Document:

Registration Rights Agreement, dated as of June 30, 2004

 Exhibit 4.2 
  
 REGISTRATION RIGHTS AGREEMENT 
  

by and among 
  
 KULICKE AND SOFFA INDUSTRIES, INC., 
  
 as Issuer, 
  
 and

  
 MERRILL LYNCH & CO., 
 MERRILL LYNCH, PIERCE, FENNER & SMTIH 
 INCORPORATED, 
  
 as Initial Purchaser

  
 Dated as of June 30, 2004 

 THIS REGISTRATION RIGHTS AGREEMENT is made and entered into as of June 30, 2004 by and among Kulicke and
Soffa Industries, Inc., a Pennsylvania corporation (the “Company”), and Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated (the “Initial Purchaser”) pursuant to the Purchase Agreement
dated June 24, 2004 (the “Purchase Agreement”) between the Company and the Initial Purchaser. In order to induce the Initial Purchaser to enter into the Purchase Agreement, the Company has agreed to provide the registration rights
set forth in this Agreement. The execution of this Agreement is a condition to the closing under the Purchase Agreement. 
  
 The Company agrees with the Initial Purchaser, (i) for its benefit as Initial Purchaser and (ii) for the benefit of the beneficial owners (including the
Initial Purchaser) from time to time of the Notes (as defined herein) and the beneficial owners from time to time of the Underlying Common Stock (as defined herein) issued upon conversion of the Notes (each of the foregoing a
“Holder” and together the “Holders”), as follows: 
  
 Section 1. Definitions. Capitalized terms used herein without definition shall have their respective meanings set forth in the Purchase Agreement. As used in this Agreement, the following terms shall have the
following meanings: 
  
 “Affiliate” means, with
respect to any specified person, an “affiliate,” as defined in Rule 144, of such person. 
  
 “Amendment Effectiveness Deadline Date” has the meaning set forth in Section 2(d) hereof. 
  
 “Amount of Registrable Securities” means (i) with respect to
the Notes, the aggregate principal amount of all such Notes outstanding; (ii) with respect to the Underlying Common Stock, the aggregate number of such shares of Common Stock outstanding multiplied by the Conversion Price or, if no Notes are then
outstanding, the last Conversion Price that was in effect under the Indenture when any Notes were last outstanding; and (iii) with respect to combinations thereof, the sum of (i) and (ii) for the relevant Registrable Securities (without
duplication). 
  
 “Applicable Conversion Price”
as of any date of determination means the Conversion Price in effect as of such date of determination or, if no Notes are then outstanding, the Conversion Price that would be in effect were Notes then outstanding. 
  
 “Business Day” means each Monday, Tuesday, Wednesday,
Thursday and Friday that is not a day on which banking institutions in The City of New York are authorized or obligated by law or executive order to close. 
  
 “Common Stock” means the shares of common stock, without par value, of the Company and any other shares of common stock as may constitute
“Common Stock” for purposes of the Indenture, including the Underlying Common Stock. 
  

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 “Conversion Price” has the meaning assigned such term in the Indenture. 
  
 “Damages Accrual Period” has the meaning set forth in
Section 2(e) hereof. 
  
 “Damages Payment Date”
means each interest payment date under the Indenture in the case of Notes, and each June 30, 2004 and December 30, 2004 in the case of the Underlying Common Stock. 
  
 “Deferral Notice” has the meaning set forth in Section 3(i) hereof. 
  
 “Deferral Period” has the meaning set forth in Section 3(i)
hereof. 
  
 “Effectiveness Deadline Date” has the
meaning set forth in Section 2(a) hereof. 
  
 “Effectiveness Period” means the period commencing on the date hereof and ending on the date that all Registrable Securities have ceased to be Registrable Securities. 
  
 “Event” has the meaning set forth in Section 2(e) hereof.

  
 “Event Date” has the meaning set forth in
Section 2(e) hereof. 
  
 “Event Termination Date”
has the meaning set forth in Section 2(e) hereof. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder. 
  

“Filing Deadline Date” has the meaning set forth in Section 2(a) hereof. 
  
 “Holder” has the meaning set forth in the second paragraph of this Agreement. 
  
 “Indenture” means the Indenture dated as of June 30, 2004
between the Company and J.P. Morgan Trust Company, National Association, as trustee, pursuant to which the Notes are being issued. 
  
 “Initial Purchaser” means Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated. 
  
 “Initial Shelf Registration Statement” has the meaning set
forth in Section 2(a) hereof. 
  
 “Issue Date”
means the first date of original issuance of the Notes. 
  
 “Liquidated Damages Amount” has the meaning set forth in Section 2(e) hereof. 
  

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 “Losses” has the meaning set forth in Section 6(a) hereof. 
  
 “Material Event” has the meaning set forth in Section 3(i)
hereof. 
  
 “Notes” means the 1% Convertible
Subordinated Notes due 2010 of the Company to be purchased pursuant to the Purchase Agreement. 
  
 “Notice and Questionnaire” means a written notice delivered to the Company containing substantially the information called for by the Selling Securityholder Notice and Questionnaire attached as Annex
A to the Offering Memorandum of the Company dated June 24, 2004 relating to the Notes. 
  
 “Notice Holder” means, on any date, any Holder that has delivered a Notice and Questionnaire to the Company on or prior to such date. 
  
 “Purchase Agreement” has the meaning set forth in the preamble hereof. 
  
 “Prospectus” means the prospectus included in any
Registration Statement (including, without limitation, a prospectus that discloses information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities
Act), as amended or supplemented by any amendment or prospectus supplement, including post-effective amendments, and all materials incorporated by reference or explicitly deemed to be incorporated by reference in such Prospectus. 
  
 “Record Holder” means (i) with respect to any Damages
Payment Date relating to any Notes as to which any such Liquidated Damages Amount has accrued, the holder of record of such Note on the record date with respect to the interest payment date under the Indenture on which such Damages Payment Date
shall occur and (ii) with respect to any Damages Payment Date relating to the Underlying Common Stock as to which any such Liquidated Damages Amount has accrued, the registered holder of such Underlying Common Stock 15 days prior to such Damages
Payment Date. 
  
 “Registrable Securities” means
the Notes until such Notes have been converted into or exchanged for the Underlying Common Stock and, at all times subsequent to any such conversion or exchange, the Underlying Common Stock and any securities into or for which such Underlying Common
Stock has been converted or exchanged, and any security issued with respect thereto upon any stock dividend, split or similar event until, in the case of any such security, (A) the earliest of (i) its effective registration under the Securities Act
and resale in accordance with the Registration Statement covering it, (ii) expiration of the holding period that would be applicable thereto, under Rule 144(k) and (iii) its sale to the public pursuant to Rule 144 (or any similar provision then in
force, but not Rule 144A) under the Securities Act, and (B) as a result of the event or circumstance described in any of the foregoing clauses (i) through (iii), the legend with respect to transfer restrictions required under the Indenture is
removed or removable in accordance with the terms of the Indenture or such legend, as the case may be. 
  

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 “Registration Expenses” has the meaning set forth in Section 5 hereof. 
  
 “Registration Statement” means any registration statement of
the Company that covers any of the Registrable Securities pursuant to the provisions of this Agreement including the Prospectus, amendments and supplements to such registration statement, including post-effective amendments, all exhibits, and all
materials incorporated by reference or explicitly deemed to be incorporated by reference in such registration statement. 
  
 “Restricted Securities” means “Restricted Securities” as defined in Rule 144. 
  
 “Rule 144” means Rule 144 under the Securities Act, as such
Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC. 
  
 “Rule 144A” means Rule 144A under the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the SEC. 
  
 “SEC” means the
Securities and Exchange Commission. 
  
 “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated by the SEC thereunder. 
  
 “Shelf Registration Statement” has the meaning set forth in Section 2(a) hereof. 
  
 “Special Counsel” means Wilson Sonsini Goodrich &
Rosati, Professional Corporation or one such other successor counsel as shall be specified by the Holders of a majority of the Registrable Securities, but which may, with the written consent of the Initial Purchaser (which shall not be unreasonably
withheld), be another nationally recognized law firm experienced in securities law matters designated by the Company, the reasonable fees and expenses of which will be paid by the Company pursuant to Section 5 hereof. 
  
 “Subsequent Shelf Registration Statement” has the meaning
set forth in Section 2(b) hereof. 
  
 “TIA” means
the Trust Indenture Act of 1939, as amended. 
  
 “Trustee” means J.P. Morgan Trust Company, National Association, the trustee under the Indenture. 
  

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 “Underlying Common Stock” means the Common Stock into which the Notes are convertible or
issued upon any such conversion. 
  
 Section 2. Shelf
Registration. (a) The Company shall prepare and file or cause to be prepared and filed with the SEC, as soon as practicable but in any event by the date (the “Filing Deadline Date”) 120 days after the Issue Date, a Registration
Statement for an offering to be made on a delayed or continuous basis pursuant to Rule 415 of the Securities Act (a “Shelf Registration Statement”) registering the resale from time to time by Holders thereof of all of the
Registrable Securities (the “Initial Shelf Registration Statement”). The Initial Shelf Registration Statement shall be on Form S-3 or another appropriate form selected by the Company permitting registration of such Registrable
Securities for resale by such Holders in accordance with the methods of distribution elected by the Holders and set forth in the Initial Shelf Registration Statement. The Company shall use its reasonable best efforts to cause the Initial Shelf
Registration Statement to be declared effective under the Securities Act as promptly as is practicable but in any event by the date (the “Effectiveness Deadline Date”) that is 210 days after the Issue Date, and to keep the Initial
Shelf Registration Statement (or any Subsequent Shelf Registration Statement) continuously effective under the Securities Act until the expiration of the Effectiveness Period. At the time the Initial Shelf Registration Statement is declared
effective, each Holder that became a Notice Holder on or prior to the date 10 Business Days prior to such time of effectiveness shall be named as a selling securityholder in the Initial Shelf Registration Statement and the related Prospectus in such
a manner as to permit such Holder to deliver such Prospectus to purchasers of Registrable Securities in accordance with applicable law. None of the Company’s security holders (other than the Holders of Registrable Securities) shall have the
right to include any of the Company’s securities in the Shelf Registration Statement. 
  
 (b) If the Initial Shelf Registration Statement or any Subsequent Shelf Registration Statement ceases to be effective for any reason at any time during the Effectiveness Period (other than because all Registrable
Securities registered thereunder shall have been resold pursuant thereto or shall have otherwise ceased to be Registrable Securities), the Company shall use its reasonable best efforts to obtain the prompt withdrawal of any order suspending the
effectiveness thereof, and in any event shall within 30 days of such cessation of effectiveness amend the Shelf Registration Statement in a manner reasonably expected to obtain the withdrawal of the order suspending the effectiveness thereof, or
file an additional Shelf Registration Statement covering all of the securities that as of the date of such filing are Registrable Securities (a “Subsequent Shelf Registration Statement”). If a Subsequent Shelf Registration Statement
is filed, the Company shall use its reasonable best efforts to cause the Subsequent Shelf Registration Statement to become effective as promptly as is practicable after such filing and to keep such Registration Statement (or subsequent Shelf
Registration Statement) continuously effective until the end of the Effectiveness Period. 
  

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 (c) The Company shall supplement and amend the Shelf Registration Statement if required by the rules,
regulations or instructions applicable to the registration form used by the Company for such Shelf Registration Statement, if required by the Securities Act or as reasonably requested by the Initial Purchaser or by the Trustee on behalf of the
Holders of the Registrable Securities covered by such Shelf Registration Statement. 
  
