Document:

LAND PURCHASE AND SALE AGREEMENT 

 

This
Purchase and Sale Agreement (“Agreement”) is entered into by and between the parties listed on Exhibit A hereto
(“Seller”) and Green Forest Management Consulting Inc. (“Buyer”) concerning the approximately 407,055.86
square meters of land (the “Land”) in Dataoping Section, Zaoqiao Township, Miaoli County, Taiwan
(R.O.C.), and the approximately 10,120 square meters of land in Laotianliao Section, Touwu Township,
Miaoli County, Taiwan (R.O.C.), all of which is 417,175.86 square meters of
land (the “Land”), which Land is more particularly described in Exhibit A attached and incorporated into this
Agreement. 

 

NOW, THEREFORE, for
good and valuable consideration, the adequacy of which is hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE 1

DEFINITIONS 

 

1.1 Defined Terms:
For purposes of this Agreement, the following terms shall have the following meanings:

 

A. Closing:
The term “Closing” shall mean the date upon which the Property is conveyed to Buyer, as evidenced by the Land Office’s
issuance of the Land Ownership Certificate evidencing transfer of the property from Seller to Buyer.

 

B. Intangible
Property. The term “Intangible Property” means all of Seller’s interests in and to any and all licenses,
approvals, certificates, permits, warranties, guaranties, indemnities and claims that relate to the Real Property.

 

C. Official
Records: The term “Official Records” shall mean the official records of the appropriate Land Office to which the
land transfer is reported and duly recorded.

 

D. Permitted
Exceptions: The term “Permitted Exceptions” shall mean only the following:

 

	 	(i)	real property taxes not yet due and payable; 

 

	 	(ii)	
        supplemental taxes applicable to the sale
        of the Property to Buyer;

         

	 	(iii)	any other encumbrance of the Property claimed through Buyer or its successors and assigns or which arise out of the Buyer’s entry onto the Property prior to the Closing; and 

 

	 	(iv)	any other exceptions to title approved in writing by Buyer. 

 

The provisions of the above
subparagraph notwithstanding, the term “Permitted Exceptions” shall not include (i) any lien for payment of delinquent
real property taxes or assessments, (ii) any supplemental taxes imposed as a consequence of events occurring prior to the
Closing Date, (iii) any deed of trust, and (iv) any property assessments (other than those identified in writing and
agreed between the parties as permitted exceptions), mortgage, judgment or other lien encumbering the Property (other than those
claimed through Buyer).

 

E. Property:
The term “Property” means the Real Property and the Intangible Property.

 

F. Real
Property: The term “Real Property” means the Land together with all improvements located thereon, if any, and all
rights, privileges, easements and appurtenances to the Land, if any.

 

G.
Land Office: The term “Land Office” shall mean a governmental authority which has an exclusive jurisdiction
over the registration of real property in Zaoqiao Township and Touwu Township, Miaoli County,
Taiwan (R.O.C.). 

 

ARTICLE 2 

TERMS OF PURCHASE 

 

2.1 Agreement to
Purchase and Sell: Seller hereby agrees to sell to Buyer, and Buyer hereby agrees to purchase from Seller, the Property on
the terms and conditions set forth in this Agreement.

 

    	1

    	 

    

 

2.2 Purchase Price:
The “Purchase Price” for the Property shall be One Thousand Ninety Three Million Two Hundred Thirty Three Thousand
Three Hundred Twenty Nine New Taiwan Dollars (TWD $1,093,233,329). The Purchase Price for the Property shall be paid by the Buyer
to Seller in the form of a promissory note (the “Promissory Note”) at Closing.

 

2.3 Possession
of Property; As-Is Purchase: Subject to the terms and conditions of this Agreement, (A) possession of the Property shall
be delivered to Buyer at Closing, in its then existing condition, “as-is,” without implied or express warranty or representation
and with all patent and latent defects; (B) Buyer acknowledges that Buyer will have had the opportunity to conduct any studies
and investigations of the Property as fully as Buyer desires; and (C) Buyer will have had the right to observe the physical
characteristics and condition of the Property to the extent it desires. Buyer acknowledges that neither Seller nor any of Seller’s
employees, agents or representatives have made any representations, warranties or agreements by or on behalf of Seller not contained
in this Agreement as to any matters concerning the Property, the present use or condition thereof, or the suitability of the Property
for Buyer’s intended use thereof.

 

ARTICLE 3 

COVENANTS AND REPRESENTATIONS 

 

3.1 Representations
of Seller: Seller individually makes the following representations to Buyer, which representations are accurate as of the Effective
Date and which will be accurate on the date of Closing:

 

A. This
Agreement and all documents executed by Seller which are to be delivered to Buyer at the Closing are duly authorized, executed
and delivered by the Seller or the duly authorized representatives of Seller, are legal, valid and binding obligations of Seller
enforceable against Seller in accordance with their respective terms, are sufficient to convey title (if they purport to do so),
and do not violate any provision of any agreement or judicial order to which Seller or the Property is subject.

 

B. Seller
is the legal and equitable owner of the Property, with full right to convey the same; and, without limiting the generality of the
foregoing, Seller has not granted any option or right of first refusal or first opportunity to any party to acquire any interest
in any of the Property and no consent of any third party is required for the execution, delivery or consummation of the Closing
by Seller in accordance with this Agreement.

 

C. The
documents made available by Seller for inspection by Buyer with respect to the Property (i) constitute all written documents
which are in the possession or under the control of Seller pertaining to the Property requested by Buyer or material to the sale
of the Property to Buyer, and (ii) are either complete originals thereof or are complete and correct copies of the originals.

 

D. There
is no litigation, condemnation, legal proceeding, action or other proceeding pending or, to Seller’s knowledge, threatened
against Seller or the Property before any court or administrative agency which does or will materially affect the Property, or
the use or value thereof.

 

E. No
hazardous, toxic or other material regulated by any governmental authority as a danger to human health or the environment has been
placed on or about the Property by Seller or any of its agents, employees or contractors in violation of applicable laws, rules,
regulations, codes or legal orders.

 

F. There
are no service contracts, maintenance contracts, management contracts, construction contracts, architectural or design contracts
or similar agreements to which Seller is a party and which relate to the Real Property that will survive the Closing and be binding
upon Buyer.

 

The foregoing representations and warranties
shall survive the Closing.

 

3.2 Covenant of
Seller: So long as the Agreement is in full force and effect: Seller shall not do any of the following without Buyer’s
prior written consent: (i) enter into any contract relating to the maintenance, operation, or development of the Property
that will survive the Closing; (ii) grant any easement, lease any part of the Property, or encumber the Property.

 

    	2

    	 

    

 

3.3 Covenant of
Buyer: Buyer shall keep confidential (in the same manner as for its other confidential information) the Seller’s records
and documents concerning the Property, if Buyer does not acquire the Property; provided, however, that (i) so long as this
Agreement remains in effect Buyer may disclose such information to its advisors, consultants, representatives, investors and prospective
lenders who agree to abide by the confidentiality provisions of this Agreement, (ii) Buyer and its advisors, consultants,
representatives, investors and prospective lenders may disclose such information as may be required by law or court order, and
(iii) if Buyer acquires the Property, Buyer shall be free to thereafter use such information and to disclose it to other parties.
In the event that this Agreement terminates for any reason prior to the Closing, Buyer shall, within ten (10) business days
following a request by Seller, deliver to Seller all documentation, studies, investigations and reports prepared for Buyer by third
parties which relate to the condition or legal compliance (or non-compliance) of the Property, provided that in no event shall
Buyer be required to provide internal analyses, any proprietary information or any materials which are subject to the attorney-client
privilege. Such items shall be delivered without representation or recourse of any kind.

 

ARTICLE 4 

TRANSFER OF TITLE

 

4.1 Transfer of
Title: At Closing, Buyer and Seller shall go to the Land Office where the Buyer shall be registered as the owner and Buyer
shall obtain Land Ownership Certificates from Seller.

 

4.2 Delivery of
Documents:

 

A. By
Seller: On the Closing Date, Seller shall deliver to Buyer the following documents:

 

	 	1.	The Grant Deed, duly executed and acknowledged by Seller for recording in the Official Records; 

 

	 	2.	A Statement of Deed Tax Due and Request that Amount of Tax not be Made a Part of the Permanent Record in the Official Records; 

 

	 	3.	Such other documents as may be required to close in accordance with this Agreement.

  

B. By
Buyer: On the Required Closing Date, Buyer shall deliver to Seller all documents as may be required to close in accordance
with this Agreement.

 

 4.3 Prorations:
At Closing:

 

A. All
real property taxes, if not exclusively imposed on either the Buyer or the Seller, shall be prorated to the date of Closing.

 

B. The
interest on any assessments secured by the Property shall be prorated to the date of Closing.

 

C. The
principal balance of any assessments secured by the Property that are Permitted Exceptions shall be assumed by Buyer, without credit
to the Purchase Price, at Closing.

 

D. The
principal balance of any assessments secured by the Property that are not Permitted Exceptions shall be paid by Seller on or before
Closing.

 

E. All
tax liens against Seller encumbering the Property shall be paid by Seller on or before Closing.

 

    	3

    	 

    

 

ARTICLE 5

GENERAL PROVISIONS 

 

5.1 Risk of Loss.
Seller shall bear all risk of loss related to the Property, whether by casualty, condemnation or otherwise, prior to the Closing.
If, prior to the Closing, all or any portion of the Real Property is taken by eminent domain (or is the subject of a pending taking
which has not yet been consummated) or is the subject of a casualty, then (i) Seller shall notify Buyer in writing of such
fact promptly after obtaining knowledge thereof, (ii) if the event is a casualty that is reasonably expected to cost more
than $250,000 in excess of the insurance proceeds that will be available to Buyer for the restoration or if the event is an eminent
domain proceeding, Buyer may elect to terminate this Agreement by giving written notice to Seller on or before to the Closing Date.
The failure by Buyer to so elect in writing to terminate this Agreement prior to the Closing Date shall be deemed an election not
to terminate this Agreement. If Buyer elects or is deemed to have elected not to terminate this Agreement, then no adjustment shall
be made to the Purchase Price for any damage or condemnation prior to the Closing, but at the Closing, Seller shall assign to Buyer
all of its right, title and interest (a) in the proceeds of any casualty insurance policy for damage to the Property prior
to the Closing, and (b) in any condemnation proceeds with respect to the Property. If Buyer is permitted to terminate pursuant
to this Section and timely elects to terminate this Agreement, then the Deposit shall be returned to Buyer and the parties shall
have no further obligations under this Agreement except for those obligations which expressly survive any termination of this Agreement.

 

5.2 Termination:
Either party may terminate this Agreement at any time for no reason or any reason not otherwise prohibited by law.

 

5.3 Brokerage Commissions:
Each party hereto represents to the other that it has not incurred, directly or indirectly, any liability on behalf of the other
party for the payment of any real estate brokerage commissions, finder’s fees or other compensation to any agents, brokers,
salesmen, or finders by reason of the consummation of the transaction contemplated by this Agreement.

 

5.4 Attorneys’
Fees: Should any litigation be commenced between the parties hereto concerning the Property, this Agreement, or the rights
and duties of either Seller or Buyer in relation thereto, whether it be an action for damages, equitable or declaratory relief,
the prevailing party (or parties) in such litigation shall be entitled, in addition to all other relief as may be granted by a
court of law, reasonable sums as and for attorneys’ fees in the discretion of the court.

 

5.5 Notices:
Any communication, notice or demand of any kind whatsoever which either party may be required or may desire to give to or serve
upon the other shall be in writing and delivered by personal service, by an express delivery (such as Federal Express) or courier
service that provides receipted delivery service, delivery charges prepaid, by electronic email communication (and, if the communication,
notice or demand seeks to declare a default under or terminate this Agreement, confirmed in writing sent by a written communication
by one of the other permitted methods, addressed to the recipient in accordance with the notice information beneath its signature
to this Agreement. Any party may change its address for notice by written notice given to the other in the manner provided in this
Section 5.4. Any such communication, notice or demand shall be deemed to have been duly given or served (i) on the date
personally served, if by personal service, or (ii) on the date of confirmed delivery, if by express delivery or courier service,
or electronic email communication, provided, however, that any communication, notice or demand received by courier delivery or
electronic communication that is received after 5:00 p.m. (local time for the addressee) shall be deemed to have been received
on the next business day.

 

5.6 Assignment:
This Agreement shall be binding upon and shall inure to the benefit of the parties and their successors and assigns.

 

5.7 Mutual Cooperation:
Each party hereto agrees to execute and deliver such other and further instruments and documents as may reasonably be requested
by the other to carry out this Agreement. Each party hereto covenants to exercise good faith in fulfilling its obligations under
this Agreement.

 

5.8 Authority and
Execution: Each person executing this agreement on behalf of a party represents and warrants, on behalf of the entity it represents,
that (i) such person is duly and validly authorized to do so on behalf of the entity it purports to so bind, and (ii) if
such entity is a partnership, corporation or trustee, that such partnership, corporation or trust, such entity has full right and
authority to enter into this Agreement and perform all of its obligations hereunder.

 

    	4

    	 

    

 

5.9 Entire Agreement;
Modification; Interpretation: This Agreement and the attachments hereto constitute the entire agreement between the parties
and shall supersede all other agreements respecting the subject matter of this Agreement. This Agreement shall not be modified
by either party by oral-representation or agreement made before or after the execution of this Agreement. All modifications to
this Agreement must be in writing signed by both Seller and Buyer. The headings contained in this Agreement are for the purpose
of reference only and shall not limit or define the meaning thereof. This Agreement shall be interpreted in accordance with the
laws of Taiwan and, in the event that any provision of this Agreement is adjudged to be, for any reason, unenforceable or invalid,
it is the specific intent of the parties that the remainder hereof shall subsist and be and remain in full force and effect. Each
party has engaged legal counsel and understands all terms of this Agreement. Any rule of construction that would interpret this
Agreement, for or against any party, shall have no effect.

 

5.10 Time:
Time is of the essence for the performance of each and every covenant and for the satisfaction of each and every condition contained
in this Agreement.

 

5.11 No Other Negotiations.
Seller, for itself and its successors and assigns, agrees that they will not solicit or accept any offer from, enter into any negotiations
with, or supply any information to, any prospective purchaser, ground lessor, lender, or tenant of the Property, unless and until
this Agreement terminates in accordance with its terms.

 

5.12 Buyer’s
Liability. No present or future partner, member, director, officer, shareholder, employee, advisor, affiliate or agent of or
in Buyer or any affiliate of Buyer (“Buyer Parties”), shall have any personal liability, directly or indirectly, under
or in connection with this Agreement or any agreement made or entered into under or in connection with the provisions of this Agreement,
or any amendment or amendments to any of the foregoing made at any time or times, heretofore or hereafter, and Seller and their
successors and assigns and, without limitation, all other persons and entities, shall look solely to Buyer and Buyer’s assets,
respectively, for the payment of any claim or for any performance, and Seller hereby waives any and all such personal liability
of such Buyer Parties. For purposes of this Section 5.12, no negative capital account or any contribution or payment obligation
of any partner or member in Buyer shall constitute an asset of Buyer. The limitations of liability contained in this Section 5.12
shall survive the Closing or any earlier termination of this Agreement.

 

<Signature Page Follows>

 

    	5

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of December 27, 2013.

 

Buyer: 

	Green Forest Management Consulting Inc.	 
	 	 	 
	By: 	/s/ Chiang, Yu-Chang	 
	 	Chiang, Yu-Chang	 
	 	Director	 
	 	Green Forest Management Consulting Inc.	 
	 	Rm. B302C, 3F.-2, No. 185, Kewang Rd.	 
	 	Longtan Township, Taoyuan County 325	 
	 	Taiwan (R.O.C.)	 
	 	 	 
	Seller:	 
	 	 
	/s/ Chen, Kuan-Yu	 
	Chen, Kuan-Yu	 
	 	 
	4F, Flat2, Man Wah Building,	 
	Man Wui Street, Yau Ma Tei,	 
	Hong Kong SAR	 

 

    	6

    	 

    

 

Exhibit A

 

DRAFT LAND TRANSFER REPORT

 

	Note

 Holder	 	Land Lot	 	Land Number	 	(m2)	 	 	Total Area of 
 Registered 
 Land	 	 	Value of Interest 
 (TWD)	 
	Chen, Kuan-Yu	 	Dataoping Section, Zaoqiao Township	 	65、67、68-1、69、72、73、74、75、76、77、78、79、80、81-1、81-2、81-5、83、83-1、86、87、87-1、88、529、530、531、532、533、534、536、537、538、540、541、542、580、580-1、581、582、583、628-1、628-2、628-4、646、646-3、647-3、647-4、647-6、647-8、647-11、647-13、647-14、647-19、647-21、648、655、655-1、655-3、655-4、655-5、655-8、655-10、655-12、656、657、658、659、660、661、661-3、662、663、666-1、668-3、670、671、672、673、674、675、676、677、678、679、680、680-1、680-2、680-3、680-4、680-5、681、682、683、684、684-1、685、686、687、687-1、687-2、688、689、691、693、694、695、695-1、696、697、699、699-1、699-2、699-3、699-4、699-12、699-13、699-15、699-19、699-21、699-23、699-24、700、701、703、703-1、711	 	 	407,055.86	 	 	 	417,175.86	 	 	$	1,066,713,287	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Laotianliao Section, Touwu Township	 	19、 21、 22、 23、 24、 411、 422、 423、 425、 429、 432-2、 432-5 	 	 	10,120	 	 	 	 	 	 	$	26,520,042	 

 

    	7Real Estate Appraisal Report on 257 parcels:
195 parcels including No. 64, Dataoping Section, Zaoqiao Township, Miaoli County etc and 63 parcels including Laotianliao Section,
Touwu Township, etc 

 

Entrusting Party: Lv-lin Enterprise Management
Consulting Co., Ltd 

 

Appraising
Institution: Zhanmao Real Estate Appraisers Firm 

 

Pricing date: April 15, 2013 

 

    	 

    	 

    

 

Summary
of Real Estate Appraisal Report

 

		1.	Report No.: 13ZMT04076

 

		2.	Entrusting Party: Lv-lin
Enterprise Management Consulting Co., Ltd.

 

		3.	Basic information of appraised object:

 

		3.1	Basic information:

 

		3.1.1.	 Contents

 

		(1)	Land
description: a total of 257 parcels: 195 parcels including following parcel numbers

of Dataoping Section, ZaoqiaoTownship, Miaoli County: 64, 65,66,67,67-1,68,68-1,69,70,71,

72,73,74,75,76,77,78,79,80,81-1,81-2,81-3,81-4,81-5,82,83,83-1,83-2,86,86-1,86-3,87,87-1,

88,90,529,530,531,532,533,534,536,537,538,539,540,541,542,580,580-1,581,582,583,628,

628-1,628-2,628-3,628-4,628-5,628-6,646,646-3,647-1,647-3,647-4,647-5,647-6,647-7,

647-8,647-11,647-12,647-13,647-14,647-16,647-17,647-18,647-19,647-20,647-21,648,655,

655-1,655-2,655-3,655-4,655-5,655-6,655-7,655-8,655-9,655-10,655-11,655-12,656,657,

658,659,660,661,661-1,661-2,661-3,661-4,662,663,664,665,666,666-1,667,668,

668-1,668-2,668-3,669,670,671,672,673,674,675,676,677,678,679,680,680-1,680-2,680-3,

