Document:

Facility Letter Agreement

 Exhibit 10.1 
  

			
	

	  	 Robinson Road P. O. Box 2388
 Singapore
904388

	 corporate and
 investment banking
	  

 Citibank, N.A., Singapore Branch 
 Commercial Banking Group 
 3 Temasek Avenue 
 #17-00 Centennial Tower 
 Singapore 039190 
 Tel (65) 6328-5862 
 Fax (65) 6328-5887 
 7 June 2006 
 Kulicke & Soffa
Global Holding Corporation 
 Unit Level 13(E), Main Office Tower 
 Financial Park Labuan, Jalan Merdeka 
 87000, Federal Territory of Labuan 
 Malaysia 
 c/o 6 Serangoon North Avenue 5 
 #03-16 
 Singapore 554910 
 Attention: Mr Darren Crompton 
 Kulicke & Soffa (S.E.A.) Pte. Ltd.

 6 Serangoon North Avenue 5 
 #03-16 
 Singapore 554910 
 Attention: Ms Ho Siew Foong 
 Dear
Ms Ho 
 CREDIT FACILITIES 
 Citibank, N.A.,
Singapore Branch (“Bank”) is pleased to advise that it is willing to make available the following Credit Facilities (as defined below) to Kulicke & Soffa Global Holding Corporation (“GHC”) and
Kulicke & Soffa (S.E.A.) Pte. Ltd. (“K&S”) (collectively the “Customers” or “you” and individually a “Customer”), subject to the terms and conditions set out below.
This letter of offer (the “Facility Letter”) supersedes and replaces in its entirety the original offer letter dated 5 May 2006 from the Bank to the Customers and countersigned and returned to the Bank by the Customers.

  

	1.	CREDIT FACILITIES – TYPE AND LIMITS 

 Banker’s Guarantee/Standby Letter of Credit: For issuing customs and other non-shipping guarantees and/or standby letters of credit with a tenor/validity period not exceeding 2 years (including claim period), and with a maximum
aggregate face value of up to US$20,000,000 (the “Credit Facilities”). The Customers shall execute the Bank’s standard forms and the terms thereof shall apply to the Credit Facilities. 
  

	2.	PURPOSE OF THE CREDIT FACILITIES 

 For
issuance of Banker’s Guarantee and/or Standby Letter of Credit in favour of AGR and/or The Bank of Nova Scotia covering the sale and supply of gold metal in any of its physical forms to be used for the Customers’ business operations.

  

			
	 Organised under the laws of U.S.A. with Limited Liability
	 	Citibank N.A., Singapore Branch

 

 
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 investment banking 
  

	3.	INTEREST AND COMMISSIONS 

 Commission is
payable by the Customers on the issuance date of the Banker’s Guarantee/Standby Letter of Credit in immediately available funds and calculated at 0.9% per annum on the face value of the issued Banker’s Guarantee/Standby Letter of
Credit. 
  

	4.	SECURITY AND/OR SUPPORT 

 The Credit
Facilities and all other liabilities of the Customers under the Finance Documents shall be secured and/or supported by the following: 
  

	 	(a)	a debenture to be executed by K&S in favour of the Bank (the “K&S Debenture”) incorporating fixed charges and floating charges and assignment over all the
assets and undertakings of K&S, including, without limitation, its: 

  

	 	(i)	real property; 

  

	 	(ii)	chattels and inventory; 

  

	 	(iii)	all items of plant, equipment and machinery; 

  

	 	(iv)	securities; 

  

	 	(v)	intellectual property; 

  

	 	(vi)	contractual rights under agreements where K&S is a party thereto; 

  

	 	(vii)	bank accounts; and 

  

	 	(viii)	receivables (including, without limitation, those arising from any of K&S’s contracts for the sale of Gold Wire Products governed by Pennsylvania law);

  

	 	(b)	an assignment of those of K&S’s Gold Contracts and Gold Receivables governed by Pennsylvania law, executed by K&S in favour of the Bank, and in form and substance
satisfactory to the Bank (the “K&S Assignment of Gold Contracts and Gold Receivables”); 

  

	 	(c)	a charge over the assets of GHC in respect of its Gold Wire Business, executed by GHC in favour of the Bank, and in form and substance satisfactory to the Bank (the “GHC
Charge over Gold Wire Assets”); 

  

	 	(d)	an assignment of the GHC Gold Contracts and Gold Receivables governed by Pennsylvanian law, executed by GHC in favour of the Bank, and in form and substance satisfactory to the Bank
(the “GHC Assignment of Gold Contracts and Gold Receivables (I)”), and the Customers shall ensure that the governing law of the terms and conditions of sale of Gold Wire Products, as posted on the website of KSI/the Customers, shall
be changed to Malaysian law, and that thereafter all sales by the Customers of Gold Wire Products, except as provided otherwise in this Facility Letter, shall be governed by Malaysian law; 

  

	 	(e)	an assignment of those of GHC’s Gold Contracts and Gold Receivables governed by Malaysian law, executed by GHC in favour of the Bank, and in form and substance satisfactory to
the Bank (the “GHC Assignment of Gold Contracts and Gold Receivables (II)”); 

  

	 	(f)	an assignment of those of GHC’s Gold Contracts and Gold Receivables not otherwise assigned under the GHC Assignment of Gold Contracts and Gold Receivables (I) and the GHC
Assignment of Gold Contracts and Gold Receivables (II), executed by GHC in favour of the Bank, and in form and substance satisfactory to the Bank (the “GHC Assignment of Gold Contracts and Gold Receivables (III)”);

  

	 	(g)	a charge over certain bank accounts of GHC with the Bank executed by GHC in favour of the Bank, and in form and substance satisfactory to the Bank (the “GHC Charge over
Accounts”); 

  

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	 	(h)	an assignment of insurances taken or to be taken up by GHC in respect of its Gold Wire Business, executed by GHC in favour of the Bank, and in form and substance satisfactory to the
Bank (the “GHC Assignment of Insurances”); 

  

	 	(i)	an assignment of the AGR Contract executed by the Customers in favour of the Bank, and in form and substance satisfactory to the Bank (the “Assignment of AGR
Contract”); 

  

	 	(j)	an assignment of certain receivables of KSI executed by KSI in favour of favour of the Bank, and in form and substance satisfactory to the Bank (the “KSI Assignment of
Receivables”); and 

  

	 	(k)	a charge over certain bank account(s) of KSI with the Bank, executed by KSI in favour of the Bank, and in form and substance satisfactory to the Bank (the “KSI Charge over
Accounts”). 

 The above documents shall be collectively referred to as the “Security
Documents”.  
 Foreign Exchange 
 The above security shall also secure any exposure under any foreign exchange facility which may be made available to the Customers by the Bank under the
Foreign Exchange Documents. 
  