 (d) Each Holder of Registrable Securities agrees that if such Holder wishes to sell Registrable Securities pursuant to a Shelf Registration Statement and related Prospectus, it will do so only in accordance with this
Section 2(d) and Section 3(h) hereof. Each Holder of Registrable Securities wishing to sell Registrable Securities pursuant to a Shelf Registration Statement and related Prospectus agrees to deliver a Notice and Questionnaire to the Company at least
three Business Days prior to any intended distribution of Registrable Securities under the Shelf Registration Statement. From and after the date the Initial Shelf Registration Statement is declared effective, the Company shall, as promptly as
practicable after the date a Notice and Questionnaire is delivered, and in any event upon the later of (x) 15 Business Days after such date or (y) 15 Business Days after the expiration of any Deferral Period in effect when the Notice and
Questionnaire is delivered, or put into effect within 15 Business Days of such delivery date, (i) if required by applicable law, file with the SEC a post-effective amendment to the Shelf Registration Statement or prepare and, if required by
applicable law, file a supplement to the related Prospectus or a supplement or amendment to any document incorporated therein by reference or file any other required document so that the Holder delivering such Notice and Questionnaire is named as a
selling securityholder in the Shelf Registration Statement and the related Prospectus in such a manner as to permit such Holder to deliver such Prospectus to purchasers of the Registrable Securities in accordance with applicable law and, if the
Company shall file a post-effective amendment to the Shelf Registration Statement, use its reasonable best efforts to cause such post-effective amendment to be declared effective under the Securities Act as promptly as is practicable, but in any
event by the date (the “Amendment Effectiveness Deadline Date”) that is 45 days after the date such post-effective amendment is required by this clause to be filed; (ii) provide such Holder copies of any documents filed pursuant to
Section 2(d)(i) hereof; and (iii) notify such Holder as promptly as practicable after the effectiveness under the Securities Act of any post-effective amendment filed pursuant to Section 2(d)(i) hereof; provided that if such Notice and
Questionnaire is delivered during a Deferral Period, the Company shall so inform the Holder delivering such Notice and Questionnaire and shall take the actions set forth in clauses (i), (ii) and (iii) above upon expiration of the Deferral Period in
accordance with Section 3(i) hereof. Notwithstanding anything contained herein to the contrary, (i) the Company shall be under no obligation to name any Holder that is not a Notice Holder as a selling securityholder in any Registration Statement or
related Prospectus and the (ii) Amendment Effectiveness Deadline Date shall be extended by up to 10 Business Days from the expiration of a Deferral Period (and the Company shall incur no obligation to pay Liquidated Damages during such extension) if
such Deferral Period shall be in effect on the Amendment Effectiveness Deadline Date. 
  

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 (e) The parties hereto agree that the Holders of Registrable Securities will suffer damages, and that it
would not be feasible to ascertain the extent of such damages with precision, if: (i) the Initial Shelf Registration Statement has not been filed on or prior to the Filing Deadline Date; (ii) the Initial Shelf Registration Statement has not been
declared effective under the Securities Act on or prior to the Effectiveness Deadline Date; (iii) the Company has failed to perform its obligations set forth in Section 2(d) hereof within the time period required therein; or (iv) the aggregate
duration of Deferral Periods in any period exceeds the number of days permitted in respect of such period pursuant to Section 3(i) hereof (each of the events of a type described in any of the foregoing clauses (i) through (iv) are individually
referred to herein as an “Event,” and the next day following the Filing Deadline Date in the case of clause (i), the next day following the Effectiveness Deadline Date in the case of clause (ii), the next day following the date by
which the Company is required to perform its obligations set forth in Section 2(d) hereof in the case of clause (iii) (including the filing of any post-effective amendment on or prior to the Amendment Effectiveness Deadline Date), and the date on
which the aggregate duration of Deferral Periods in any period exceeds the number of days permitted by Section 3(i) hereof in the case of clause (iv), being referred to herein as an “Event Date”). Events shall be deemed to continue
until the “Event Termination Date,” which shall be the following dates with respect to the respective types of Events: the date the Initial Shelf Registration Statement is filed in the case of an Event of the type described in
clause (i), the date the Initial Shelf Registration Statement is declared effective under the Securities Act in the case of an Event of the type described in clause (ii), the date the Company performs its obligations set forth in Section 2(d) hereof
in the case of an Event of the type described in clause (iii) (including, without limitation, the date the relevant post-effective amendment to the Shelf Registration Statement is declared effective under the Securities Act), and termination of the
Deferral Period that caused the limit on the aggregate duration of Deferral Periods in a period set forth in Section 3(i) hereof to be exceeded in the case of the commencement of an Event of the type described in clause (iv). 
  
 Accordingly, commencing on (and including) any Event Date and ending on (but
excluding) the next date on which there are no Events that have occurred and are continuing (a “Damages Accrual Period”), the Company agrees to pay, as liquidated damages and not as a penalty, an amount (the “Liquidated
Damages Amount”), payable in cash on the Damages Payment Dates to Record Holders of Notes that are Registrable Securities and of shares of Underlying Common Stock issued upon conversion of Notes that are Registrable Securities, as the case
may be, accruing, for each portion of such Damages Accrual Period beginning on and including a Damages Payment Date (or, in respect of the first time that the Liquidated Damages Amount is to be paid to Holders on a Damages Payment Date as a result
of the occurrence of any particular Event, from the Event Date) and ending on but excluding the first to occur of (A) the date of the 
  

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 end of the Damages Accrual Period or (B) the next Damages Payment Date, at a rate equal to (i) 0.25% per annum of the
Amount of Registrable Securities with respect to the first 90-day period during which an Event shall have occurred and be continuing and (ii) 0.50% per annum of the Amount of Registrable Securities with respect to the period commencing on the
91st day following the day an Event shall have occurred and be continuing, in each case determined as of the
Business Day immediately preceding the next Damages Payment Date; provided that in no event shall the Liquidated Damages Amount accrue at a rate per annum exceeding 0.50% of the Amount of Registrable Securities; provided,
further, that in the case of a Damages Accrual Period that is in effect solely as a result of an Event of the type described in Section 2(e)(iii) hereof, such Liquidated Damages Amount shall be paid only to the Holders that have delivered
Notice and Questionnaires that caused the Company to incur the obligations set forth in Section 2(d) hereof the non-performance of which is the basis of such Event; provided, further, that any Liquidated Damages Amount accrued with
respect to any Note (or portion thereof) submitted for purchase on a purchase date or converted into Underlying Common Stock on a conversion date prior to the Damages Payment Date, shall, in any such event, be paid instead to the Holder who
submitted such Note (or portion thereof) for purchase or conversion on the applicable purchase date or conversion date, as the case may be, on such date (or promptly following the conversion date, in the case of conversion). Notwithstanding the
foregoing, no Liquidated Damages Amounts shall accrue as to any Registrable Security from and after the earlier of (x) the date such security is no longer a Registrable Security and (y) expiration of the Effectiveness Period. Notwithstanding the
occurrence of multiple concurrent Events, the rate of accrual of the Liquidated Damages Amount with respect to any period shall not exceed the rate per annum of 0.50% of the Amount of Registrable Securities. Following the cure of all Events
requiring the payment by the Company of Liquidated Damages Amounts to the Holders of Registrable Securities pursuant to this Section, accrual of Liquidated Damages Amounts will cease (without in any way limiting the effect of any subsequent Event
requiring the payment of Liquidated Damages Amount by the Company). 
  
 The Trustee shall be entitled, on behalf of Holders of Notes or Underlying Common Stock, to seek any available remedy for the enforcement of this Agreement, including for the payment of any Liquidated Damages Amount. Notwithstanding the
foregoing, the parties agree that the sole damages payable for a violation of the terms of this Agreement with respect to which liquidated damages are expressly provided shall be such liquidated damages. Nothing shall preclude a Notice Holder or
Holder of Registrable Securities from pursuing or obtaining specific performance or other equitable relief with respect to this Agreement. 
  
 All of the Company’s obligations set forth in this Section 2(e) that are outstanding with respect to any Registrable Security at the time such
security ceases to be a Registrable Security shall survive until such time as all such obligations with respect to such security have been satisfied in full (notwithstanding termination of this Agreement pursuant to Section 8(k) hereof). 

 

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 The parties hereto agree that the liquidated damages provided for in this Section 2(e) constitute a
reasonable estimate of the damages that may be incurred by Holders of Registrable Securities by reason of the failure of the Shelf Registration Statement to be filed or declared effective or available for effecting resales of Registrable Securities
in accordance with the provisions hereof. 
  
 Section 3.
Registration Procedures. In connection with the registration obligations of the Company under Section 2 hereof, the Company shall: 
  
 (a) Prepare and file with the SEC a Registration Statement or Registration Statements on any appropriate form under the Securities Act
selected by the Company available for the sale of the Registrable Securities by the Holders thereof in accordance with the intended method or methods of distribution thereof, and use its reasonable best efforts to cause each such Registration
Statement to become effective and remain effective as provided herein; provided that before filing any Registration Statement or Prospectus or any amendments or supplements thereto with the SEC, the Company shall furnish to the Initial
Purchaser and the Special Counsel of such offering, if any, copies of all such documents proposed to be filed and use its reasonable best efforts to reflect in each such document when so filed with the SEC such comments as the Special Counsel
reasonably shall propose within five Business Days of the delivery of such copies to the Initial Purchaser and the Special Counsel. 
  
 (b) Prepare and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary to keep
such Registration Statement continuously effective for the applicable period specified in Section 2(a) hereof; cause the related Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule
424 (or any similar provisions then in force) under the Securities Act; and use its reasonable best efforts to comply with the provisions of the Securities Act applicable to it with respect to the disposition of all securities covered by such
Registration Statement during the Effectiveness Period in accordance with the intended methods of disposition by the sellers thereof set forth in such Registration Statement as so amended or such Prospectus as so supplemented. 
  
 (c) As promptly as practicable give notice to the Notice
Holders, the Initial Purchaser and the Special Counsel, (i) when any Prospectus, Prospectus supplement, Registration Statement or post-effective amendment to a Registration Statement has been filed with the SEC and, with respect to a Registration
Statement or any post-effective amendment, when the same has been declared effective, (ii) of any request, following 
  

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 the effectiveness of the Initial Shelf Registration Statement under the Securities Act, by the SEC or any
other federal or state governmental authority for amendments or supplements to any Registration Statement or related Prospectus or for additional information, (iii) of the issuance by the SEC or any other federal or state governmental authority of
any stop order suspending the effectiveness of any Registration Statement or the initiation or threatening of any proceedings for that purpose, (iv) of the receipt by the Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, (v) of the occurrence of a Material Event (but not the nature of or
details concerning such Material Event) and (vi) of the determination by the Company that a post-effective amendment to a Registration Statement will be filed with the SEC, which notice may, at the discretion of the Company (or as required pursuant
to Section 3(i) hereof), state that it constitutes a Deferral Notice, in which event the provisions of Section 3(i) hereof shall apply. 
  
 (d) Use its reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement or the
lifting of any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction in which they have been qualified for sale, in either case at the earliest possible moment, and
provide immediate notice to each Notice Holder and the Initial Purchaser of the withdrawal of any such order. 
  
 (e) If reasonably requested by the Initial Purchaser or any Notice Holder, as promptly as practicable incorporate in a Prospectus
supplement or post-effective amendment to a Registration Statement such information as the Initial Purchaser and the Special Counsel, or such Notice Holder shall on the basis of an opinion of nationally-recognized counsel experienced in such
matters, determine to be required to be included therein by applicable law and make any required filings of such Prospectus supplement or post-effective amendment. 
  
 (f) As promptly as practicable furnish to each Notice Holder, the Special Counsel and the Initial Purchaser,
without charge, at least one conformed copy of the Registration Statement and any amendment thereto, including financial statements but excluding schedules, all documents incorporated or deemed to be incorporated therein by reference and all
exhibits (unless requested by such Notice Holder, Special Counsel, Initial Purchaser or underwriter). 
  
 (g) During the Effectiveness Period, deliver to each Notice Holder, the Special Counsel and the Initial Purchaser, in connection with any
sale of Registrable Securities pursuant to a Registration Statement, without charge, as many copies of the Prospectus or Prospectuses relating 
  

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 to such Registrable Securities (including each preliminary prospectus) and any amendment or supplement
thereto as such Notice Holder may reasonably request; and the Company hereby consents (except during such periods that a Deferral Notice is outstanding and has not been revoked) to the use of such Prospectus or each amendment or supplement thereto
by each Notice Holder in connection with any offering and sale of the Registrable Securities covered by such Prospectus or any amendment or supplement thereto in the manner set forth therein. 
  
