Document:

Security Agreement relating to Tranche A U.S.$20,000,000 Floating Rate Secured

 Exhibit 4.12 
 SECURITY AGREEMENT 
 relating to 
 Tranche A U.S.$20,000,000 Floating Rate Secured Bonds due 2009 
 Tranche B
U.S.$40,000,000 Floating Rate Secured Convertible Bonds due 2009 
 10 SEPTEMBER 2007 
 Between 
 ASIA SILICON TECHNOLOGY
HOLDINGS LIMITED 
 and 
 DB TRUSTEES (HONG KONG) LIMITED 
 

 
 Allen & Overy 

 CONTENTS 
  

					
	 Clause
	  	 	  	Page
	 1.
	  	 Interpretation
	  	1
	 2.
	  	 Creation of Security
	  	3
	 3.
	  	 Representations and Warranties - General
	  	5
	 4.
	  	 Restrictions on Dealings
	  	7
	 5.
	  	 Land
	  	7
	 6.
	  	 Investments
	  	11
	 7.
	  	 Accounts
	  	12
	 8.
	  	 Intellectual Property
	  	14
	 9.
	  	 Relevant Contracts
	  	15
	 10.
	  	 When Security becomes Enforceable
	  	16
	 11.
	  	 Enforcement of Security
	  	16
	 12.
	  	 Receiver
	  	18
	 13.
	  	 Powers of Receiver
	  	18
	 14.
	  	 Application of Proceeds
	  	20
	 15.
	  	 Expenses and Indemnity
	  	20
	 16.
	  	 Delegation
	  	21
	 17.
	  	 Further Assurances
	  	21
	 18.
	  	 Power of Attorney
	  	21
	 19.
	  	 Preservation of Security
	  	21
	 20.
	  	 Miscellaneous
	  	23
	 21.
	  	 Release
	  	24
	 22.
	  	 Notices
	  	24
	 23.
	  	 Language
	  	25
	 24.
	  	 Severability
	  	25
	 25.
	  	 Amendments and Waivers
	  	25
	 26.
	  	 Changes to the Parties
	  	26
	 27.
	  	 Counterparts
	  	26
	 28.
	  	 Governing Law
	  	26
		
	 Schedule
	  	
			
	 1.
	  	 Security Assets
	  	27
	 2.
	  	 Forms of Letter for Account Bank
	  	28
	 3.
	  	 Forms of Letter for Relevant Contracts
	  	31
		
	 Signatories
	  	

 THIS DEED is dated 10 September 2007 and is made BETWEEN: 
  

	(1)	ASIA SILICON TECHNOLOGY HOLDINGS LIMITED, a company incorporated in Hong Kong with limited liability having its registered address at Suite 3601, Two Exchange Square,
Central, Hong Kong (Company number 1087124) (the Chargor); and 

  

	(2)	DB TRUSTEES (HONG KONG) LIMITED (the Security Agent) as security trustee for the Secured Parties (as defined in the Trust Deed defined below).

 BACKGROUND: 
  

	(A)	The Chargor enters into this Deed in connection with the Trust Deed (as defined below). 

  

	(B)	Pursuant to the Trust Deed, the Security Agent has agreed, among other things, to hold the security constituted by this Deed on trust for the Secured Parties.

  

	(C)	It is intended that this document takes effect as a deed notwithstanding the fact that a party may only execute this document under hand. 

 IT IS AGREED as follows:  
  

	1.	INTERPRETATION 

  

	1.1	Definitions 

 In this Deed: 
 Account Bank means, in relation to a Restricted Account, the bank with which the Restricted Account is maintained. 
 Bonds means: 
  

	 	(a)	the tranche A U.S.$20,000,000 in principal amount of floating rate secured bonds due 2009; and 

  

	 	(b)	the tranche B U.S.$40,000,000 in principal amount of floating rate secured convertible bonds due 2009, 

 issued by the Issuer. 
 Equity Interest
means 64 per cent, equity interests in Opco held by the Chargor. 
 Party means a party to this Deed. 
 Property Ordinance means the Conveyancing and Property Ordinance (Cap. 219 of the Laws of Hong Kong). 
 Receiver means an administrative receiver, receiver and manager or a receiver, in each case, appointed under this Deed. 
  