680-4,680-5,681,682,683,684,684-1,685,686,687,687-1,687-2,688,689,690,691,693,

694,695,695-1,696,697,698-1,699,699-1,699-2,699-3,699-4,699-5,699-6,699-7,699-8,699-9,

699-10,699-11,699-12,699-13,699-14,699-15,699-16,699-17,699-18,699-19,699-20,

699-21,699-22,699-23,699-24,699-25,699-26,699-27,699-28,699-30,700,701,702,703,703-1,

706,706-1,706-2,706-9, 706-17,706-18 and 711; and 63 parcels including following parcel
 numbers of Laotianliao Section,
Touwu Township: 19,21,22,23,24,411,414-2,414-3,415,421,

421-1,422,423,424,425,426,429,432-1,432-2,432-3,432-4,432-5,432-6,432-7,432-9,432-11,

432-12,432-13,432-14,432-16,432-26,432-29,432-31,432-32,432-33,432-34,432-36,

432-37,438,439,440,441,442,442-1,442-2,443,443-1,444,444-1,444-8,444-14,444-32,

444-49,448-1,449,430,431,432-8,432-15,432-27,432-28 and 449-1

 

		(2)	Land area: 2,142,470.2447 m2 (about 648,097.2493
Ping)

 

    	 	2	Zhanmao Real Estate Appraisers Firm

    	 

    

 

		(3)	Zoning: type-C building land, agricultural & pasture
land, forestry land, water conservation land, transportation land and unclassified land of hillside conservation zone

  

	 	 	 	 	 	 	Land area	 
	Land use zone	 	Section	 	Parcel number	 	(m2)	 	 	(Ping)	 
	Type-C building land	 	Dataoping Section, Zaoqiao Township	 	64, 68, 70, 71, 81-3, 81-4, 82,
 539, 647-7, 666, 669, 669-5, 702	 	 	4,988.8889	 	 	 	1,509.1389	 
	of hillside conservation zone	 	Laotianliao Section, Touwu Township	 	415	 	 	165.0000	 	 	 	49.9125	 
	 
 
 
 
 
 
 
Agricultural & pasture land of hillside conservation zone
	 	Dataoping Section, Zaoqiao Township	 	65,67,67-1,68-1,69,72,73,74,75,76,
 77,78,80,81-1,81-2,81-5,83,83-1,86,
 86-1,86-3,87,87-1,88,90,529,530,
 531,532,533,534,536,537,538,540,
 541,542,580,580-1,581,582,583,
 628,628-1,628-2,628-4,646,646-3,
 647-3,647-4,647-5,647-6,647-8,
 647-11,647-13,647-14,647-19,
 647-21,648,655,655-1,655-2,655-3,
 655-4,655-5,655-6,655-8,655-10,
 655-12,656,657,658,659,660,661,
 661-3,662,663,664,665,666-1,
 667,668-3,670,671,672,673,674,
 675,676,677,678,679,680,680-1,
 680-2,680-3,680-4,680-5,681,682,
 683,684,684-1,685,686,687,687-1,
 687-2,688,689,690,691,693,694,
 695-1,696,697,699,699-2,699-3,
 699-4,699-15,699-16,699-17,
 699-20,699-21,699-23,699-24,
 699-25,699-26,701,703,703-1,
 706-1,711	 	 	541,309.3558	 	 	 	163,746.0804	 
	 	 	Laotianliao Section, Touwu Township	 	21,22,23,24,411,421,421-1,422,
 423,424,425,429,432-1,432-2,432-3,
 432-4,432-5,432-6,432-7,432-9,432-13,
 432-26,438,439,440,441,442,442-1,
 442-2,443,443-1,444-14,444-49,430,
 431,432-8,432-15,432-27,432-28,449-1	 	 	273,589.0000	 	 	 	82.760.6725	 

 

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	 	 	 	 	 	 	Land area	 
	Land use zone	 	Section	 	Parcel number	 	(m2)	 	 	(Ping)	 
	Forestry land of	 	Dataoping Section, Zaoqiao Township	 	79,628-3,628-5,628-6,647-1,647-12,688-1,

688-2,699-1,699-6,699-7,699-8,699-9,

699-10,699-11,699-12,699-13,699-14,

699-18,699-19,699-22,699-27,699-29,

699-30,700,706,706-2,706-9,706-18	 	 	1,073,385.0000	 	 	 	324,698.9625	 
	hillside conservation zone	 	Laotianliao Section, Touwu Township	 	19,432-11,432-12,432-14,432-16,432-29,

432-31,432-32,432-33,432-34,432-36,

432-37,444,444-1,444-8,444-32,448-1,449	 	 	166,231.0000	 	 	 	50,284.8775	 
	Water conservation	 	Dataoping Section, Zaoqiao Township	 	83-2,661-1,661-2,661-4	 	 	1,818.0000	 	 	 	549.9450	 
	land of hillside conservation zone	 	Laotianliao Section, Touwu Township	 	414-2,414-3,426	 	 	563.0000	 	 	 	170.3075	 
	Transportation land of hillside conservation zone	 	Dataoping Section, Zaoqiao Township	 	647-16,647-17,647-18,647-20,655-7,655-9,

655-11,698-1,699-28,706-17	 	 	2,083.0000	 	 	 	630.1075	 
	Unclassified land of hillside conservation zone	 	Dataoping Section, Zaoqiao Township	 	79,706	 	 	25,687.0000	 	 	 	7,770.3175	 
	(Blank)	 	Laotianliao Section, Touwu Township	 	19,432-29,432-31,432-32,432-33,432-36,

432-37,444-1,444-8,444-32,448-1,449	 	 	52,651.0000	 	 	 	15,926.9275	 
	Total	 	 	 	 	 	 	2,142,470.2447	 	 	 	648,097.2493	 

 

    	 	4	Zhanmao Real Estate Appraisers Firm

    	 

    

 

		2.	Property right analysis:

 

		(1)	land owner: property rights of the appraised objects-257
parcels including 175 parcels at No. 64, Dataoping Section, Zaoqiao Township, etc and 63 parcels at No. 19, Laotianliao Section,
Touwu Township, etc-independently or separately owned by nine proprietors including Royal Golf Country Club, etc are registered
clearly and definitely as listed in the following table and the attached “Land Appraisal Sheet”.

 

	Land 	 	 	 	 	 	Land
    area	 	 	Total
    land 
area	 	 	Area
    ratio	 
	owner	 	Section	 	Parcel number	 	(m2)	 	 	(Ping)	 	 	(Ping)	 	 	(%)	 
	Shizhu	 	Dataoping Section, Zaoqiao Township	 	86-1,86-3,90,698-1,699-6, 
699-7,699-8,699-9,
    
699-10,699-11,699-18,699-27	 	 	35,251.0000	 	 	 	10,663.4275	 	 	 	11,833.3463	 	 	 	1.8259	%
	Wang	 	Laotianliao Section, Touwu Township	 	414-2,414-3,421-1,426,432-12	 	 	3,867.5000	 	 	 	1,169.9188	 	 	 	 	 	 	 	 	 
	Langsheng Lin	 	Dataoping Section,
    Zaoqiao Township	 	65,67,68-1,69,72,73,74,75, 
76,77,78,79,80,81-1,81-2,
    
81-5,83,83-1,86,87,87-1,88, 
529,530,531,532,533,534, 
536,537,538,540,541,542, 
580,580-1,581,582,583, 
628-1,628-2,628-4,646,
    
646-3,647-3,647-4,647-5, 
647-6,647-8,647-11,647-13, 
647-14,647-19,647-21,648, 
655,655-1,655-2,655-3, 
655-4,655-5,655-8,655-10,
    
655-12,656,657,658,659, 
660,661,661-3,662,663, 
666-1,668-3,670,671,672, 
673,674,675,676,677,678, 
679,680,680-1,680-2,680-3,
    
680-4,680-5,681,682, 
683,684,684-1,685,686, 
687,687-1,687-2,688, 
689,691,693,694,695, 
695-1,696,697,699,699-1,
    
699-2,699-3,699-4,699-12, 
699-13,699-19,699-21,699-23, 
699-24,700,701,703,703-1,711	 	 	453,294.8637	 	 	 	137,121.6965	 	 	 	196,445.5765	 	 	 	30.3111	%
	 	 	Laotianliao Section,
    Touwu Township	 	19,21,22,23,24,411,421,

    422,423,424,425,429,432-1,

    432-2,432-3,432-4,432-5,

    432-6,432-7,432-13,432-26,

    432-29,438,439,440,441,

    442,442-1,442-2,443,443-1,

    444-14,444-49,448-1,449-1	 	 	196,112.0000	 	 	 	59,323.8800	 	 	 	 	 	 	 	 	 

 

    	 	5	Zhanmao Real Estate Appraisers Firm

    	 

    

 

	Land	 	 	 	 	 	Land area	 	 	Total land 
area	 	 	Area ratio	 
	owner	 	Section	 	Parcel number	 	(m2)	 	 	(Ping)	 	 	(Ping)	 	 	(%)	 
	Wencheng 	 	Dataoping Section, Zaoqiao Township	 	655-6,699-16,699-17,699-20,
 699-25,699-26	 	 	34,505.0000	 	 	 	10,437.7625	 	 	 	33,236.2800	 	 	 	5.1283	%
	Lan	 	Laotianliao Section, Touwu Township	 	430,431,432-8,432-15,432-27,

432-28	 	 	75,367.0000	 	 	 	22,798.5175	 	 	 	 	 	 	 	 	 
	Royal Golf Country 	 	Dataoping Section, Zaoqiao Township	 	64,66,67-1,68,70,71,81-3,
 81-4,82,83-2,539,628,
 628-3,628-5,628-6,647-1,
 647-7,647-12,647-18,
 647-20,655-7,655-9,655-11,
 661-1,661-2,661-4,664,
 665,666,667,668,668-1,
 668-2,669,690,669-5,699-22,
 699-28,699-29,699-30,702,
 706,706-1,706-2,706-9,

706-17,706-18	 	 	1,124,934.8889	 	 	 	340,292.8039	 	 	 	388,928.4514	 	 	 	60.0108	%
	Club	 	Laotianliao Section, Touwu Township	 	432-16,432-31,432-34,
 432-36,432-37,444,444-1,
 444-8,444-32,449	 	 	160,779.0000	 	 	 	48,635.6475	 	 	 	 	 	 	 	 	 
	Xuelao Fan	 	Dataoping Section, Zaoqiao Township	 	656	 	 	92.0000	 	 	 	27.8300	 	 	 	27.8300	 	 	 	0.0043	%

  

    	 	6	Zhanmao Real Estate Appraisers Firm

    	 

    

 

	Land	 	 	 	 	 	Land area	 	 	Total land 
area	 	 	Area ratio	 
	owner	 	Section	 	Parcel number	 	(m2)	 	 	(Ping)	 	 	(Ping)	 	 	(%)	 
	Shancheng Chen	 	Laotianliao Section, Touwu Township	 	414-2,414-3	 	 	59.5000	 	 	 	17.9987	 	 	 	17.9987	 	 	 	0.0028	%
	Cuiluan 	 	Dataoping Section, Zaoqiao Township	 	647-16,647-17,699-14	 	 	1,078.0000	 	 	 	326.0950	 	 	 	6,284.7400	 	 	 	0.9697	%
	Chen	 	Laotianliao Section, Touwu Township	 	415,432-14,432-32,

432-33	 	 	19,698.0000	 	 	 	5,958.6450	 	 	 	 	 	 	 	 	 
	Yuncai Huang	 	Dataoping Section, Zaoqiao Township	 	711	 	 	90.7143	 	 	 	27.4411	 	 	 	27.4411	 	 	 	0.0042	%
	Yunbao Huang	 	Dataoping Section, Zaoqiao Township	 	81-5	 	 	24.7778	 	 	 	7.4953	 	 	 	7.4953	 	 	 	0.0012	%
	Shuhui Chou	 	Laotianliao Section, Touwu Township	 	432-11	 	 	37,316.0000	 	 	 	11,288.0900	 	 	 	11,288.0900	 	 	 	1.7417	%
	Total	 	 	 	 	 	 	2,142,470.2447	 	 	 	648,097.2493	 	 	 	648,097.2493	 	 	 	100.0000	%

 

    	 	7	Zhanmao Real Estate Appraisers Firm

    	 

    

 

		(2)	Analysis of other rights:

 

	No.	 	Right

 type	 	Sequence	 	Object	 	Date	 	 	Right value

    (NTD)	 	 	Obligee	 	Debtor	 	Obligor
	1	 	Mortgage	 	1	 	Lands at Dataoping Section, Zaoqiao
    Township, Miaoli County: 64,65,66, etc	 	 	78/03/24	 	 	 	700,000,000	 	 	Taiwan Business Bank	 	Fangming Luo, Mingtung Lai, Chaowen
    Huang,Chinteng Lee, Chingjen Liou, Langsheng Lin	 	Fangming Luo, Mingtung Lai, Chaowen
    Huang,Chinteng Lee, Chingjen Liou, Langsheng Lin
	2	 	Mortgage	 	1	 	Lands at Dataoping Section, Zaoqiao Township,
    Miaoli County: 83, etc	 	 	82/07/15	 	 	 	4,700,000	 	 	Chengyu Lien	 	Cuiluan Chen	 	Cuiluan Chen
	3	 	Mortgage	 	1	 	Lands at Dataoping Section, Zaoqiao Township,
    Miaoli County:432-28 etc	 	 	81/06/11	 	 	 	36,000,000	 	 	Cosmos Bank Taiwan	 	Shunlang Lan	 	Shunlang Lan
	4	 	Mortgage	 	1	 	Lands at Dataoping Section, Zaoqiao Township,
    Miaoli County: 656-7, etc	 	 	83/02/17	 	 	 	10,000,000	 	 	Mingjer Huang	 	Shunlang Lan	 	Shunlang Lan
	5	 	Mortgage	 	1	 	Lands at Laotianliao Section, Touwu Township,
    Miaoli County: 430, etc	 	 	83/02/16	 	 	 	3,100,000	 	 	Mingjer Huang	 	Shunlang Lan	 	Shunlang Lan
	6	 	Mortgage	 	1	 	Lands at Laotianliao Section, Touwu Township,
    Miaoli County: 19 etc	 	 	78/03/24	 	 	 	200,000,000	 	 	Taiwan Business Bank	 	Fangming Luo, Mingtung Lai, Chingjen Liou,
    Langsheng Lin	 	Fangming Luo, Mingtung Lai, Chingjen Liou,
    Langsheng Lin
	7	 	Mortgage	 	2	 	Lands at Dataoping Section, Zaoqiao Township,
    Miaoli County: 65, 67, etc	 	 	82/07/15	 	 	 	98,400,000	 	 	Chengyu Lien	 	Langsheng Lin	 	Langsheng Lin
	8	 	Mortgage	 	2	 	Lands at Dataoping Section, Zaoqiao Township,
    Miaoli County: 64, 66 etc	 	 	79/06/06	 	 	 	396,000,000	 	 	Taiwan Business Bank	 	Royal Golf Country Club	 	Royal Golf Country Club
	9	 	Mortgage	 	2	 	Lands at Laotianliao Section, Touwu Township,
    Miaoli County: 432-15, etc	 	 	101/07/27	 	 	 	9,500,000	 	 	Shusui Ho	 	Shunlang Lan	 	Kengmeng Lin
	10	 	Mortgage	 	2	 	Lands at Laotianliao Section, Touwu Township,
    Miaoli County: 432-16, etc	 	 	79/06/04	 	 	 	114,000,000	 	 	Taiwan Business Bank	 	Royal Golf Country Club	 	Royal Golf Country Club
	11	 	Mortgage	 	2	 	Lands at Laotianliao Section, Touwu Township,
    Miaoli County: 19, etc	 	 	82/07/13	 	 	 	49,000,000	 	 	Chengyu Lien	 	Langsheng Lin	 	Langsheng Lin

 

    	 	8	Zhanmao Real Estate Appraisers Firm

    	 

    

 

	No.	 	Right
    type	 	Sequence	 	Object	 	Date	 	Right
    value 
(NTD)	 	 	Obligee	 	Debtor	 	Obligor
	12	 	Mortage	 	2	 	Lands at Laotianliao Section, Touwu
    Township, Miaoli County: 415, etc	 	82/07/06	 	 	4,900,000	 	 	Chengyu Lien	 	Cuiluan Chen	 	Cuiluan Chen
	13	 	Mortage	 	3	 	Lands at Dataoping Section, Zaoqiao Township,
    Miaoli County: 64, 66 etc	 	82/07/14	 	 	303,000,000	 	 	Chengyu Lien	 	Royal Golf Country Club	 	Royal Golf Country Club
	14	 	Mortage	 	3	 	Lands at Laotianliao Section, Touwu Township,
    Miaoli County: 432-16, etc	 	79/06/04	 	 	40,000,000	 	 	Chengyu Lien	 	Royal Golf Country Club	 	Royal Golf Country Club
	15	 	Surface rights	 	 	 	Lands at Dataoping Section, Zaoqiao Township,
    Miaoli County: 64, 66 etc	 	82/07/14	 	 	 	 	 	Chengyu Lien	 	 	 	Royal Golf Country Club
	16	 	Surface rights	 	 	 	Lands at Dataoping Section, Zaoqiao Township,
    Miaoli County: 65, 67 etc	 	82/07/15	 	 	 	 	 	Chengyu Lien	 	 	 	Langsheng Lin
	17	 	Surface rights	 	 	 	Lands at Dataoping Section, Zaoqiao Township,
    Miaoli County: 82, etc	 	82/07/15	 	 	 	 	 	Chengyu Lien	 	 	 	Cuiluan Chen
	18	 	Surface rights	 	 	 	Lands at Laotianliao Section, Touwu Township,
    Miaoli County: 432-16, etc	 	82/07/06	 	 	 	 	 	Chengyu Lien	 	 	 	Royal Golf Country Club
	19	 	Surface rights	 	 	 	Lands at Laotianliao Section, Touwu Township,
    Miaoli County: 415, etc	 	82/07/06	 	 	 	 	 	Chengyu Lien	 	 	 	Royal Golf Country Club

 

    	 	9	Zhanmao Real Estate Appraisers Firm

    	 

    

 

(3) Registered
events e.g. forenotice or court sequestration: 

 

1: 

No. 655-6, 699-16,699-17,699-20,699-25
and 699-26 of Dataoping Section

(Limited registration items)
provisional seizure at 11:00 on April 13, 1994 under No. 3412 document of Zhunan Land Office; creditor: Cosmos Bank Taiwan; seizure
by No. 13375 document of Hsinchu District Court of No. 231 execution file in 1994; debtor: Shun-lang Lan; scope of limitation:
all (transfer was conducted as per No. 151770 document issued by Zhunan Land Office on December 15, 2000)

 

2:

Dataoping
Section: No. 628-3,628-5,628-6,647-1,647-7,647-7,647-12,647-18,647-20,655-7,655-9,699-5,699-22,699-28,699-29,699-30,702,706,706-1,706-2,706-9,706-17,706-18;
Laotianliao Section: No. 432-16,432-31,432-34,432-36,432-37,444-1,444-8,444-32,449 (limited registration items); provisional seizure
registered at 11:00 on November 16, 1993 under No. 10828 document of Zhunan Land Office; creditor: Taiwan Cooperative Bank; seizure
by No. 5835 document of Hsinchu District Court of No. 603 execution file in 1993; debtor: Royal Golf Country Club; scope of limitation:
all (limited registration items); injunction by No. 11227 document of Zhunan Land Office at 9:00 on November 25, 1996; creditor:
Taipei Revenue Service, Xinyi Branch; Taipei Revenue Service ; No. 299 secret document of Taipei Revenue Service, Xinyi Branch
issued on November 8, 1996; taxpayer: Royal Golf Country Club; scope of limitation: all.