 (h) Prior to any public offering of the Registrable
Securities pursuant to the Shelf Registration Statement, use its reasonable best efforts to register or qualify or cooperate with the Notice Holders and the Special Counsel in connection with the registration or qualification (or exemption from such
registration or qualification) of such Registrable Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States as any Notice Holder reasonably requests in writing (which request may be included
in the Notice and Questionnaire); prior to any public offering of the Registrable Securities pursuant to the Shelf Registration Statement, use its reasonable best efforts to keep each such registration or qualification (or exemption therefrom)
effective during the Effectiveness Period in connection with such Notice Holder’s offer and sale of Registrable Securities pursuant to such registration or qualification (or exemption therefrom) and do any and all other acts or things
reasonably necessary or advisable to enable the disposition in such jurisdictions of such Registrable Securities in the manner set forth in the relevant Registration Statement and the related Prospectus; provided that the Company will not be
required to (i) qualify as a foreign corporation or as a dealer in securities in any jurisdiction where it would not otherwise be required to qualify but for this Agreement or (ii) take any action that would subject it to general service of process
in suits or to taxation in any such jurisdiction where it is not then so subject. 
  
 (h) Upon (A) the issuance by the SEC of a stop order suspending the effectiveness of the Shelf Registration Statement or the initiation of
proceedings with respect to the Shelf Registration Statement under Section 8(d) or 8(e) of the Securities Act, (B) the occurrence of any event or the existence of any fact (a “Material Event”) as a result of which any Registration
Statement shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, or any Prospectus shall contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, or (C) the occurrence or existence of any
pending corporate development (including, without limitation, a potential acquisition or divestiture, a financing or the review by the SEC of the Company’s prior filings) that, in the reasonable discretion of the Company, 
  

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 makes it appropriate to suspend the availability of the Shelf Registration Statement and the related
Prospectus for a discrete period of time, (i) in the case of clause (B) above, subject to the next sentence, as promptly as practicable prepare and file, if necessary pursuant to applicable law, a post-effective amendment to such Registration
Statement or a supplement to the related Prospectus or any document incorporated therein by reference or file any other required document that would be incorporated by reference into such Registration Statement and Prospectus so that such
Registration Statement does not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and such Prospectus does not contain any
untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, as thereafter delivered
to the purchasers of the Registrable Securities being sold thereunder, and, in the case of a post-effective amendment to a Registration Statement, subject to the next sentence, use its reasonable best efforts to cause it to be declared effective as
promptly as is practicable, and (ii) give notice to the Notice Holders, the Special Counsel and the managing underwriters, if any, that the availability of the Shelf Registration Statement is suspended (a “Deferral Notice”) and,
upon receipt of any Deferral Notice, each Notice Holder agrees not to sell any Registrable Securities pursuant to the Registration Statement until such Notice Holder’s receipt of copies of the supplemented or amended Prospectus provided for in
clause (i) above, or until it is advised in writing by the Company that the Prospectus may be used, and has received copies of any additional or supplemental filings that are incorporated or deemed incorporated by reference in such Prospectus. The
Company will use its reasonable best efforts to ensure that the use of the Prospectus may be resumed (x) in the case of clause (A) above, as promptly as is practicable, (y) in the case of clause (B) above, as soon as, in the sole judgment of the
Company, public disclosure of such Material Event would not be prejudicial to or contrary to the interests of the Company or, if necessary to avoid unreasonable burden or expense, as soon as practicable thereafter and (z) in the case of clause (C)
above, as soon as in the reasonable discretion of the Company, such suspension is no longer appropriate. Notwithstanding any other provision of this Agreement, the Company shall be entitled to exercise its right under this Section 3(i) to suspend
the availability of the Shelf Registration Statement or any Prospectus, without incurring or accruing any obligation to pay liquidated damages pursuant to Section 2(e) hereof, no more than an aggregate of 45 days in any three-month period or an
aggregate of 90 days in any twelve-month period (each such period during which the availability of the Registration Statement and any Prospectus is suspended, a “Deferral Period”); provided that in the case of a Material
Event relating to an acquisition or a probable acquisition or financing, 
  

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 recapitalization, business combination or other similar transaction, or the review by the SEC of the
Company’s prior filings, the Company may, without incurring any obligation to pay liquidated damages pursuant to Section 2(e) hereof, deliver to Notice Holders a second notice to the effect set forth above, which shall have the effect of
extending the Deferral Period to an aggregate of up to 60 days in any three-month period, or such shorter period of time as is specified in such second notice. 
  

(j) If requested in writing in connection with a disposition of Registrable Securities pursuant to a Registration Statement, make
reasonably available for inspection during normal business hours by a representative for the Notice Holders of such Registrable Securities, and any broker-dealers, attorneys and accountants retained by such Notice Holders or underwriter, all
relevant financial and other records and pertinent corporate documents and properties of the Company and its subsidiaries, and cause the appropriate officers, directors and employees of the Company and its subsidiaries to make reasonably available
for inspection during normal business hours on reasonable notice all relevant information reasonably requested by such representative for the Notice Holders, or any such broker-dealers, attorneys or accountants in connection with such disposition,
in each case as is customary for similar “due diligence” examinations; provided that such persons shall first agree in writing with the Company that any information that is reasonably and in good faith designated by the
Company in writing as confidential at the time of delivery of such information shall be kept confidential by such persons and shall be used solely for the purposes of exercising rights under this Agreement, unless (i) disclosure of such information
is required by court or administrative order or is necessary to respond to inquiries of regulatory authorities, (ii) disclosure of such information is required by law (including any disclosure requirements pursuant to federal securities laws in
connection with the filing of any Registration Statement or the use of any prospectus referred to in this Agreement), (iii) such information becomes generally available to the public other than as a result of a disclosure or failure to safeguard by
any such person or (iv) such information becomes available to any such person from a source other than the Company and such source is not bound by a confidentiality agreement; and provided that the foregoing inspection and information
gathering shall, to the greatest extent possible, be coordinated on behalf of all the Notice Holders and the other parties entitled thereto by the counsel referred to in Section 5 hereof. 
  
 (k) Comply with all applicable rules and regulations of the
SEC and make generally available to its securityholders earning statements (which need not be audited) satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities
Act) no later than 45 days after the end of any three-month period (or 90 days after the end of any twelve-month 
  

 - 14 - 

 period if such period is a fiscal year) commencing on the first day of the first fiscal quarter of the
Company commencing after the effective date of a Registration Statement, which statements shall cover said periods. 
  
 (l) Cooperate with each Notice Holder to facilitate the timely preparation and delivery of certificates representing Registrable
Securities sold or to be sold pursuant to a Registration Statement, which certificates shall not bear any restrictive legends, and cause such Registrable Securities to be in such denominations as are permitted by the Indenture and registered in such
names as such Notice Holder may request in writing at least one Business Day prior to any sale of such Registrable Securities. 
  
 (m) Provide a CUSIP number for all Registrable Securities covered by each Registration Statement not later than the effective date of such
Registration Statement and provide the Trustee and the transfer agent for the Common Stock with printed certificates for the Registrable Securities that are in a form eligible for deposit with The Depository Trust Company. 
  
 (n) Cooperate and assist in any filings required to be made
with the National Association of Securities Dealers, Inc. 
  
 (o) Upon (i) the filing of the Initial Registration Statement and (ii) the effectiveness of the Initial Registration Statement, announce the same, in each case by release to Reuters Economic Services and Bloomberg
Business News. 
  
 Section 4. Holder’s Obligations.
Each Holder agrees, by acquisition of the Registrable Securities, that no Holder of Registrable Securities shall be entitled to sell any of such Registrable Securities pursuant to a Registration Statement or to receive a Prospectus relating
thereto, unless such Holder has furnished the Company with a Notice and Questionnaire as required pursuant to Section 2(d) hereof (including the information required to be included in such Notice and Questionnaire) and the information set forth in
the next sentence. Each Notice Holder agrees promptly to furnish to the Company all information required to be disclosed in order to make the information previously furnished to the Company by such Notice Holder not misleading and any other
information regarding such Notice Holder and the distribution of such Registrable Securities as the Company may from time to time reasonably request. Any sale of any Registrable Securities by any Holder shall constitute a representation and warranty
by such Holder that the information relating to such Holder and its plan of distribution is as set forth in the Prospectus delivered by such Holder in connection with such disposition, that such Prospectus does not as of the time of such sale
contain any untrue statement of a material fact relating to or provided by such Holder or its plan of distribution and that such Prospectus does not as of the time of such sale omit to state any material fact relating to or provided by such Holder
or its plan of distribution necessary to make the statements in such Prospectus, in the light of the circumstances under which they were made, not misleading. 
  

 - 15 - 

 Section 5. Registration Expenses. The Company shall bear all fees and expenses incurred in
connection with the performance by the Company of its obligations under Section 2 and Section 3 hereof whether or not any of the Registration Statements are declared effective. Such fees and expenses shall include, without limitation, (i) all
registration and filing fees (including, without limitation, fees and expenses (x) with respect to filings required to be made with the National Association of Securities Dealers, Inc. and (y) of compliance with federal and state securities or Blue
Sky laws (including, without limitation, reasonable fees and disbursements of the Special Counsel in connection with Blue Sky qualifications of the Registrable Securities under the laws of such jurisdictions as Notice Holders of a majority of the
Registrable Securities being sold pursuant to a Registration Statement may designate), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities in a form eligible for deposit with The
Depository Trust Company), (iii) duplication expenses relating to copies of any Registration Statement or Prospectus delivered to any Holders hereunder, (iv) fees and disbursements of counsel for the Company and the Special Counsel in connection
with the Shelf Registration Statement; provided that the Company shall not be liable for the fees and expenses of more than one separate firm for all parties participating in any transaction hereunder, (v) reasonable fees and disbursements of
the Trustee and its counsel and of the registrar and transfer agent for the Common Stock and (vi) Securities Act liability insurance obtained by the Company in its sole discretion. In addition, the Company shall pay the internal expenses of the
Company (including, without limitation, all salaries and expenses of officers and employees performing legal or accounting duties), the expense of any annual audit, the fees and expenses incurred in connection with the listing by the Company of the
Registrable Securities on any securities exchange on which similar securities of the Company are then listed and the fees and expenses of any person, including special experts, retained by the Company. Notwithstanding the provisions of this Section
5, each seller of Registrable Securities shall pay selling expenses and all registration expenses to the extent required by applicable law. 
  
 Section 6. Indemnification. 
  
 (a) Indemnification by the Company. The Company shall indemnify and hold harmless each Notice Holder and each person, if any, who
controls any Notice Holder (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) from and against any losses, liabilities, claims, damages and expenses (including, without limitation, any legal or other
expenses reasonably incurred in connection with defending or investigating any such action or claim) (collectively, “Losses”), arising out of or based upon any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement or Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or based upon any omission or 
  

 - 16 - 

 alleged omission to state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading; provided, however, that the Company shall not be liable in any such case to the extent that any such Losses arise out of or are based upon an untrue statement or alleged untrue statement contained in or omission
or alleged omission from any of such documents in reliance upon and conformity with any of the information relating to the Holders furnished to the Company in writing by a Holder expressly for use therein; provided, further, that the
indemnification contained in this paragraph shall not inure to the benefit of any Holder of Registrable Securities (or to the benefit of any person controlling such Holder) on account of any such Losses arising out of or based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in any preliminary prospectus provided in each case the Company has performed its obligations under Section 3(a) hereof if either (A) (i) such Holder failed to send or
deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale by such Holder to the person asserting the claim from which such Losses arise and (ii) the Prospectus would have corrected such untrue statement or
alleged untrue statement or such omission or alleged omission, or (B) (x) such untrue statement or alleged untrue statement, omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been
furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus as so amended or supplemented, with or prior to the delivery of written confirmation of the
sale of a Registrable Security to the person asserting the claim from which such Losses arise. 
  
 (b) Indemnification by Holders of Registrable Securities. Each Holder agrees severally and not jointly to indemnify and hold harmless the Company and its respective directors and officers, and each person, if
any, who controls the Company (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) or any other Holder, from and against all Losses arising out of or based upon any untrue statement or alleged untrue
statement of a material fact contained in any Registration Statement or Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or based upon any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein not misleading, to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in
reliance upon and in conformity with information furnished to the Company by such Holder expressly for use in such Registration Statement or Prospectus or amendment or supplement thereto. In no event shall the liability of any selling Holder of
Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale of the Registrable Securities pursuant to the Registration Statement giving rise to such indemnification obligation.