 1 

 Restricted Account means each of the accounts specified in Schedule 1 (Security Assets) under the
heading Restricted Accounts and includes: 
  

	 	(a)	if there is a change of Account Bank, any account into which all or part of a credit balance from a Restricted Account is transferred; and 

  

	 	(b)	any account which is a successor to a Restricted Account on any re-numbering or re-designation of accounts and any account into which all or part of a balance from a Restricted
Account is transferred for investment or administrative purposes. 

 Secured Liabilities means all present and future
obligations and liabilities (whether actual or contingent and whether owed jointly or severally or in any other capacity whatsoever) of each Obligor to any Secured Party under each Finance Document, except for any obligation which, if it were so
included, would result in this Deed contravening Section 47A of the Companies Ordinance (Cap. 32 of the Laws of Hong Kong). 
 Security Assets means all assets of the Chargor the subject of any security created by this Deed. 
 Security Period
means the period beginning on the date of this Deed and ending on the date on which all the Secured Liabilities have been unconditionally and irrevocably paid and discharged in full. 
 Shareholder’s Loan means the loan to be made by the Issuer to the Chargor out of the net proceeds from the sale of the Bonds. 
 Trust Deed means the trust deed dated 10 September 2007 between the Issuer as issuer, DB Trustees (Hong Kong) Limited as trustee and the
Security Agent. 
  

	1.2	Construction 

  

	(a)	Capitalised terms defined in the Trust Deed have, unless expressly defined in this Deed, the same meaning in this Deed. 

  

	(b)	Capitalised terms defined in the Conditions have, unless expressly defined in the Trust Deed or this Deed, the same meaning in this Deed. 

  

	(c)	The provisions of clause 1.2 (Construction of Certain References) of the Trust Deed apply to this Deed as though they were set out in full in this Deed, except that references to
the Trust Deed will be construed as references to this Deed and references to England will be construed as references to Hong Kong. 

  

	(d)    (i)	The term Finance Document includes all amendments and supplements including supplements providing for further advances; 

  

	 	(ii)	the term this Security means any security created by this Deed; and 

  

	 	(iii)	an authorisation includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration or notarisation. 

  

	(e)	Any covenant of the Chargor under this Deed (other than a payment obligation) remains in force during the Security Period. 

  

	(f)	In the context of the rights, powers, privileges, discretions and immunities conferred on the Security Agent or a Receiver, references to charge or mortgage in any
provision of the Property Ordinance shall, for the purposes of this Deed, be deemed to be references to this Security and references to mortgaged land in any provision of the Property Ordinance shall, for the purposes of this Deed, be deemed
to be references to the Security Assets. 

  

 2 

	(g)	If the Security Agent considers that an amount paid to a Secured Party under a Finance Document is capable of being avoided or otherwise set aside on the liquidation of the payer or
otherwise, then that amount will not be considered to have been irrevocably paid for the purposes of this Deed. 

  

	(h)	Unless the context otherwise requires, a reference to a Security Asset includes the proceeds of sale of that Security Asset. 

  

	2.	CREATION OF SECURITY 

  

	2.1	General 

  

	(a)	All the security created under this Deed: 

  

	 	(i)	is created in favour of the Security Agent; 

  

	 	(ii)	is created over present and future assets of the Chargor; and 

  

	 	(iii)	is continuing security for the payment of all the Secured Liabilities. 

  

	(b)	If the rights of the Chargor under a document cannot be secured without the consent of a party to that document: 

  

	 	(i)	the Chargor must notify the Security Agent promptly; 

  

	 	(ii)	this Security will secure all amounts which the Chargor may receive, or has received, under that document but exclude the document itself; and 

  

	 	(iii)	unless the Security Agent otherwise requires, the Chargor must use reasonable endeavours to obtain the consent of the relevant party to that document being secured under this Deed.

  

	(c)	The Security Agent holds the benefit of this Deed on trust for the Secured Parties. 

  

	2.2	Land 

  

	(a)	The Chargor as beneficial owner charges: 

  

	 	(i)	by way of a first legal mortgage all estates or interests in any real property now owned by it; this includes the real property (if any) specified in Schedule 1 (Security Assets)
under the heading Real Property; and 

  

	 	(ii)	(to the extent that they are not the subject of a mortgage under sub-paragraph (i) above) by way of first fixed charge all estates or interests in any real property.