 

3:

No.
64, 66, 67-1, 68, 70, 71, 81-3, 81-4,539 and 628 of Dataoping Section 

(Limited
registration items) provisional seizure at 16:00 on April 1, 1994 under No. 3075 document of Zhunan Land Office; creditor:
Cosmos Bank Taiwan; seizure by No. 13376 document of Hsinchu District Court of No. 231 execution file in 1994; debtor: Royal
Golf Country Club; scope of limitation: all (limited registration items); injunction by No. 11227 document of Zhunan Land Office
at 9:00 on November 25, 1996; creditor: Taipei Revenue Service, Xinyi Branch; Taipei Revenue Service ; No. 299 secret document
of Taipei Revenue Service, Xinyi Branch issued on November 8, 1996; taxpayer: Royal Golf Country Club; scope of limitation: all.

 

    	 	10	Zhanmao Real Estate Appraisers Firm

    	 

    

 

4: 

Dataoping Section: No. 65,67,68-1,69,72,74,75,76,77,78,79,80,,81-1,81-2,81-5,83,83-1,83-2,86,87,87-1,88,529,530,531,532,533,534,536,537,538,540,541,542,580,580-1,581,582,583,628-1,628-2,628-4,646,646-3,647-3,647-4,647-5,647-6,647-8,647-13,647-14,647-16,647-17,647-19,647-21,648,655,655-1,655-2,655-3,655-4,655-5,655-8,655-10,655-12,656,685,686,687,687-1,687-2,688,689,691,693,694,695,695-1,696,697,699,699-1,699-2,699-3,699-4,699-12,699-13,699-15,699-19,699-21,699-23,699-24,700,701,703,703-1
and 711; Laotianliao Section: No. 19,21,22,23,24,411,415,421,422,423,424,425,429,432-1,432-2,432-3,432-4,432-5,432-6,432-7,432-9,432-26,432-29,432-32,432-33,438,439,441,442,442-1,442-2,443,444-14,444-49,448-1;
(Limited registration items) No. 107260 Assets Document issued on November 2, 2010; seizure as per No. 17855 document issued by
Taiwan Miaoli District Court on November 2, 2010; creditor: Taiwan Business Bank; debtor: Langsheng Lin; scope of limitation: all;
registered on November 2, 2010 

 

5:

No.
699-14 of Dataoping Section (limited registration items) registered and seized at 10:20 on March 8, 1995 and filed as No. 2668
document of Zhunan Land Office; creditor: Taiwan Cooperative Bank; seizure by No.9988 document of Hsinchu District Court
of No. 71 execution file in 1995; debtor: Cuiluan Chen; scope of limitation: all

 

6:

No.
430,431,432-8,432-27 and 432-28 of Laotianliao Section (limited registration items); No. 4888 document issued by Miaoli Land Office
on April 30, 1994; seizure and registration as per No. 231 document of Hsuichu District Court in 1994; creditor: Cosmos
Bank, Taiwan; debtor: Shunlang Lan; scope of limitation: all (transfer was performed as per No. 138940 Assets Document issued
on November 28, 2000)

 

    	 	11	Zhanmao Real Estate Appraisers Firm

    	 

    

 

7: 

No. 432-16,432-31,432-32,432-36,432-37,444,444-1,444-8,444-32
and 449 of Laotianliao Section (limited registration items); filed as No. 11880 Assets Document of Zhunan Land Office on February
2, 2000; injunction was performed as per No. 8990035100 document of Taipei Revenue Service, Xinyi Branch; creditor: Taipei Revenue
Service, Xinyi Branch; taxpayer: Royal Golf Country Club; scope of limitation: all ; registered on February 2, 2000

 

8:

Parcel
number 444 of Laotianliao Section (limited registration items); filed as No. 45600 Assets Document of Miaoli Land Office on June
29, 2009; injunction and registration were performed as per No. 0980203281 document issued by Xinyi Office of National Taxation
Bureau of Taipei, Ministry of Finance on June 29, 2009; taxpayer: Royal Golf Country Club; scope of limitation: 169/18080; registered
on June 29, 2009 (correction was made as per No. 45840 Assets Document issued by Miaoli Land Office on June 30, 2009)

 

9: 

Parcel
number 432-14 of Laotianliao Section (limited registration items); filed as No. 239 Document of Miaoli Land Office on March 8,
1995; seizure and registration as per No. 671 execution document of Hsinchu District Court in 1995; creditor: Taiwan
Cooperative Bank; debtor: Cuiluan Chen; scope of limitation: all; registered at 13:55 on March 8, 1995 

 

10: 

Parcel number 432-15 of Laotianliao
Section (limited registration items); filed as No. 92810 Assets Document of Miaoli Land Office on November 2, 2010; seizure and
registration as per No. 17855 document issued by Taiwan Miaoli District Court on November 2, 2010; creditor: Taiwan Business Bank;
debtor: Wencheng Lan; scope of limitation: 12225/29059; registered on November 2, 2010 (limited registration items); filed as No.
8280 Assets Document of Miaoli Land Office on January 30, 2013; seizure and registration as per No. 1968 document issued by Taiwan
Miaoli District Court on January 30, 2013; creditor: Shusui Ho; debtor: Wencheng Lan; scope of limitation: 116834/29059; registered
on January 30, 2013

 

    	 	12	Zhanmao Real Estate Appraisers Firm

    	 

    

 

3.2 Contents of
appraisal 

 

Total
price of the appraise land: NT$ 5,614,493,998

 

4.
Preconditions of appraisal: 

4.1
Purpose of appraisal: provide a reference for bargain. Value indicated in this report is only a reference for this purpose and
not for other uses. This price based on principles of equity and equalization provides a reference of value of the appraised object
on pricing day. 

4.2 Type of price:
normal price.

 

 

4.3
Pricing date: April 15, 2013 

4.4
Reconnaissance date: April 1, 2013

4.5Appraisal
condition: investigate overall use and disposition of the 257 appraised parcels and estimate the price as per contents of “Imperial
Garden Villa Resort” development plan provided by the entrusting party. 

 

5. Conclusion of appraisal value 

Appraiser of this Firm makes
a professional analysis of property right, general factors, regional factors and respective factors of the appraised object, current
situation of real estate market, and most effective use of the appraised object, and then final price is determined as below. 

 

    	 	13	Zhanmao Real Estate Appraisers Firm

    	 

    

 

	Wencheng Lan	 	Dataoping Section, Zaoqiao Township	 	655-6, 699-16, 699-17, 699-20,
    699-25, 699-26	 	 	34,505.0000	 	 	 	10,437.7625	 	 	 	33,236.2800	 	 	 	287,927,305	 
	 	 	Laotianliao Section, Touwu Township	 	430, 431, 432-8, 432-15, 432-27, 432-28	 	 	75,367.0000	 	 	 	22,798.5175	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Royal Golf Country Club	 	Dataoping Section, Zaoqiao Township	 	64, 66, 67-1, 68, 70, 71, 81-3, 81-4, 82, 83-2,
    539, 628, 628-3, 628-5, 628-6, 647-1, 647-7, 647-12, 647-18, 647-20, 655-7, 655-9, 655-11, 661-1, 661-2, 661-4, 664, 665,
    666, 667, 668, 668-1, 668-2, 669, 690, 669-5, 699-22, 699-28, 699-29, 699-30, 702, 706, 706-1, 706-2, 706-9, 706-17, 706-18	 	 	1,124,934.8889	 	 	 	340,292.8039	 	 	 	388,928.4514	 	 	 	3,369,303,694	 
	 	 	Laotianliao Section, Touwu Township	 	432-16, 432-31, 432-34, 432-36, 432-37, 444,
    444-1, 444-8, 444-32, 449	 	 	160,779.0000	 	 	 	48,635.6475	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Xuelao Fan	 	Dataoping Section, Zaoqiao Township	 	656	 	 	92.0000	 	 	 	27.8300	 	 	 	27.8300	 	 	 	241,092	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Shancheng Chen	 	Laotianliao Section, Touwu Township	 	414-2, 414-3	 	 	59.5000	 	 	 	17.9987	 	 	 	17.9987	 	 	 	155,924	 
	Cuiluan Chen	 	Dataoping Section, Zaoqiao Township	 	647-16, 647-17, 699-14	 	 	1,078.0000	 	 	 	326.0950	 	 	 	6,284.7400	 	 	 	54,444,970	 
	 	 	Laotianliao Section, Touwu Township	 	415, 432-14, 432-32, 432-33	 	 	19,698.0000	 	 	 	5,958.6450	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Yuncai Huang	 	Dataoping Section, Zaoqiao Township	 	711	 	 	90.7143	 	 	 	27.4411	 	 	 	27.4411	 	 	 	237,723	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Yunbao Huang	 	Dataoping Section, Zaoqiao Township	 	81-5	 	 	24.7778	 	 	 	7.4953	 	 	 	7.4953	 	 	 	64,932	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Shuhui Chou	 	Laotianliao Section, Touwu Township	 	432-11	 	 	37,316.0000	 	 	 	11,288.0900	 	 	 	11,288.0900	 	 	 	97,789,203	 
	Total	 	 	2,142,470.2447	 	 	 	648,097.2493	 	 	 	648,097.2493	 	 	 	5,614,493,998	 

 

Total value of the land: NT$5,614,493,998

 

    	 	14	Zhanmao Real Estate Appraisers Firm

    	 

    

 

Above result only provides
a reference for the value of appraised object under purpose of appraisal. People who use this report for other purposes should
carefully read Statement, Restrictive Condition, Basics Explanation and Appraisal Condition indicated in this report so as to avoid
a misuse of the appraisal result. 

 

6.
Current use of the appraised object 

 

The appraised object-a total
of 257 parcels constituted by 195 parcels including No. 64 of Dataoping Section, Zaoqiao Township, etc and 63 parcels including
No. 19 of Laotianliao Section, Touwu Township, etc-is now used as “Royal Golf Country Club”. 

 

Real estate appraiser
              (signature or seal)

 

Real estate appraiser’s
Certificate No.: (95) No. 000013 

 

Kaohsiung Real
Estate Appraisers Association membership certificate No.: (102) No. 063

 

    	 	15	Zhanmao Real Estate Appraisers Firm

    	 

    

 

1. Preface

 

1.1 Statement

 

		(1)	We, as an impartial third party, complete this objective
appraisal.

 

		(2)	We just have pure business relation with the entrusting
party and the appraised units.

 

		(3)	This Firm and appraisers of this Firm only have pure
business relation with the entrusting party, real estate owner or both sides of the transaction; there is no affair about stakeholder
or substantial stakeholder stipulated in SFAS No.6.

 

		(4)	Contents of this report include no fictive or hidden
matters.

 

		(5)	All of the analyses, opinions and conclusions shown
in this report are based on presumptions and restrictive conditions which have been explained in this report; these analyses,
opinions and conclusions are personal neutral and professional comments.

 

		(6)	The appraised object is of no current or expected
benefit to us; we have no interest relationship with or prejudice against interested parties of the appraised object.

 

		(7)	Reward received by us is a due pay based on professional
work rather than improper compete price; there is no intended distortion of reasonable appraisal result.

 

1.2 Basic declarations: 

 

This
appraisal report is completed under following basic presumptions: 

 

		(1)	Unless
otherwise stated, ownership of the appraised object is considered as normal and marketable.

 

		(2)	Unless otherwise stated, the appraisal conclusion
is drawn without consideration of mortgage or other rights of real estate.

 

    	 	16	Zhanmao Real Estate Appraisers Firm

    	 

    

 

		(3)	Authenticity and reliability of information provided
by others and quoted in this report are proved through appraiser’s careful verification.

 

		(4)	Lands and their superficial structures of the appraised
object are regarded as normal situation in this report; no hidden or undiscovered condition affects value of the real estate.

 

		(5)	Unless otherwise stated, the appraised real estates
all conform to stipulations of laws and regulations on environmental protection and are not restricted by any event.

 

		(6)	Unless otherwise stated, possible or impossible risk
factors of the appraised object are not within appraiser’s reconnaissance scope. Real estate appraisers neither have knowledge
ability of knowing internal components and potential hazards of real estate nor own qualification of testing these substances.
Existence of materials such as asbestos, urea and amine/formaldehyde foam insulation and other potential hazardous materials may
influence value of the real estate. Presumption of this appraisal report is that the appraised object doesn’t have these
materials, which will cause decrease in value. The appraisal report is not responsible for these situations and professional or
engineering knowledge used for discovering these situations. If necessary, the report user must employ expert of this field to
conduct analysis.

 

1.3 Restrictive conditions
of using this appraisal report 

 

General restrictive
conditions of using this appraisal report are as the following: 

 

    	 	17	Zhanmao Real Estate Appraisers Firm

    	 

    

 

		(1)	Result of this report is only used as a reference
under the purpose of urban renewal rights transformation appraisal. Change in appraisal purpose may alter the appraisal value.
Therefore, this report can not be used as a reference for other appraisal purposes.

 

		(2)	Result of this appraisal report is formed under the
appraising conditions provided by the executor. The entrusting party or report user should know appraisal conditions explained
in this report so as to avoid a misuse of appraisal value indicated in this report.

 

		(3)	Result of this appraisal report provides a reference
for rights transformation value on the pricing date. When pricing date changes, the appraisal result may change.

 

		(4)	Values allocated from total value to the land and
land improvements in this report are only applied to items mentioned in this report; the allocated values can not be used in any
other appraisal.

 

		(5)	Holders of this report or its copy have no right to
publish this appraisal report.

 

		(6)	All of or a part of contents of this report (especially
conclusion of the appraisal, appraiser’s status, the firm where the appraiser works) should not be made public through advertisements,
public relations, news, sales or other communication media without appraiser’s written approval.

 

		(7)	Evaluation result of this report is only applied to
appraisal of the whole real estate. Unless otherwise stated, any division of the whole appraised real estate value by rights ratio
or other manners will make appraisal result of this report invalid.

 

		(8)	Forecast, predictions or business result estimations
shown in this report are based on current market conditions, expected short-term demand and supply factors as well as continuous
and stable economical foundation. Therefore, these predictions will change along with different conditions in the future.

 

    	 	18	Zhanmao Real Estate Appraisers Firm

    	 

    

  

		2.	Basics explanation

 

		2.1	Entrusting party: Lv-lin Enterprise Management Consulting
Co., Ltd

 

		2.2	Basic information of the appraised object:

 

		1.	Contents
of the appraised object

 

		(1)	Land
description: a total of 257 parcels: 195 parcels including following parcel 

numbers of Dataoping Section, ZaoqiaoTownship, Miaoli
County: 64, 65,66,

67,67-1,68,68-1,69,70,71,72,73,74,75,76,77,78,79,80,81-1,81-2,81-3,81-4,

81-5,82,83,83-1,83-2,86,86-1,86-3,87,87-1,88,90,529,530,531,532,533,534,

536,537,538,539,540,541,542,580,580-1,581,582,583,628,628-1,628-2,

628-3,628-4,628-5,628-6,646,646-3,647-1,647-3,647-4,647-5,647-6,647-7,

647-8,647-11,647-12,647-13,647-14,647-16,647-17,647-18,647-19,647-20,

647-21,648,655,655-1,655-2,655-3,655-4,655-5,655-6,655-7,655-8,655-9,

655-10,655-11,655-12,656,657,658,659,660,661,661-1,661-2,661-3,661-4,662,

663,664,665,666,666-1,667,668,668-1,668-2,668-3,669,670,671,672,673,674,

675,676,677,678,679,680,680-1,680-2,680-3,680-4,680-5,681,682,683,684,

684-1,685,686,687,687-1,687-2,688,689,690,691,693,694,695,695-1,696,697,

698-1,699,699-1,699-2,699-3,699-4,699-5,699-6,699-7,699-8,699-9,699-10,

699-11,699-12,699-13,699-14,699-15,699-16,699-17,699-18,699-19,699-20,

699-21,699-22,699-23,699-24,699-25,699-26,699-27,699-28,699-30,700,701,

702,703,703-1,706,706-1,706-2,706-9,706-17,706-18
and 711; and, following 

parcel numbers of Laotianliao Section, Touwu Township:19,21,22,23,24,411,

414-2,414-3,415,421,421-1,422,423,424,425,426,429,432-1,432-2,432-3,

432-4,432-5,432-6,432-7,432-9,432-11,432-12,432-13,432-14,432-16,432-26,

432-29,432-31,432-32,432-33,432-34,432-36,432-37,438,439,440,441,442,

442-1,442-2,443,443-1,444,444-1,444-8,444-14,444-32,444-49,448-1,449,

430,431,432-8,432-15,432-27,432-28
and 449-1

 

    	 	19	Zhanmao Real Estate Appraisers Firm

    	 

    

 

		(2)	Land area: 2,142,470.2447 m2 (about 648,097.2493
Ping)

 

		(3)	Zoning: type-C building land, agricultural & pasture
land, forestry land, water conservation land, transportation land and unclassified land of hillside conservation zones.