  

 - 17 - 

 (c) Conduct of Indemnification Proceedings. In case any proceeding (including any governmental
investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant to Section 6(a) or 6(b) hereof, such person (the “indemnified party”) shall promptly notify the person against whom such
indemnity may be sought (the “indemnifying party”) in writing and the indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to represent the indemnified
party and any others the indemnifying party may designate in such proceeding and shall pay the reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain
its own counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel or (ii) the named
parties to any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing
interests between them. It is understood that the indemnifying party shall not, in respect of the legal expenses of any indemnified party in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and
expenses of more than one separate firm (in addition to any local counsel) for all indemnified parties, and that all such fees and expenses shall be reimbursed as they are incurred. Such separate firm shall be designated in writing by, in the case
of parties indemnified pursuant to Section 6(a) hereof, the Holders of a majority (with Holders of Notes deemed to be the Holders, for purposes of determining such majority, of the number of shares of Underlying Common Stock into which such Notes
are or would be convertible or exchangeable as of the date on which such designation is made) of the Registrable Securities covered by the Registration Statement held by Holders that are indemnified parties pursuant to Section 6(a) hereof and, in
the case of parties indemnified pursuant to Section 6(b) hereof, the Company. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a
final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified
party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second and third sentences of this Section 6(c), the indemnifying party agrees that it shall be liable for
any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 60 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have
reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened
proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all
liability on claims that are the subject matter of such proceeding. 
  

 - 18 - 

 (d) Contribution. To the extent that the indemnification provided for in this Section 6 hereof is
unavailable to an indemnified party under Section 6(a) or 6(b) hereof in respect of any Losses or is insufficient to hold such indemnified party harmless, then each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result of such Losses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party or parties on the one hand and the indemnified
party or parties on the other hand or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the
relative fault of the indemnifying party or parties on the one hand and of the indemnified party or parties on the other hand in connection with the statements or omissions that resulted in such Losses, as well as any other relevant equitable
considerations. Benefits received by the Company shall be deemed to be equal to the total net proceeds from the initial placement pursuant to the Purchase Agreement (before deducting expenses) of the Registrable Securities to which such Losses
relate. Benefits received by any Holder shall be deemed to be equal to the value of receiving Registrable Securities that are registered under the Securities Act. The relative fault of the Holders on the one hand and the Company on the other hand
shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Holders or by the Company,
and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Holders’ respective obligations to contribute pursuant to this Section 6(d) are several in proportion
to the respective number of Registrable Securities they have sold pursuant to a Registration Statement, and not joint. 
  
 The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 6(d) were determined by pro rata
allocation or by any other method or allocation that does not take into account the equitable considerations referred to in this Section 6(d). The amount paid or payable by an indemnified party as a result of the Losses referred to in this Section
6(d) shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding this
Section 6(d), an indemnifying party that is a selling Holder of Registrable Securities shall not be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities sold by such indemnifying
party and distributed to the public were offered to the public exceeds the amount of any damages that such indemnifying party has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 
  

 - 19 - 

 (e) The indemnity, contribution and expense reimbursement obligations of the parties hereunder shall be
in addition to any liability any indemnified party may otherwise have hereunder, under the Purchase Agreement or otherwise. 
  
 (f) The indemnity and contribution provisions contained in this Section 6 shall remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf of any Holder or any person controlling any Holder, or the Company, or the Company’s officers or directors or any person controlling the Company and (iii) the sale of
any Registrable Securities by any Holder. 
  
 Section 7.
Information Requirements. The Company covenants that, if at any time before the end of the Effectiveness Period the Company is not subject to the reporting requirements of the Exchange Act, it will cooperate with any Holder of Registrable
Securities and take such further reasonable action as any Holder of Registrable Securities may reasonably request in writing (including, without limitation, making such reasonable representations as any such Holder may reasonably request), all to
the extent required from time to time to enable such Holder to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 and Rule 144A under the Securities Act and
customarily taken in connection with sales pursuant to such exemptions. Upon the written request of any Holder of Registrable Securities, the Company shall deliver to such Holder a written statement as to whether it has complied with such filing
requirements, unless such a statement has been included in the Company’s most recent report filed pursuant to Section 13 or Section 15(d) of Exchange Act. Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to require the
Company to register any of its securities (other than the Common Stock) under any section of the Exchange Act. 
  
 Section 8. Miscellaneous. 
  
 (a) No Conflicting Agreements. The Company is not, as of the date hereof, a party to, nor shall it, on or after the date of this Agreement, enter
into, any agreement with respect to its securities that conflicts with the rights granted to the Holders of Registrable Securities in this Agreement. The Company represents and warrants that the rights granted to the Holders of Registrable
Securities hereunder do not in any way conflict with the rights granted to the holders of the Company’s securities under any other agreements. 
  
 (b) Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Company has obtained the written consent of Holders of a majority of the then outstanding Underlying Common Stock 
  

 - 20 - 

 constituting Registrable Securities (with Holders of Notes deemed to be the Holders, for purposes of this Section, the
number of outstanding shares of Underlying Common Stock into which such Notes are or would be convertible or exchangeable as of the date on which such consent is requested). Notwithstanding the foregoing, a waiver or consent to depart from the
provisions hereof with respect to a matter that relates exclusively to the rights of Holders of Registrable Securities whose securities are being sold pursuant to a Registration Statement and that does not directly or indirectly affect the rights of
other Holders of Registrable Securities may be given by Holders of at least a majority of the Registrable Securities being sold by such Holders pursuant to such Registration Statement; provided that the provisions of this sentence may not be
amended, modified, or supplemented except in accordance with the provisions of the immediately preceding sentence. Each Holder of Registrable Securities outstanding at the time of any such amendment, modification, supplement, waiver or consent or
thereafter shall be bound by any such amendment, modification, supplement, waiver or consent effected pursuant to this Section 8(b) whether or not any notice, writing or marking indicating such amendment, modification, supplement, waiver or consent
appears on the Registrable Securities or is delivered to such Holder. 
  
 (c) Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand delivery, by telecopier, by courier guaranteeing overnight delivery or by first-class mail, return receipt
requested, and shall be deemed given (i) when made, if made by hand delivery, (ii) upon confirmation, if made by telecopier, (iii) one Business Day after being deposited with such courier, if made by overnight courier or (iv) on the date indicated
on the notice of receipt, if made by first-class mail, to the parties as follows: 
  

	 	(x)	if to a Holder of Registrable Securities, at the most current address given by such Holder to the Company in a Notice and Questionnaire or any amendment thereto;

  

	 	(y)	if to the Company, to: 

  
 Kulicke and Soffa Industries, Inc. 
 2101
Blair Mill Road 
 Willow Grove, PA 19090 
 Attention: David J. Anderson, Esq. 
 Facsimile No.: 215-784-7575 
  
 and 
  

 - 21 - 

 Drinker Biddle & Reath LLP 
 One Logan Square 
 Philadelphia, PA 19103

 Attention: F. Douglas Raymond III, Esq. 
 Facsimile No.: 215-988-2757 
  

	 	(z)	if to the Initial Purchaser, to: 

  
 Merrill Lynch & Co. 
 Merrill Lynch,
Pierce, Fenner & Smith 
 Incorporated 
 4 World Financial Center 
 New York, New York 10080 
 and 
 101 California Street, Suite 1420

 San Francisco, California 94111 
 Attention: Investment Banking Counsel 
  
 and

  
 Wilson Sonsini Goodrich & Rosati, Professional

 Corporation 
 650 Page Mill
Road 
 Palo Alto, California 94304 
 Attention: Robert A. Claassen, Esq. 
 Facsimile No.: (650) 493-6811 
  
 or to such other address as such person may have furnished to the other persons identified in this Section 8(c) in writing in accordance
herewith. 
  
 (d) Approval of Holders. Whenever the consent
or approval of Holders of a specified percentage of Registrable Securities is required hereunder, Registrable Securities held by the Company or its affiliates (as such term is defined in Rule 405 under the Securities Act) (other than the Initial
Purchaser or subsequent Holders of Registrable Securities if such subsequent Holders are deemed to be such affiliates solely by reason of their holdings of such Registrable Securities) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage. 
  
 (e) Successors and Assigns. Any person who purchases any Registrable Securities from the Initial Purchaser shall be deemed, for purposes of this Agreement, to be an assignee of the Initial Purchaser. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the parties and shall inure to the benefit of and be binding upon each Holder of any Registrable Securities. 
  

 - 22 - 

 (f) Counterparts. This Agreement may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed to be original and all of which taken together shall constitute one and the same agreement. 
  
 (g) Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise
affect the meaning hereof. 
  
 (h) Governing Law. THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
  
 (i) Severability. If any term provision, covenant or restriction of this Agreement is held to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, and the parties hereto shall use their best efforts to find and
employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction, it being intended that all of the rights and privileges of the parties shall be enforceable to
the fullest extent permitted by law. 
  
 (j) Entire
Agreement. This Agreement is intended by the parties as a final expression of their agreement and is intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter
contained herein and the registration rights granted by the Company with respect to the Registrable Securities. Except as provided in the Purchase Agreement, there are no restrictions, promises, warranties or undertakings, other than those set forth
or referred to herein, with respect to the registration rights granted by the Company with respect to the Registrable Securities. This Agreement supersedes all prior agreements and undertakings among the parties with respect to such registration
rights. No party hereto shall have any rights, duties or obligations other than those specifically set forth in this Agreement. In no event will such methods of distribution take the form of an underwritten offering of the Registrable Securities
without the prior agreement of the Company. 
  
 (k)
Termination. This Agreement and the obligations of the parties hereunder shall terminate upon the end of the Effectiveness Period, except for any liabilities or obligations under Section 4, 5 or 6 hereof and the obligations to make payments
of and provide for liquidated damages under Section 2(e) hereof to the extent such damages accrue prior to the end of the Effectiveness Period, each of which shall remain in effect in accordance with its terms. 
  

 - 23 - 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

  

			
	KULICKE AND SOFFA INDUSTRIES, INC.
		
	 By:
	 	 /s/ Maurice E. Carson

	 Name:
	 	Maurice E. Carson
	 Title:
	 	 Vice President and
 Chief Financial
Officer

  
 Confirmed and accepted as of

 the date first above written: 
  

					
	 MERRILL LYNCH & CO.
 MERRILL LYNCH,
PIERCE, FENNER & SMITH
INCORPORATED

		
	 By:
	 	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
			
	 	 	By:	 	 /s/ Gopal Garuda

	 	 	 	 	 Authorized Signatory
 VICE PRESIDENTSale and Buyback of Fine Metal Agreement

 Exhibit 10.1 
  
 “XXXXX” indicates that a portion of the exhibit has been omitted based on a request for confidential treatment
submitted to the Security and Exchange Commission. The omitted portions have been filed separately with the Commission. 
  
 SALE AND BUYBACK OF FINE METAL AGREEMENT 
 Made on the 21st day of June 2004 
  
 BETWEEN: 
  

	(1)	AGR MATTHEY ABN 33 824 096 614 (hereinafter called “AGR MATTHEY”) being a partnership between WA Mint ABN 44 590 221 751 (The Perth Mint), Australian Gold Alliance Pty Ltd
ABN 67 095 743 703 and Johnson Matthey (Aust) Ltd ABN 62 004 146 838, of Horrie Miller Drive, Newburn, Western Australia and; 

  

	(2)	KULICKE & SOFFA (SEA) PTE LTD (hereinafter called “K&S”), a company incorporated in Singapore with its principal office at 6, Serangoon North Ave, 5, #03-16
Singapore 554910 

  
 WHEREAS: 
  

	A.	AGR MATTHEY at the request of K&S has agreed to sell Gold in the required quantum of troy ounces as stipulated in Item 1 of the attached Schedule 1. 

  

	B.	K&S has agreed to purchase from AGR MATTHEY Gold on the terms and conditions herein contained. 

  
 NOW IT IS AGREED as follows: 
  
 1. DEFINITIONS AND INTERPRETATION 
  
 1.1 Definitions 
  
 In this Agreement, unless there is something in the subject or context inconsistent therewith, the following expressions have the following meanings: 
  
 “Agreement” means this Sale and Buyback of Fine Metal Agreement as it may be amended, varied or extended by mutual agreement from
time to time; 
  
 “Bank Standby Letter of Credit” means a bank guarantee
or standby letter of credit issued by a bank acceptable to AGR MATTHEY in favor of AGR MATTHEY as well as in a form and substance acceptable to AGR MATTHEY; 
  
 “Business Day” means any day on which banks are open for general banking business in Perth, Sydney, New York and Singapore; 
  
 “Conditions Precedent” means the conditions specified in Clause 4; 
  
 “Delivery” means the physical act of delivery, where custody of the Gold shall pass
from one party to the other, as evidenced by the Transportation Agent’s delivery receipt signed by a duly authorized K&S employee. A list of duly authorized K&S employees is annexed herewith as Appendix 1. 
  