	5.	CONDITIONS PRECEDENT 

 The Credit Facilities
shall be made available to the Customers after the Customers have delivered to the Bank the following documents, all to be in form and substance satisfactory to the Bank: 
  

	 	(a)	a copy of the Certificate of Incorporation and Memorandum and Articles of Association of each Customer, as amended up to the date hereof, certified true by a Director or the
Secretary; 

  

	 	(b)	from each Customer, a certified true copy of its Board of Directors’ resolutions and its Shareholders’ resolution authorising the acceptance and execution of this Facility
Letter, the AGR Contract and the relevant Finance Documents by the signatories thereto; 

  

	 	(c)	from each Customer, a certified true copy of a list of its directors and shareholders (and their respective shareholdings) and a certified true copy of the specimen signatures of
the person(s) authorised by such Customer in the resolutions referred to in paragraph (b) above to execute the Facility Letter, the AGR Contract and the relevant Finance Documents; 

  

	 	(d)	in relation to KSI, each of the documents referred to in paragraphs 5(a) to (c) above; 

  

	 	(e)	an original counterpart of this Facility Letter and the Bank’s standard forms in relation to the Credit Facilities duly executed by the Customers; 

  

	 	(f)	a certified true copy of the AGR Contract, duly executed by all the parties thereto; 

  

	 	(g)	the Security Documents executed in form and substance satisfactory to the Bank, together with all consents, notices, acknowledgements and other documents or evidence required
thereunder, including without limitation, the notice to, and acknowledgement from KSI pursuant to the GHC Assignment of Gold Contracts and Gold Receivables (I); 

  

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	 	(h)	the account opening forms duly completed by the Customers and KSI; 

  

	 	(i)	evidence that each of the Customers has taken out insurance contracts with reputable insurance companies acceptable to the Bank to insure and keep insured the assets charged or
assigned to the Bank by way of security against loss or damage and such other risks and contingencies as the Bank may reasonably request and the Bank has been named loss payee under each of such insurance contracts; 

  

	 	(j)	payment of stamp duties (if required) to the tax authorities of the relevant jurisdictions in respect of the execution of the Finance Documents; 

  

	 	(k)	in relation to GHC only, certified true copies of: 

  

	 	(i)	its return of allotment of shares; and 

  

	 	(ii)	its return giving particulars of directors and secretaries and changes of particulars; 

  

	 	(l)	evidence that all authorisations have been obtained and that all necessary filing, registrations and other formalities have been or will be completed in order to ensure that the
Security Documents are valid and enforceable and to preserve the Bank’s priority under the Security Documents; 

  

	 	(m)	release of security granted by Natexis Banques Populaires, Singapore Branch (in its capacity as security agent for the lenders) in favour of K&S pursuant to a guarantee issuance
facility agreement dated 21 June 2004 entered into by K&S, in form and substance satisfactory to the Bank; 

  

	 	(n)	evidence of payment of all fees and expenses then due and payable to the Bank including (without limitation) payment of all legal fees and expenses; 

  

	 	(o)	written confirmation of the appointment of process agent by GHC and KSI in relation to those Finance Documents under which they are required to appoint process agent;

  

	 	(p)	a certified true copy of the terms and conditions governing the sale of Gold Wire Products made by GHC, KSI and K&S respectively; 

  

	 	(q)	satisfactory legal opinions covering matters of Singapore law, Malaysian law, Australian law, the laws of the State of New York, USA, the laws of the State of Pennsylvania, USA and
such other laws relating to this transaction as the Bank may request, confirming, amongst others, the following, in relation to each of the Customers and KSI, that: 

  

	 	(i)	it is properly incorporated; 

  

	 	(ii)	(where relevant) it has the capacity to borrow money/accept the Credit Facilities (and to pledge, charge or give the relevant security); 

  

	 	(iii)	the authorized signatories have the authority to execute, where relevant, this Facility Letter and the relevant Finance Documents to which it is a party; 

 

	 	(iv)	the directors’ resolution/power of attorney or other forms of mandate provided to the Bank properly authorise the directors to, where relevant, borrow money/accept the Credit
Facilities and to execute the Finance Documents are valid; 

  

	 	(v)	the Finance Documents are valid and enforceable by the Bank; and 

  

	 	(vi)	all necessary steps have been taken to ensure that the security created under the Security Documents is perfected at law and to secure the priority of the pledge, charge, security
over other creditors; 

  

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	 	(r)	a written undertaking, in form and substance satisfactory to the Bank, from each of K&S and Mufler Feindranht AG, to segregate and keep segregated in an identified location
notified to the Bank, the gold which GHC provides to them for processing under the contract manufacturing services agreements (the “GHC Gold”) from gold owned by other parties such that the GHC Gold is clearly identifiable as
falling within the terms of the GHC Charge over Gold Wire Assets, and to confirm to the Bank that each of K&S and Muller Feindranht AG have not acquired and will not acquire any interest or other rights in the GHC Gold; 

 

	 	(s)	evidence that each of K&S, GHC and KSI has given written notices to all of its purchasers/ customers instructing them to make all payments in respect of all Gold Contracts
entered into or to be entered into with them into the respective account of K&S, GHC and KSI (as the case may be) with the Bank which are charged to the Bank pursuant to the Debenture, the GHC Charge over Accounts and KSI Charge over Accounts
(as the case may be); 

  

	 	(t)	a certified true copy of the formal purchase agreement entered into between KSI and GHC in relation to their arrangement with respect to the sale of Gold Wire Products;

  

	 	(u)	evidence that the governing law of the terms and conditions of sale of the Gold Wire Products by the Customers, as posted on the website of KSI/the Customers has been changed from
Pennsylvanian law to Malaysian law; 

  

	 	(v)	certified true copies of the contract manufacturing services agreements entered into between (i) GHC and K&S and (ii) GHC and Muller Feindranht AG;

  

	 	(w)	a certified true copy of the written confirmation from Zaid Ibrahim & Co. to the Customers, confirming that the change in the governing law of the terms and conditions of
sale of Gold Wire Products by the Customers, as posted on the website of KSI/the Customers from Pennsylvanian law to Malaysian law, and the terms and conditions of such sale under Malaysian law, are appropriate under Malaysian law; and

  

	 	(x)	such other documents as may be required by the Bank. 

  

	6.	OTHER TERMS AND CONDITIONS 

  

	 	(a)	General Terms and Conditions Incorporated by Reference 

 A copy of the General Terms and Conditions is enclosed for your reference and retention. 
 This Facility Letter shall be read
together with, and be subject to, the terms and conditions set out in the General Terms and Conditions, as the same may be amended, modified or supplemented from time to time, which terms and conditions shall be incorporated herein by reference.
Save as provided in paragraph 6(e), in the event of any conflict or inconsistency between the terms of this Facility Letter and the General Terms and Conditions, the terms of this Facility Letter shall prevail to the extent of such conflict or
inconsistency. 
  