  

	(b)	A reference in this Subclause to a mortgage or charge of any real property includes: 

  

	 	(i)	all buildings, fixtures, fittings and fixed plant and machinery on that property; and 

  

	 	(ii)	the benefit of any covenants for title given or entered into by any predecessor in title of the Chargor in respect of that property or any moneys paid or payable in respect of those
covenants. 

  

 3 

	2.3	Investments 

  

	(a)	The Chargor as beneficial owner charges by way of a first fixed charge its interest in all shares, stocks, debentures, bonds or other securities and investments owned by it or held
by any nominee on its behalf. 

  

	(b)	A reference in this Subclause to a mortgage or charge of any stock, share, debenture, bond or other security includes: 

  

	 	(i)	any dividend or interest paid or payable in relation to it; and 

  

	 	(ii)	any right, money or property accruing or offered at any time in relation to it by way of redemption, substitution, exchange, bonus or preference, under option rights or otherwise.

  

	2.4	Plant and machinery 

 The Chargor as beneficial
owner charges by way of a first fixed charge all plant and machinery owned by the Chargor and its interest in any plant or machinery in its possession. 
  

	2.5	Restricted credit balances 

 The Chargor as
beneficial owner charges by way of a first fixed charge all of its rights in respect of any amount standing to the credit of any Restricted Account and the debt represented by it. 
  

	2.6	Insurances 

 The Chargor as beneficial owner assigns
absolutely, subject to a proviso for re-assignment on redemption, all of its rights in respect of any contract or policy of insurance taken out by it or on its behalf or in which it has an interest. 
  

	2.7	Other contracts 

 The Chargor as beneficial owner
assigns absolutely, subject to a proviso for re-assignment on redemption, all of its rights in respect of: 
  

	 	(a)	any agreement to which it is a party except to the extent that it is subject to any fixed security created under any other term of this Clause; this includes the agreements (if any)
specified in Schedule 1 (Security Assets) under the heading Relevant Contracts; 

  

	 	(b)	any letter of credit issued in its favour; and 

  

	 	(c)	any bill of exchange or other negotiable instrument held by it. 

  

	2.8	Intellectual property 

 The Chargor as beneficial
owner charges by way of a first fixed charge, all of its rights in respect of: 
  

	 	(a)	any know-how, patent, trade mark, service mark, design, business name, topographical or similar right; this includes the patents and trademarks (if any) specified in Schedule 1
(Security Assets) under the heading Specific Intellectual Property Rights; 

  

	 	(b)	any copyright or other intellectual property monopoly right; or 

  

	 	(c)	any interest (including by way of licence) in any of the above, 

  

 4 

 in each case whether registered or not and including all applications for the same. 
  

	2.9	Miscellaneous 

 The Chargor as beneficial owner
charges by way of first fixed charge: 
  

	 	(a)	any beneficial interest, claim or entitlement it has in any pension fund; 

  

	 	(b)	its goodwill; 

  

	 	(c)	the benefit of any authorisation (statutory or otherwise) held in connection with its use of any Security Asset; 

  

	 	(d)	the right to recover and receive compensation which may be payable to it in respect of any authorisation referred to in paragraph (c) above; and 

  

	 	(e)	its uncalled capital. 

  

	2.10	Floating charge 

  

	(a)	The Chargor charges by way of a first floating charge all its assets not at any time otherwise effectively mortgaged, charged or assigned by way of fixed mortgage, charge or
assignment under this Clause. 

  

	(b)	Except as provided below, the Security Agent may by notice to the Chargor convert the floating charge created by this Subclause into a fixed charge as regards any of the
Chargor’s assets specified in that notice, if: 

  

	 	(i)	an Event of Default is subsisting; or 

  

	 	(ii)	the Security Agent considers those assets to be in danger of being seized or sold under any form of distress, attachment, execution or other legal process or to be otherwise in
jeopardy. 

  

	(c)	The floating charge created by this Subclause will automatically convert into a fixed charge over all of the Chargor’s assets on the convening of any meeting of the members of
the Chargor to consider a resolution to wind-up the Chargor (or not to wind up the Chargor). 

  

	(d)	The giving by the Security Agent of a notice under paragraph (b) above in relation to any asset of the Chargor will not be construed as a waiver or abandonment of the Security
Agent’s rights to give any other notice in respect of any other asset or of any other right of any other Secured Party under this Deed or any other Finance Document. 

