agreement shall be governed by and construed in accordance with
the laws of the State of New York, <I>provided</I>, <I>however</I>, that nothing herein shall be construed in a
manner inconsistent with the 1940 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12. <U>Notices</U>. Any communication hereunder must be in writing and must be made by letter,
telex or facsimile. Any communication or document to be made or delivered by one person to another
pursuant to this Agreement shall (unless that other person has by fifteen (15)&nbsp;days&#146; notice to the
other specified another address) be made or delivered to that other person at the following
relevant address:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;If to the Investment Manager:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Martin Currie Inc.<BR>
Saltire Court<BR>
20 Castle Terrace<BR>
Edinburgh<BR>
EH1 2ES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Attention: Jamie Skinner<BR>
Telephone No.: &#043;44 131 459 5854 / &#043;44 782 597 1438<BR>
Facsimile No.: &#043;44 131 222 2553
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;With copies to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Ropes &#038; Gray<BR>
One International Place<BR>
Boston, MA 02110<BR>
Attention: George Braxton Raine<BR>
Telephone No.: 617 951 7000<BR>
Facsimile No.: 617 951 7050
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;If to the Fund:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">The Taiwan Fund, Inc.<BR>
c/o State Street Bank and Trust Company<BR>
P.O. Box 5409<BR>
2 Avenue de Lafayette, Boston, MA 02206-5409<BR>
Attention: Elizabeth A. Watson, Assistant Secretary<BR>
Telephone No.: 617-662-1118<BR>
Facsimile No.: 617-662-3805
</DIV>

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

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;With copies to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Clifford Chance US LLP<BR>
31 West 52nd Street<BR>
New York, New York 10019-6131<BR>
Attention: Leonard Mackey, Esq.<BR>
Telephone No.: (212)&nbsp;878-8000<BR>
Facsimile No.: (212)&nbsp;878-8375
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and shall, if made by letter, be deemed to have been received when delivered by hand or if sent by
mail within ten (10)&nbsp;days if the letter is sent by first class mail, and shall, if sent by
facsimile, be deemed to have been received upon production of a transmission report by the machine
from which the facsimile was sent indicating that the facsimile was sent in its entirety to the
facsimile number of the recipient and provided that a hard copy of the notice so served by
facsimile is posted that same day as the notice was served by electronic means.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">13. <U>Jurisdiction</U>. Each party hereto irrevocably agrees that any suit, action or proceeding
against either of the Investment Manager or the Fund arising out of or relating to this Agreement
shall be subject to the jurisdiction of the United States District Court for the Southern District
of New York or the Supreme Court of the State of New York, New York County, and each party hereto
irrevocably submits to the jurisdiction of each such court in connection with any such suit, action
or proceeding. Each party hereto waives any objection to the laying of venue of any such suit,
action or proceeding in either such court, and waives any claim that such suit, action or
proceeding has been brought in an inconvenient forum. Each party hereto irrevocably consents to
service of process in connection with any such suit, action or proceeding by mailing a copy thereof
by registered or certified mail, postage prepaid, to its address as set forth in this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">14. <U>Representation and Warranty of the Investment Manager</U>. The Investment Manager
represents and warrants that it is duly registered as an investment adviser under the U.S.
Investment Advisers Act of 1940 and duly licensed by the FSA and that it will use its reasonable
efforts to maintain effective such registration and license during the term of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">15. <U>Representation and Warranty of the Fund</U>. The Fund represents and warrants that it has
full legal right to enter into this Agreement and to perform the obligations hereunder and that it
has obtained all necessary consents and approvals to enter into this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">16. <U>Provision of Certain Information by the Fund</U>. The Fund shall furnish the Investment
Manager with copies of the Fund&#146;s Certificate of Incorporation, By-Laws and Registration Statement
on Form N-2, as amended or restated from time to time, any press releases made by the Fund and any
reports made by the Fund to its shareholders, as soon as practicable after such documents become
available. The Fund shall furnish the Investment Manager with any further documents, materials or
information that the Investment Manager may reasonably request to enable it to perform its duties
pursuant to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">17. <U>Press Releases, Reports, Other Disclosures</U>. Any reports, press releases or other
disclosures made by the Fund that contain statements about the management of assets by the
Investment Manager shall be subject to the prior approval of the Investment Manager.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">18. <U>Severability</U>. If any provision of the Agreement is determined by a court of competent
jurisdiction to be invalid or unenforceable, such finding shall not affect the validity or
enforceability of the remaining portions of this Agreement.
</DIV>






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

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">19. <U>Counterparts</U>. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same
instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">20. <U>Captions</U>. The captions in this Agreement are included for convenience of reference
only and in no way define any of the provisions hereof or otherwise affect their construction or
effect.
</DIV>






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

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




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have executed this Agreement by their officers thereunto duly
authorized as of the day and year first written above.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">THE TAIWAN FUND, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Harvey Chang
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Harvey Chang&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Chairman, Board of Directors&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">MARTIN CURRIE INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ &#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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

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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>EXHIBIT A</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Manager shall receive a fee for its services under the Agreement, computed
weekly and payable monthly, &#091;at the annual rate of 0.90% on the first $150&nbsp;million in total net
assets under management, 0.80% on the next $150&nbsp;million in total net assets under management and
0.70% on total net assets under management over $300&nbsp;million&#093;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The net asset value of the Fund Assets shall be determined in the manner provided in the
Fund&#146;s Registration Statement on Form N-2.
</DIV>