	 	(b)	Review and Repayment on Demand and Provision of Cash Collateral 

 The Credit Facilities are granted to the Customers on an uncommitted basis and are repayable on demand. Accordingly, these Credit Facilities are subject to the Bank’s periodic review and the terms thereof may be
modified, or the Credit Facilities terminated (in whole or in part), at the Bank’s sole discretion without prior notice. In the event any demand for repayment is made or the Bank notifies you that the Credit Facilities are terminated, you shall
forthwith: 
  

	 	(i)	repay all amounts outstanding to the Bank under the Finance Documents, including all interest accrued thereon and any broken funding costs and other costs and expenses incurred by
the Bank; and 

  

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	 	(ii)	pay to the Bank, to the credit of an account to be opened for that purpose by the Bank, cash collateral in an amount equal to the full face value of any undrawn or contingent
liability of the Bank in respect of any Standby Letter of Credit, Banker’s Guarantee or any other instruments issued or purchased or drafts accepted by the Bank under the Credit Facilities, as at the date of such demand, but not yet matured or
presented. 

 The Bank also has a right to enforce any and all the security created under and pursuant to the Security
Documents. Any undrawn or unutilized portion of the Credit Facilities may be cancelled by the Bank at any time at its sole discretion. 
  

	 	(c)	Lending of Singapore Dollar to non-resident financial institutions – MAS 757 

 Where the borrower is a non-resident financial institution (as defined in MAS 757): in connection with the Bank extending Singapore Dollar credit facilities to the Customers under this Facility Letter, each Customer
understands the Singapore Dollar lending restrictions under the MAS 757 guidelines and each Customer hereby represents, warrants and undertakes to the Bank that (a) the Singapore Dollar proceeds will not be used for speculation against the
Singapore Dollar exchange rate, and (b) where the Singapore Dollar proceeds are to be used outside Singapore, the Customer will convert or swap the Singapore Dollar proceeds into foreign currency upon draw-down unless the exception in MAS 757
applies. 
  

	 	(d)	Negative Pledge 

 Each of the Customers undertakes
that so long as the Credit Facilities (or any part thereof) remain available or any monies or obligations are outstanding under the Facility Letter, each of the Customers will not at any time, create or permit to subsist any debenture, equitable or
legal mortgage, fixed or floating charge, pledge, encumbrance or other security interest on or over any of its assets nor assign by way of sale or otherwise the Customer’s book or other debts or securities whatsoever and wheresoever both
present and future in favour of any person, firm or company other than the Bank without obtaining the Bank’s prior written consent (such consent not to be unreasonably withheld), save for any debenture, equitable or legal mortgage, fixed or
floating charge, pledge, encumbrance or other security interest existing at the date of this Facility Letter and which have been notified to the Bank in writing, and liens arising by operation of law or in the ordinary course of business.

  

	 	(e)	Ownership of Customer 

 Clause 14 of the General
Terms and Conditions is hereby amended by inserting a new paragraph (q) as follows: 
 “; or 
 (q) any existing shareholder (as at the date of this Facility Letter) of the Customer divests of all or any part of its/his shareholding (other than a
divestment to another Subsidiary of KSI or to KSI with the prior written consent of the Bank), direct or indirect, in any Customer.” 
  

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	 	(f)	Matters Relating to Gold Contracts 

 Each of the
Customers undertakes that so long as the Credit Facilities (or any part thereof) remain available or any monies or obligations are outstanding under the Facility Letter, it will: 
  

	 	(i)	ensure that all the Gold Contracts entered into by it after the date of this Facility Letter and all the terms and conditions of sale of the Gold Wire Products thereunder will be
governed by Malaysian law (other than those Gold Contracts entered into by GHC with STMicroelectronics N.V. and its group of companies and Advanced Semiconductor Engineering, Inc. and its group of companies, which will be governed by Pennsylvanian
law) and no changes whatsoever will be made to such governing law, except with the prior written consent of the Bank; and 

  

	 	(ii)	ensure that KSI will not change the governing law of any of its Gold Contracts and the terms and conditions of sale of the Gold Wire Products from Pennsylvanian law, except with the
prior written consent of the Bank. 

  

	 	(g)	Joint and Several Liability 

 The liability of each
Customer shall be joint and several and all covenants, agreements, undertakings, indemnities, stipulations, terms, conditions, instructions, and other provisions made, given or represented in this Facility Letter and other related transaction
documents by any Customer shall be deemed to be made, given or represented by and be binding on all the Customers jointly and severally. 
  

	7.	SPECIAL CONDITIONS 

  

	 	(a)	A penalty fee of 0.5% of the Credit Facilities amount will be levied in the event the said facilities are accepted but not drawn or utilised by July 31, 2006.

  

	 	(b)	Under the laws of each of the Customers’ jurisdiction of incorporation in force at the date hereof, the claims of the Bank against each of the Customers under this Facility
Letter will rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors save those whose claims are preferred solely by any bankruptcy, insolvency, liquidation or other similar laws of general application.

  

	 	(c)	The format and beneficiary of each Banker’s Guarantee/Standby Letter of Credit issuance must be approved by the Bank. 

  

	 	(d)	No dividend payments may be declared by the Customers without the prior written consent of the Bank. 

  

	 	(e)	The Tangible Net Worth of K&S shall be not less than US$36,000,000 at all times. For this purpose, “Tangible Net Worth” shall mean all equity, including preferred
stock, common stock, paid-in capital, retained earnings, cumulative translation adjustment and treasury stock less goodwill, intangible assets and loans extended to subsidiaries, related and/or third parties. The Tangible Net Worth of K&S shall
be tested every six months by reference to K&S’s financial statements required to be delivered to the Bank under paragraph 7(i) below. 

  

	 	(f)	Each Customer shall ensure that its Debt/EBITDA ratio, on an unconsolidated and a consolidated basis, shall not exceed 4:1 at all times. The Debt/EBITDA ratio shall be tested on a
half-yearly basis by reference to the relevant financial statements and information required to be delivered to the Bank under paragraph 7(i) below. 

  

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	 	(g)	All payments to and receipts from all of Customers’ suppliers and purchasers are to be withdrawn from and deposited into the relevant Charged Accounts.

  

	 	(h)	K&S and Muller Feindranht AG are to be the exclusive contract manufacturers for GHC. All sales of the Gold Wire Products processed/manufactured by K&S and Muller Feindranht
AG on behalf of GHC must be carried out by GHC. 

  

	 	(i)	Each Customer shall submit its audited accounts to the Bank within 6 months of each financial year closing and management accounts on a semi-annual basis within 3 months of close of
period. In the event of any material adverse change from the management accounts submitted, the Bank reserves the right to cancel, reduce, modify or restructure the Credit Facilities at its sole discretion. 

  

	 	(j)	Customers shall submit the audited accounts of Muller Feindranht AG within 6 months of each financial year end of Muller Feindranht AG. 

  

	 	(k)	Each Customer shall submit to the Bank, by no later than 5 Business Days after the beginning of each month, a monthly report on the Gold delivered from AGR to it during the previous
month under the AGR Contract. 