  

	3.	REPRESENTATIONS AND WARRANTIES - GENERAL 

  

	3.1	Representations and warranties 

 The Chargor makes
the representations and warranties set out in this Clause to the Security Agent. 
  

	3.2	Status and power and authority 

  

	(a)	It is a limited liability company duly incorporated and validly existing under the laws of Hong Kong with full power and authority to own its assets and conduct its business
presently carried on by it and is lawfully qualified to do business, and has all permits, licences and other authorisations required, in each jurisdiction in which business is conducted by it and has been operating its business pursuant to and in
compliance with the terms of all such permits, licences and other authorisations. 

  

 5 

	(b)	It has full power and authority, and is able lawfully, to enter into and perform its obligations under, and has taken all necessary action to authorise the entry into and
performance of its obligations under, the Finance Documents to which it is a party. 

  

	3.3	Legal validity 

 The Finance Documents to which it
is a party have been duly authorised by it and have been duly executed and delivered by it and each Finance Document to which it is a party constitutes its valid and legally binding obligations, enforceable in accordance with its terms subject to
the laws of bankruptcy and other laws affecting the rights of creditors generally. 
  

	3.4	Authorisations 

 All authorisations required by it
in connection with the entry into, performance, validity and enforceability of, and the transactions contemplated by, the Finance Documents to which it is a party have been obtained or effected (as appropriate) and are in full force and effect.

  

	3.5	Non-conflict 

 The entry into and performance of the
Finance Documents to which it is a party, the use of the Shareholder’s Loan as described in Clause 7.7 (Miscellaneous Shareholder’s Loan provisions), the carrying out of the other transactions contemplated by the Finance Documents to which
it is a party and compliance with their terms do not and will not (a) conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, its constitutional documents, or any indenture, trust deed, mortgage
or other agreement or instrument to which it or any of its properties is bound, or (b) infringe any applicable law, rule, regulation, judgment, order or decree of any government, governmental body or court, domestic or foreign, having
jurisdiction over it or any of its affiliates or any of its properties. 
  

	3.6	Jurisdiction/governing law 

 The Chargor’s:

  

	 	(a)	irrevocable submission under the Finance Documents to which it is a party to the jurisdiction of the Hong Kong courts or the relevant PRC courts, as the case may be;

  

	 	(b)	agreement that the Finance Documents are governed by Hong Kong law or PRC law, as the case may be; and 

  

	 	(c)	agreement not to claim any immunity to which it or its assets may be entitled, are legal, valid and binding under the laws of Hong Kong. 

  

	3.7	Security Assets 

  

	(a)	It is, and will at all times be, the sole legal and beneficial owner of its Security Assets. 

  

	(b)	Each of its Security Assets is free from: 

  

	 	(i)	any Encumbrance (other than any Encumbrance created by a Security Document); and 

  

	 	(ii)	any interests or claims of third parties other than interests or claims arising by operation of law affecting companies generally. 

  

 6 

	3.8	Nature of security 

 This Deed creates those
Encumbrances it purports to create and is not liable to be amended or otherwise set aside on the liquidation of the Chargor or otherwise. 
  

	3.9	Times for making representations and warranties 

  

	(a)	The representations and warranties set out in this Deed (including in this Clause) are made on the date of this Deed. 

  

	(b)	Unless a representation and warranty is expressed to be given at a specific date each of the representations and warranties under this Deed is deemed to be repeated by the Chargor
on each date during the Security Period. 

  

	(c)	When a representation and warranty is repeated, it is applied to the circumstances existing at the time of repetition. 

  

	4.	RESTRICTIONS ON DEALINGS 

 The Chargor must not:

  

	 	(a)	create or permit to subsist any Encumbrance on any Security Asset; or 

  

	 	(b)	sell, transfer, license, lease or otherwise dispose of any Security Asset, 

 except as allowed under the Trust Deed or the Conditions. 
  

	5.	LAND 

  

	5.1	General 

 In this Clause: 
 Environmental Approval means any authorisation required by any Environmental Law. 
 Environmental Claim means any claim by any person in connection with: 
  

	 	(a)	a breach, or alleged breach, of an Environmental Law; 

  

	 	(b)	any accident, fire, explosion or other event of any type involving an emission or substance which is capable of causing harm to any living organism or the environment; or

  

	 	(c)	any other environmental contamination.  

