Common use of Replacement of Collateral Clause in Contracts

Replacement of Collateral. During the duration of this Syndicated Loan, if the Borrower needs to replace the old equipment in order to enhance the technical level or if the subject matter of the chattel mortgage has been damaged beyond repair, the Borrower shall use the newly purchased semiconductor packaging or testing equipment (hereafter “New Subject Matter”) to replace the outdated or damaged subject matter of the chattel mortgage (hereafter “Old Subject Matter”). However, the replacement of the subject matter of the chattel shall comply with the following terms: (1) The amount of the cash voucher for the New Subject Matter shall not be lower than that of the cash voucher for the Old Subject Matter. (2) If the Borrower needs to change the amount of the subject matter (based on the amount of the cash voucher) with each item less than NT$100 million (NT$100,000,000) and if the cumulative amounts of the subject matters that the Borrower requested to change under the terms of this Paragraph are less than NT$500 million (NT$500,000,000), the Borrower shall obtain the written consent from the Facility Agent (the Lenders hereby authorize the Facility Agent the right to decide whether to approve the Borrower’s replacement request within this range without having to notify the Lenders or obtain approval from the Lenders). However, if the Borrower’s replacement request has exceeded the single amount or cumulative amounts mentioned above, a written consent from the Majority Lender is required before the replacement can be executed. Table of Contents (3) In terms of the subject matter of the chattel mortgage approved by the Facility Agent and the Majority Lenders, the Borrower shall process the creation of first rank mortgage of the New Subject Matter identical to that of the Old Subject Matter as well as the insurance and insurance rights and interests transfer procedures pursuant to the relevant terms of this Agreement before requesting the Facility Agent to lift the mortgage creation for the cancellation of the Old Subject Matter (at this time, the Facility Agent shall lift the mortgage setting for the cancellation of the Old Subject Matter based on the item approved for replacement by the Facility Agent or the Majority Lenders). After the Borrower has completed the replacement of the subject matter of chattel mortgage pursuant to this term, the New Subject Matter after the replacement shall be regarded as part of the “Collateral” as defined by this Agreement.

Replacement of Collateral. During the duration of this Syndicated Loan, if the Borrower needs to replace the old equipment in order to enhance the technical level or if the subject matter of the chattel mortgage has been damaged (or there is a likelihood of damage) beyond repair, the Borrower shall use the newly purchased semiconductor packaging or testing equipment (hereafter hereinafter “New Subject Matter”) to replace the outdated or damaged (or a likelihood of damage to) subject matter of the chattel mortgage (hereafter hereinafter “Old Subject Matter”). However, the replacement of the subject matter of the chattel shall comply with the following terms: (1) The amount of the cash voucher invoice for the New Subject Matter shall not be lower than that of the cash voucher original net appraisal value for the Old Subject Matter. (2) If the Borrower needs to change the amount of the subject matter (based on the amount of the cash voucherinvoice) with each item less than NT$100 million (NT$100,000,000) and if the cumulative amounts of the subject matters that the Borrower requested to change under the terms of this Paragraph are less than NT$500 million (NT$500,000,000), the Borrower shall obtain the written consent from the Facility Agent Collateral Agents (the Lenders hereby authorize the Facility Agent Collateral Agents the right to decide whether to approve the Borrower’s replacement request within this range without having to notify the Lenders or obtain approval from the Lenders). However, if the Borrower’s replacement request has exceeded the single amount or cumulative amounts mentioned above, a written consent from the Majority Lender is required before the replacement can be executed. Table of Contents. (3) In terms of the subject matter of the chattel mortgage approved by the Facility Agent Collateral Agents and the Majority Lenders, the Borrower shall process the creation of first rank mortgage of the New Subject Matter identical to that of the Old Subject Matter as well as the insurance and insurance rights and interests transfer procedures pursuant to the relevant terms of this Agreement before requesting the Facility Agent Collateral Agents to lift the mortgage creation for the cancellation of the Old Subject Matter (at this time, the Facility Agent Collateral Agents shall lift the mortgage setting for the cancellation of the Old Subject Matter based on the item approved for replacement by the Facility Agent or the Majority Lenders). After the Borrower has completed the replacement of the subject matter of chattel mortgage pursuant to this term, the New Subject Matter after the replacement shall be regarded as part of the “Collateral” as defined by this Agreement.