 “Delivery Point” means K&S’s manufacturing facility as stated in Item 7 of
Schedule 1; 
  
 “Dispute” means any dispute or disagreement between the
Parties in connection with this Agreement; 

 “Event of Default” means an event of default under this Agreement pursuant to Clause 11.1; 
  
 “Fine Metal Delivered” or “Gold Delivered” means the Fine Metal delivered
to K&S by AGR MATTHEY not purchased and settled in full by K&S (in accordance with Clause 5) and not bought back by AGR MATTHEY (in accordance with Clause 7), expressed as fine troy ounces of Gold; 
  
 “Gold” means Gold metal in any of its physical forms. The physical supply of Gold
by AGR MATTHEY to K&S shall conform to technical specifications specified in paragraph 4 of Schedule 2. 
  
 “Gold AM Fix” means the USD Gold price as determined by LBMA Fixing Members at 10.30am (London time) daily and displayed as such on Reuters. 
  
 “Gold PM Fix” means the USD Gold price as determined by the LBMA Fixing Members at 3 PM (London time) daily and displayed as such
on Reuters. 
  
 “Guaranteed Sum” means the sum secured under the Bank
Standby Letter of Credit from time to time; 
  
 “Initial Date” means the
date falling 24 months after the date of this Agreement; 
  
 “LBMA”
means the London Bullion Market Association; 
  
 “Margin Payment” means
the cash deposit payable, the provision of a further Bank Standby Letter of Credit or the buyback of Gold (in accordance to Clause 7) at such time as the Market Value of Fine Metal Delivered exceeds ninety percent (90%) of the Guaranteed Sum under
the Bank Standby Letter of Credit in accordance with the terms set out in Clause 6; 
  
 “Market Value” of the Gold on any day means the price per Troy Ounce of Gold in USD as determined by the latest Gold PM Fix prior to that day; 
  
 “Metals Account” means an unallocated Gold metal account denominated in fine troy ounces held in the name of K&S representing
the balance of Fine Metal Delivered; 
  
 “Parties” means the parties to
this Agreement and “Party,” means either one of the Parties to this Agreement; 
  
 “Period” means the term of this Agreement commencing from the date of this Agreement and terminating in accordance with Clause 2.2; 
  
 “Product Fee” means the fee payable by K&S to AGR MATTHEY as specified in Item 5 of the Schedule 1 and detailed in Clause 5;

  
 “Sale and Buyback of Fine Metal Facility” means the facility
described and detailed in Clause 2. 
  
 “Security” means the Bank
Standby Letter of Credit provided pursuant to Clause 3.1 and (if any) any USD cash deposit provided by K&S as a result of a margin call by AGR MATTHEY in accordance with Clause 6.1(a); 
  

 1 

 “Transportation Agent” means Securicor International Valuables Transport Pty Ltd or Brinks Australia Pty Ltd or
any other agent as agreed in writing by both AGR MATTHEY and K&S; 
  
 “Troy Ounce” or “Toz” means 31.1035 grams. 
  
 “USD” and “United States Dollars” means the lawful currency of the United States of America; 
  
 1.2 Interpretation 
  
 In the interpretation of the Agreement, unless there is something in the subject or context inconsistent therewith: - 
  

	(a)	Words importing the singular shall be deemed to include the plural and vice versa. 

  

	(b)	Words importing any gender shall be deemed to include all other genders. 

  

	(c)	Words importing persons shall be deemed to include all bodies and associations, corporate or unincorporate, and vice versa. 

  

	(d)	Any reference to a statute or statutory provision shall be deemed to include any statutory provision which amends, extends, consolidates or replaces the same or which has been
amended, extended, consolidated or replaced by the same and any orders, regulations, instruments or other subordinate legislation made thereunder. 

  

	(e)	Headings are included for convenience only and shall not affect the interpretation of the Agreement. 

  

	(f)	All references to Clauses and Recitals are to clauses of and recitals to this Agreement. 

  

	(g)	Expressions cognate with expressions defined in Clause 1 shall be construed accordingly. 

  

	(h)	All references to dates and times are to Perth, Western Australia time unless otherwise specified. 

  

	(i)	All terminology used with respect to Gold in this Agreement which is not expressly defined herein shall have the meanings given to such terminology by the practices and requirements
of the LBMA. 

  
 1.3 Schedule 1 and Schedule 2 
  
 The Schedule1 and Schedule 2 attached to this Agreement form part of this Agreement.

  
 2. SALE AND BUYBACK OF FINE METAL Facility 
  
 2.1 This Agreement shall be deemed to continue in operation and effect from the date of this
Agreement and subsist until it is terminated in accordance with Clause 2.2 
  

 2 

 2.2 After the Initial Period, either of the Parties may terminate this Agreement by giving to the other at least six (6)
months written notice. In the event of such termination, the amount of Gold Delivered to K&S must be paid for in full (in accordance with Clause 5) or sold back to AGR MATTHEY (in accordance with Clause 7) before the expiration of the six (6)
month notice period. 
  
 2.3 During the period of this Agreement, the total Market
Value of the Gold Delivered to K&S is not to exceed ninety percent (90%) of the Guaranteed Sum. 
  
 2.4 Drawdown 
  
 The drawdown of Gold by
K&S is subject to the conditions of this Agreement and will be pursuant to Clause 2.5 of this Agreement.  
  
 2.5 Usage of Gold 
  
 2.5.1 K&S shall be responsible for all costs and charges relating to the processing by K&S of Gold Delivered supplied by AGR MATTHEY to K&S. 
  
 2.5.2 K&S may use the Gold Delivered in the conduct of its normal manufacturing operations (as they are from time to time) and may be
used and processed in such operations. 
  
 2.5.3 For the avoidance of doubt, all
Gold Delivered to K&S by AGR MATTHEY shall form part of the total volume of Fine Metal Delivered to K&S even where the Gold Delivered is held in storage in the vaulting facilities of K&S. 
  
 2.6 Risk and Title 
  
 Risk and Title to the Gold shall pass from AGR MATTHEY to K&S upon Delivery of a shipment of Gold at the Delivery Point. 
  
 2.7 Delivery of Gold 
  
 (a) AGR MATTHEY shall deliver Gold (within the specifications set out in paragraph 4 of Schedule 2) to K&S within 7 days from the date
of its receipt of K&S’s order (in accordance with paragraph 1 of Schedule 2). Delivery by AGR MATTHEY to K&S is deemed to have occurred upon physical delivery at the Delivery Point as evidenced by the Transportation Agent’s
delivery receipt signed by one of the duly authorized K&S employees as listed in Appendix 1. 
  
 (b) The terms on which K&S will deliver Gold to AGR MATTHEY are set out in paragraph 5 of Schedule 2 and the Refining Charges to be paid by K&S are stated in Item 4 of Schedule 1. Delivery by K&S to AGR
MATTHEY is deemed to have occurred upon physical delivery at AGR MATTHEY’s refinery in Perth, Western Australia as evidenced by K&S’s Transportation Agent’s delivery receipt signed by one of the duly authorized AGR MATTHEY
employees as listed in Appendix 2. Risk for Gold delivered by K&S to AGR MATTHEY shall pass from K&S to AGR MATTHEY upon Delivery. Title to the Gold delivered to AGR MATTHEY by K&S shall pass from K&S to AGR MATTHEY upon the
crediting of an equal amount of Gold contained in the Gold delivered by K&S to the Metals Account in accordance with Clause 5 of Schedule 2. 
  

 3 

 3. COLLATERAL SECURITY 
  

3.1 Bank Standby Letter of Credit 
  
 3.1.1 K&S is to procure or provide AGR MATTHEY with the following security against the Sale and Buyback of Fine Metal Facility: 
  
 A Bank Standby Letter of Credit for an amount to be agreed between the Parties (such amount
may be varied by the Parties by mutual consent from time to time). 
  
 3.1.2 The
said Bank Standby Letter of Credit must have an expiry date no earlier than 15 (fifteen) days after the Initial Date of this Agreement or as mutually agreed in writing. 
  
 3.1.3 Where the Bank Standby Letter of Credit is to be renewed, this renewal is to be effected and confirmed by K&S’s banker(s) to
AGR MATTHEY’s banker(s) via SWIFT at least 14 (fourteen) days before the expiry date of the existing Bank Standby Letter of Credit. Failure by K&S or their banker(s) to renew the Bank Standby Letter of Credit at least seven (7) days prior
to the expiry of the Bank Standby Letter of Credit shall confer upon AGR MATTHEY the right to require K&S to sell back the Fine Metal Delivered in accordance with Clause 7 and commence drawdown proceedings against the Bank Standby Letter of
Credit for the value of Gold Delivered inclusive of any other charges stipulated in Clause 5. Any fees and charges resulting due to the commencement of drawdown proceedings are for the account of K&S. 
  
 3.2 Calls on Bank Standby Letter of Credit 
  
 If at any time K&S defaults pursuant to Clause 11, in the performance of its obligations
under this Agreement, and fails to remedy the default within five (5) Business Days of written notice from AGR MATTHEY requiring it to do so, then AGR MATTHEY may require payment, without notice to K&S, by the relevant bank which has issued a
Bank Standby Letter of Credit of the whole or any part of the sum guaranteed under that Bank Standby Letter of Credit. 
  
 4. CONDITIONS PRECEDENT 
  
 The first drawdown of Gold by K&S will be subject to the satisfaction of the following conditions precedent: 
  
 (a) confirmation from K&S that its Memorandum and Articles of Association contains provisions to authorize all necessary corporate actions to perform its obligations
under this Agreement and an extract of the minutes of a K&S board meeting providing authority for the signing of this Agreement;  
  
 (b) execution of a Bank Standby Letter of Credit pursuant to Clause 3.1 to secure the obligations of K&S under this Agreement and the delivery of such Bank Standby
Letter of Credit to AGR MATTHEY; 
  
 (c) due execution of this Agreement by both
K&S and AGR MATTHEY; and 
  
 (d) delivery of the specimen signatures of
K&S’s officers who are authorized to sign advises and documents on behalf of K&S to AGR MATTHEY. 
  

 4 

 5. PURCHASE 
  
 5.1 The consideration payable for the purchase of Gold by K&S shall comprise the following: 
  
 (a) AGR MATTHEY’s quoted selling price at the time of the transaction (as determined in the manner set out in paragraph 2 of Schedule
2) or on either the Gold AM or PM Gold Fix (where an additional fix fee of XXXXX will be charged) with settlement of proceeds payable to AGR MATTHEY in USD for value within two (2) business days of the transaction date unless alternative terms are
agreed upon by AGR MATTHEY; 
  
 (b) A Gold Supply Delivery Fee based on the daily
balance of the Gold Delivered and calculated in accordance with the formula set out below: 
  
 Gold Supply Delivery Fee in relation to a day = Gold Delivered x Gold Price x (Gold Rate ÷ 360) 
  
 Where: 
  
 Gold Delivered (a term defined in the definitions of this Agreement) as at the close of that calendar day. 
  
 Gold Rate (expressed as a rate per annum) for each Fixed Period (as defined in Clause 5.3.2) is the USD LIBOR rate minus GOFO (the Gold Forward Rate) as at the first
Business Day of each Fixed Period plus XXXXX 
  
 Gold Price is the Gold PM Fix on
the first calendar day of each Fixed Period or when no such price is available, reference shall be made to the spot price (as determined in the manner set out in paragraph 2 of Schedule 2) as at 08.00 AM Perth time on the following day. 

 
 (c) Product Fee of USD as stipulated in Item 5 of Schedule 1; 
  
 (d) Annual Australian Manufacturing Plant Production Fee as stipulated in Item 5 of Schedule
1. 
  
 5.2 For the avoidance of doubt, the Parties hereto expressly agree that the
consideration payable for the purchase of Gold to K&S shall be one composite price comprising the sum total of the value of the various constituent components set out in Clause 5.1 (a) to (d) It is further expressly agreed that, apart from
contributing to the determination of the composite price, none of the items set out in Clause 5.1 (a) to (d) shall be viewed as an independent or separate consideration in itself. 
  