 Environmental Law means any law or regulation concerning: 
  

	 	(a)	the protection of health and safety; 

  

	 	(b)	the environment; or 

  

	 	(c)	any emission or substance which is capable of causing harm to any living organism or the environment. 

 Fixtures means all fixtures and fittings and fixed plant and machinery on the Mortgaged Property. 
  

 7 

 Insured Property Assets means the Premises and all the Chargor’s other assets of an insurable
nature in the Premises. 
 Mortgaged Property means all real property included in the definition of Security Assets. 

Premises means all buildings and erections included in the definition of Security Assets. 
 Report on Title means any report on title on the Mortgaged Property addressed and provided at the request of the Security Agent before the date of
this Deed or, in the case of any Mortgaged Property acquired after the date of this Deed, its date of acquisition. 
  

	5.2	Title 

 The Chargor represents to the Security Agent
that except as disclosed in any Report on Title: 
  

	 	(a)	it is the legal and beneficial owner of the Mortgaged Property; and 

  

	 	(b)	the Mortgaged Property is held by it free from any Encumbrance or any tenancies or licences. 

  

	5.3	Environmental matters 

 The Chargor must ensure that
no Secured Party incurs any liability by reason of any breach by the Chargor of any Environmental Law or Environmental Approval. 
  

	5.4	Repair 

 The Chargor must keep: 
  

	 	(a)	the Premises in good and substantial repair and condition and adequately and properly painted and decorated; and 

  

	 	(b)	the Fixtures and all plant, machinery, implements and other effects owned by it and which are in or on the Premises or elsewhere in a good state of repair and in good working order
and condition. 

  

	5.5	Insurance 

  

	(a)	The Chargor must insure the Insured Property Assets against: 

  

	 	(i)	loss or damage by fire; 

  

	 	(ii)	other risks normally insured against by persons carrying on the same class of business as that carried on by it; and 

  

	 	(iii)	any other risks which the Security Agent may reasonably require. 

  

	(b)	Any insurance must be in a sum or sums not less than the replacement value of the Insured Property Assets. For this purpose, replacement value means the total cost of
entirely rebuilding, reinstating or replacing those Insured Property Assets in the event of their being completely destroyed, together with architects’ and surveyors’ fees. 

  

	(c)	Any insurance required under this Clause must be with an insurance company or underwriters acceptable to the Security Agent. 

  

 8 

	(d)	All moneys received or receivable under any insurance in respect of the Insured Property Assets must be applied: 

  

	 	(i)	in replacing, restoring or reinstating the Insured Property Assets destroyed or damaged or in any other manner which the Security Agent may agree; or 

  

	 	(ii)	after a Potential Event of Default has occurred, if the Security Agent so directs and the terms of the relevant insurances allow, in or towards satisfaction of the Secured
Liabilities. 

  

	(e)	The Chargor must procure that a note of the Security Agent’s interest is endorsed upon all policies of insurance maintained by the Chargor or any person on its behalf in
respect of the Insured Property Assets. 

  

	(f)	The Chargor must not do or permit anything to be done which may make void or voidable any policy of insurance in connection with any Insured Property Asset.

  

	(g)	The Chargor must promptly pay all premiums and do all other things necessary to keep each policy of insurance in respect of the Insured Property Assets in force.

  

	(h)	The Chargor must, immediately on demand by the Security Agent, produce to the Security Agent the policy, certificate or cover note relating to any insurance policy and the receipt
for the payment of any premium for any insurance policy as the Security Agent may request. 

  

	5.6	Compliance with leases 

 The Chargor must:

  

	 	(a)	perform all the terms on its part contained in any lease comprised in the Mortgaged Property; and 

  

	 	(b)	not do or allow to be done any act as a result of which any lease comprised in the Mortgaged Property may become liable to forfeiture or otherwise be terminated.

  

	5.7	Acquisitions 

 If the Chargor acquires any real
property after the date of this Deed it must: 
  

	 	(a)	notify the Security Agent immediately; 

  

	 	(b)	procure that the relevant agreement for sale and purchase and the assignment of that property be duly stamped and registered at the Land Registry or other equivalent authority in
the relevant jurisdiction; and 

  

	 	(c)	immediately on request by the Security Agent and at the cost of the Chargor, execute and deliver to the Security Agent a legal charge, legal mortgage or similar document required
under applicable law in favour of the Security Agent of that property in any form which the Security Agent may require. 