  

    	 	20	Zhanmao Real Estate Appraisers Firm

    	 

    

 

	 	 	 	 	 	 	Land area	 
	Land use zone	 	Section	 	Parcel number	 	(m2)	 	 	(Ping)	 
	Type-C
    building land of hillside conservation zone 	 	Dataoping Section, Zaoqiao
                                         Township

	 	64, 68, 70, 71, 81-3, 81-4, 82, 539, 647-7, 666, 669, 669-5, 702	 	 	4,988.8889	 	 	 	1,509.1389	 
		 	Laotianliao Section, Touwu Township	 	415	 	 	165.0000	 	 	 	49.9125	 
	Agricultural & pasture land of hillside conservation zone	 	Dataoping Section, Zaoqiao Township	 	65,67,67-1,68-1,69,72,73,74,75,76,77,78,80,

81-1,81-2,81-5,83,83-1,86,86-1,86-3,87,

87-1,88,90,529,530,531,532,533,534,536,

537,538,540,541,542,580,580-1,581,582,

583,628,628-1,628-2,628-4,646,646-3,

647-3,647-4,647-5,647-6,647-8,647-11,

647-13,647-14,647-19,647-21,648,655,

655-1,655-2,655-3,655-4,655-5,655-6,

655-8,655-10,655-12,656,657,658,659,660,

661,661-3,662,663,664,665,666-1,667,

668-3,670,671,672,673,674,675,676,677,

678,679,680,680-1,680-2,680-3,680-4,

680-5,681,682,683,684,684-1,685,686,

687,687-1,687-2,688,689,690,691,693,

694,695-1,696,697,699,699-2,699-3,699-4,

699-15,699-16,699-17,699-20,699-21,

699-23,699-24,699-25,699-26,701,703,

703-1,706-1,711	 	 	541,309.3558	 	 	 	163,746.0804	 
	 	 	Laotianliao Section, Touwu Township	 	21,22,23,24,411,421,421-1,422,423,424,
 425,429,432-1,432-2,432-3,432-4,432-5,
 432-6,432-7,432-9,432-13,432-26,438,439,
 440,441,442,442-1,442-2,443,443-1,444-14,
 444-49,430,431,432-8,432-15,432-27,
 432-28,449-1	 		273,589.0000	 	 	 	82.760.6725	 
	Forestry land of hillside conservation zone	 	Dataoping Section, Zaoqiao Township	 	79,628-3,628-5,628-6,647-1,647-12,688-1,
 688-2,699-1,699-6,699-7,699-8,699-9,
 699-10,699-11,699-12,699-13,699-14,
 699-18,699-19,699-22,699-27,699-29,
 699-30,700,706,706-2,706-9,706-18	 	 	1,073,385.0000	 	 	 	324,698.9625	 

  

    	 	21	Zhanmao Real Estate Appraisers Firm

    	 

    

 

	 	 	 	 	 	 	Land area	 
	Land use zone	 	Section	 	Parcel number	 	(m2)	 	 	(Ping)	 
	 	 	Laotianliao Section, Touwu Township	 	19,432-11,432-12,432-14,432-16,432-29,
 432-31,432-32,432-33,432-34,432-36,
 432-37,444,444-1,444-8,444-32,448-1,449	 	 	166,231.0000	 	 	 	50,284.8775	 
	Water conservation land of hillside conservation zone	 	Dataoping Section, Zaoqiao Township	 	83-2,661-1,661-2,661-4	 	 	1,818.0000	 	 	 	549.9450	 
	 	 	Laotianliao Section, Touwu Township	 	414-2,414-3,426	 	 	563.0000	 	 	 	170.3075	 
	Transportation land of hillside conservation zone	 	Dataoping Section, Zaoqiao Township	 	647-16,647-17,647-18,647-20,655-7,655-9,
 655-11,698-1,699-28,706-17	 	 	2,083.0000	 	 	 	630.1075	 
	Unclassified land of hillside conservation zone	 	Dataoping Section, Zaoqiao Township	 	79,706	 	 	25,687.0000	 	 	 	7,770.3175	 
	(Blank)	 	Laotianliao Section, Touwu Township	 	19,432-29,432-31,432-32,432-33,432-36,
 432-37,444-1,444-8,444-32,448-1,449	 	 	52,651.0000	 	 	 	15,926.9275	 
	Total	 	 	 	 	 	 	2,142,470.2447	 	 	 	648,097.2493	 

  

    	 	22	Zhanmao Real Estate Appraisers Firm

    	 

    

 

		2.	Property right analysis:

 

		(1)	land owner: property rights of the appraised objects-257
parcels including 175 parcels at No. 64, Dataoping Section, Zaoqiao Township, etc and 63 parcels at No. 19, Laotianliao Section,
Touwu Township, etc-independently or separately owned by nine proprietors including Royal Golf Country Club, etc are registered
clearly and definitely as listed in the following table and the attached “Land Appraisal Sheet”..

 

	Land	 	 	 	 	 	Land area	 	 	Total land 

area	 	 	Area ratio	 
	owner	 	Section	 	Parcel number	 	(m2)	 	 	(Ping)	 	 	(Ping)	 	 	(%)	 
	Shizhu Wang	 	Dataoping Section, Zaoqiao Township	 	86-1,86-3,90,698-1,699-6,699-7,699-8,

699-9,699-10,699-11,699-18,699-27	 	 	35,251.0000	 	 	 	10,663.4275	 	 	 	11,833.3463	 	 	 	1.8259	%
	 	 	Laotianliao Section, Touwu Township	 	414-2,414-3,421-1,426,432-12	 	 	3,867.5000	 	 	 	1,169.9188	 	 	 	 	 	 	 	 	 
	Langsheng Lin	 	Dataoping Section, Zaoqiao Township	 	65,67,68-1,69,72,73,74,75,76,77,78,

79,80,81-1,81-2,81-5,83,83-1,86,

87,87-1,88,529,530,531,532,533,

534,536,537,538,540,541,542,

580,580-1,581,582,583,628-1,

628-2,628-4,646,646-3,647-3,

647-4,647-5,647-6,647-8,647-11,

647-13,647-14,647-19,647-21,

648,655,655-1,655-2,655-3,655-4,655-5,

655-8,655-10,655-12,656,657,658,

659,660,661,661-3,662,663,666-1,

668-3,670,671,672,673,674,675,676,

677,678,679,680,680-1,680-2,680-3,

680-4,680-5,681,682,683,684,684-1,

685,686,687,687-1,687-2,688,689,691,

693,694,695,695-1,696,697,699,

699-1,699-2,699-3,699-4,699-12,

699-13,699-19,699-21,699-23,

699-24,700,701,703,703-1,711	 	 	453,294.8637	 	 	 	137,121.6965	 	 	 	196,445.5765	 	 	 	30.3111	%

 

    	 	23	Zhanmao Real Estate Appraisers Firm

    	 

    

 

	Land	 	 	 	 	 	Land area	 	 	Total land 

area	 	 	Area ratio	 
	owner	 	Section	 	Parcel number	 	(m2)	 	 	(Ping)	 	 	(Ping)	 	 	(%)	 
	 	 	Laotianliao Section, Touwu Township	 	19,21,22,23,24,411,421,422,423,

424,425,429,432-1,432-2,432-3,

432-4,432-5,432-6,432-7,432-13,

432-26,432-29,438,439,440,441,

442,442-1,442-2,443,443-1,

444-14,444-49,448-1,449-1	 	 	196,112.0000	 	 	 	59,323.8800	 	 	 	 	 	 	 	 	 
	Wencheng Lan	 	Dataoping Section, Zaoqiao Township	 	655-6,699-16,699-17,699-20,

699-25,699-26	 	 	34,505.0000	 	 	 	10,437.7625	 	 	 	33,236.2800	 	 	 	5.1283	%
	 	 	Laotianliao Section, Touwu Township	 	430,431,432-8,432-15,432-27,

432-28	 	 	75,367.0000	 	 	 	22,798.5175	 	 	 	 	 	 	 	 	 
	Royal Golf Country Club	 	Dataoping Section, Zaoqiao Township	 	64,66,67-1,68,70,71,81-3,81-4,

82,83-2,539,628,628-3,628-5,

628-6,647-1,647-7,647-12,

647-18,647-20,655-7,655-9,

655-11,661-1,661-2,661-4,

664,665,666,667,668,668-1,

668-2,669,690,669-5,699-22,

699-28,699-29,699-30,702,

706,706-1,706-2,706-9,

706-17,706-18	 	 	1,124,934.8889	 	 	 	340,292.8039	 	 	 	388,928.4514	 	 	 	60.0108	%
	 	 	Laotianliao Section, Touwu Township	 	432-16,432-31,432-34,

432-36,432-37,444,444-1,

444-8,

444-32,449	 	 	160,779.0000	 	 	 	48,635.6475	 	 	 	 	 	 	 	 	 
	Xuelao Fan	 	Dataoping Section, Zaoqiao Township	 	656	 	 	92.0000	 	 	 	27.8300	 	 	 	27.8300	 	 	 	0.0043	%
	Shancheng Chen	 	Laotianliao Section, Touwu Township	 	414-2,414-3	 	 	59.5000	 	 	 	17.9987	 	 	 	17.9987	 	 	 	0.0028	%
	Cuiluan Chen	 	Dataoping Section, Zaoqiao Township	 	647-16,647-17,699-14	 	 	1,078.0000	 	 	 	326.0950	 	 	 	6,284.7400	 	 	 	0.9697	%
	 	 	Laotianliao Section, Touwu Township	 	415,432-14,432-32,432-33	 	 	19,698.0000	 	 	 	5,958.6450	 	 	 	 	 	 	 	 	 
	Yuncai Huang	 	Dataoping Section, Zaoqiao Township	 	711	 	 	90.7143	 	 	 	27.4411	 	 	 	27.4411	 	 	 	0.0042	%

  

    	 	24	Zhanmao Real Estate Appraisers Firm

    	 

    

 

	Land	 	 	 	 	 	Land
    area	 	 	Total
    land 

    area	 	 	Area
    ratio	 
	owner	 	Section	 	Parcel
    number	 	(m2)	 	 	(Ping)	 	 	(Ping)	 	 	(%)	 
	Yunbao
    Huang	 	Dataoping
    Section, Zaoqiao Township	 	81-5	 	 	24.7778	 	 	 	7.4953	 	 	 	7.4953	 	 	 	0.0012	%
	Shuhui
    Chou	 	Laotianliao
    Section, Touwu Township	 	432-11	 	 	37,316.0000	 	 	 	11,288.0900	 	 	 	11,288.0900	 	 	 	1.7417	%
	Total	 	 	 	 	 	 	2,142,470.2447	 	 	 	648,097.2493	 	 	 	648,097.2493	 	 	 	100.0000	%

  

    	 	25	Zhanmao Real Estate Appraisers Firm

    	 

    

 

(2) Analysis of
other rights: 

 

	No.	 	Right

    type	 	Sequence	 	Object 	 	Date	 	Right value

    (NTD)	 	Obligee	 	Debtor	 	Obligor
	1	 	Mortgage	 	1	 	Lands at Dataoping Section, Zaoqiao Township, Miaoli County:
    64,65,66, etc	 	78/03/24	 	700,000,000	 	Taiwan Business Bank	 	Fangming Luo, Mingtung Lai, Chaowen Huang,Chinteng Lee, Chingjen
    Liou, Langsheng Lin	 	Fangming Luo, Mingtung Lai, Chaowen Huang,Chinteng Lee, Chingjen
    Liou, Langsheng Lin
	2	 	Mortgage	 	1	 	Lands at Dataoping Section, Zaoqiao Township, Miaoli County:
    83, etc	 	82/07/15	 	4,700,000	 	Chengyu Lien	 	Cuiluan Chen	 	Cuiluan Chen
	3	 	Mortgage	 	1	 	Lands at Dataoping Section, Zaoqiao Township, Miaoli County:432-28
    etc	 	81/06/11	 	36,000,000	 	Cosmos Bank Taiwan	 	Shunlang Lan	 	Shunlang Lan
	4	 	Mortgage	 	1	 	Lands at Dataoping Section, Zaoqiao Township, Miaoli County:
    656-7, etc	 	83/02/17	 	10,000,000	 	Mingjer Huang	 	Shunlang Lan	 	Shunlang Lan
	5	 	Mortgage	 	1	 	Lands at Laotianliao Section, Touwu Township, Miaoli County:
    430, etc	 	83/02/16	 	3,100,000	 	Mingjer Huang	 	Shunlang Lan	 	Shunlang Lan
	6	 	Mortgage	 	1	 	Lands at Laotianliao Section, Touwu Township, Miaoli County:
    19 etc	 	78/03/24	 	200,000,000	 	Taiwan Business Bank	 	Fangming Luo, Mingtung Lai, Chingjen Liou, Langsheng Lin	 	Fangming Luo, Mingtung Lai, Chingjen Liou, Langsheng Lin
	7	 	Mortgage	 	2	 	Lands at Dataoping Section, Zaoqiao Township, Miaoli County:
    65, 67, etc	 	82/07/15	 	98,400,000	 	Chengyu Lien	 	Langsheng Lin	 	Langsheng Lin
	8	 	Mortgage	 	2	 	Lands at Dataoping Section, Zaoqiao Township, Miaoli County:
    64, 66 etc	 	79/06/06	 	396,000,000	 	Taiwan Business Bank	 	Royal Golf Country Club	 	Royal Golf Country Club
	9	 	Mortgage	 	2	 	Lands at Laotianliao Section, Touwu Township, Miaoli County:
    432-15, etc	 	101/07/27	 	9,500,000	 	Shusui Ho	 	Shunlang Lan	 	Kengmeng Lin
	10	 	Mortgage	 	2	 	Lands at Laotianliao Section, Touwu Township, Miaoli County:
    432-16, etc	 	79/06/04	 	114,000,000	 	Taiwan Business Bank	 	Royal Golf Country Club	 	Royal Golf Country Club
	11	 	Mortgage	 	2	 	Lands at Laotianliao Section, Touwu Township, Miaoli County:
    19, etc	 	82/07/13	 	49,000,000	 	Chengyu Lien 	 	Langsheng Lin	 	Langsheng Lin

  

    	 	26	Zhanmao Real Estate Appraisers Firm

    	 

    

  

	No.	 	Right type	 	Sequence	 	Object	 	Date	 	Right
                                         value

        (NTD)
	 	Obligee	 	Debtor	 	Obligor
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12	 	Mortage	 	2	 	Lands at Laotianliao Section, 

    Touwu Township, Miaoli 

    County: 415, etc	 	82/07/06	 	4,900,000	 	Chengyu Lien	 	Cuiluan Chen	 	Cuiluan Chen
	13	 	Mortage	 	3	 	Lands at Dataoping Section, 

    Zaoqiao Township, Miaoli 

    County: 64, 66 etc	 	82/07/14	 	303,000,000	 	Chengyu Lien	 	Royal Golf Country Club	 	Royal Golf Country Club
	14	 	Mortage	 	3	 	Lands at Laotianliao Section, 

    Touwu Township, Miaoli 

    County: 432-16, etc	 	79/06/04	 	40,000,000	 	Chengyu Lien	 	Royal Golf Country Club	 	Royal Golf Country Club
	15	 	Surface rights	 	 	 	Lands at Dataoping Section, 

    Zaoqiao Township, Miaoli 

    County: 64, 66 etc	 	82/07/14	 	 	 	Chengyu Lien	 	 	 	Royal Golf Country Club
	16	 	Surface rights	 	 	 	Lands at Dataoping Section, 

    Zaoqiao Township, Miaoli 

    County: 65, 67 etc	 	82/07/15	 	 	 	Chengyu Lien	 	 	 	Langsheng Lin
	17	 	Surface rights	 	 	 	Lands at Dataoping Section, 

    Zaoqiao Township, Miaoli 

    County: 82, etc	 	82/07/15	 	 	 	Chengyu Lien	 	 	 	Cuiluan Chen
	18	 	Surface rights	 	 	 	Lands at Laotianliao Section, 

    Touwu Township, Miaoli 

    County: 432-16, etc	 	82/07/06	 	 	 	Chengyu Lien	 	 	 	Royal Golf Country Club
	19	 	Surface rights	 	 	 	Lands at Laotianliao Section, 

    Touwu Township, Miaoli 

    County: 415, etc	 	82/07/06	 	 	 	Chengyu Lien	 	 	 	Royal Golf Country Club

  

 

 

    	 	27	Zhanmao Real Estate Appraisers Firm

    	 

    

 

		(3)	Registered events e.g. forenotice or court sequestration: 

 

1:

No.
655-6, 699-16,699-17,699-20,699-25 and 699-26 of Dataoping Section

(Limited
registration items) provisional seizure at 11:00 on April 13, 1994 under No. 3412 document of Zhunan Land Office; creditor: Cosmos
Bank Taiwan; seizure by No. 13375 document of Hsinchu District Court of No. 231 execution file in 1994; debtor: Shun-lang Lan;
scope of limitation: all (transfer was conducted as per No. 151770 document issued by Zhunan Land Office on December 15, 2000)

 

2:

Dataoping
Section: No. 628-3,628-5,628-6,647-1,647-7,647-7,647-12,647-18,647-20,655-7,655-9,699-5,699-22,699-28,699-29,699-30,702,706,706-1,706-2,706-9,706-17,706-18;
Laotianliao Section: No. 432-16,432-31,432-34,432-36,432-37,444-1,444-8,444-32,449 (limited registration items); provisional seizure
registered at 11:00 on November 16, 1993 under No. 10828 document of Zhunan Land Office; creditor: Taiwan Cooperative Bank; seizure
by No. 5835 document of Hsinchu District Court of No. 603 execution file in 1993; debtor: Royal Golf Country Club; scope of limitation:
all (limited registration items); injunction by No. 11227 document of Zhunan Land Office at 9:00 on November 25, 1996; creditor:
Taipei Revenue Service, Xinyi Branch; Taipei Revenue Service ; No. 299 secret document of Taipei Revenue Service, Xinyi Branch
issued on November 8, 1996; taxpayer: Royal Golf Country Club; scope of limitation: all.

 

3:

No.
64, 66, 67-1, 68, 70, 71, 81-3, 81-4,539 and 628 of Dataoping Section 

(Limited
registration items) provisional seizure at 16:00 on April 1, 1994 under No. 3075 document of Zhunan Land Office; creditor:
Cosmos Bank Taiwan; seizure by No. 13376 document of Hsinchu District Court of No. 231 execution file in 1994; debtor: Royal
Golf Country Club; scope of limitation: all (limited registration items); injunction by No. 11227 document of Zhunan Land Office
at 9:00 on November 25, 1996; creditor: Taipei Revenue Service, Xinyi Branch; Taipei Revenue Service ; No. 299 secret document
of Taipei Revenue Service, Xinyi Branch issued on November 8, 1996; taxpayer: Royal Golf Country Club; scope of limitation: all.

  

    	 	28	Zhanmao Real Estate Appraisers Firm

    	 

    

 

4:

Dataoping
Section: No. 65,67,68-1,69,72,74,75,76,77,78,79,80,,81-1,81-2,81-5,83,83-1,83-2,86,87,87-1,88,529,530,531,532,533,534,536,537,538,540,541,542,580,580-1,581,582,583,628-1,628-2,628-4,646,646-3,647-3,647-4,647-5,647-6,647-8,647-13,647-14,647-16,647-17,647-19,647-21,648,655,655-1,655-2,655-3,655-4,655-5,655-8,655-10,655-12,656,685,686,687,687-1,687-2,688,689,691,693,694,695,695-1,696,697,699,699-1,699-2,699-3,699-4,699-12,699-13,699-15,699-19,699-21,699-23,699-24,700,701,703,703-1
and 711; Laotianliao Section: No. 19,21,22,23,24,411,415,421,422,423,424,425,429,432-1,432-2,432-3,432-4,432-5,432-6,432-7,432-9,432-26,432-29,432-32,432-33,438,439,441,442,442-1,442-2,443,444-14,444-49,448-1;
(Limited registration items) No. 107260 Assets Document issued on November 2, 2010; seizure as per No. 17855 document issued by
Taiwan Miaoli District Court on November 2, 2010; creditor: Taiwan Business Bank; debtor: Langsheng Lin; scope of limitation:
all; registered on November 2, 2010 

 

5:

No.
699-14 of Dataoping Section (limited registration items) registered and seized at 10:20 on March 8, 1995 and filed as No. 2668
document of Zhunan Land Office; creditor: Taiwan Cooperative Bank; seizure by No.9988 document of Hsinchu District Court
of No. 71 execution file in 1995; debtor: Cuiluan Chen; scope of limitation: all

 

6:

No.
430,431,432-8,432-27 and 432-28 of Laotianliao Section (limited registration items); No. 4888 document issued by Miaoli Land Office
on April 30, 1994; seizure and registration as per No. 231 document of Hsuichu District Court in 1994; creditor: Cosmos
Bank, Taiwan; debtor: Shunlang Lan; scope of limitation: all (transfer was performed as per No. 138940 Assets Document issued
on November 28, 2000)

 

7:

No.
432-16,432-31,432-32,432-36,432-37,444,444-1,444-8,444-32 and 449 of Laotianliao Section (limited registration items); filed as
No. 11880 Assets Document of Zhunan Land Office on February 2, 2000; injunction was performed as per No. 8990035100 document of
Taipei Revenue Service, Xinyi Branch; creditor: Taipei Revenue Service, Xinyi Branch; taxpayer: Royal Golf Country Club; scope
of limitation: all ; registered on February 2, 2000

  

    	 	29	Zhanmao Real Estate Appraisers Firm

    	 

    

  

8: 

Parcel
number 444 of Laotianliao Section (limited registration items); filed as No. 45600 Assets Document of Miaoli Land Office on June
29, 2009; injunction and registration were performed as per No. 0980203281 document issued by Xinyi Office of National Taxation
Bureau of Taipei, Ministry of Finance on June 29, 2009; taxpayer: Royal Golf Country Club; scope of limitation: 169/18080; registered
on June 29, 2009 (correction was made as per No. 45840 Assets Document issued by Miaoli Land Office on June 30, 2009)

 

9:

Parcel
number 432-14 of Laotianliao Section (limited registration items); filed as No. 239 Document of Miaoli Land Office on March 8,
1995; seizure and registration as per No. 671 execution document of Hsinchu District Court in 1995; creditor: Taiwan Cooperative
Bank; debtor: Cuiluan Chen; scope of limitation: all; registered at 13:55 on March 8, 1995 

 

10:

Parcel
number 432-15 of Laotianliao Section (limited registration items); filed as No. 92810 Assets Document of Miaoli Land Office on
November 2, 2010; seizure and registration as per No. 17855 document issued by Taiwan Miaoli District Court on November 2, 2010;
creditor: Taiwan Business Bank; debtor: Wencheng Lan; scope of limitation: 12225/29059; registered on November 2, 2010 (limited
registration items); filed as No. 8280 Assets Document of Miaoli Land Office on January 30, 2013; seizure and registration as
per No. 1968 document issued by Taiwan Miaoli District Court on January 30, 2013; creditor: Shusui Ho; debtor: Wencheng Lan; scope
of limitation: 116834/29059; registered on January 30, 2013.