 5.3 Gold Supply Delivery Fees 
  
 5.3.1 The Gold Supply Delivery Fees payable by K&S to AGR MATTHEY pursuant to this Clause will accrue on a daily basis and as per the formula set out in Clause
5.1(b). It is agreed that K&S shall pay AGR MATTHEY the Gold Supply Delivery Fee no later than 14 days from invoice date (in arrears on a monthly basis) of such Gold Supply Delivery Fees. 
  
 5.3.2 K&S may fix the Gold Rate for a specified period of between one month and one year
(Fixed Period). The fix date is the first Business Day of a Fixed Period. The Fixed Period is not to exceed the expiry date on the Bank Standby Letter of Credit. AGR MATTHEY is to be notified in writing of any intention to fix no later than
the first Business Day after the preceding Fixed Period expires. If K&S fails to notify AGR MATTHEY of its intention to fix the Gold Rate for a specified period by the first Business Day after the expiry of the preceding Fixed Period, K&S
shall be deemed to have fixed the Gold Rate for a period of one month 
  

 5 

 5.4 Annual Australian Manufacturing Plant Production Fee 
  
 This fee shall be paid in equal monthly installments in advance within 14 [fourteen]
Business Days of the invoice date. 
  
 5.5 Product Fee 
  
 The Product Fee shall be payable to AGR MATTHEY on the second Business Days following the
date that K&S and AGR MATTHEY set the price for the purchase of Gold in accordance with Clause 5.1(a). 
  
 Basis: 
  
 The Product Fee payable to AGR MATTHEY
is for door to door delivery loco K&S Singapore subject to shipping availability acceptable to AGR MATTHEY and to a minimum shipment size of 200 Kgs. If the shipment size is less than 200 Kgs, K&S shall pay an additional fee (to be
determined by the Parties) in addition to the Product Fee. 
  
 6. MARGIN
PAYMENT 
  
 6.1 At any time and from time to time, during the period of this
Agreement, if the aggregate Market Value of the Fine Metal Delivered exceeds ninety percent (90%) of the Guaranteed Sum, K&S shall, at its option, within five (5) Business Days after notice has been served by AGR MATTHEY: 
  

	(a)	Make a deposit in cash in USD, to AGR MATTHEY’s account at: 

  

			
	 J P Morgan Chase Bank, New York

	 Account Name:
	  	 AGR MATTHEY – USD Account

	 Account Number:
	  	 xxxxx

	 SWIFT:
	  	 xxxxx

  
 AND/OR 
  
 (b) Provide AGR MATTHEY with a further Bank Standby Letter of Credit for an amount in excess
of the Guaranteed Sum 
  
 AND/OR 
  
 (c) Sell back a quantity of Gold to AGR MATTHEY (or to AGR MATTHEY’s agent as directed
by AGR MATTHEY in writing) in accordance with Clause 7 
  
 so that after the
deposit of cash, provision of the further Bank Standby Letter of Credit and/or sell back of Gold in accordance with Clause 7, the aggregate Market Value of the Fine Metal Delivered does not exceed ninety percent (90%) of the Guaranteed Sum.

  

 6 

 6.2 Any USD cash deposit made pursuant to Clause 6.1 to AGR MATTHEY in satisfaction of such Margin Payment shall earn
interest based on daily balances of such deposits at a rate equal to the prevailing USD overnight rate of interest of Westpac Banking Corporation, Perth, Australia. Interest earned on any such deposit shall be paid to K&S in accordance with
Clause 8. 
  
 6.3 Interest earned pursuant to Clause 6.2 together with any USD
cash deposit made pursuant to Clause 6.1 shall be paid to K&S in full by the bank holding the USD cash deposit upon the direction of AGR MATTHEY when the USD cash deposit is returned to K&S. 
  
 6.4 At the request of K&S, AGR MATTHEY shall return to K&S the USD cash deposit
and/or Further Bank Standby Letter of Credit held as a Margin Payment to K&S, as the case may be, when the aggregate Market Value of the outstanding Gold Delivered has dropped back to or below 90% (ninety percent) of the Guaranteed Sum and has
remained so for five (5) consecutive Business Days. 
  
 7. BUYBACK

  
 7.1 K&S shall have the option to sell any quantum of the Gold to AGR
MATTHEY, and AGR MATTHEY shall purchase such quantum of Gold Delivered sold at the option of K&S. 
  
 7.2 K&S shall deliver the Gold in the form and state which was delivered to K&S by AGR MATTHEY or in any other form and state acceptable to AGR MATTHEY (currently being in wire, granule, gold scrap or bar
form). 
  
 7.3 In consideration of the purchase of Gold by AGR MATTHEY, AGR
MATTHEY shall cause a credit entry to be made to the Metals Account of K&S to reflect the amount of Gold purchased from K&S in accordance with Clause 2.7(b) and paragraph 5 of Schedule 2. 
  
 7.4 With regard to the delivery and the passing of the risk and title of Gold from K&S to
AGR MATTHEY, the provisions of Clause 2.7(b) shall apply. 
  
 7.5 In the event
that instead of delivering Gold to AGR MATTHEY’s refinery in Perth, Western Australia, K&S in its sole discretion agrees to AGR MATTHEY’s request to deliver Gold to a person within Singapore (hereinafter called “Singapore
Recipient”) or to a place within Singapore (hereinafter called “Singapore Place”), it shall be on the conditions that (a) AGR MATTHEY shall at all times indemnify K&S from and against any and all loss and damage, cost and expense
whatsoever arising therefrom including without limitation Goods and Services Tax under the Goods and Services Act (Cap. 117A) of Singapore and such other, if any, value added or consumption tax by whatever name called in respect of which K&S
will or may be held chargeable to or otherwise held accountable for whether on K&S’s own account or the account of AGR MATTHEY’s or any other person’s by any tax or other relevant authority and (b) for the purposes of delivery of
and the passing of the risk and title of Gold by K&S to AGR MATTHEY shall be deemed to have occurred upon physical delivery to the Singapore Recipient or at the Singapore Place. 
  

 7 

 8. WITHHOLDING 
  
 8.1 Payments to be free and clear: All sums payable by either Party under this Agreement shall be paid free of any restriction or condition, and free and clear of and
(except to the extent required by law) without any deduction or withholding, whether for or on account of tax, by way of set-off or withholding or otherwise. 
  
 8.2 Grossing-up of Payments 
  
 (i) If one of the Parties, must at any time deduct or withhold from tax or other amount from any sum paid or payable by, or received or receivable from, it shall pay such
additional amount as is necessary to ensure that the other Party receives and retains (free from any liabilities other than tax on its own Overall Net Income) a net sum equal to what it would have received and so retained had no such deduction or
withholding been required or made. 
  
 (ii) If one of the Parties must at any time
pay any tax or other amount on, or calculated by reference to, any sum received or receivable by the other Party (except for payment by the other Party of tax on its Overall Net Income), it shall pay or procure the payment of that tax or other
amount before any interest or penalty becomes payable. 
  
 (iii) Within 30 days
after paying any sum which it is required by law to make any deduction or withholding, and within 30 days after the due date of payment of any tax or other amount which it is required by sub-Clause (ii) above to pay, the Party making such payment
shall deliver to the other Party evidence satisfactory to the other Party of that deduction, withholding or payment and (where remittance is required) of the remittance thereof to the relevant taxing or other authorities. 
  
 (iv) In this Clause “Tax on Overall Income” of a Party shall be construed as
reference to tax (other than tax deducted or withheld from any payment) imposed on that person by the jurisdiction in which its principal office is located on (1) the net income, profits or gains of that person worldwide or (2) such of its net
income, profits or gains as arise in or relate to that jurisdiction. 
  
 9.
OVERDUE AMOUNTS 
  
 If K&S fails to make payment when due any sum of
money payable to AGR MATTHEY (whether at its stated due date, by acceleration or otherwise) under this Agreement then to the fullest extent permitted by law, K&S shall pay interest to AGR MATTHEY on such unpaid sums for each day during the
period from and including its due date but excluding the day such amount is received in full by AGR MATTHEY at the percentage rate per annum which is the sum of: 
  
 The Westpac Banking Corporation USD Account Overdraft Rate of Interest + three percentage points (3.00%). 
  

	10.	INSURANCE 

  
 (a) K&S shall be fully responsible for all losses and damages to the Gold Delivered from any cause whatsoever after K&S has taken Delivery of such from AGR MATTHEY. 
  
 (b) Without limiting the generality of the foregoing, K&S will be responsible from the
time of Delivery of the Gold at the Delivery Point for all losses, damages, costs and expenses incurred in respect of the Gold Delivered including all taxes, duties fees or imposts assessed or levied. Each party shall be responsible for taxes and
duties in their respective country subject to Clause 8. 
  

 8 

 (c) During the term of this Agreement, each Party must, at its own expense, effect and maintain insurance with a
reputable and substantial insurer in respect of the Gold Delivered in its possession as a result of this Agreement against fraud, employee infidelity, theft, loss, damage, destruction and any such other insurable risk standard within the industry in
an amount not less than the Market Value of the Gold. 
  
 (d) Each Party shall
promptly advise the other Party of any act or omission or any event of which they have actual, imputed or constructive knowledge and which may invalidate or render unenforceable in whole or in part any such insurance. 
  
 11. K&S default 
  
 11.1 Events of Default 
  
 K&S shall be deemed to be in default if any of the following Event(s) of Default occur:

  
 (a) If K&S fails to make any due delivery of all or part of the Gold
liable to be delivered to AGR MATTHEY pursuant to Clause 2.2 read with Clause 7. 
  
 (b) If K&S fails to pay on the due date any amount (apart from amounts pursuant to Sub-clause (a) of this Clause), fee, or charge payable by it under this Agreement and does not remedy such Default within a period of five (5) Business
Days after notice from AGR MATTHEY. 
  
 (c) If K&S fails to perform or observe
any of the terms and conditions of this Agreement (other than those referred to in sub-Clauses (a) and (b) of this Clause and Clause 6) or under the Security and where such Default is capable of remedy, K&S does not remedy such Default within a
period of five (5) Business Days after written notice of such Default had been given to K&S by AGR MATTHEY. 
  
 (d) If an order is made or an effective resolution is passed for the winding up of K&S (or Kulicke & Soffa Industries, Inc of the USA) or if a meeting is convened
for the purpose of considering any such resolution and the same is not dismissed or withdrawn within ten (10) Business Days (unless the winding up is for the purpose of amalgamation or reconstruction the terms of which shall previously have been
approved by AGR MATTHEY in writing, such approval shall not be unreasonably withheld or delayed). 
  
 (e) If a provisional liquidator, administrator, receiver or receiver and manager is appointed to K&S in respect of the undertaking, property or assets or any part thereof of K&S or if K&S causes a meeting
of its creditors to be summoned for the purpose of considering any resolution for such appointment. 
  
 (f) If any distress or execution for an amount of USD 250,000.00 (Two Hundred and Fifty Thousand United States Dollars) or more is levied or enforced upon K&S or is made against the assets or any part thereof of
K&S and such shall not have been paid out, removed or discharged within twenty one (21) Business Days. 
  

 9 

 (g) If K&S is unable to pay its debts as they fall due or is unable to certify that it is able to pay its debts as
they fall due. 
  
 (h) If a compromise or arrangement is proposed between K&S
and its creditors or any class of them or if an application is made to a court for an order summoning a meeting of creditors of K&S or any class of them. 
  
 (i) If any present or future indebtedness due from K&S becomes due and payable prior to the date of maturity thereof as a result of K&S’s default or any such
indebtedness is not paid at the maturity thereof or upon the expiration of applicable grace periods thereof or any guarantee or indebtedness or performance bond given by K&S is not honored when due and called upon or any mortgage or charge,
present or future, and created or assumed by K&S becomes enforceable. 
  
 (j)
If any representation, warranty or statement made by K&S herein or in any document given to AGR MATTHEY by K&S or by Kulicke & Soffa Industries, Inc of the USA in connection with or pursuant to the Agreement is not being complied with or
shall prove to be untrue or misleading in any material respect. 
  
 (k) K&S
fails to comply with AGR MATTHEY’s margin call requirement within five (5) Business Days as per Clause 6 of this Agreement. 
  