  

	 	(l)	Each Customer shall submit its inventory report to the Bank on a daily basis, setting out, amongst others, the total amount of its inventory, the breakdown of those inventories held
by Muller Feindranht AG and K&S respectively and the details of those sales on a consignment and non-consignment basis. 

  

	 	(m)	GHC shall submit to the Bank, by no later than 5 Business Days after the beginning of each month, a report of the outgoing shipments of Gold during the previous month to each of
Muller Feindranht AG and K&S for the Gold to be processed pursuant to the contract manufacturing services agreements. 

  

	 	(n)	GHC shall submit to the Bank, no later than 5 Business Days after the beginning of each month, reports from each of Muller Feindranht and K&S, in form and substance satisfactory
to the Bank, setting out in reasonable detail the Gold Wire Products it has processed/manufactured for GHC and the value of such Gold Wire Products sold. 

  

	 	(o)	Each Customer shall provide to the Bank, by no later than the last business day of each of its and KSl’s calendar quarter, an updated list of its and KSI’s purchasers for
the Gold Wire Products, and if requested by the Bank, such other information in relation to such purchasers. 

  

	 	(p)	Each Customer shall conduct a stock-take on a semi-annual basis, and submit to the Bank its stock-take report, from an auditor acceptable to the Bank, no later than 1 month after
the completion of each such stock-take. 

  

	 	(q)	Each Customer shall, no later than 5 Business Days after the beginning of each month, submit its receivables aging list to the Bank. 

  

	 	(r)	No sale of the fixed assets of any of the Customers or change in management control over the operations of any of the Customers may be carried out without the prior written consent
of the Bank. 

  

	 	(s)	 The Customers must ensure that all their receivables and all of KSI’s receivables, in each case, arising from the sale of Gold Wire Products and under or in
connection with the Gold Contracts, are to be credited into the respective accounts maintained by the Customers and KSI with, and charged to, the Bank (together, the “Charged Accounts”). The Bank is irrevocably and
unconditionally authorised to operate the Charged Accounts and to utilize the credit balances towards repayment of the loan 

  

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principal, interest, fees, commission, related expenses and all out-of-pocket expenses incurred by the Bank. The Customers shall at all times maintain
(without double counting) a trade receivables level of not less than 150% of the aggregate face value of all the Standby Letters of Credit and Banker’s Guarantees issued under the Credit Facilities (the “Receivables Coverage
Ratio”). Withdrawals may be made from the Charged Accounts provided that (i) the Receivables Coverage Ratio is maintained; and (ii) no Termination Event has occurred or would occur as a result of such withdrawal.

  

	 	(t)	If the Bank determines that the trade receivables level falls below 150% of the aggregate face value of all the Standby Letters of Credit and Banker’s Guarantees issued under
the Credit Facilities, the Bank will notify the Customers of this and the Customers shall immediately after receiving such notification from the Bank, deposit, or procure the deposit, of an amount in US Dollars equal to the shortfall amount
calculated based on the formula below, into the relevant Charged Accounts as directed by the Bank to ensure that the Receivables Coverage Ratio is maintained to the satisfaction of the Bank. For the avoidance of doubt, any failure by the Customers
to so comply will constitute a Termination Event. 

 X = A - (B / 1.5) 
 where, 
 X = shortfall amount 

A = US$20,000,000 
 B = total
amount of receivables (in US Dollars) as shown the receivables aging list submitted to the Bank pursuant to paragraph 7(q) above (but for the avoidance of doubt shall exclude any receivables which have been received and paid into the relevant
Charged Accounts). 
 The Bank shall place the shortfall amount into a fixed deposit and no withdrawal shall be made in respect of such
shortfall amount unless the Bank determines based on the receivables aging list submitted to the Bank pursuant to paragraph 7(q) above in the immediately succeeding month, that the Receivables Coverage Ratio is maintained, whereupon, the Bank shall
release the shortfall amount into the relevant Charged Accounts for the same to be dealt with in accordance with paragraph 7(s). 
  

	 	(u)	The Customers undertake to ensure that their invoicing and the invoicing of KSI in respect of the sale of Gold Wire Products to their respective clients must be separate from the
invoicing for the sale of other products or services. If any sale is effected on consignment terms, the sales contract must contain appropriate clauses to reserve the title of the Gold Wire Product consigned to such client until full payment of the
Gold Wire Product is made. 

  

	 	(v)	K&S is required to insure all of its fixed assets and inventory under an All Risks Insurance Policy. GHC is required to insure all of its fixed assets and inventory in relation
to or in connection with its Gold Wire Business under an All Risks Insurance Policy. The insurance policies must be from an insurer acceptable to the Bank and shall be taken in the joint name of the owner(s) of the assets and the Bank, with the Bank
as the chargee and loss payee for not less than US$20,000,000. 

  

	 	(w)	The Customers shall provide to the Bank certified true copies of all existing and future agreements and/or contracts in relation to the processing, refining, or manufacturing
services in respect of Gold provided to GHC and/or K&S. 

  

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	 	(x)	If K&S and/or GHC enters into a gold supply contract with The Bank of Nova Scotia in similar form and substance to the AGR Contract and the obligations of K&S and/or GHC
under such contract are supported by a Banker’s Guarantee and/or Standby Letter of Credit issued pursuant to the Credit Facilities, the Customers) shall assign to the Bank by way of first legal assignment all of its rights under such contract.
The Bank shall not be obliged to issue any Banker’s Guarantee and/or Standby Letter of Credit in favour of The Bank of Nova Scotia, unless the Customers shall have provided and/or delivered to the Bank (i) the assignment duly executed by
all the parties thereto and (ii) such other documents as may be required by the Bank. 

  

	8.	DOCUMENTATION 

 We enclose a set of documents
which should be duly completed, signed and returned to the Bank. 
  

	9.	DEFINITIONS 

 In this Facility Letter and any
of the Security Document, the following terms shall have such meaning as given below: 
 “AGR” means AGR Matthey (ABN 33 824
096 614), 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.

 “AGR Contract” means the sale and buyback of fine metal agreements dated on or about the date of this Facility Letter and
made between AGR and the Customers. 
 “Business Days” has the meaning given to it in the General Terms and Conditions.

 “Current Maturity of Senior Long Term Debt” means all the items usually broken out on the balance sheet or found in the
long-term debt footnote of the balance sheet. 
 “Debt”, in relation to each Customer, means the sum of its Senior Long Term
Debt, Current Maturity of Senior Long Term Debt, Subordinated Debt and Short Term Debt, but excluding Long Term Intra Group Debt. 
 “Depreciation and Amortisation” includes all non cash charges including depreciation and amortisation. 
 “EBITDA” means, in respect of any relevant period and in respect of a Customer, the sum of the net income (loss) from continuing operations, Gross Interest Expenses, Income Tax Expenses, Depreciation and Amortisation for
such period. 
 “Finance Documents” means the Facility Letter, any of the Bank’s standard forms, the Foreign Exchange
Documents the Security Documents and any other document designated as such by the Customers and the Bank. 
 “Foreign Exchange
Documents” means the Foreign Exchange Agreements and the Foreign Exchange Trading Facility Letter. 
 “Foreign Exchange
Agreements” means the Master Foreign Exchange Agreements and/or 2002 ISDA Master Agreement executed or to be executed between the Bank and each of GHC and K&S respectively pursuant to which the Bank makes available to each of GHC and
K&S a foreign exchange facility (“Foreign Exchange Facility”) on the terms thereof, and which agreement shall govern all foreign exchange contracts between the Bank and each of GHC and K&S respectively. 
  