  

    	 	30	Zhanmao Real Estate Appraisers Firm

    	 

    

 

2.3
Purpose of appraisal

 

This appraisal provides a
reference for bargain. Value indicated in this report is only a reference for this purpose and not for other uses. This price based
on principles of equity and equalization provides a reference of value of the appraised object on pricing day.

 

2.4
Type of price: normal price.

 

2.5
Pricing date: April 15, 2013. 

 

2.6
Reconnaissance date: April 1, 2013. 

 

2.7
Condition of appraisal: investigate overall use and disposition of the 257 appraised parcels and estimate the price
as per contents of development plan “Imperial Garden Villa Resort” provided by the entrusting party.

 

2.8 Current use of the appraised
object: 

 

The appraised object-a total
of 257 parcels constituted by 195 parcels including No. 64 of Dataoping Section, Zaoqiao Township, etc and 63 parcels including
No. 19 of Laotianliao Section, Touwu Township, etc-is now used as “Royal Golf Country Club”.

 

2.9 Conclusion of appraisal
value 

 

Appraiser of this Firm makes
a professional analysis of property right, general factors, regional factors and respective factors of the appraised object, current
situation of real estate market, and most effective use of the appraised object, and then final price is determined as below. 

  

    	 	31	Zhanmao Real Estate Appraisers Firm

    	 

    

 

	Wencheng Lan	 	Dataoping Section, 

    Zaoqiao Township	 	655-6, 699-16, 699-17, 

    699-20, 699-25, 

    699-26	 	 	34,505.0000	 	 	 	10,437.7625	 	 	 	33,236.2800	 	 	 	287,927,305	 
	 	 	Laotianliao Section, 

    Touwu Township	 	430, 431, 432-8, 

    432-15, 432-27, 

    432-28	 	 	75,367.0000	 	 	 	22,798.5175	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Royal Golf Country Club	 	Dataoping Section, 

    Zaoqiao Township	 	64, 66, 67-1, 68, 70, 
 71, 81-3, 81-4,
    82, 
 83-2, 539, 628, 628-3, 
 628-5, 628-6, 647-1, 
 647-7, 647-12, 647-18, 
 647-20, 655-7, 655-9, 
 655-11,
    661-1, 661-2, 
 661-4, 664, 665, 666, 
 667, 668, 668-1, 668-2, 
 669, 690, 669-5, 
 699-22, 699-28, 
 699-29,
    699-30, 702, 
 706, 706-1, 706-2, 
 706-9, 706-17, 706-18	 	 	1,124,934.8889	 	 	 	340,292.8039	 	 	 	388,928.4514	 	 	 	3,369,303,694	 
	 	 	Laotianliao Section, 

    Touwu Township	 	432-16, 432-31, 
 432-34, 432-36, 
 432-37,
    444, 444-1, 
 444-8, 444-32, 449	 	 	160,779.0000	 	 	 	48,635.6475	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Xuelao Fan	 	Dataoping Section,

    Zaoqiao Township	 	656	 	 	92.0000	 	 	 	27.8300	 	 	 	27.8300	 	 	 	241,092	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Shancheng Chen	 	Laotianliao Section, 

    Touwu Township	 	414-2, 414-3	 	 	59.5000	 	 	 	17.9987	 	 	 	17.9987	 	 	 	155,924	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cuiluan Chen	 	Dataoping Section, 

    Zaoqiao Township	 	647-16, 647-17, 699-14	 	 	1,078.0000	 	 	 	326.0950	 	 	 	6,284.7400	 	 	 	54,444,970	 
	 	 	Laotianliao Section, 

    Touwu Township	 	415, 432-14, 432-32, 432-33	 	 	19,698.0000	 	 	 	5,958.6450	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Yuncai Huang	 	Dataoping Section, 

    Zaoqiao Township	 	711	 	 	90.7143	 	 	 	27.4411	 	 	 	27.4411	 	 	 	237,723	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Yunbao Huang	 	Dataoping Section,

    Zaoqiao Township	 	81-5	 	 	24.7778	 	 	 	7.4953	 	 	 	7.4953	 	 	 	64,932	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Shuhui Chou	 	Laotianliao Section, 

    Touwu Township	 	432-11	 	 	37,316.0000	 	 	 	11,288.0900	 	 	 	11,288.0900	 	 	 	97,789,203	 
	Total	 	 	2,142,470.2447	 	 	 	648,097.2493	 	 	 	648,097.2493	 	 	 	5,614,493,998	 

 

Total value of the land: NT$5,614,493,998

 

Above result only provides a reference
for the value of appraised object under purpose of appraisal. People who use this report for other purposes should carefully read
Statement, Restrictive Condition, Basics Explanation and Appraisal Condition indicated in this report so as to avoid a misuse of
the appraisal result.

  

    	 	32	Zhanmao Real Estate Appraisers Firm

    	 

    

 

2.10 Explanation of appraisal
data resources: 

 

(1)This
report is based on cadastre transcripts approved and issued by Miaoli Land Office of Miaoli County on March 12, 2013, etc. 

 

(2)Pricing
date of this report is April 15, 2013. Property right, statutory use control or other control items and relevant laws which are
related with the appraised object are all subject to this pricing date. 

 

(3)Respective
conditions and regional environmental contents of the real estate are all obtained through personal onsite reconnaissance at the
appraised object as well as verified and recorded as per relevant data such as urban plan and cadastre.

 

(4)Appraisal
of real estate price is based on onsite actual investigation into transaction, profits and cost information at the appraised object,
and obtained through summarizing appraiser’s filed data. 

  

    	 	33	Zhanmao Real Estate Appraisers Firm

    	 

    

 

3. Analysis
of main factors of price formation: 

 

3.1
Analysis of general factors: 

 

(1)
Policies: 

 

1.
Analysis of major policies over the years: 

 

In
Taiwan, housing market has experienced three business cycles and the most recent one occurred between 1987 and 1990. At that time,
rapid economic growth in Taiwan caused surplus hot money; due to limited investment channel, capitals rushed into stock market
and house market and thus resulted in a sharp rise in house price. Finally, along with stock market bubble and influences of the
government’s selective monetary control, housing market began to decline. For redeeming the ever-decreased willing to buying
house, since 1990s, the government successively put forward many major favorable policies such as low-interest loan, reducing
land value increment tax by half for two years, permitting foreign and mainland capitals to purchase real estates in Taiwan, modifying
farmland acquirement qualifications, enacting Regulations on Real Estate Securitization, prolonging the period of halving
land value increment tax in January 2004, and permanent halving of land value increment tax in 2005. Due to severely backward
infrastructure, insufficient economical kinetic energy in face of globalized competition and financial tsunami happening in the
fourth season of 2008, the government not only actively promotes various economic revitalization measures, but also loosens laws
and significantly improves cross-straits relationships. For the sake of continuously strengthening national infrastructure construction
and laying a foundation for accelerated economic growth and enhanced competitive power in Taiwan, “'The Third-Term Plan
for National Development in the New Century” is adopted as the blueprint and assisted by the government’s various
important administration works including “overall plan for i-Taiwan 12 projects”, “Economic Revitalization Policy-Project
to Expand Investment in Public Works”, “Strategic Plan for National Spatial Development”, “The Economic
Stimulus Act”, “Plan for Stabilizing Current Prices”, “Promotion of Six Emerging Industries”, “Program
for Strengthening Regional Constructions and Expanding Domestic Demand”, “Program for Expediting the Implementation
of Urban Renewal”, etc. “I-Taiwan 12 projects” is expected to push forward 12 infrastructure constructions from
2009 to 2016, in hope of promoting industrial innovative development, increasing domestic investment, activating Taiwan economy,
improving people’s life quality, balancing regional development, etc. After this plan is implemented, annual average substantial
GDP can be enhanced by 2.95% and 247000 career opportunities can be added each year. 

  

    	 	34	Zhanmao Real Estate Appraisers Firm

    	 

    

 

2.
Main shaft of national development policy: 

 

(1)
Spatial transformation: 

 

For
strengthening economic system and enhancing life quality, the government actively promotes “i-Taiwan 12 projects”
and strives for balancing regional development, constructing an environment for industrial innovation, expediting accumulation
of intelligence capital, making new appearances of city and countryside, carrying out sustainable development, expanding domestic
demand, creating job opportunities, improving investment environment and implementing national spatial transformation. 

 

(2)
Industrial reconstruction: 

 

In
face of intense competition under globalization, Taiwan industries must make continuous innovation so as to keep competitive advantage.
In the following four years, the government will adhere to three main shafts-industrial innovation, emerging industry and policy
easing, break through bottleneck of industrial development, create core advantage of the industry as well as lead industrial transformation
and upgrade. 

  

    	 	35	Zhanmao Real Estate Appraisers Firm

    	 

    

 

(3)
Global link:

 

Faced
with international trend of accelerated development of globalization and regional integration, the government will positively
adjust cross-Strait economy and trade, strengthen global configuration by industrial cooperation between both sides, as well as
promote participation in global economic and trade integration to enlarge the space for Taiwan’s international economic
and trade development. It will also execute light-tax and reduced-administration policy and speed up loosening financial and economic
laws, thus to change Taiwan into a taxation environment with low tax and high international competitiveness as well as attract
the inflow of foreign and Taiwanese businessman’s capitals. 

 

(4)
Innovative human resources: 

 

During
the next four years, the government will continue to seek excellent development of higher education, push forward high-quality
technical and occupational education, narrow gap between city and countryside, implement life-long education, strengthen function
training of key industry and retraining of unemployed workers, elevate competitive power in job market, increase investment in
research and development, recruit senior-level talents around the world, intensify exchanges of international top-class technology,
promote cultural heritage and creative development, increase advantages of multiculturalism, popularize idea of life aesthetics
and enhance humanistic quality.

  

    	 	36	Zhanmao Real Estate Appraisers Firm

    	 

    

 

(5)
Just society: 

 

Over
the following four years, for constructing a harmonious and rich society, the government will adhere to the principle of “just
society and sustainable welfare”, encourage young people to get married and have babies, establish good-quality nurture
environment, push forward national health insurance reform, plan for long-term care and insurance system, reinforce economic safety
insurance system for the elderly, provide assistance to vulnerable families and strengthen care and guidance for new migrants.

 

(6)
Sustainable environment:

 

To
reconstruct sustainable environmental value and create a circumstance of clean production, comfortable life and beautiful ecology,
in the next four years, the government will actively build low-carbon cities, spread low-carbon transportation, establish resource-recycling
society, promote green life, enact laws and regulations on energy conservation and carbon reduction, encourage green production
and green products, implement clean manufacturing, push forward national land restoration, expedite river improvement and increase
grass and forest planting, so as to strengthen environmental support system, accumulate natural capitals and improve environmental
quality. 

 

(2)
Economy: 

 

1.
International economy: 

 

An
overview of statistic and trend data about domestic and foreign business cycles shows that global economic trend gradually becomes
stable, investor confidence recovers and global economy has bottomed out of a recession. Most of the latest economic outlook reports
issued by international economic and trade organizations and economic forecasting agencies make upward revision of their prediction
of 2010 global economic growth rate. In addition, Asian emerging countries continue to present a trend of economic expansion.
Therefore, it’s possible to maintain global recovery from the recession.

  

    	 	37	Zhanmao Real Estate Appraisers Firm

    	 

    

 

2. Domestic economy: 

 

Continuous rise of global
trade provides an impetus to significant increase in Taiwanese import and export for eight consecutive months. Total export volume
in June is 22.73 billion dollars, up by 34.1% over the same month of 2009; import increases by 40.4% to a total value of 21.32
billion dollars; trade surplus reaches 1.41 billion dollars, reduced by 350 million dollars compared with the same month of 2009.
Gross export value from January till June is 131.98 billion dollars, up by 49.2% over the same period of 2009; gross import value
is 119.88 billion dollars, up by 64.7% over the same period of 2009; trade surplus reaches 12.1 billion dollars, reduced by 3.59
billion dollars (22.9%) compared with the same period of 2009. 

 

In terms of production, foreign
trade market is prosperous thanks to recovery of main economies around the world. Especially, demands on consumptive electronic
products increase rapidly and thus provide an impetus to rise in production. Under motivation of continuous increase in yields
of information, electronic and mechanical industries, industrial production index of June reaches 125.71, up by 24.33% over the
same month of previous year. Manufacturing sector increases by 26.22%; mining & quarrying industry, power & gas supply
industry, and water supply industry increase by 4.55%, 1.20% and 0.13% respectively; constructional engineering industry reduces
by 15.38%. Accumulate growth rate of industrial production from January till June is 36.96%: manufacturing sector increases by
39.61%, mining & quarrying industry, power & gas supply industry, and water supply industry increase by 7.59%, 6.77%, and
0.65% respectively, and constructional engineering industry reduces by 13.48%. 

 

With regard to domestic demand,
along with gradual recovery of business cycle and under influence of low cardinal number of the same month of 2009, the largest
commercial (wholesale, retail and catering) sector of service industry presents a 10.52% increase in turnover of June compared
with the same month of 2009. Wholesale, retail and catering industries increase by 11.80%, 7.23% and 6.80% respectively. Gross
turnover of wholesale, retail and catering industry reaches 1 trillion and 155.2 billion NTD in May. Gross turnover of wholesale,
retail and catering industry accumulated from January till June reaches 6 trillion and 581.1 billion NTD, up by 12.65% over the
same period of previous year; wholesale, retail and catering industries increase by 15.45%, 6.35% and 4.05% respectively. 

  

    	 	38	Zhanmao Real Estate Appraisers Firm

    	 

    

 

Speaking
of price, as prices of gas, cigarettes, vegetables, oils and aquatic products in June are relatively higher than the previous
year, consumer price increases by 1.18% compared with the same month of previous year. After deducting fresh vegetables &
fruits, aquatic products and energy, core price of June shows a 0.63% growth compared with the same month of 2009. Accumulated
consumer price between January and June is 1.19% higher than the same period of previous year; commodity price increases by 2.73%,
service price declines by 0.02% and core price presents a rise of 0.17%. On the other hand, due to gradual recovery of business
cycle, enterprises’ demands on human resources increase. However, under the influence of fresh graduates’ job hunting,
unemployment rate of June is 0.02% higher than previous month and 0.78% lower than the same month of previous year. After seasonal
adjustment, unemployment rate is 5.16%. Average unemployment rate from January till June is 5.47%, reduced by 0.26% compared with
the same period of preceding year. Although the business cycle continues to recover, labor market still faces severe challenge
and trend of changes in unemployment rate should be observed continuously. 

 

Regarding financial market,
Taiwan stock index goes up thanks to lido of financial reports of domestic enterprises and support from effects of ECFA policy.
However, market is the afraid that Euro debt crisis will expand and impact international stock market; moreover, there’s
an assumption that Mainland China’s economic growth will decline in the latter half of the year. Therefore, Taiwan stock
index is not able to push back but get into a predicament of correction and fall by 0.60%. Average daily TAPI is 16.01% lower than
May and the stock market presents a situation of mild volatility. With regard to exchange rate and interest rate, the market predicts
that Federal Reserve will still maintain influence of low interest rate, US Dollar Carry Trade will gradually form, and US dollar
will weaken. However, European sovereign debt crisis impacts financial market and capitals rush into low-risk assets such as US
dollar. Under effects of external factors of financial market and adjustment of Central Bank, mean exchange rate between NT dollar
and US dollar is 32.307 in June, reduced by 0.345 compared with 31.962 of May. In June, overnight rate is 0.179% at the beginning
and 0.192% at the end; the maximum is 0.192% and the minimum is 0.178%; weighted average interest rate of June is 0.183%, higher
than 0.174% of previous month. 

  

    	 	39	Zhanmao Real Estate Appraisers Firm

    	 

    

 

3. Outlook: 

 

The business cycle has gradually
recovered and markets of various countries also tend to be stable. According to the latest production and trade data published
by major governments and research institutions, American business cycle has begun to march toward recovery. Regarding three biggest
economies of Europe, positive economic growth has happened in Germany and France; financial swamp of euro-area governments encumbers
economic recovery and growth, but related data indicate an improvement compared with previous season. Along with improved international
tendency, Japanese economy also recovers from the crisis. Relevant economic growth rates of three biggest economies all return
to positive values. In addition, emerging countries of Asia still maintain the trend of expansion. Therefore, it’s possible
to keep driving force for recovery of global business cycle.

 

(3) Development of real estate
market 

 

In recent years, house price
has been increasing and thus exceeds not only common people’s acceptability but also basic value of house. Survey by Research,
Development and Evaluation Commission, Executive Yuan shows that exorbitant house price of metropolitan district occupies the first
place of “top ten popular discontents”. As constantly-increasing house price may cause bubblization, related financial
and economic units of the government have begun to pay attention to and guard against this problem, and thus lower the temperature
of real estate market. The government plans to implement reverse annuity mortgage policy, which is expected to promote people’s
willing to owning house and have somewhat positive effect on the market. Parking space volume award will be gradually abolished
in the next six years, because this may enhance builder’s building cost and exert negative influence on market. Sine May
2010, for real estates sales, main structure (internal area), ancillary structure (balcony, etc) and public accommodation will
be definitely divided and separately priced, and such measure’s effect on market is not clear now. Moreover, in terms of
commercial real estate, under impetus of topics such as MOU and ECFA, cross-strait economic and trade development will be more
rapid, commercial real estate transaction will begin to be active, and office rent will stop dropping in the future. 