 11.2 In the event that K&S is deemed to be in default pursuant to Clause 11.1: 
  
 (i) AGR MATTHEY shall have the absolute irrevocable right to terminate immediately the Sale
and Buyback of Fine Metal Facility as well as this entire Agreement, and 
  
 (ii)
AGR MATTHEY shall have the absolute irrevocable right to charge K&S the price of the Gold Delivered to K&S at that time with reference to the international market spot price for Gold with reference to Reuters as determined by AGR MATTHEY,
such price to be payable by K&S within two (2) Business Days from the date of pricing, or AGR MATTHEY is entitled to demand immediate payment by way of calling on the Bank Standby Letter of Credit pursuant to Clause 3.2. 
  
 11.3 K&S shall indemnify AGR MATTHEY and keep AGR MATTHEY indemnified against any losses,
damages and/or expenses incurred by AGR MATTHEY arising or resulting from K&S’s default as set out in Clause 11.1 excluding such losses, damages and expenses to the extent it arises or results from AGR MATTHEY’s negligent act or
omission or willful misconduct. AGR MATTHEY shall furnish documentary evidence to K&S of such loss or damage. 
  
 12. SET - OFF 
  
 12.1 K&S hereby authorizes AGR MATTHEY at any time after any Event of Default has occurred and so long as it shall be continuing: 
  
 (a) to apply any credit balances of metal or currency standing in the Metals Account of K&S with AGR MATTHEY, in or towards satisfaction
of any sum due to AGR MATTHEY; and 
  

 10 

 (b) in the names of K&S and/or AGR MATTHEY to do all such acts and execute all such documents as may be necessary or
expedient for any such purpose. 
  
 12.2 Nothing in the foregoing shall, however,
be implied to mean that AGR MATTHEY shall be compelled to exercise the right of set-off in an Event of Default. 
  
 12.3 Upon the occurrence and during the continuance of any Event(s) of Default or non-performance by K&S, AGR MATTHEY is hereby authorized at any time and from time
to time, without notice to K&S (any such right to notice being expressly waived by K&S) to set-off and apply all deposits (general or special term of demand, provisional or final) at any time held and other indebtedness at any time owing by
AGR MATTHEY to or for the credit or the account of K&S against any and all of the obligations of K&S now or hereafter existing although such obligations may be unmatured 
  
 In the event of a dispute as to whether an Event of Default or non performance by K&S has occurred, the Parties shall refer the dispute
for resolution in accordance to Clause 18. 
  
 12.4 AGR MATTHEY will promptly
notify K&S after any set-off and application of proceeds under this Clause 12, provided that the failure to give such notice shall not affect the validity of set-off and application. 
  
 12.5 The rights of AGR MATTHEY under this Clause 12 are in addition to other rights and remedies (including without limitation, other rights
of set-off) which AGR MATTHEY may have. 
  
 13. AGR MATTHEY 
  
 13.1 AGR MATTHEY Covenants 
  
 AGR MATTHEY covenants that: 
  

	(1)	it shall deliver Gold within the specifications as stipulated in paragraph 4 of Schedule 2; 

  
 (2) it shall take all possible actions to avoid supply delays; 
  
 (3) it shall hold in stock an average of twice the average weekly consumption of K&S. The average weekly consumption of K&S shall be
determined on the basis of the average consumption of the 4 preceding weeks; 
  
 (4) in addition to the primary production process, namely Aqua Regia Digest (ARD) it shall maintain a second production process in a separate area of the refinery, namely the Electrolytic Gold Room (EGR). Gold manufactured through the EGR
process has previously been tested and qualified by K&S. Provided that the specification of the Gold meets with the K&S specifications AGR MATTHEY may supply from either process. K&S may inspect the AGR MATTHEY facility from time to time
to ensure that AGR MATTHEY is maintaining the second production process;  
  

 11 

 (5) it shall give K&S 90 days notice of any change to the process location, a change to the process or a major
equipment change; 
  
 (6) in the event that AGR MATTHEY is not able to supply Gold
within the specifications and in the time-frame as stipulated in this Agreement, then K&S may source from an alternative supplier. In the event that the cost of Gold sourced from the alternative supplier is of a greater cost to K&S than the
cost under the terms of this Agreement, then AGR MATTHEY shall pay to K&S such additional costs within fourteen (14) Business Days of notification from K&S. Prior to any commitment by K&S to purchase Gold from an alternative supplier,
K&S must notify AGR MATTHEY in writing of their proposed course of action; 
  
 (7) it shall meet the delivery requirements as set out in paragraph 1 (a) and (b) of Schedule 2 ; 
  
 (8) it shall not subcontract the manufacture of Gold supplied to K&S without the prior written consent of K&S, such consent not being unreasonably withheld; 
  
 (9) should AGR MATTHEY find itself in a position such that it is unable to meet the supply
requirements of K&S, then AGR MATTHEY shall immediately inform K&S. Furthermore, AGR MATTHEY, with the consent of K&S, shall source Gold from an alternative supplier that meets the minimum specifications as stated in this Agreement, such
consent not to be unreasonably withheld by K&S; and 
  
 (10) In the event that
there is a dispute over the assay of the Gold supplied, then AGR MATTHEY will arrange for an assay to be carried out by an agreed independent laboratory to determine the correct assay. In the event that the Gold supplied by AGR MATTHEY to K&S is
not within the specifications as stipulated in this Agreement as determined by the independent laboratory, then the cost to deliver the Gold to AGR MATTHEY and the cost of the independent laboratory’s assay shall be borne by AGR MATTHEY. If
determined by the independent laboratory that the Gold is within specification then K&S will be responsible for the cost to deliver the Gold to AGR MATTHEY and the cost of the independent laboratory’s assay. 
  
 13.2 AGR MATTHEY shall indemnify K&S and keep K&S indemnified against any losses,
damages and/or expenses incurred by K&S arising or resulting from AGR MATTHEY’s breach of any Covenant(s) set out in Clause 13.1(1) to (10) excluding such losses, damages and expenses to the extent it arises or results from K&S’s
negligent act or omission or willful misconduct. K&S shall furnish documentary evidence to AGR MATTHEY of such loss or damage. 
  
 13.3 Termination by K&S 
  
 Having followed the process of Dispute Resolution in accordance with Clause 16 and subject to the outcome of the process of Dispute Resolution, K&S may terminate this
Agreement with immediate effect by giving notice to AGR MATTHEY if: 
  
 (a) The
Panel determines that AGR MATTHEY has breached any provision of this Agreement and fails to remedy the breach within 5 Business Days after receiving notice requiring it to do so; 
  

 12 

 (b) The Panel determines that AGR MATTHEY has breached a material provision of this Agreement where that breach is not
capable of remedy. For the avoidance of doubt, clauses 14.1(1) to (10) are material provisions; or 
  
 (c) The Panel determines that any event referred to in clause 14.4 happens to AGR MATTHEY. 
  
 13.4 Notification of events 
  
 AGR MATTHEY must notify K&S immediately if: 
  
 (a) there is any change in the direct or indirect beneficial ownership or control of AGR MATTHEY; 
  
 (b) it disposes of the whole or any part of its assets, operations or business other than in the ordinary course of business; 
  
 (c) it ceases to carry on business; 
  
 (d) it ceases to be able to pay its debts as they become due; 
  
 (e) any step is taken by a mortgagee to take possession or dispose of the whole or any part
of its assets, operations or business; 
  
 (f) any step is taken to enter into any
arrangement between AGR MATTHEY and its creditors; 
  
 (g) any step is taken to
appoint a receiver, a receiver and manager, a trustee in bankruptcy, a liquidator, a provisional liquidator, an administrator or other like person of the whole or any part of its assets or business; or 
  
 (h) where AGR MATTHEY is a partnership, any step is taken to dissolve that partnership.

  
 13.5 Accrued rights and remedies 
  
 Termination of this Agreement under this clause 14 or under clause 15 does not affect any
accrued rights or remedies of either Party. 
  
 14. FORCE MAJEURE

  
 14.1 Definition 
  
 Force Majeure Event affecting a person means anything outside that Party’s reasonable
control including, but not limited to, fire, storm, flood, earthquake, explosion, war, invasion, rebellion, sabotage, epidemic, labor dispute, labor shortage, failure or delay in transportation, and act or omission (including laws, regulations,
disapprovals or failures to approve) of any third person (including, but not limited to, subcontractors, customers, governments or government agencies). 
  

 13 

 14.2 Occurrence of Force Majeure Event 
  
 If a Force Majeure Event affecting a Party precludes that Party (Precluded Party) partially or wholly from complying with its obligations
(except its Security and payment obligations) under this Agreement then: 
  

	(a)	as soon as reasonably practicable after that Force Majeure Event arises, the Precluded Party must notify the other Party of: 

  
 (i) the Force Majeure Event; 
  
 (ii) which obligations the Precluded Party is precluded from performing
(Affected Obligations); 
  
 (iii) the extent to which the Force
Majeure Event precludes the Precluded Party from performing the Affected Obligations (Precluded Extent); and 
  
 (iv) the expected duration of the delay arising directly out of the Force Majeure Event; 
  
 (b) the Precluded Party’s obligation to perform the Affected Obligations will, to the Precluded Extent, be suspended for the duration
of the actual delay arising directly out of the Force Majeure Event (Actual Delay); and 
  
 (c) the other Party’s obligations to perform any obligations dependent on the Affected Obligations will be suspended until the Precluded Party resumes performance. 
  
 14.3 Termination 
  
 If the Actual Delay continues for more than 30 days, the other Party may terminate this Agreement immediately by giving notice to the
Precluded Party. 
  
 14.4 Consequences of termination 
  
 If a Party terminates this Agreement under clause 15.3: 
  
 (a) the rights and obligations of the Parties under this Agreement (including, but not
limited to, any license) cease; and 
  
 (b) any accrued rights or remedies of a
Party are not affected. 
  
 15. K&S  
  
 15.1 K&S COVENANTS 
  
 K&S covenants that during the period of time that this Agreement is in effect it shall provide notice to AGR MATTHEY in the event that
K&S intends to receive supplies of Gold from a party other than AGR MATTHEY, subject to clause 14.1 (6). 
  
 16. DISPUTE RESOLUTION 
  
 16.1
Reference to a Panel 
  
 (a) If any Dispute arises between the Parties,
either Party may, by notice in writing to the other Party to the Dispute (the “Referral Notice”), refer the dispute to a panel constituted under clause 17.1(b) (the “Panel”) who will meet to discuss the Dispute (with any
appropriate technical experts and/or an independent party) and endeavor to resolve the Dispute, within 10 Business Days of their first meeting (“Resolution Period”). 
  

 14 

 (b) The Panel will consist of a director or the chief executive officer or chairman (as the relevant Party may decide) of
each of the Parties. 
  
 16.2 Condition precedent to litigation 

 
 A Party must not commence any proceedings in any court in respect of any other Dispute
which is referable to a Panel under clause 17.1 unless the Dispute has first been referred to a Panel and the Panel does not meet or resolve the dispute under clause 17.1 before the expiry of the relevant Resolution Period. 
  
 16.3 Interlocutory 
  
 Nothing in clause 17.2 prevents a party from commencing proceedings in any court where the proceedings are required to obtain urgent
interlocutory relief. 
  
 16.4 Performance of obligations pending resolution of
Dispute 
  
 Prior to the resolution of a Dispute, the Parties must continue
to perform their obligations under this Agreement insofar as those obligations are not the subject matter of the Dispute. 
  
 16.5 Extension of time 
  
 In the case of a Dispute which is referable to a Panel under clause 16.1, any time periods specified in this Agreement in relation to the subject matter of the Dispute will be extended by the time between the date on
which the Referral Notice is delivered (or deemed to be delivered) and the sooner of the date the Panel determines the Dispute; and the date the Resolution Period expires. 
  
 17. MISCELLANEOUS 
  
 17.1 Entire Agreement 
  
 This Agreement constitutes the entire Agreement between AGR MATTHEY and K&S with respect to the subject matter hereof and supersedes and extinguishes all prior agreements and understandings between AGR MATTHEY and
K&S with respect to the matters covered herein. 
  
 17.2 Amendments

  
 This Agreement may not be amended, modified or supplemented except by a
written instrument executed by persons duly authorized on behalf of AGR MATTHEY and K&S. 
  