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 “Foreign Exchange Trading Facility Letter” means the letter of offer issued or to be
issued by the Bank to GHC and K&S in relation to the Foreign Exchange Facility. 
 “General Terms and Conditions” means
the standard form of general terms and conditions of the Bank relating to credit or banking facilities and incorporated by reference under this Facility Letter. 
 “Gold” means any gold metals in any physical form (including, without limitation, in the form of granule, scrap, bar or wire). 
 “Gold Contracts” means, in relation to each of GHC, K&S and KSI, all agreements, arrangements and contracts (oral or written)
(including without limitation, all invoices, purchase orders, debit notes or other documents or instruments) which are entered into or to be entered into by it pursuant to or in connection with its Gold Wire Business, and all enclosures, amendments
and supplements to, and all documents which are expressed to be collateral with, any such agreements, and all its rights and benefits thereof including (without limiting) the foregoing: 
  

	 	(i)	the right to receive any and all moneys due or to become due under or pursuant to the relevant Gold Contracts; 

  

	 	(ii)	all claims in respect of any breach of the relevant Gold Contracts; 

  

	 	(iii)	its right (but not the obligation) to perform and to compel performance of the relevant Gold Contracts; and 

  

	 	(iv)	any of its right to rescind or otherwise terminate the relevant Gold Contracts. 

 “Gold Receivables” means, in relation to each of GHC, K&S and KSI, all monies of whatsoever kind payable in connection with the relevant Gold Contracts to it, or for its account, including all
claims for damages arising out of any breach of any relevant Gold Contract and all monies which may at any time become payable to it, or for its account, pursuant to any policy of insurance, under any letters of credit or under any negotiable and
non-negotiable instruments, guarantees, indemnities, legal and equitable charges, reservation of proprietary rights, rights of tracing and/or liens which in any way relates to any relevant Gold Contract and all forms of remittance of such sums and
any bank or other account to which such sums may be paid or credited. 
 “Gold Wire Business” means, in relation to each of
GHC, K&S and KSI, its business of manufacturing, processing and selling Gold Wire Products, wherever carried out, including (without limitation) the process of obtaining Gold and other products and materials (whether in completed form,
semi-completed form or otherwise) derived or manufactured from Gold or otherwise having a Gold content. 
 “Gold Wire Products”
means the gold bonding wire used in the semiconductor industry (including, without limitation) in the manufacture of integrated circuits. 
 “Gross Interest Expenses” in relation to any period, means the total interest expensed during such period. 
 “Income Tax Expenses” means the sum of all current and deferred tax expenses. 
 “KSP” means
Kulicke & Soffa Industries, Inc., a company incorporated in Pennsylvania, United States of America and having its principal office at 1005 Virginia Drive, Fort Washington, Pennsylvania 19034, United States of America. 
 “Long Term Intra Group Debt” means the sum of all long term debt owed to parent companies, subsidiaries and/or related companies.

  

 11 

 

 
 corporate and 
 investment banking 
  

 “Senior Long Term Debt” means the sum of all non-current, non-subordinated long-term
debt. 
 “Short Term Debt” means sum of all notes payable and other short-term debt.  
 “Subordinated Debt” means the sum of all subordinated debt. 
 “Subsidiary” means any company or corporation the share capital of which is by more than fifty percent held directly and/or indirectly by another person. 
 “Termination Event” means any of (i) the events of default set out in clause 14 (Default and Termination) and
clause 15 (Termination of Facilities Recallable on Demand) of the General Terms and Conditions, (ii) the termination events set out in paragraph 6(b) and paragraph 7(t) of this Facility Letter and (iii) the events of
default (howsoever described) set out in any of the Security Documents. 
 None of the Customers shall have the right to assign and/or transfer any of its
rights and/or obligations under this Facility Letter or any other Finance Documents without the prior written consent of the Bank. The Bank may assign and/or transfer to any other person all or any part of, or any of its interest in, its rights,
benefits and/or obligations under or in respect of any of the Finance Documents or in connection with any part of the Credit Facilities. The Customers agree that the Bank may sign any such transfer agreement for and on behalf of the Customers. To
the extent of such assignment, such assignee or transferee (as the case may be) shall have the same rights and benefits against the Customers as it would have had if it were the Bank hereunder. 
 Upon acceptance of this Facility Letter, all utilization of the Credit Facilities prior to acceptance shall be governed by and subject to the terms and conditions of
this Facility Letter. This offer shall lapse after 20 June 2006 unless extended by the Bank. Upon acceptance, this Facility Letter will constitute an agreement between us. Kindly confirm your acceptance by signing on the duplicate copy of this
Facility Letter and returning it to the Bank on or before 20 June 2006. You are required to submit at the same time when this Facility Letter is returned, a certified true copy of each of the Customers’ Board of Directors’ resolution
authorising the acceptance, execution and delivery of this Facility Letter by the signatories hereto. 
 Should you have any query regarding the above terms
and conditions, please do not hesitate to contact the undersigned. 
  

					
	 Yours sincerely
	 		 	
			
	 /s/ Andrew Tan
	 		 	 /s/ Lui Tuck Wing

	 Andrew Tan
	 		 	 Lui Tuck Wing

	 Head of Sales
	 		 	 Head of Risks

  

 12 

 

 
 corporate and 
 investment banking 
  

	To:	Citibank, N.A., Singapore Branch 

 We hereby confirm our agreement to the
terms and conditions in this Facility Letter dated 7 June 2006 and acknowledge receipt of the General Terms and Conditions. We hereby confirm that we have read and understood and agree to be bound by the terms and conditions contained in the
General Terms and Conditions, as the same may be amended, modified and/or supplemented from time to time. 
  

	
	 Accepted for and on behalf of
 Kulicke & Soffa
Global Holding Corporation

	
	 /s/ Maurice E. Carson

	Authorized Signatory of the Customer

  

	
	 Accepted for and on behalf of
 Kulicke & Soffa
(S.E.A.) Pte. Ltd.