  

    	 	40	Zhanmao Real Estate Appraisers Firm

    	 

    

 

In terms of prospect of real
estate market, main lido messages include continuous recovery of economy, increase in money supply, MOU signed by the both sides
of Strait, continued low interest rate, enhanced CCI and 10% land value increment tax for one house. Primary unfavorable news include
high unemployment rate, discontinuation of favorable housing loan, higher luxurious house tax, tightening loan for luxurious house
and non-self-use house, stopping selling state-owned land at selected area of Taipei city, mainland capitals’ investment
in real estate project not up to expectation, significant increase in total area of builders’ products, etc. Generally, along
with continuous economic recovery, abundant market capitals and expectation of future cross-strait economic & trade development,
current real estate market presents a trend of rise in both price and quantity. However, builders’ launching products actively
results in a large increase in market supply. In addition, the government takes various measures to suppress the rise in house
price such as enhancing taxation of non-self-use real estates, stopping selling state-owned land at selected area, financial restraint,
etc. Therefore, it’s expected that risk of real estate market business and investment will increase in the short term. However,
in the mediums or long term, stable growth of real estate market is still possible with assistance from the government’s
supporting mechanisms.

 

    	 	41	Zhanmao Real Estate Appraisers Firm

    	 

    

 

2. Analysis of regional factors: 

 

(1)Description of the region:

 

The appraised object is located
at “Royal Golf Country Club” on the boundary of Zaoqiao Township and Touwu Township. In the west, it is about 700m,
1.2km, 1.3km and 3.8km away from Yutengping Ecological Education Farm, Mingde Reservoir, Mingde Reservoir Yacht Wharf and Mingde
Elementary School respectively. Provincial Highway No. 13 is about 3.8km away from its west side. In the northwest, it is about
3.8, 3.9 and 4.0 km away from central Dasi Village, Jinshuei Elementary School and Dasi Junior High School. In the north, it is
about 2.0km away from Daping Elementary School. In the northeast, it is about 2.3km away from Dahe Elementary School. Its southeastern
side is located on the boundary of southeastern corner of Zaoqiao Township and Touwu Township, about 1.8, 1.9, 2.1 and 2.3km away
from Baishou Police Station, Zhihu Leisure Farm, Maling Site and Yongsing Elementary school respectively. 

 

(2) Utilization of lands and
buildings at neighboring areas: 

 

Regional environmental lands
are mostly planned as agricultural & pasture land, type-C building land and forestry land of hillside conservation zone. Most
of the lands are not exploited and used yet. Lands of this region follow the road and natural topography, and gradually develop
from level terrain into mountain district. Common sections extend in small-scale belt shape. Within hilly lands, scattered farm
houses and large-scale tourist attractions produce sharp contrast. Natural land use ratio is still low. Most sections keep their
original landforms and conform to the basic principle of nature conservation & use. Buildings within this region are mostly
traditional townhouses. Out of commercial area, small-area farm houses are distributed sporadically. Most of these buildings are
more than 20 years old. 

  

    	 	42	Zhanmao Real Estate Appraisers Firm

    	 

    

 

(3) Public accommodations of
neighboring areas: 

 

Within 1000-meter radius
of the appraised object, public accommodations are deficient. Except elementary schools, institutions such as culture & education,
hospital, retail service, post office, gas station and agricultural association are mainly situated around Mingde Reservoir, which
is about 3.4km west of the appraised object. 

 

(4)
Transportations of neighboring areas: 

 

1. Road planning: 

 

Roads of this region present
vein-like distribution. Except Provincial Highway No.3 and No.13, roads within this area are mostly industrial roads below 6 meters.
Provincial Highway No.13, County Highway No. 126 and Township Road No.13 are major roads used for local transportation and communication.

  

    	 	43	Zhanmao Real Estate Appraisers Firm

    	 

    

 

2. Access roads: 

 

Access roads, with Provincial
Highway No.13 and County Highway No. 126 as main shaft, string neighboring cities and townships together including Shitan, Touwu,
Miaoli, Sanwan, etc. Connective transportation is convenient. 

 

3.
Public transportation system: 

 

The appraised object is located
at suburb. Common people all use their own vehicles. Public transportation system is not so convenient. 

 

(5) Future development trend
of neighboring areas: 

 

Under
the prospect of the whole county-“a city of culture & welfare and a county of technological & tourism industry”
(i.e. nice mountain, nice water and nice life), and along with cooperation of livelihood (industrial) and living environment (facilities),
life circle at northern Miaoli regards developing “an industrial
& commercial area for habitation & technology” as the regional prospect. Zaoqiao Township integrates features of
resources inside and outside the life circle; with current “Professional Husbandry Park of Northern Taiwan” as the
basis, it combines with future development of Yu Da University and Lianhua Technical College, becomes positioned as higher education
university city, establishes facilities related with culture, welfare and life, and constructs prospect for future life of Zaoqiao
Township. In the future, Yu Da University and its surrounding lands will be planned as college town and integrated with service
facilities relevant to culture, welfare and life. Present streets will be built as image business district; quality of central-area
circumstance will be improved by means of environmental integration and construction. Hilly region of southern Zaoqiao Township,
which is suitable for animal husbandry, plans a prospect of developing a leisure agriculture and dairy park. 

  

    	 	44	Zhanmao Real Estate Appraisers Firm

    	 

    

 

3. Analysis
of respective factors:

 

3.1 Respective factors of
land:

 

1. Respective conditions of
land (overall description of whole appraisal range) : 

 

(1) Land area: 2,142,470.2447
m2 (about 648,097.2493 Ping)

(2) Border the eight-meter-width
County Highway No. 126 in the southwest 

(3)
Irregular landform

(4) Overall terrain falls
progressively from northeast to southwest

 

2. Legal use control of the
land and other control measures

 

(1)All of the 257 appraised
parcels are located outside of urban planning and classified as hillside conservation zone of non-urban land. Their types include
type-C building land, agricultural & pasture land, forestry land, water conservation land, transportation land and unclassified
land. As per Clause 15 of “Regulations for the Enforcement of the Regional Planning Law”, type-C building land is used
for buildings at forest zone, hillside conservation zone, scenic zone and agricultural zone within hilly land. Permitted building
coverage ratio is 40% and permitted plot ratio is 120%. Agricultural & pasture land is used for agricultural and animal-husbandry
production and related facilities. Forestry land is used for forest culture and necessary facilities. Water conservation land is
used for water conservancy and relevant facilities. Transportation land is used for railway, highway, MRT, harbor, air transport,
meteorology, postal services, telecommunications and their facilities. According to Clause 7 of “Non-urban Land Use Control
Regulations”, before land use type is determined, lands of forest zone, hillside conservation zone and scenic zone within
hilly land are all subject to control over forestry land. For details of stipulations for permitted usage, etc, please refer to
“Non-urban Land Use Control Regulations”.

  

    	 	45	Zhanmao Real Estate Appraisers Firm

    	 

    

 

	 	 	 	 	 	 	Land area	 
	Land use zone	 	Section	 	Parcel number	 	(m2)	 	 	(Ping)	 
	Type-C building 

land of hillside
    

conservation zone 	 	Dataoping Section, Zaoqiao Township	 	64, 68, 70, 71, 81-3, 81-4, 82,
    539, 647-7, 666, 669, 669-5, 702	 	 	4,988.8889	 	 	 	1,509.1389	 
	 	 	Laotianliao Section, Touwu Township	 	415	 	 	165.0000	 	 	 	49.9125	 
	Agricultural &

 pasture land of 

hillside
    

conservation 

zone	 	Dataoping Section, 

Zaoqiao Township	 	65,67,67-1,68-1,69,72,73,74,75,76,77,78,

    80,81-1,81-2,81-5,83,83-1,86,86-1,86-3,87,
 87-1,88,90,529,530,531,532,533,534,536,
 537,538,540,541,542,580,580-1,581,582,583,

    628,628-1,628-2,628-4,646,646-3,647-3,
 647-4,647-5,647-6,647-8,647-11,647-13,647-14,
 647-19,647-21,648,655,655-1,655-2,655-3,655-4,

    655-5,655-6,655-8,655-10,655-12,656,657,658,
 659,660,661,661-3,662,663,664,665,666-1,667,
 668-3,670,671,672,673,674,675,676,677,678,679,

    680,680-1,680-2,680-3,680-4,680-5,681,682,683,
 684,684-1,685,686,687,687-1,687-2,688,689,690,
 691,693,694,695-1,696,697,699,699-2,699-3,

    699-4,699-15,699-16,699-17,699-20,699-21,
 699-23,699-24,699-25,699-26,701,703,703-1,
 706-1,711	 	 	541,309.3558	 	 	 	163,746.0804	 

  

    	 	46	Zhanmao Real Estate Appraisers Firm

    	 

    

 

	 	 	 	 	 	 	Land
    area	 
	Land use zone	 	Section	 	Parcel number	 	(m2)	 	 	(Ping)	 
	 	 	Laotianliao Section, 

Touwu Township	 	21,22,23,24,411,421,421-1,422,423,424,425,

    429,432-1,432-2,432-3,432-4,432-5,432-6,432-7,

    432-9,432-13,432-26,438,439,440,441,442,

    442-1,442-2,443,443-1,444-14,444-49,430,431,

    432-8,432-15,432-27,432-28,449-1	 	 	273,589.0000	 	 	 	82.760.6725	 
	Forestry land of 

hillside 

conservation zone	 	Dataoping Section, 

Zaoqiao Township	 	79,628-3,628-5,628-6,647-1,647-12,688-1,

    688-2,699-1,699-6,699-7,699-8,699-9,699-10,

    699-11,699-12,699-13,699-14,699-18,699-19,

    699-22,699-27,699-29,699-30,700,706,706-2,

    706-9,706-18	 	 	1,073,385.0000	 	 	 	324,698.9625	 
	 	 	Laotianliao Section, 

Touwu Township	 	19,432-11,432-12,432-14,432-16,432-29,

    432-31,432-32,432-33,432-34,432-36,

    432-37,444,444-1,444-8,444-32,448-1,449	 	 	166,231.0000	 	 	 	50,284.8775	 
	Water conservation 

land of hillside 

conservation
    zone	 	Dataoping Section, 

Zaoqiao Township	 	83-2,661-1,661-2,661-4	 	 	1,818.0000	 	 	 	549.9450	 
	 	 	Laotianliao Section, 

Touwu Township	 	414-2,414-3,426	 	 	563.0000	 	 	 	170.3075	 
	Transportation 

land of hillside 

conservation
    zone	 	Dataoping Section, 

Zaoqiao Township	 	647-16,647-17,647-18,647-20,655-7,

    655-9,655-11,698-1,699-28,706-17	 	 	2,083.0000	 	 	 	630.1075	 

   

    	 	47	Zhanmao Real Estate Appraisers Firm

    	 

    

 

	 	 	 	 	 	 	 	Land
    area	 
	Land
    use zone	 	Section	 	Parcel
    number	 	 	(m2)	 	 	(Ping)	 
	Unclassified
    

    land of hillside 

    conservation zone	 	Dataoping
    Section, 

    Zaoqiao Township	 	79,706	 	 	 	25,687.0000	 	 	 	7,770.3175	 
	(Blank)	 	Laotianliao Section,
    

    Touwu Township	 	19,432-29,432-31,432-32,432-33,432-36,

    432-37,444-1,444-8,444-32,448-1,449	 	 	 	52,651.0000	 	 	 	15,926.9275	 
	Total	 	 	 	2,142,470.2447	 	 	 	648,097.2493	 

  

    	 	48	Zhanmao Real Estate Appraisers Firm

    	 

    

 

		(2)	As per Clause 5 of “Slope land Conservation and Utilization Act”, slope land conservation
and utilization refers to applying engineering, agricultural-technology or planting methods in accordance with natural characteristics
so as to prevent disasters such as erosion, collapse, landslip, earth & rock loss, etc, protect natural ecology & landscape,
keep and maintain water and soil like water resources conservation, as well as realize economical and effective utilization of
resources. For details of stipulations for permitted usage, etc, please refer to “Slope land Conservation and Utilization
Act”. 

 

		(3)	Items of self-possessed agricultural land and farmhouse construction, e.g. disposition, alteration,
surface rights, etc, are handled as per Clause 18 of “Agricultural Development Act”: 
	 	 	 

		A.	Farmers who obtain agricultural land after amendment and execution of this Act on January 4,
2000, have no farmhouse for own use and need to build a farmhouse can apply for farmhouse construction in the form of village or
on self-owned agricultural land after get approval from municipal or county authorities concerned, on the premise that there’s
no influence on agricultural production environment and rural development. 

  

    	 	49	Zhanmao Real Estate Appraisers Firm

    	 

    

 

		B.	Above-described agricultural land is only for agricultural use; farmhouse built on self-owned
agricultural land can only be transferred five years after the house is constructed; however, transfer due to inheritance or judicial
sale is not subject to this restriction. Farmers who obtain agricultural land before amendment and execution of this Act on January
4, 2000, have no farmhouse for own use and need to build a farmhouse can apply for farmhouse construction as per stipulations of
land utilization control and building laws. 

 

		C.	Farmers, who own a land that is collective arable land before amendment and execution of this
Act on January 4, 2000 and becomes sole ownership after this date, are also subject to above stipulations if they don’t have
own farmhouse and need to build farmhouse.

 

		D.	Farmhouse builder described in items A and C should be owner of the land where the farmhouse
is erected; farmhouse and the land where it is located should be transferred or set mortgage together; agricultural land that has
been applied for farmhouse construction can not be applied repeatedly. 
	 	 	 

		E.	Following matters of farmhouse construction described in above items A to D should be decided
by Ministry of the Interior and central governing authorities: farmer’s qualification, floor area of the highest storey,
building coverage ratio, plot ratio, maximum base building area and height, permissive conditions, application procedures, construction
mode, revocation or abolishment of permission, and other matters to be followed. 

		(4)	Qualification of applying for constructing farmhouse on self-owned agricultural land is in accordance
with Clause 3 of “Regulations for Building Farm Houses on Agricultural Land”:

 

As per the first paragraph
of Clause 18 of “Agricultural Development Act”, farmhouse building applicant should be farmer and his/her qualification
should conform to following conditions and be verified by municipal or county authorities concerned: 

 

		A.	The applicant should be 20 years old at least or less than 20 but married. 

  

    	 	50	Zhanmao Real Estate Appraisers Firm

    	 

    

 

		B.	The applicant’s domicile place and agricultural land must be at the same municipality
and county (city); moreover, period of land acquisition and household registration should be two years at least. Applicants who
participate in village farmhouse construction are not subject to this restriction. 

 

		C.	Area of the agricultural land where farmhouse construction is applied should not be smaller
than 0.25 hectare. However, applicants who participate in village and offshore island farmhouse construction are not restricted
by this stipulation. 

 

		D.	The applicant has no farmhouse for self use. 

 

		E.	The applicant should be owner of the agricultural
land, which should be only used for agricultural purpose and is never applied for farmhouse building before.

 

		(5)	Building farmhouse on self-owned agricultural land should be subject to relevant stipulations
in “Implementation of Management Measures for Buildings outside Urban Planning” as the following: 

 

A. Clause
3: at areas outside of Urban Planning, buildings can’t be constructed on grade 1 to 8 farmlands except a condition that the
land owner builds farmhouse for own use; no building can be erected on “grade 9 to 26 farmlands” and “lands classified
as agricultural-use lands as per land law”, except self-use farmhouse and buildings for transportation development, school
establishment, factory and other public facilities. 

 

B. Clause
4: the first paragraph stipulates as below: the builder who applies for building self-use farmhouse should have a status of land-holding
peasant; total floor area of the building should not exceed 495 m2, building area should not exceed 5% of cultivated
land area, height of the building should not exceed three floors and 10.5m, and maximum base building area should not exceed 330
m2.

   

    	 	51	Zhanmao Real Estate Appraisers Firm

    	 

    

 

C. Clause
6: stipulation of the first paragraph: if the builder applies for constructing building other than farmhouse on the land outside
of the range indicated in Clause 3 (e.g.: industrial land certificate should be obtained before building a factory), the building
should be designed by legally-registered architect and construction license should be applied from county (city) office concerned
as per building act. 

 

Stipulation of the second
paragraph: however, for building with an area below 45 m2 and a height below 3.5m, the builder is free of architect
design and can directly apply for construction license. 

 

D. Clause
7: the first paragraph: the builder, who intensively builds more than two houses on the land outside of the range indicated in
Clause 3 or builds a house with total floor area more than 200 m2, should submit public facilities and safety device
plan while applying for construction license. 

 

Second paragraph: above-mentioned
public facilities and safety device plan include road, water, electricity, rainwater, sewage drainage, etc. For construction on
hilly land, water and soil conservation plan should be examined. No building can be erected on hilly land with a slope above 30%.

 

The third paragraph: building
coverage ratio of the building described in the first paragraph can not exceed 50%. 

 

E. Clause
8: when applying for construction on the land outside of urban planning, if the building base is adjacent to highway, distance
between the building and highway should conform to stipulations of Highway Act and related regulations. If the building base is
adjacent to other road, the building should be 2m away from boundary line of the road. The building base should be adjacent to
the road or connected with road by access, width of which should be above 2m. The intensively constructed houses should have complete
road system and width of the road should not be less than 6m.

  

    	 	52	Zhanmao Real Estate Appraisers Firm

    	 

    

 

		(6)	If property right of the appraised land is collective, disposition, alteration, surface rights
set, etc, of the land should be handled as per “clause 34-1 of Land Law” and “main points of executing clause
34-1 of Land Law”. 

 

		(7)	A part of the appraised object belongs to agricultural land. According to clause 39-2 of “Land
Tax Act”, the land value increment tax should be imposed as below: 

 

		A.	When agricultural land for agricultural purpose is transferred to a natural person, this natural
person can apply for being exempt from land value increment tax. 

 

		B.	For the land exempt from value increment tax as described in previous paragraph, if any of following
situations happens, a land value increment tax should be imposed when the land is transferred: relevant authority finds the land
is not used for agriculture and not reverted to agricultural purpose within time limit stipulated by the authority or agricultural
use has been restored but no agricultural matter is conducted within the time limit during the land possessor’s ownership.

 

		C.	“Land owner’s failure to using the land for agricultural purpose described in above
paragraph” and “land presentation between spouses” should be consolidated. 

 

		D.	If agricultural land for agricultural use is transferred for the first time after amendment
and execution of Land Tax Act on January 6, 2000 or transferred after obtaining land free of value increment tax as per stipulation
of the first paragraph, total price increase amount will be calculated and land value increment tax will be levied with “announced
current land value during execution of the Act Amendment” as original land price.

  

    	 	53	Zhanmao Real Estate Appraisers Firm

    	 

    

 

		E.	If agricultural land once levied land value increment tax is transferred after amendment and
execution of Land Tax Act on January 6, 2000 and should be imposed land value increment tax again, total price increase amount
will be calculated and land value increment tax will be levied with “declaratory transfer value ratified during the last
imposition of land value increment tax” as original land price. Stipulation in D is not applicable. 

 

		(8)	Owners of a part of the appraised lands are registered as seizure and injunction; as per Clause
141 of “Regulations for Land Registration”, after seizure, sequestration, provisional seizure or bankruptcy registration
according to the court’s instruction and before deletion of these registrations, the registration authority should stop new
registration related with rights of these lands. 