 17.3 Waivers and Remedies Cumulative 
  
 (a) No failure to exercise and no delay in exercising any right, power or remedy under this Agreement or any Bank Standby Letter of Credit by AGR MATTHEY or K&S shall operate as a waiver, nor shall any single or partial exercise of any
right, power or remedy preclude any other or further exercise of that or any other right, power or remedy. 
  

 15 

 (b) The rights, powers and remedies provided to AGR MATTHEY or K&S under this Agreement are cumulative and are not
exclusive of any rights, powers or remedies provided by law. 
  
 17.4
Assignment 
  
 17.4.1 Upon providing AGR MATTHEY with evidence that the
assignee has the financial ability to honor the obligations contained within this Agreement, K&S may assign, transfer or charge all or any of its rights or obligations under this Agreement subject to K&S first obtaining AGR MATTHEY’s
prior written consent which shall not be unreasonably withheld or delayed. 
  
 17.4.2 Upon providing K&S with evidence that the assignee has the financial ability to honor the obligations contained within this Agreement AGR MATTHEY may assign, transfer or charge all or any of its rights or obligations under this
Agreement subject to AGR MATTHEY first obtaining K&S’s prior written consent which shall not be unreasonably withheld or delayed. 
  
 17.4.3 This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective successors and assigns. 
  
 17.5 Notices 
  
 All notices, requests, demands, consents, approvals, agreements or other communications to or by a party to this Agreement shall:

  
 (a) be in writing addressed to the address of the recipient shown in Item 6
of Schedule 1 or such other address as it may have notified the senders; 
  
 (b)
be signed by the sender; 
  
 (c) be deemed to be duly given or made (in the case
of delivery in person or by post or by facsimile transmission) when delivered to the recipient at such address, but if such delivery or receipt is later than 5.00pm (local time) on a day which business is generally carried on in the place to which
such communication is sent, it shall be deemed to have been duly given or made at the commencement of business on the next such day in that place. 
  
 17.6 Maintenance of Records 
  
 (a) K&S hereby request that AGR MATTHEY establishes/maintains a Metals Account. 
  
 (b) AGR MATTHEY shall record all transactions relating to the Delivered Gold in the Metals Account. The balance of the Metals Account
(Supply Balance) shall reflect the quantum of Gold Delivered . 
  
 (c) AGR
MATTHEY shall provide a statement detailing all debits and credits to the Metals Account on a monthly basis or upon the request of K&S. 
  

 16 

 17.7 Governing Law and Jurisdiction 
  
 This Agreement is governed by the laws of Western Australia and K&S submits to the non-exclusive jurisdiction of the courts of Western
Australia. 
  
 17.8 Counterparts 
  
 This Agreement may be executed in any number of counterparts. All such counterparts, when
signed by the respective Parties, taken together shall be deemed to constitute one instrument. 
  
 IN WITNESS WHEROF the Parties have duly executed this Agreement on the date of first above mentioned. 
  

			
	 	  	 }

	 AGR MATTHEY
	  	 }

	 	  	 }

  

			
	Chief Executive Officer	  	 /s/ Brian F. Bath

		
	Chief Finance Officer	  	 /s/ John Shephard

  

			
	 THE COMMON SEAL of
	 	}
	 KULICKE & SOFFA (SEA) PTE LTD
	 	}
	 was hereunto affixed in
	 	}
	 accordance with its Articles of
	 	}
	 Association in the presence of
	 	}

  
  
  

			
	Director	  	 /s/ Ho Siew Foong

		
	Director / Secretary	  	 /s/ Sabrina Ruskin

  

 17 

 SCHEDULE 1 
  
 This schedule is supplemental to the Sale and Buyback of Fine Metal Agreement dated 21 of June 2004 between AGR MATTHEY and KULICKE & SOFFA (SEA) PTE LTD and
constitutes a part of that Agreement and constitutes a Contract between them. 
  
 Date of signature of Schedule: 
  

					
	 Item 1
	  	Gold Delivered	  	90% of the value of the Guaranteed Sum.
			
	 	  	 	  	Current value of Security being USD 12 million.
			
	Item 2	  	Period of Agreement	  	 
			
	 	  	Commencement Date:	  	As per date of execution of the Agreement.
			
	 	  	Initial Date:	  	The date falling 24 months after the date of this Agreement. The Agreement may not be terminated by notice within the period from the Commencement Date to the Initial Date. After the Initial
Date, the prices and terms of this Agreement may be varied by mutual agreement and the Agreement may be terminated by either party by giving six-months’ written notice to the other party.
			
	 Item 3
	  	Gold Supply Delivery Fee:	  	Gold Rate to be determined by AGR MATTHEY on the basis set out in clause 5.1(b).
			
	 	  	 	  	At the election of K&S and with the consent of AGR MATTHEY, K&S may fix the Gold Rate for a pre-elected period.
			
	 Item 4
	  	Refining Charges	  	For Gold of up to 99.99% Assay:
			
	 	  	 	  	XXXXX
			
	 	  	 	  	For Gold of 99.99% and over 99.99% Assay:
			
	 	  	 	  	XXXXX
			
	 	  	 	  	 
			
	 Item 5
	  	Other Fees	  	 
			
	 	  	Annual Australian Manufacturing Plant Production Fee:	  	XXXXX
			
	 	  	Product Fee:	  	XXXXX

  
 (All fees and
charges excludes any Singapore taxes, levies or imposts payable by K&S) 
  

 18 

					
	 Item 6
	  	Address for Service:	    	 AGR MATTHEY

	 	  	 	    	 Horrie Miller Drive

	 	  	 	    	 Newburn

	 	  	 	    	 WESTERN AUSTRALIA 6104

	 	  	 	    	 AUSTRALIA

	 	  	 	    	 Facsimile: (61 8) 9479 9919

			
	 	  	 	    	 AND

			
	 	  	 	    	 Kulicke & Soffa (SEA) Pte Ltd

	 	  	 	    	 6 Serangoon North Avenue 5

	 	  	 	    	 #03-16

	 	  	 	    	 Singapore 554910

	 	  	 	    	 Facsimile: 65 6880 9662

			
	 Item 7
	  	Delivery Point:	    	 K&S manufacturing facility located at:

	 	  	 	    	 Block 5002, Ang Mo Kio Avenue 5

	 	  	 	    	 #05-06 TECHplace II

	 	  	 	    	 Singapore 569871

	 	  	 	    	 
	 	  	 	    	 
	 	  	 	    	 

  

			
	 Signed for and on behalf of
	  	 
	 AGR MATTHEY
 By
	  	 

  

			
	 John Shephard, Chief Finance Officer
	 	 /s/ John Shephard

	 	 	 (Signature)

  

			
	 Signed for and on behalf of
	  	 
	 KULICKE & SOFFA (SEA) PTE LTD
 By
	  	 

  

			
	Ho Siew Foong, Director	 	 /s/ Ho Siew Foong

	 	 	 (Signature)

  

 19 

 SCHEDULE 2 
  
 WORKING METHODOLOGY 
  
 1. Gold Supply 
  
 On a weekly basis K&S
shall supply to AGR MATTHEY: 
  
 (a) An order for the quantity of Gold that
K&S will require to be dispatched in seven calendar days, and 
  
 (b) An
estimate for the quantity of Gold that K&S will require to be dispatched in fourteen calendar days. In order for AGR MATTHEY to guarantee supply K&S shall ensure that this estimate is within a 20% tolerance of the actual requirement when the
order is placed. 
  
 2. Gold Pricing 
  
 Spot Pricing 
  
 During any normal business hours, an authorized representative of K&S (as listed in Appendix 1) may contact the Treasury department of
AGR MATTHEY by telephone and request the current USD Gold selling price for the purchase of gold at a quantity as determined by K&S. AGR MATTHEY will provide K&S with their current selling price (being based on the Reuters Gold offer price
at that time) and if acceptable to K&S the Parties will confirm the transaction. AGR MATTHEY will send a fax copy of the deal confirmation (setting out the selling price and the quantity of Gold Delivered to be purchased by K&S) to K&S
and K&S shall immediately sign and return the deal confirmation to AGR MATTHEY. K&S shall settle the amount due to AGR MATTHEY on the following second Business Day. 
  
 LBMA Fix Pricing 
  
 Prior to the end of the Business Day in Perth, an authorized representative of K&S (as listed in Appendix 1) may contact the Treasury department of AGR MATTHEY by
telephone and place an order to buy Gold at a quantity as determined by K&S on either the Gold AM or PM Fix for that day. Transactions conducted on the Gold AM or PM Fix shall attract a premium XXXXX. At the commencement of business on the
following Business Day AGR MATTHEY will send a fax copy of the deal confirmation (setting out the selling price and the quantity of Gold Delivered to be purchased by K&S) to K&S and K&S shall immediately sign and return the deal
confirmation to AGR MATTHEY. K&S shall settle the amount due to AGR MATTHEY on the second Business Day following the date of the Gold AM or PM Fix. 
  
 3. Record keeping 
  
 At the end of each month, K&S will provide AGR MATTHEY with a confirmation detailing the volume of Gold Delivered to K&S at the close of business on the last Business Day of the month (in Toz) 
  
 AGR MATTHEY shall maintain a Metals Account in the name of K&S. 
  
 At the end of each month, AGR MATTHEY will provide K&S with: 
  
 (a) a statement showing the daily balance of Gold Delivered to K&S (in Toz) 

 
 (b) an invoice and statement detailing the Annual Australian Manufacturing Plant
Production Supply Fees due, such charges to be paid by K&S within fourteen Business Days of the invoice date 
  
 (c) a summary of transactions conducted during the month 
  

 20 

 4. Specification of Gold supplied by AGR MATTHEY to K&S 
  
 Maximum allowable limits of impurities to meet K&S specification are listed below. 
  

			
	XXXXX	 	XXXXX
	 XXXXX
	 	 XXXXX

	 XXXXX
	 	 XXXXX

	 XXXXX
	 	 XXXXX

	 XXXXX
	 	 XXXXX

	 XXXXX
	 	 XXXXX

	 XXXXX
	 	 XXXXX

	 XXXXX
	 	 XXXXX

	 XXXXX
	 	 XXXXX

	 XXXXX
	 	 XXXXX

	 XXXXX
	 	 XXXXX

	 XXXXX
	 	 XXXXX

	 XXXXX
	 	 XXXXX

  
 XXXXX 
  
 Calculate Fine Gold content by difference. 
  
 Fine Gold Content = 100.0000% - (Total Impurities mg/l /10000) 
  
 5. Delivery of Gold by K&S to AGR MATTHEY 
  
 At the cost of K&S, K&S may deliver Gold in the form of wire, granule, gold scrap or
bar to AGR MATTHEY’s Perth refinery. AGR MATTHEY will charge K&S Refining Charges as stipulated in Item 4 of Schedule 1. Within two Business Days of delivering such Gold to AGR MATTHEY’s Perth refinery, AGR MATTHEY will provide K&S
with an Assay of the Gold delivered and simultaneously credit K&S’s Metals Account held with AGR MATTHEY thereby reducing the Gold Delivered to K&S. 
  

 21 

 Appendix 1 
  
 List of authorized K&S employees 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX

  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  

 22 

 Appendix 2 
  
 List of authorized AGR Matthey employees 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  
 XXXXX 
  

 23 

 TABLE OF CONTENTS 
  

					
	 1.
	  	DEFINITIONS AND INTERPRETATION	  	Title Page
	 2.
	  	SALE AND BUYBACK OF FINE METAL Facility	  	2
	 3.
	  	COLLATERAL SECURITY	  	4
	 4.
	  	CONDITIONS PRECEDENT	  	4
	 5.
	  	PURCHASE	  	5
	 6.
	  	MARGIN PAYMENT	  	6
	 7.
	  	BUYBACK	  	7
	 8.
	  	WITHHOLDING	  	8
	 9.
	  	OVERDUE AMOUNTS	  	8
	 10.
	  	INSURANCE	  	8
	 11.
	  	K&S default	  	9
	 12.
	  	SET - OFF	  	10
	 13.
	  	AGR MATTHEY	  	11
	 14
	  	FORCE MAJEURE	  	13
	 15.
	  	K&S	  	14
	 16.
	  	DISPUTE RESOLUTION	  	14
	 17.
	  	MISCELLANEOUS	  	15
	SCHEDULE 1	  	18
	SCHEDULE 2	  	20

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