  

	5.8	Compliance with applicable laws and regulations 

 The Chargor must perform all its obligations under any law or regulation in any way related to or affecting the Mortgaged Property. 
  

 9 

	5.9	Notices 

 The Chargor must, within 14 days after the
receipt by the Chargor of any application, requirement, order or notice served or given by any public or local or any other authority with respect to the Mortgaged Property (or any part of it): 
  

	 	(a)	deliver a copy to the Security Agent; and 

  

	 	(b)	inform the Security Agent of the steps taken or proposed to be taken to comply with the relevant requirement. 

  

	5.10	Leases 

 The Chargor must not grant or agree to
grant (whether in exercise or independently of any statutory power) any lease or tenancy of the Mortgaged Property or any part of it or accept a surrender of any lease or tenancy or confer upon any person any contractual licence or right to occupy
the Mortgaged Property. 
  

	5.11	Deposit of title deeds 

 The Chargor must deposit
with the Security Agent all deeds and documents of title relating to the Mortgaged Property and all local land charges, land charges and Land Registry search certificates and similar documents received by or on behalf of the Chargor. 
  

	5.12	Access 

 The Chargor must permit the Security Agent
and any person nominated by it at all reasonable times to enter any part of the Mortgaged Property and view the state of it. 
  

	5.13	Investigation of title 

 The Chargor must grant the
Security Agent or its lawyers on request all facilities within the power of the Chargor to enable the Security Agent or its lawyers (at the expense of the Chargor) to: 
  

	 	(a)	carry out investigations of title to the Mortgaged Property; and 

  

	 	(b)	make such enquiries in relation to any part of the Mortgaged Property as a prudent mortgagee might carry out. 

  

	5.14	Report on title 

 The Chargor must, as soon as
practicable after a request by the Security Agent, provide the Security Agent with a report on title of the Chargor to the Mortgaged Property concerning those items which may properly be sought to be covered by a prudent mortgagee in a lawyer’s
report of this nature. 
  

	5.15	Power to remedy 

 If the Chargor fails to perform
any term affecting the Mortgaged Property, the Chargor must allow the Security Agent or its agents and contractors: 
  

	 	(a)	to enter any part of the Mortgaged Property; 

  

	 	(b)	to comply with or object to any notice served on the Chargor in respect of the Mortgaged Property; and 

  

 10 

	 	(c)	to take any action as the Security Agent may reasonably consider necessary or desirable to prevent or remedy any breach of any such term or to comply with or object to any such
notice. 

 The Chargor must immediately on request by the Security Agent pay the costs and expenses of the Security Agent or its
agents and contractors incurred in connection with any action taken by it under this Subclause. 
  

	5.16	Additional covenants and conditions 

 The Chargor
must, in relation to any of its Mortgaged Property located in Hong Kong, comply with all the covenants and conditions contained in Part C of the Second Schedule to the Property Ordinance, which are deemed to be incorporated by reference into this
Deed. In the event of any conflict or inconsistency between such additional covenants and conditions and the terms of this Deed, the latter shall prevail. 
  

	6.	INVESTMENTS 

  

	6.1	General 

 In this Clause: 
 Investments means: 
  

	 	(a)	all shares, stocks, debentures, bonds or other securities and investments included in the definition of Security Assets in Clause 1.1 (Definitions); 

 

	 	(b)	any dividend or interest paid or payable in relation to any of the above; and 

  

	 	(c)	any right, money or property accruing or offered at any time in relation to any of the above by way of redemption, substitution, exchange, bonus or preference under option rights or
otherwise. 

  

	6.2	Investments 

 The Chargor represents to the Security
Agent that to the extent applicable, the Investments are fully paid. 
  

	6.3	Deposit 

 The Chargor must: 
  

	 	(a)	immediately deposit with the Security Agent, or as the Security Agent may direct, all certificates and other documents of title or evidence of ownership in relation to any
Investment; and 

  

	 	(b)	promptly execute and deliver to the Security Agent all share transfers and other documents which may be requested by the Security Agent in order to enable the Security Agent or its
nominees to be registered as the owner or otherwise obtain a legal title to any Investment. 

  

	6.4	Changes to rights 

 The Chargor must not take or
allow the taking of any action on its behalf which may result in the rights attaching to any of the Investments being altered. 
  

 11 

	6.5	Calls 

  

	(a)	The Chargor must pay all calls or other payments due and payable in respect of any Investment. 