 

		3.	Current use of the appraised object: 

 

The appraised object-a total
of 257 parcels constituted by 195 parcels including No. 64 of Dataoping Section, Zaoqiao Township, etc and 63 parcels including
No. 19 of Laotianliao Section, Touwu Township, etc-is now used as “Royal Golf Country Club”.

  

    	 	54	Zhanmao Real Estate Appraisers Firm

    	 

    

  

4. Price
appraisal: 

 

4.1 Preconditions of price appraisal and types
of price:

 

		1.	Price of this appraisal is normal price. It refers to a reasonable value of marketable real
estate represented by currency amount and unthreateningly formed between willing buyer and seller through professional knowledge,
careful action, proper marketing and normal transaction condition.

 

		2.	The 257 parcels are appraised subject to contents of “Imperial Garden Villa Resort”
development plan provided by the entrusting party and stipulations of related legal use control or other control items and related
regulations at the time of pricing date. Land price on pricing date is evaluated in accordance with a principle of overall utilization
and disposition of the256 appraised parcels. 

 

4.2 Selection of appraising method: 

 

		1.	Selection of price appraising method: 

 

The present appraisal adopts
comparative method, cost method-land development analysis and income method. 

 

		2.	Comparative method refers to calculating price of the appraised object through comparing, analyzing
and adjusting prices of the comparative objects. 

 

		3.	Cost method-land development analysis: estimate post-development or post-building total sales
amount based on “change in land benefit caused by development and improvement as per legal land purpose and use intensity”,
and then deduct direct cost, indirect cost, capital interest and profit occurring during development period, so as to obtain pre-development
or pre-building land price.

 

    	 	55	Zhanmao Real Estate Appraisers Firm

    	 

    

 

		4.	Discounted cash flow (DCF): calculate
price of profitable real estate after using a proper discount rate to convert “net income of each period and period-end value
during analysis of future discounted cash flow of appraised object” into cash. The previous paragraph is applicable to real
estate investment evaluation aimed at investment. 

 

		5.	Operational procedure of this appraisal adopts percentage method to conduct price discrepancy
adjustment as per transaction price of comparative object, thus to calculate comparative price of real estate.

 

4.3 Processes of appraisal 

 

 

    	 	56	Zhanmao Real Estate Appraisers Firm

    	 

    

 

4.4 Land price appraisal:

 

(1) Price appraisal for the
appraised lands planned as villa area of Imperial Garden:

 

1. Analysis of appraised
object planned as villa zone lands of Imperial Garden: 

 

The appraised lands planned
as villa zone of Imperial Garden are respectively located on the west side (Zone A) and northeastern side (Zone B) of the whole
base within appraisal range. Total development area is 475,800.00 m2 (about 143,929.50 Ping). Villas with three over-ground
floors will be established. 

 

Data resource: entrusting party

 

    	 	57	Zhanmao Real Estate Appraisers Firm

    	 

    

 

2. Legal foundations

 

As per Clause 3-3 of “Regulations
for Building Farm Houses on Agricultural Land”, area of agricultural land where farm house construction is applied should
not be less than 0.25 hectare. According to Clause 4 of “Implementation of Management Measures for Buildings outside Urban
Planning”, total floor area of the applied building should not exceed 495 m2, height of the building should not
exceed three floors and 10.5m, and maximum base building area should not exceed 330 m2.

 

3. Calculation of permissible
building area: 

 

(1) Maximum number of households
who can establish self-use farmhouse: 

 

As per the stipulation that
area of agricultural land where farmhouse construction is applied should not be less than 2,500m2, in this building
development project, maximum number of households is 190. Computational process is as below: 

 

Maximum number of application
households in this building development project 

 

=development base
÷ minimum base area 

 

=475,800.00÷2,500

 

190(households)

 

(2) Maximum floor area of
permissible self-use farmhouse: 

 

According to related stipulation,
total floor area of the applied building should not exceed 495 m2; permissible maximum floor area of the appraised object
is 94,050.00 m2. Computational process is as below:

 

    	 	58	Zhanmao Real Estate Appraisers Firm

    	 

    

 

 

Permissible maximum floor
area

 

=maximum floor area
of each household × number of households 

 

=495×190

 

=94,050.00(m2)

 

4. Selection of appraising
method: 

 

Methods for appraising land
price include comparative method and cost method-land development analysis. 

 

5. Price appraising process:

 

(1) Appraising
processes of comparative method:

 

		a.	With respect to price appraising processes of comparative method, this Firm adopts percentage
method to make adjustment and evaluation. 

 

		b.	Percentage method refers to making one-by-one comparison of regional factors and respective
factors that influence differences between appraised object price and comparative object price, and adjusting price as per percentages
of evaluated differences. 

 

		c.	The appraisal is completed through an objective comparison of various conditions of appraised
object and comparative object. 

 

		d.	Regarding data related with comparative object, this
Firm has tried best to make confirmation with data providers. If there is any insufficiency, it is because verification is impossible
or difficult.

 

		e.	Comparative analysis and adjustment of appraised lands planned as villa area of Imperial Garden:

 

    	 	59	Zhanmao Real Estate Appraisers Firm

    	 

    

 

Compare differences between
market cases 1, 2, 3 and the appraised land, make analysis and computation, and then comparative price of land planned as villa
area of Imperial Garden is calculated as 25,181NTD/Ping (details of comparison and calculation process are shown in “villa
area land price comparison, adjustment and calculation sheet” )

 

Comparative
objectives of land sale examples

 

	Comparative objective	 	Comparative objective

1	 	Comparative objective

2	 	Comparative objective

3
	Pricing date	 	2013/02	 	2012/08	 	2012/06
	Location/mark	 	No. 296, 1st 

subsection, Touwu 

Section, Touwu

 Township 	 	No. 632, 1st 

subsection, Touwu 

Section, Touwu 

Township	 	No. 139, Pingan 

Section, Zaoqiao

 Township, Miaoli 

County 
	 	 	 	 	 	 	 
	Land use zone 	 	Residence zone	 	Residence zone	 	
        Village zone

        Type-B building land

	 	 	 	 	 	 	 
	Building coverage 

ratio/ plot ratio	 	60%/180%	 	60%/180%	 	60%/240%
	 	 	 	 	 	 	 
	Landform,  

terrain	 	Rectangle; flatness	 	Irregular shape; 

flatness	 	Rectangle;  flatness
	 	 	 	 	 	 	 
	Adjacent road	 	Adjacent to road on

 two sides 	 	Adjacent to road on 

one side 	 	Adjacent to road on 

one side
	 	 	 	 	 	 	 
	Adjacent road 

width (m)	 	18,4	 	4	 	6
	 	 	 	 	 	 	 
	Land area (Ping)	 	500.94 	 	391.74 	 	23.95 
	 	 	 	 	 	 	 
	Price type 	 	Knock-down price	 	Knock-down price	 	Knock-down price
	 	 	 	 	 	 	 
	Total price (NTD)	 	21,000,000 	 	14,100,000 	 	1,500,000
	 	 	 	 	 	 	 
	Unit 

price(NTD/Ping)	 	41,921	 	35,993	 	62,630
	 	 	 	 	 	 	 
	Remark 	 	—	 	—	 	—

 

(2) Appraising process of
cost method-land development analysis:

 

This Firm adopts cost method-land
development analysis, i.e. estimating post-development or post-building total sales amount based on “change in land benefit
caused by development and improvement as per legal land purpose and use intensity of appraised land”, and then deducting
direct cost, indirect cost, capital interest and profit occurring during development period, and finally obtain land development
analysis price of appraised object planned as Imperial Garden villa area-NTD 30,700/Ping (details of calculation process are listed
in attachment “Land development analysis price calculation sheet”).

 

    	 	60	Zhanmao Real Estate Appraisers Firm

    	 

    

 

Comparative
objectives of land sale examples

 

	Comparative objective	 	Comparative objective

4	 	Comparative objective

5	 	Comparative objective

6
	Pricing date 	 	2013/01	 	2013/04	 	2013/04
	 	 	 	 	 	 	 
	Position 	 	No. 20, Lane 5, Alley 68, Taoyuan County, Dasi Township, Rixin Road	 	Yangsheng Road, Yangmei City, Taoyuan County 	 	Chenghu Road, Wusong District, Kaohsiung City
	 	 	 	 	 	 	 
	Community name 	 	Hongxi Villa	 	Yangsheng Villa	 	Dibaohu 
	 	 	 	 	 	 	 
	Land use zone	 	Hillside conservation zone

Type-C building land	 	Hillside conservation zone

Type-C building land	 	
        Specified zone of Chengqinghu

        Residential area

	 	 	 	 	 	 	 
	Adjacent road	 	Adjacent to road on one side 	 	Adjacent to road on one side 	 	Adjacent to road on one side
	 	 	 	 	 	 	 
	Adjacent road width (m)	 	6	 	6~8	 	6
	 	 	 	 	 	 	 
	Price type 	 	Knock-down price	 	For-sale price	 	For-sale price
	 	 	 	 	 	 	 
	Building area (Ping)	 	60.24	 	45~140	 	160~272
	 	 	 	 	 	 	 
	Land area (Ping)	 	110.57	 	30~180	 	60~115
	 	 	 	 	 	 	 
	Floor 	 	3 overground floors	 	3 overground floors	 	5 overground floors
	 	1 underground floor	 	1 underground floor	 	1 underground floor	 
	 		 		 	
	House age (year)	 	17.4	 	5.4	 	5.2
	 	 	 	 	 	 	 
	Total price (ten thousand NTD)	 	2,400	 	1,250~10,000	 	3,000~8,800
	 	 	 	 	 	 	 
	Unit price (ten thousand NTD/Ping)	 	39.84	 	27~45	 	27~35
	 	 	 	 	 	 	 
	Adjacent golf course	 	Hongxi golf course	 	Within Yangsheng golf course 	 	Kaohsiung golf course

 

For-sale
price comparison objectives 

	Comparative objective	 	Comparative objective

7	 	Comparative objective

8	 	Comparative objective

9
	Pricing date	 	102/04	 	102/04	 	102/04
	 	 	 	 	 	 	 
	Position	 	Zaoqiao Township, Miaoli County

Yuguohuacheng Villa	 	 No.7, Alley 150, Pingren Road, Zaoqiao Township, Miaoli County 

(Han lin shi di)	 	Zaoqiao Township, Miaoli County

Tengxiang Villa
	 	 	 	 	 	 	 
	Land use zone	 	Hillside conservation zone

Type-C building land	 	Residential area	 	Hillside conservation zone

Type-C building land
	 	 	 	 	 	 	 
	Adjacent road	 	Adjacent to road on one side	 	Adjacent to road on one side	 	Adjacent to road on one side

 

    	 	61	Zhanmao Real Estate Appraisers Firm

    	 

    

 

	Comparative objective	 	Comparative objective

7	 	Comparative objective

8	 	Comparative objective

9
	Adjacent road width (m)	 	6	 	6	 	6
	 	 	 	 	 	 	 
	Price type	 	For-sale price	 	For-sale price	 	For-sale price
	 	 	 	 	 	 	 
	Building area (Ping)	 	50	 	53	 	60
	 	 	 	 	 	 	 
	Land area (Ping)	 	70	 	24	 	65
	 	 	 	 	 	 	 
	Floor	 	2.5 overground floors	 	2.5 overground floors	 	2 overground floors
	 	No underground floor	 	No underground floor	 	No underground floor	 
	 		 		 	
	Total price  (ten thousand NTD)	 	450	 	450	 	498
	 	 	 	 	 	 	 
	Unit price (ten thousand NTD/Ping)	 	9.00	 	8.49	 	8.30

 

(3) Decision on price of appraised
object planned as Imperial Garden villa zone land: 

 

In this project, comparative
method and cost method-land development analysis and calculation are adopted, and comparative price of the appraised land planned
as villa zone is NTD25,181/Ping; land development analysis price is NTD30,700/Ping. In consideration of various factors such as
data liability of these two methods, real estate type and similarity of price formation factors, weighted average approach is used,
and weighting coefficients of land comparison price and land development analysis price are 50% and 50% respectively. In this way,
price of the appraised land planned as villa zone is calculated as NTD28, 500/Ping and total value is NTD4, 101,990,750. Computational
process is as below: 

 

Unit price of appraised land
planned as Imperial Garden

 

=Comparative price
of land × weight+land development analysis price × weight

 

=25,181×50%+30,700×50%

 

28,500 (NTD/Ping)(price
below ten thousand is rounded)

 

Total value of appraised
land planned as villa zone of Imperial Garden

 

=unit price of whole
base land × total area of the land 

 

=28,500×143,929.50

 

=4,101,990,750(NTD)

 

    	 	62	Zhanmao Real Estate Appraisers Firm

    	 

    

 

(2) Appraisal for appraised
object planned as land outside Imperial Garde villa area: 

 

1. Analysis of the appraised
land outside Imperial Garden villa zone: 

 

Besides lands of Imperial
Garden villa zone located on western side (Zone A) and northeastern side (Zone B) and covering an area of 475,800m2
(about 143,929.50 Ping), remaining lands of the whole appraised base are respectively planned as Imperial Garden, Landscape Park,
Forest Park and Community Park. On the premise that club and amusement park are not planned, it’s also appropriate to directly
utilize the appraised object as park because it is now used as “Royal Golf Country Club”, the lands are all even and
daily maintenance is performed. Total area of this zone is 1,666,670.24 m2 (about 504,167.75 Ping). 

 

 

    	 	63	Zhanmao Real Estate Appraisers Firm

    	 

    

  

2. Selection of appraising
method: 

 

Clause 14 of “Regulations
for the Real Estate Appraisal Techniques” indicates: “real estate appraiser should adopt more than two appraising methods
to calculate price of appraised object. Special situation of not being able to use more than two appraising methods is not subject
to this limitation and should be clearly described in the appraisal report”. The appraised object in this case is used as
park, land development analysis calculation is not applicable and the park has no operation revenue, so income method is not suitable
for calculating price of this appraised object and this report just uses comparative method.

 

3.
Price appraising process:

 

(1) Appraising processes of
comparative method: 

 

		a.	With regard to price appraising processes
of comparative method, this Firm adopts percentage method to make adjustment and evaluation.

 

		b.	Percentage
method refers to making one-by-one comparison of regional factors and respective factors that influence differences between appraised
object price and comparative object price, and adjusting price as per percentages of evaluated differences.

 

		c.	The appraisal is completed through
an objective comparison of various conditions of appraised object and comparative object. 

 

		d.	Regarding
data related with comparative object, this Firm has tried best to make confirmation with data providers. If there is any insufficiency,
it is because verification is impossible or difficult

 

		e.	Comparative analysis and adjustment
of appraised lands outside villa area of Imperial Garden: 

 

    	 	64	Zhanmao Real Estate Appraisers Firm

    	 

    

 

Compare differences between
market cases 10, 11, 12 and the appraised land, make analysis and computation, and then comparative price of land outside villa
area of Imperial Garden is calculated as NTD 2,998/Ping (details of comparison and calculation process are shown in “Park
Zone Land Price Comparison, Adjustment and Calculation Sheet” ). 

 

    	 	65	Zhanmao Real Estate Appraisers Firm

    	 

    

 

Comparative
objects of land sale examples

 

	Comparative objective	 	Comparative objective

10	 	Comparative objective

11	 	Comparative objective

12
	Pricing date 	 	2013/01	 	2013/01	 	2012/06
	 	 	 	 	 	 	 
	Location/mark	 	3 parcels: No. 97-7,97-9,706-20 of Dataoping Section, Zaoqiao Township	 	2 parcels: No. 398, 398-3 of Touwu Section, Touwu Township 	 	2 parcels: No. 939-1, 939-3 of Touwu Section, Touwu Township 
	 	 	 	 	 	 	 
	Land use zone 	 	
        Hillside conservation zone

        Agricultural, pasture and forestry land
	 	
        Hillside conservation zone

        Agricultural & pasture land
	 	
        Hillside conservation zone

        Agricultural, pasture and forestry land

	 	 	 	 	 	 	 
	Landform, terrain	 	Irregular; gentle slope	 	Irregular; gentle slope	 	Irregular; gentle slope
	 	 	 	 	 	 	 
	Adjacent road	 	No adjacent road	 	No adjacent road	 	No adjacent road
	 	 	 	 	 	 	 
	Adjacent road width (m)	 	-	 	-	 	-
	 	 	 	 	 	 	 
	Land area (Ping)	 	1,080.83 	 	1,709.43	 	2,817.79
	 	 	 	 	 	 	 
	Price type 	 	Knock-down price	 	Knock-down price	 	Knock-down price
	 	 	 	 	 	 	 
	Total price (NTD)	 	3,000,000 	 	6,000,000 	 	8,500,000
	 	 	 	 	 	 	 
	Unit price(NTD/Ping)	 	2,776	 	3,510	 	3,017
	 	 	 	 	 	 	 
	Remark 	 	- 	 	- 	 	- 

 

(2)
Decision on price of appraised land outside Imperial Garden villa zone:

 

As per calculation result
of above-described land price, comparative price of the appraised land outside Imperial Garden villa zone is computed as NTD2,998/Ping;
in consideration of data reliability, real estate type and price formation factor, unit price of appraised land is NTD3,000/Ping
and total value is NTD 1,510,458,650. Computational process is as below: 

 

Total value of appraised
land outside villa zone 

 

=Unit price of land
outside villa zone × total land area 

 

=3,000×504,167.75

 

=1,512,503,248(NTD)

 

    	 	66	Zhanmao Real Estate Appraisers Firm

    	 

    

 

(3) Total value of the whole
appraised object: 

 

As per above-mentioned formula,
total land value of the whole appraised object is NTD5, 614,493,998. Computational process is as below:

 

Total value of the whole
appraised land 

 

=total value of villa
zone land+ total value of park zone

 

=4,101,990,750+1,512,503,248

 

=5,614,493,998(NTD)

 

4.5 Real estate value of this
development project calculated by DCF: 

 

As per contents of “Imperial
Garden Villa Resort” development plan provided by the entrusting party, besides lands of Imperial Garden villa region located
on western side (Zone A) and northeastern side (Zone B) and covering an area of 475,800m2 (about 143,929.50 Ping), remaining
503,476.22m2-area lands of the whole appraised base are respectively planned as Imperial Garden, Landscape Park, Forest
Park and Community Park. Imperial Garden will be opened to public and charge admission; within the garden, various-style shopping
areas, stalls and coffee seats are provided for tourists. A club will be established at the junction of Imperial Garden and Landscape
Park, provide tourists 255 guest rooms, one hot spring accommodation, conference center, SPA center, restaurant, swimming pool,
gym, etc. 

 

 

    	 	67	Zhanmao Real Estate Appraisers Firm

    	 

    

 

As per Clause 31 of “Regulations
for the Real Estate Appraisal Techniques”, discounted cash flow (DCF) is defined as below: calculate price of profitable
real estate after using a proper discount rate to convert “net income of each period and period-end value during analysis
of future discounted cash flow of appraised object” into cash. DCF analysis is applicable to real estate investment evaluation
aimed at investment. According to Clause 32 of “Regulations for the Real Estate Appraisal Techniques”, computing formula
of DCF analysis is as below: 

n'

 

P=Σ
Cake ÷(1+Y)k+Pn'
÷(1+Y)n'

 

k=1

 

Wherein: 

P: income price 

Cake: net income of each
year 

Y: discount rate

n': DCF analysis period 

k:Each
year period 

Pn':
Period-end value 

 

    	 	68	Zhanmao Real Estate Appraisers Firm

    	 

    

 

 

With DCF analysis period
as 10 years, this case uses income method to calculate total real state value of this development project and obtain a result of
NTD 10,079,107,782. Computational process is as below: 

 

(1) Appraising conditions:

 

As per plan provided by the
entrusting party, number of guest rooms of club is planned as 255. If this number will be changed in the future, the resulting
influence on income price is beyond this Firm’s control. Please pay attention to this.