	
	 /s/ Maurice E. Carson

	Authorized Signatory of the Customer

  

 13 

			
	

	  	 Robinson Road P. O. Box 2388
 Singapore
904388

	 corporate and
 investment banking
	  

  

 Citibank, N.A., Singapore Branch 
 Commercial Banking Group 
 3 Temasek Avenue 
 #17-00 Centennial Tower 
 Singapore 039190 
 Tel (65) 6328-5862 
 Fax (65) 6328-5887 
 Tel (65) 6328-5862 
 Fax (65) 6328-5887 

7 June 2006 
 Kulicke & Soffa Global Holding Corporation

 Unit Level 13(E), Main Office Tower 
 Financial Park Labuan,
Jalan Merdeka 
 87000, Federal Territory of Labuan 
 Malaysia

 c/o 6 Serangoon North Avenue 5 
 #03-16 
 Singapore 554910 
 Attention: Mr Darren
Crompton 
 Kulicke & Soffa (S.E.A.) Pte. Ltd. 
 6
Serangoon North Avenue 5 
 #03-16 
 Singapore 554910 

Attention: Ms Ho Siew Foong 
 Dear Ms Ho 
 FOREIGN EXCHANGE TRADING FACILITY 
 We are pleased to advise that Citibank, N.A., Singapore Branch (“Bank”) is offering Kulicke & Soffa Global Holding Corporation and Kulicke & Soffa (S.E.A.) Pte. Ltd. (collectively the “Customers” or
“you” and individually a “Customer”), an uncommitted foreign exchange trading facility (“Facility”) on the following terms and conditions: 
 1. You may from time to time request the Bank to enter into foreign exchange spot, forward and option transactions but the Bank shall have the sole discretion as to whether or not to accept any request and as to the
rate or price at which it will enter into any transaction. 
 2. Without prejudice to the above, the aggregate pre-settlement exposure value (as determined
by the Bank in its sole discretion) of all transactions entered or to be entered into between you and the Bank must not exceed US$1,000,000 or such other amount as the Bank may from time to time think fit. The Bank shall not be obliged to obtain
your consent or to give you prior notice of any such change. 
 3. Before accepting any request from you, the Bank may impose such terms and conditions as it
may deem fit, including without limitation, a condition that you negotiate, execute and deliver an agreement in the form of the Master Foreign Exchange Agreement and/or 2002 ISDA Master Agreement. 
  

 Citibank N.A., Singapore Branch 

 

 
 corporate and 
 investment banking 
  

 Note: Any foreign exchange spot, forward and option transactions entered into by the Customer pursuant
to the Facility shall be entered into for the purpose of managing its borrowings or investments, hedging its underlying assets or liabilities or in connection with its line of business (including financial intermediation services) and not for the
purpose of speculation. 
 This letter supersedes and replaces in its entirety the original letter dated 5 May 2006 from the Bank to the Customers and
countersigned and returned to the Bank by the Customers. 
 Please acknowledge receipt of this letter by signing and returning the attached copy. 

 

					
	Yours sincerely	 		 	
			
	/s/ Andrew Tan	 		 	/s/ Lui Tuck Wing
	Andrew Tan	 		 	Lui Tuck Wing
	Head of Sales	 		 	Head of Risks

  

	
	We acknowledge receipt.
	
	/s/ Maurice E. Carson
	Kulicke & Soffa Global Holding Corporation
	
	  
	Date
	
	We acknowledge receipt.
	
	/s/ Maurice E. Carson
	Kulicke & Soffa (S.E.A.) Pte. Ltd.
	
	  
	Date

  

 2Sale and Leaseback Agreement

 Exhibit 10.2 
 “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 12th day of June 2006 
 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 SEA”), a company incorporated in Singapore with its principal office at 6, Serangoon North
Ave, 5, #03-16 Singapore 554910, and 

  

	(3)	KULICKE & SOFFA GLOBAL HOLDING CORPORATION, a company incorporated in Malaysia (hereinafter called “K&S GHC”) with its registered address at Unit
Level 13(E), Main Office Tower, Financial Park Labuan, Jalan Merdaka, 8700, Federal Territory of Labuan, Malaysia. 

 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. 

  

	C.	K&S SEA and K&S GHC have agreed to be jointly and severally liable to AGR MATTHEY for the performance of all their respective obligations under
this Agreement. 

 NOW IT IS AGREED as follows: 
  

	1.	DEFINITIONS AND INTERPRETATION 

  

	1.1	Definitions 

 In this Agreement including the
Schedules, 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 favour 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, Singapore and Labuan, Malaysia; 
 “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 authorised K&S employee. A list of duly authorised 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; 
 “K&S” means K&S SEA and / or K&S GHC as applicable. 

 “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 five percent (95%) 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 SEA or K&S GHC representing the balance of Fine Metal Delivered; 
 “Panel” is
defined in Clause 16; 
  

 1 

 “Parties” means the parties to this Agreement and “Party” means either
AGR MATTHEY, K&S SEA or K&S GHC; 
 “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. 
 “Schedule” means a schedule to this Agreement.

 “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); 
 “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. 

  

 2 

	 	(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 Schedule 1 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	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 five percent (95%) 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 at which time AGR MATTHEY’s responsibility and insurance cover terminates. 
  

 3 

	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 authorised 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 authorised 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. 

  

	2.8	Joint and several liability 

  

	 	(a)	References in this Agreement to K&S means K&S SEA and K&S GHC jointly and severally and their liability under this Agreement shall be joint and several.

  

	 	(b)	Title to Gold sold to, and purchased by K&S SEA or K&S GHC under this Agreement is held by either of K&S SEA or K&S GHC on a several
basis and nothing in this Agreement makes K&S SEA and K&S GHC joint owners of any Gold purchased under this Agreement. 

  

	 	(c)	Notwithstanding Clause 2.8(b), K&S SEA and K&S GHC shall be jointly and severally liable for all obligations of K&S SEA or K&S GHC under
this Agreement to AGR MATTHEY. 

  

	 	(d)	All transactions effected under the Sale and Buyback of Fine Metal Agreement between AGR and K&S (SEA) dated 21st June 2004 shall be deemed to have been effected under this Agreement and all amounts of Gold, Fine Metal Delivered or money owed in respect of any such
transactions shall be deemed to be owed under this Agreement. 

  

	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). 
  

 4 

	3.1.2	The said Bank Standby Letter of Credit must have an expiry date no earlier than 30 (thirty) 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 drawdown 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 drawdown are for the account of K&S. 

  

	3.1.4	A Bank Standby Letter of Credit provided by either K&S SEA or K&S GHC shall secure the liability of each of K&S SEA and K&S GHC jointly and severally.

  

	3.2	Calls on Bank Standby Letter of Credit 

 If at any
time K&S SEA or K&S GHC 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(A).  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 SEA and K&S GHC that their respective Memoranda and Articles of Association contain provisions to authorise all necessary corporate
actions to perform its obligations under this Agreement and an extract of the minutes of a K&S SEA and K&S GHC 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 K&S SEA, K&S GHC and AGR MATTHEY; and 

  

	 	(d)	delivery of the specimen signatures of K&S’s officers who are authorised to sign advices and documents on behalf of K&S to AGR MATTHEY.