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

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>PROXY</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>PROXY</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE TAIWAN FUND, INC.<BR>
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS<BR>
ANNUAL MEETING OF STOCKHOLDERS &#150; APRIL 26, 2010</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">The undersigned hereby appoints Joe O. Rogers, Michael F. Holland 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 Clifford Chance US LLP, 31
West 52<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> Street, New York, New York 10019, on Monday, April&nbsp;26, 2010 at 10:30&nbsp;a.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 Investment Advisory and Management Agreement, for the approval of the amendment to
the Fund&#146;s Restated Certificate of Incorporation 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 March&nbsp;12, 2010.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">PLEASE VOTE, DATE AND SIGN ON OTHER SIDE AND RETURN PROMPTLY IN ENCLOSED ENVELOPE.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">Please sign exactly as your name(s) appear(s). When signing as attorney, executor, administrator,
trustee or guardian, please give your full title </DIV>
<DIV align="CENTER" style="font-size: 10pt; margin-top: 0pt">as such.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></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="38%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">HAS YOUR ADDRESS CHANGED?
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">DO YOU HAVE ANY COMMENTS?
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">FRONT OF PROXY CARD
</DIV>

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

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">THE TAIWAN FUND, INC.<BR>
C/O COMPUTERSHARE<BR>
P.O. BOX 8694<BR>
EDISON, NJ 08818-8694

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Please mark your votes as in this example.</B></TD>
</TR>

</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="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">THE TAIWAN FUND, INC.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" 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="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Proposals &#150; The Board of Directors recommends a vote </B><U><B>FOR</B></U><B> all the nominees listed and</B>
<U><B>FOR</B></U><B> Proposals 2 and 3.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. 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 align="left" style="margin-left: 4%; text-indent: -2%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>Nominees</B>: (01)&nbsp;Harvey Chang, (02)&nbsp;Michael F. Holland, (03)&nbsp;Christina Liu, (04)&nbsp;Joe O. Rogers,
(05)&nbsp;Bing Shen, (06)&nbsp;M. Christopher Canavan, Jr. and (07)&nbsp;Anthony Kai Yiu Lo</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&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"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FOR ALL NOMINEES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <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-top: 1px solid #000000">&nbsp;</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"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">For all nominees except as noted above</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"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">WITHHELD FROM ALL NOMINEES</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. The approval of the Investment Advisory and Management Agreement between the Fund and Martin
Currie Inc.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FOR <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">AGAINST <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ABSTAIN <FONT face="Wingdings">&#111;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. The approval of an amendment to the Fund&#146;s Restated Certificate of Incorporation, increasing the
number of authorized shares of Common Stock from 20,000,000 to 100,000,000.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="40%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FOR <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">AGAINST <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ABSTAIN <FONT face="Wingdings">&#111;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mark box at right if an address change or comment has been noted on the reverse side of this
card. <FONT face="Wingdings">&#111;</FONT>
</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="36%">&nbsp;</TD>
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    <TD width="1%">&nbsp;</TD>
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</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Please be sure to sign and date this Proxy.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">Stockholder sign here</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Co-owner sign here</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">RECORD DATE SHARES:
</DIV>


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

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

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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">BACK OF CARD
</DIV>



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



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</DOCUMENT>
<DOCUMENT>
<TYPE>COVER
<SEQUENCE>2
<FILENAME>filename2.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>cover</TITLE>
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<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">State Street Bank and Trust Company<BR>
Legal Services Department<BR>
4 Copley Place, 5<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor<BR>
Boston, MA 02116
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">February&nbsp;26, 2010
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">VIA EDGAR
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">U.S. Securities and Exchange Commission<BR>
Judiciary Plaza<BR>
100 F Street, N.E.<BR>
Washington, D.C. 20549

</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Re:</TD>
    <TD>&nbsp;</TD>
    <TD>The Taiwan Fund, Inc. (the &#147;Fund&#148;)<br>
File No.&nbsp;811-04893</TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Sir/Madam:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On behalf of the above referenced Fund, transmitted herewith for filing pursuant to Rule&nbsp;14a-6(a)
of Regulation&nbsp;14A under the Securities Exchange Act of 1934 (the &#147;1934 Act&#148;) is a preliminary copy
of the Notice and Proxy Statement to be sent to stockholders in connection with the Annual Meeting
of Stockholders of the Fund to be held on April&nbsp;26, 2010. The close of business on March&nbsp;5, 2010
is the record date for the determination of stockholders entitled to notice of and to vote at the
meeting or any adjournments thereof. The meeting will be held for the following purposes:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;To elect seven directors to serve for the ensuing year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;To approve the proposed Investment Advisory and Management Agreement between
the Fund and Martin Currie Inc., the proposed adviser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;To approve an amendment to the Fund&#146;s Restated Certificate of Incorporation,
increasing the number of authorized shares of Common Stock from 20,000,000 to
100,000,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;To transact such other business as may properly come before the Meeting or any
adjournments thereof.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to Rule&nbsp;14a-6(i)(2) of the 1934 Act, no fee is required for this filing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If you have any questions concerning this filing, you may contact me at (617)&nbsp;662-1118.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Very truly yours,
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/Elizabeth A. Watson
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">Elizabeth A. Watson&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">Vice President and Managing Counsel&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Enclosures
</DIV>



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




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