 

(2) Calculate business income:

 

1. Sales income of Imperial
Garden villa zone: 

 

According to above-described
cost method-land development analysis, total sales income of Imperial Garden villa zone is NTD 7,823,782,500. This income will
be entered into account as per following percentages: presale: 20%, during construction: 10%, post-completion sale: 50% and final
house: 20%. 

 

2. Estimation of guest room
income: 

 

(1) Decision on guest room
price: 

 

After
a consideration of room prices of local same-level clubs, position and future level & popularity of this project, as well as
current price discount of workday and holiday, guest room prices of different time intervals in this project are decided as shown
in following table: 

 

	Item	 	Type	 	Number
    
of rooms	 	 	Number
    
of days	 	 	Discount	 	 	Price
    (NTD)	 
	Guest room	 	Deluxe room	 	 	255	 	 	 	261	 	 	 	Workday
                                         50%	 	 	 	1,250	 
	 	 	 	 	 	 	 	 	 	104	 	 	 	Holiday
                                         100%	 	 	 	2,500	 
	Total	 	 	 	 	255	 	 	 	365	 	 	 	-	 	 	 	-	 

 

    	 	69	Zhanmao Real Estate Appraisers Firm

    	 

    

 

(2) Decision on average room
rate: 

 

Based on supply and demand
of local tourism market, it’s estimated that average room rate at initial stage will be 30% because brand fame and related
software &hardware equipment are not complete at that time. Along with establishment of advertisement marketing strategy and
brand recognition, average room rate is expected to increase year by year. Through considering average room rates of other local
leisure clubs, average room rate of this project is about 60%, i.e. steady state (adjustment of average room rate is shown in “Cash
Flow Analysis and Calculation Sheet). 

 

(3) Decision on annual guest
room income: 

 

As described above, if the
calculation is performed as per numbers of workdays and holidays of a year, and operation benefit is exerted to 100% (i.e. room
rate of the hotel is 100%) in this case, then annual guest room income of 2016 is NTD 149,493,750. Guest room income of each year
is obtained through adjustment and calculation as per average room rate and price growth (guest room incomes of each year are listed
in “Post-Development DCF Analysis and Calculation Sheet”). Process of computing annual guest room income of 2016 under
an operation benefit of 100% is as below: 

 

	Item	 	Type	 	Number

    of rooms	 	 	Number
    of
 days	 	 	Discount

    (%)	 	 	Price
    (NTD)	 	 	Annual
    income 
 (NTD)	 
	Guest room	 	Deluxe room	 	 	255	 	 	 	261	 	 	 	Workday
                                         50%	 	 	 	1,250	 	 	 	83,193,750	 
	 	 	 	 	 	 	 	 	 	104	 	 	 	Holiday
                                         100%	 	 	 	2,500	 	 	 	66,300,000	 
	Total	 	 	 	 	255	 	 	 	365	 	 	 	-	 	 	 	-	 	 	 	149,493,750	 

Note: annual income=Σ(room
price× discount × number of rooms × number of days)

 

    	 	70	Zhanmao Real Estate Appraisers Firm

    	 

    

 

Guest room income of each
year 

=Σ(room
price × discount × number of rooms × number of days)× average room rate of each year 

With year 2016 as an example,
guest room income is as below: 

=guest room income under
a room rate of 100% × annual average room rate of 2016

=149,493,750×30%

=44,848,125(NTD)

 

(4) Decision on number of
guests: 

 

Numbers of holidays and
workdays of a year are 104 and 261 respectively. Average number of guests is 2.5/room. When operation benefit reaches 100%, annual
number of rooms is 93,075. Annual number of guests equals “number of guests under an operation benefit of 100%” multiplied
by “annual average room rate” multiplied by “average number of guests. Computational process” is as below:

 

Number of guests under an
operation benefit of 100%

=number
of hotel guest rooms × 365 days =225×365 =93,075(rooms)

Annual number of guests

=number
of guests under an operation benefit of 100% × annual average
room rate × average number of guests 

Estimated number of guests
in 2016

 

    	 	71	Zhanmao Real Estate Appraisers Firm

    	 

    

 

=number
of guests under an operation benefit of 100% × annual average room rate × average number of guests

=93,075×30%×2.5
=69,805(persons)

 

3. Calculation of catering
income: 

 

This club is equipped with
restaurant, annual catering income of which is calculated as below: 

 

(1)Breakfast income: 

 

As per current standard
of all hotels, breakfast is provided freely for common accommodation. Therefore, breakfast income is not calculated. 

 

(2) Lunch income:

For lunch price you can
refer to prices of lunch sets offered at local western-style restaurants. Lunch set is priced as about 300 NTD at ordinary times
and 350 NTD on holidays; along with price fluctuation, such price will increase by 5% every three years. Number of people having
lunch is estimated as 10% of annual lodgers. After name recognition is built, such number will rise by 1.0% yearly and reach a
stable status when growth rate is 12%. Computational process is as below: 

 

Annual
lunch income

=(price
of lunch set at workday × proportion of workdays in a whole year+price
of holiday lunch set × proportion of holidays in a whole year)×number of guests this year × ratio of people
who have lunch this year 

 

    	 	72	Zhanmao Real Estate Appraisers Firm

    	 

    

 

The
following example calculates lunch income of year 2016:

Annual
lunch income of 2016

 =(300×71.51%+350×28.49%)×69,805×10%

=2,193,598(NTD)

 

(3) Dinner income: 

 

For dinner price you can
refer to dinner sets of other local leisure halls. Dinner set is priced as about 450 NTD at ordinary times and 500 NTD on holidays;
along with price fluctuation, such price will increase by 5% every three years. As the club is within the amusement park, so guests
will always stay here after amusement at the park and number of people having dinner is estimated as 80% of annual lodgers. After
name recognition is built, such number will increase by 1% year by year and reach a stable status when growth rate is 84%. Computational
process is as below:

 

Annual
dinner income 

=(price
of dinner set at workday × proportion of workdays in a whole year+price
of holiday lunch set × proportion of holidays in a whole year)×number of guests this year × ratio of people
who have dinner this year 

 

Take
year 2016 as an instance to calculate dinner income: 

Annual
dinner income of 2016 

=(450×71.51%+500×28.49%)×69,805×80%

=25,925,386(NTD)

 

    	 	73	Zhanmao Real Estate Appraisers Firm

    	 

    

 

(4)
Annual catering income: 

 

Annual
catering income

=lunch
income+dinner income

With
2016 as an example, total catering income is NTD 8,953,290. Computational process is as below:

Catering
income of 2016

=lunch
income+dinner income

=2,193,598+25,925,386

=28,118,984(NTD)

 

4. Revenue from
ticket sales of imperial garden amusement park:

 

Revenue of imperial garden
amusement park tickets is calculated as per number of workdays and number of holidays of a year respectively. In this case, if
operational effectiveness can be exerted to 100%, the park is expected to hold 5000 tourists and annual ticket revenue of 2016
will be NTD 93, 690, 00. Ticket revenue of each of following years won’t be adjusted. Guest room income of each year is computed
(details of guest room income of each year are described in “Post-Development Discounted Cash Flow Analysis and Computation
Sheet”). Process of calculating annual ticket revenue of 2016 is as below: 

 

Annual ticket revenue of 2016

=
(Number of tourists at ordinary days×ordinary-day ticket
price × number of ordinary days+(number
of tourists on holidays ×holiday ticket price ×
number of holidays)

 

    	 	74	Zhanmao Real Estate Appraisers Firm

    	 

    

 

=(200×400+100×100)×261+(300×2,000+150×500)×104

=93,690,000(NTD)

 

	Item	 	Type	 	Number of

    people	 	 	Number of

    days	 	 	Date	 	 	Ticket price

    (NTD)	 	 	Annual revenue

    (NTD)	 
	 	 	Adult ticket	 	 	400	 	 	 	261	 	 	 	Workday	 	 	 	200	 	 	 	20,880,000	 
	Ticket	 	 	 	 	2,000	 	 	 	104	 	 	 	Holiday	 	 	 	300	 	 	 	62,400,000	 
	 	 	Preferential ticket for children	 	 	100	 	 	 	261	 	 	 	Workday	 	 	 	100	 	 	 	2,610,000	 
	 	 	 	 	 	500	 	 	 	104	 	 	 	Holiday	 	 	 	150	 	 	 	7,800,000	 
	Total	 	3,000	 	 	 	365	 	 	 	-	 	 	 	-	 	 	 	93,690,000	 

 

5. Annual revenue of park consumption:

 

Income
of consumption inside Imperial Garden Amusement Park is computed through adding “annual number of people who enter the park
on workdays and holidays” plus “annual number of lodgers”. Adult and teenager’s average daily consumption
is estimated as NTD 500 and 100 respectively. Annual revenue of consumption at Imperial Garden Amusement Park is NTD198, 912,500.
Computational process is listed in following table: 

 

	Item	 	Consumer

    group	 	Number

    (person)	 	 	Number of

    days	 	 	Annual

    number of 
 people	 	 	Consumption

    sum
 (NTD)	 	 	Annual

    consumption
 sum
 (NTD)	 
	 	 	Adult	 	 	400	 	 	 	261	 	 	 	104,400	 	 	 	500	 	 	 	52,200,000	 
	Park	 	 	 	 	2,000	 	 	 	104	 	 	 	208,000	 	 	 	500	 	 	 	104,000,000	 
	consumption	 	Teenager	 	 	100	 	 	 	261	 	 	 	26,100	 	 	 	100	 	 	 	2,610,000	 
	 	 	 	 	 	500	 	 	 	104	 	 	 	52,000	 	 	 	100	 	 	 	5,200,000	 
	 	 	Guest	 	 	-	 	 	 	-	 	 	 	69,805	 	 	 	500	 	 	 	34,902,500	 
	Total	 	 	 	 	3,000	 	 	 	365	 	 	 	460,305	 	 	 	-	 	 	 	198,912,500	 

 

    	 	75	Zhanmao Real Estate Appraisers Firm

    	 

    

 

6. Calculation of annual income
of Hot Spring Accommodation: 

 

An
outdoor Hot Spring Accommodation is planned and the fee is NTD 250 each time. Maximum capacity is “50 persons”. Under
an assumption that operational effectiveness reaches 100%, daily business time is 12 hours, usage time of each person is 2 hours
and utilization rate is estimated as 50%, annual revenue of this Hot Spring Accommodation will be NTD 13,687,500. The following
shows computational process:  

Annual
revenue of Hot Spring Accommodation

=Hot
Spring Accommodation fee ×maximum capacity × annual
use hours under an operational effectiveness of 100% × annual utilization rate 

=250×50×12÷2×365×50%

=13,687,500(NTD)

 

7. Calculation of annual gross
revenue: 

Except sales income of Imperial
Garden villa zone that is entered into account since 2013, annual incomes of “Imperial Garden amusement park” and “Club”
will be calculated year by year since their formal operation in 2016. 

 

(3) Calculate operating cost:

 

1. Accommodation cost: direct
expenses related with consumptive materials, supplies, services, room reservation and counters of Housekeeping Department. At initial
stage of operation, ratio of accommodation cost in accommodation income is expected to be 20%; along with experience accumulation
and efficiency enhancement, this ratio is expected to decrease by 1% every three years. When it is reduced to 18%, a steady state
is achieved. 

 

2.
Catering cost: include cost of purchasing food or drinks sold at Catering Department and direct expenses of restaurant, service
and kitchen. Ratio of catering cost in catering income is expected to be 30% at initial stage of operation. Along with experience
accumulation and efficiency enhancement, this ratio is expected to be reduced to 25% and reach a stable state three years later.

 

    	 	76	Zhanmao Real Estate Appraisers Firm

    	 

    

 

3.
Hot spring accommodation cost: direct expenses related with consumptive materials, supplies, affairs and counters. Ratio of hot
spring accommodation cost in hot spring accommodation is estimated as 40% at initial stage of operation. Along with experience
accumulation and efficiency enhancement, this ratio is expected to be reduced to 35% and present a stable state three years later.

 

4.
Total cost of establishing Imperial Garden villa zone: this cost is calculated as NTD2, 005,732,700 as per cost method-land development
analysis. It is allotted in accordance with construction progress: 30% will be allotted in 2013 and remaining 70% will be all allotted
after completion in 2014. 

 

5.
Total cost of establishing Imperial Garden and Club: this cost is NTD1, 503,075,000 as per data provided by entrusting party. It
is allotted in accordance with construction progress: 50% will be allotted in 2014 and remaining 50% will be all allotted after
completion in 2015. 

 

(4) Calculate operating expense:

 

1.
Administrative management expense: include stationery, printing, postage fee, property tax, design of accounting system,
accounting software & hardware purchase, real estate appraisal expense, office rental, accountant fee and attorney fee. Administrative
management expense is estimated as 5% of operating income at initial stage of operation. Through cooperation with international
business group and performance control, this ratio is expected to decrease by 1% three years later; when it is reduced to 4%,
a steady state is presented.

 

    	 	77	Zhanmao Real Estate Appraisers Firm

    	 

    

 

2.
Staff cost: salary, premium, bonus, pension, etc of all authorized personnel of Administration Dept., Housekeeping Dept., and
Catering Dept. etc under the organizational structure. Number of authorized staff of Club and Amusement Park is estimated as 500.
Average salary of 2016 is estimated as NTD30, 000 (including labor insurance & health insurance). A one-month premium will
be offered each year. 20% of salary will be allocated to bonus and pension. Along with increase in price index, the salary is
expected to be enhanced by 5% every three years. 

 

3.
Marketing and popularizing cost: advertisement fee, sample fee, social communication fee, travel fee and transportation fee. For
the sake of establishing popularity of the Club and Amusement Park, this expenditure is estimated as 10% of operating income at
initial stage of operation and will be paid since planning stage. Along with enhancement in fame of the Club and Amusement Park,
annual marketing and popularizing expense will become 2% of operating income, i.e. maintaining fixed expenditure. 

 

4.
Operation consultant expense: money paid for cooperation with international business group. It is fixed as 2% of operating income
and will be paid since planning stage. 

 

5.
Maintenance expense: a necessary expenditure of international top-class holiday hotel, including maintenance for interior decoration,
landscape design and garden footpath. It is set as 1% of operating income. Major repair will be performed every five years and
fixed as 5% of operating income. 

 

6.
Energy, water and electricity expenses include electricity, lighting, gas, fuel and water fees. This expenditure is estimated as
3% of operating income. 

 

7. Other
miscellaneous costs: unpredictable expenditures estimated as 3% of operating income.

 

    	 	78	Zhanmao Real Estate Appraisers Firm

    	 

    

 

(5) Annual payable
land tax:

 

Most of land use zones of
this project are agricultural & pasture land, forestry land, water conservation land and transportation land of hillside conservation
zones. As per Land Tax Act, agricultural land except type-C building land is exempt from land tax. According to announced land
price of 2013, payable land tax of this project is NTD 8,246. Land price is announced every three years. As this project is located
at hillside conservation zone, its announced land price won’t be adjusted in the future. Process of computing land tax in
2013 is as below: 

 

	Land area

    (m2)	 	 	Percentage 

    (%)	 	 	Land area
 (m2)
	 	 	Announced land

    price of 2013 
 (NTD/m2)	 	 	Announced land

    price
 (NTD)	 
	 	5,153.89	 	 	 	100.00	%	 	 	5,153.89	 	 	 	200	 	 	 	824,622	 

 

Annual payable land tax 

=declarative total land value
× land tax rate 

=824,622×1% ≒8,246(NTD)

 

(6) Calculate annual payable
house tax: 

 

House tax is calculated through
formula published by Revenue Service Office and depreciation rate is 1%/year. House tax at the time of club completion (2016) is
NTD 1,566,417. Then, house tax will be calculated with depreciation rate as 1%/year. Computational process is as below: 

 

	Building

    area
 (m2)	 	 	Unit price 

    (NTD/m2)	 	 	Depreciation

    rate	 	 	Year	 	 	Street

    adjustment
 rate	 	 	Present tax

    value
 (NTD)	 	 	House tax

    rate	 	 	Burden

    ratio	 	 	House tax

    amount
 (NTD)	 
	 	16,859.50	 	 	 	3,097	 	 	 	1.0	%	 	 	0.0	 	 	 	100	%	 	 	52,213,884	 	 	 	3.0	%	 	 	100.0	%	 	 	1,566,417	 

 

(7) Calculation of annual net
operating income (NOI): 

 

Annual net operating income

=annual
operating income - annual operating cost
- annual operating expense - land tax
- house tax - major repair expense

 

    	 	79	Zhanmao Real Estate Appraisers Firm

    	 

    

 

(8) Decision on discount rate

 

Discount
rate is a rate of returns expected by investor; it means that investor must give up opportunity cost of obtaining reward from other
investment, including risk-free returns from risk-free investment and returns from risk. Therefore, discount rate includes two
main factors: risk-free interest rate and risk premium. As per first paragraph of Clause 43 of “Regulations for the Real
Estate Appraisal Techniques”, income capitalization rate or discount rate should be decided after considering factors such
as fixed deposit interest rate, interest rate of government bond, risk of real estate investment, currency change and trend of
changes in real estate price, choosing the most common investment returns rate as the benchmark, observing differences between
respective characteristics of the investment and appraised object, as well as comparing negotiability, risk, increment, difficulty
in management, etc. 

 

With regard to discount rate
estimation, for real estate securities that have been released publicly and have transaction value, coupon rate of real estate
securitization is often used as basic returns rate because such coupon rate is decided by a group of professional persons in accordance
with market risk. Coupon rate of common real estate securities in current market is between 2.2% and 2.8%. In this project, risky
interest rate is 2.5%. Difficulty in management is decided as below: management fee charged for common real estate securitization
is 1.0% of nominal value. Negotiability is set as 1.0% after a consideration of differences between interest rates of long-term
and short-term government bonds. In this way, discount rate adopted by DCF of this project is 4.5%. As period-end disposition lasts
a long term, income capitalization rate adopted by such disposition is calculated as 5.0% through adding “DCF discount rate
of 4.5%” to “liquidity risk of 0.5%”. Computational process is as below:

 

    	 	80	Zhanmao Real Estate Appraisers Firm

    	 

    

  

Discount
rate of DCF 

=interest
rate in consideration of risk+ risk of management difficulty+negotiability risk

=2.5%+1.0%+1.0%

=4.5%

Income
capitalization rate adopted during period-end disposition 

=discount
rate of DCF+negotiability risk 

=4.5%+0.5%

=5.0%

 

(9)
Calculate real estate income value of this development project: 

As
per above formulas, with operation period of appraised object set as 10 years, discounted cash flow analysis is adopted to calculate
real estate income value of this development project and the result is NTD 10,079,107,782 (details are shown in “Development
Project DCF Analysis Sheet”). 

 

5. Other
necessary appraisal-related items and “situations to be clarified as per stipulations of this regulation”: no

 

    	 	81	Zhanmao Real Estate Appraisers Firm

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