  

	 	(e)	delivery of an opinion in respect of K&S GHC that: 

  

	 	i)	is addressed to AGR MATTHEY from a law firm that certified to practice Labuan law and Malaysian law (approved by AGR MATTHEY) together with evidence of such law
firm’s professional indemnity insurance in an amount per event in excess of Malaysian Ringgit 20,000,000 (twenty million); 

  

 5 

	 	ii)	advises that this Agreement is enforceable under Labuan law and Malaysian law; and 

  

	 	iii)	it is in a form and substance acceptable to AGR MATTHEY. 

  

	4(B)	STAMPING OF AGREEMENT UNDER MALAYSIAN LAW 

 Where necessary under Singapore or Malaysian law: 
  

	 	(a)	As soon as reasonably practical after the Effective Date, K&S must provide to AGR MATTHEY satisfactory evidence that this Agreement has been duly stamped under
Singapore law and Malaysian law. 

  

	 	(b)	K&S must pay all stamp duty payable in relation to this Agreement including, but not limited to, any fines and penalties which may be payable in relation to the stamping
of this Agreement. 

  

	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 per Troy Ounce 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. 

  

 6 

	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. 

  

	5.4	Annual Australian Manufacturing Plant Production Fee 

 This fee shall be paid in equal monthly instalments 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 Day 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 or Labuan 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. For shipment size of 400 Kgs or greater, AGR shall make a monthly refund to K&S of XXXXX Troy Ounce. 
  

	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 five percent (95%) 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
	 XXXXX
	  	 XXXXX

	 XXXXX
	  	 XXXXX

  

 7 

 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 five percent (95%) of the Guaranteed Sum. 
  

	6.2	Where K&S elects to place cash deposits with AGR MATTHEY as opposed to increasing the value of the Bank Standby Letter of Credit (and K&S advises AGR
MATTHEY in writing in advance) and such sums are not used on an ongoing basis for the payment of sums due to AGR MATTHEY which as a result allows AGR MATTHEY to place the cash deposits on a term deposit facility with their bank
then 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 one month LIBOR rate (London
Interbank Offer Rate) minus 0.5% per annum (half of one percent per annum). 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 95% (ninety five 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. 

  

 8 

	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. 

  

	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 

  

 9 

 
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 one month LIBOR (London Interbank Offer Rate) + three percentage points (3.00%). 
  

	10.	CLAUSE DELETED 

  

	11.	K&S DEFAULT 

  

	11.1	Events of Default 

 K&S SEA and
K&S GHC shall each be deemed to be in default if any of the following Event(s) of Default occur in respect of either or both of them: 
  

	 	(a)	it 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)	it 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)	it 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, does not remedy such Default within a period of five (5) Business Days after written notice of such Default had been given by AGR MATTHEY. 

  

	 	(d)	an order is made or an effective resolution is passed for the winding up of either K&S SEA, K&S GHC or Kulicke & Soffa Industries, Inc
of the USA (“K&S 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)	 a provisional liquidator, administrator, receiver or receiver and manager is appointed to any of K&S SEA, K&S GHC or
K&S USA in respect of its undertaking, property or assets or any part thereof or if any of them cause a 

  

 10 

	 	 
meeting of its creditors to be summoned for the purpose of considering any resolution for such appointment. 

  

	 	(f)	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 SEA or K&S
GHC or is made against the assets or any part thereof of K&S SEA or K&S GHC and such shall not have been paid out, removed or discharged within twenty one (21) Business Days. 

  

	 	(g)	K&S SEA or K&S GHC 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)	a compromise or arrangement is proposed K&S SEA or K&S GHC 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 SEA or K&S GHC or any class of them. 

  

	 	(i)	any present or future indebtedness due from K&S SEA or K&S GHC becomes due and payable prior to the date of maturity thereof as a result of K&S
SEA’s or K&S GHC’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
SEA or K&S GHC is not honoured when due and called upon or any mortgage or charge, present or future, and created or assumed by K&S SEA or K&S GHC becomes enforceable. 

  

	 	(j)	any representation, warranty or statement made by K&S SEA or K&S GHC herein or in any document given to AGR MATTHEY by K&S SEA or K&S
GHC or by K&S USA in connection with or pursuant to this Agreement is not being complied with or shall prove to be untrue or misleading in any material respect. 

  

	 	(k)	K&S SEA or K&S GHC 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 SEA, K&S GHC or K&S USA 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 

  

 11 

	 	 
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 wilful misconduct. AGR MATTHEY shall furnish documentary evidence to K&S of such loss or damage. 

  

	12.	SET - OFF 

  

	12.1	K&S SEA and K&S GHC hereby authorise 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 with AGR MATTHEY, in or towards satisfaction of any sum due to AGR MATTHEY; and

  

	 	(b)	in the names of K&S SEA or K&S GHC 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 SEA, K&S GHC or K&S USA, AGR MATTHEY is hereby
authorised 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 SEA, K&S
GHC or K&S USA 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; 

  

 12 

	 	(3)	it shall hold in stock Gold conforming to the technical specifications as specified in paragraph 4 of Schedule 2. AGR will maintain a level of stock equal to twice the
average weekly consumption of the 4 preceding weeks except when K&S deviate from the agreed procedure set out in Schedule 2, Clause 1 and increase their stock requirement. In which case the rate at which AGR will replenish stock supplied
to K&S will be calculated as follows: 

 Production Rate x Pass Rate – Orders = Stock Replenishment

 Where; 
 “Production
Rate” means the rate at which AGR produces Gold of 99.999% purity represented as Kilograms per calendar week; 
 “Pass
Rate” means the rate at which AGR produces Gold conforming to the technical specifications as specified in paragraph 4 of Schedule 2 represented as a percentage; 
 “Orders” means the orders made by K&S to AGR in accordance with Item 1 of Schedule 2 Working Methodology; 
  

	 	(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; 

  

	 	(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 

  

 13 

	 	 
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 wilful 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; 

  

	 	(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; 

  

 14 

	 	(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 any 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, labour dispute, labour 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). 
  

	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.

  

 15 

	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 licence) 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 13.1 (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 16.1(b) (the “Panel”) who will meet to discuss the Dispute (with any appropriate technical experts and/or an independent party) and endeavour to resolve the Dispute, within 10 Business
Days of their first meeting (“Resolution Period”). 

  

	 	(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 16.1 unless the Dispute has first been referred to a Panel and the Panel does not meet or resolve the dispute under clause 16.1 before
the expiry of the relevant Resolution Period. 
  

	16.3	Interlocutory 

 Nothing in clause 16.2 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 

	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 authorised 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. 

  

	 	(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 honour 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. Not withstanding the
above, AGR MATTHEY expressly consents to the assignment by K&S SEA and K&S GHC of all or any of their respective rights under the Agreement to any financier providing Security to AGR MATTHEY.

  

	17.4.2 	Upon providing K&S with evidence that the assignee has the financial ability to honour 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 

	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. 

  

	17.5A	Deemed notice 

 Any notice under this Agreement to
be given to K&S shall be deemed to have been duly given if provided to K&S GHC in accordance with the requirements of Clause 17.5. 
  

	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.

  

	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. 
  

 18 

 IN WITNESS WHEROF the Parties have duly executed this Agreement on the date of first above mentioned.

  

					
		  	}	  	
	AGR MATTHEY	  	}	  	
		  	}	  	
			
		  	Director	  	 /s/ Brian Bath

			
		  	Director / Secretary	  	 /s/ John Shepard

  

					
	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

			
		  	Secretary	  	 /s/ Keloth Raj Kumar

  

					
	THE COMMON SEAL of	  	}	  	
	KULICKE & SOFFA GLOBAL HOLDING	  	}	  	
	CORPORATION	  	}	  	[SEAL]
	was hereunto affixed in	  	}	  	
	accordance with its Articles of	  	}	  	
	Association in the presence of	  	}	  	
			
		  	Authorised officer	  	/s/ Ho Siew Foong
		  		  	
			
		  	Secretary	  	 /s/ Rita Sharif

		  		  	

  

 19 

 SCHEDULE 1 
 This schedule is supplemental to the Sale and Buyback of Fine Metal Agreement dated 12th of June 2006
between AGR MATTHEY and KULICKE & SOFFA (SEA) PTE LTD and KULICKE & SOFFA GLOBAL HOLDING CORPORATION and constitutes a part of that Agreement and constitutes a Contract between them. 
 Date of signature of Schedule: 
  

					
	Item 1	  	Gold Delivered	  	95% of the value of the Guaranteed Sum.
			
		  		  	Current value of Security being USD20 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
 XXXXX
  
 For Gold of 99.99% and over 99.99% Assay:
 XXXXX
 XXXXX

			
	Item 5	  	Other Fees	  	
		
		  	Annual Australian Manufacturing Plant Production Fee: XXXXX per Troy Ounce (minimum shipment size 200 kgs). For shipment size of 400 Kgs or greater, AGR shall make a monthly refund
to XXXXX per Troy Ounce.

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

 20 

					
	Item 6	  	Address for Service:	  	AGR MATTHEY
		  		  	 Horrie Miller Drive
 Newburn
 WESTERN AUSTRALIA 6104
 AUSTRALIA

			
		  		  	Facsimile: (618) 9479 9919
			
		  		  	            AND
			
		  		  	 Kulicke & Soffa Global Holding
 Corporation
and
 Kulicke & Soffa (SEA) Pte Ltd:
 Block 5002, Ang Mo Kio
Avenue 5
 #05-06, TECHPlace II
 Singapore
569871

			
		  		  	Facsimile: 65 6880 9662
			
	Item 7	  	Delivery Point:	  	 Kulicke & Soffa Global Holding
 Corporation and
Kulicke & Soffa
 (SEA) Pte Ltd
 Block 5002, Ang Mo Kio Avenue
5
 #05-06, TECHPlace II
 Singapore 569871

  

									
	Signed for and on behalf of	 		 	
	 AGR MATTHEY
	 		 	
					
	By	 	Brian Bath, CEO	 		 		 	/s/ Brian Bath
		 	(Name & Position)	 		 		 	(Signature)
			
	Signed for and on behalf of	 		 	
	KULICKE & SOFFA (SEA) PTE LTD	 		 	
					
	By	 	Ho Siew Foong, Director	 		 		 	/s/ Ho Siew Foong
		 	(Name & Position)	 		 		 	(Signature)
			
	Signed for and on behalf of	 		 	
	KULICKE & SOFFA GLOBAL HOLDING CORPORATION	 		 	
					
	By	 	Ho Siew Foong, Authorised Officer	 		 		 	/s/ Ho Siew Foong
		 	(Name & Position)	 		 		 	(Signature)

  

 21 

 SCHEDULE 2 
 WORKING METHODOLOGY 
  

	1.	Gold Supply 

 K&S shall supply to AGR
MATTHEY: 
  

	 	(a)	On a weekly basis, an estimate for the quantity of Gold that K&S will require to be dispatched in fourteen calendar days, and 

  

	 	(b)	Three Business Days prior to the required dispatch date, an order for the quantity of Gold that K&S will require to be dispatched and K&S shall ensure that this order
is within a 20% tolerance of the estimate provided in point (a) above. Where orders are placed by K&S outside of the 20% tolerance of the estimate provided in point (a) above then AGR shall utilise Gold held in stock to
meet the order and the stock used shall be replenished at the rate as specified in Clause 13.1 (3) 

  

	2.	Gold Pricing 

 Spot Pricing 
 During normal business hours, an authorised 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. 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 authorised 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 on either the Gold AM or PM Fix for that day.
Transactions conducted on the Gold AM or PM Fix shall attract a premium of USD 0.25 per Troy Ounce. 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 with separate sub accounts for K&S SEA and K&S GHC.

 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) 

  

 22 

	 	(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 

  

	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/kg/10,000) 
  

	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. 
  

 23 

 Appendix 1 
 LIST OF AUTHORISED K&S EMPLOYEES 
 XXXXXX 

 Appendix 2  
 LIST OF AUTHORISED AGR MATTHEY EMPLOYEES 
 1. For a change to this Sale and Buyback of Fine Metal Agreement including
any change to Security or the coordinates of AGR Matthey’s bank account (currently being with JP Morgan Chase New York XXXXX ) 
  

					
	Delegated Persons (both to sign):	 		 	
	 XXXXX
	 		 	 XXXXX

  
 XXXXX 

 TABLE OF CONTENTS 
  

					
	 1.
	 	 DEFINITIONS AND INTERPRETATION
	  	1
			
	 2.
	 	 SALE AND BUYBACK OF FINE METAL FACILITY
	  	4
			
	 3.
	 	 COLLATERAL SECURITY
	  	5
			
	 4.
	 	 CONDITIONS PRECEDENT
	  	6
			
	 5.
	 	 PURCHASE
	  	7
			
	 6.
	 	 MARGIN PAYMENT
	  	8
			
	 7.
	 	 BUYBACK
	  	9
			
	 8.
	 	 WITHHOLDING
	  	10
			
	 9.
	 	 OVERDUE AMOUNTS
	  	11
			
	 10.
	 	 INSURANCE
	  	10
			
	 11.
	 	 K&S DEFAULT
	  	11
			
	 12.
	 	 SET-OFF
	  	13
			
	 13.
	 	 AGR MATTHEY
	  	13
			
	 14.
	 	 FORCE MAJEURE
	  	16
			
	 15.
	 	 K&S
	  	17
			
	 16.
	 	 DISPUTE RESOLUTION
	  	17
			
	 17.
	 	 MISCELLANEOUS
	  	18
		
	 SCHEDULE 1
	  	21
		
	 SCHEDULE 2
	  	23

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