  

	(b)	If the Chargor fails to do so, the Security Agent may (but is not obliged to) pay the calls or other payments on behalf of the Chargor. The Chargor must immediately on request
reimburse the Security Agent for any payment made by the Security Agent under this Subclause. 

  

	6.6	Other obligations in respect of Investments 

  

	(a)	The Chargor must promptly copy to the Security Agent and comply with all requests for information which is within its knowledge and which are made under any law or regulation or by
any listing or other authority or any similar provision contained in any articles of association or other constitutional document relating to any of its Investments. If it fails to do so, the Security Agent may elect to provide such information as
it may have on behalf of the Chargor. 

  

	(b)	The Chargor must comply with all other conditions and obligations assumed by it in respect of any Investment. 

  

	(c)	The Security Agent is not obliged to: 

  

	 	(i)	perform any obligation of the Chargor; 

  

	 	(ii)	make any payment, or to make any enquiry as to the nature or sufficiency of any payment received by it or the Chargor; or 

  

	 	(iii)	present or file any claim or take any other action to collect or enforce the payment of any amount to which it may be entitled under this Deed, 

 in respect of any Investment. 
  

	6.7	Voting rights 

  

	(a)	Before this Security becomes enforceable, the Chargor will be entitled to: 

  

	 	(i)	exercise all voting, consensual and other powers of ownership pertaining to the Investments; 

  

	 	(ii)	receive and retain all dividends or other income paid or payable in relation to any Investment; and 

  

	 	(iii)	receive all notices pertaining to any Investment. 

  

	(b)	After this Security has become enforceable, the Security Agent may exercise (in the name of the Chargor and without any further consent or authority on the part of the Chargor) any
voting rights and any powers or rights which may be exercised by the legal or beneficial owner of any Investment, any person who is the holder of any Investment or otherwise. 

  

	7.	ACCOUNTS 

  

	7.1	Account Bank 

 Each Restricted Account must be
maintained at a branch of an Account Bank approved by the Security Agent. 
  

 12 

	7.2	Representations 

 The Chargor represents to the
Security Agent that: 
  

	 	(a)	it is the sole legal and beneficial owner of the credit balance from time to time in each Restricted Account which it maintains; and 

  

	 	(b)	those credit balances are free of any Encumbrances (except for those created by or under this Deed) and any other rights or interests in favour of third parties.

  

	7.3	Withdrawals 

 Except with the prior consent of the
Security Agent or as permitted under the terms of this Deed, the Trust Deed or the Conditions, the Chargor may not withdraw any moneys (including interest) standing to the credit of any Restricted Account. 
  

	7.4	Change of Account Banks 

  

	(a)	An Account Bank may be changed to another bank or financial institution if the Security Agent so agrees and must be changed if the Security Agent so requires.

  

	(b)	A change of Account Bank shall only be effective when the Chargor and the new Account Bank have delivered a notice and acknowledgement substantially in the form set out in Schedule
2 (Forms of Letter for Account Bank). 

  

	(c)	If there is a change of Account Bank, the amount (if any) standing to the credit of the Restricted Accounts maintained with the old Account Bank will be transferred to the
corresponding Restricted Accounts maintained with the new Account Bank immediately upon the appointment taking effect. 

  

	(d)	Subject to paragraph (a) above, the Chargor must take any action which the Security Agent may reasonably require to facilitate a change of Account Bank and any transfer of
credit balances (including the execution of bank mandate forms). 

  

	(e)	Amounts standing to the credit of each Restricted Account will bear interest at the prevailing rate offered by the Account Bank as varied from time to time.

  

	7.5	Notices of charge 

 The Chargor must: 
  

	 	(a)	immediately serve a notice of charge, substantially in the form of Part 1 of Schedule 2 (Forms of Letter for Account Bank) on each Account Bank; and 

  

	 	(b)	use its reasonable endeavours to ensure that each Account Bank acknowledges the notice, substantially in the form of Part 2 of Schedule 2 (Forms of Letter for Account Bank).

  

	7.6	Miscellaneous Restricted Accounts provisions 

  

	(a)	The Chargor must ensure that no Restricted Account goes in to overdraft. 

  

	(b)	Any amount received or recovered by the Chargor otherwise than by credit to a Restricted Account must be held subject to the security created by this Deed and immediately be paid to
the relevant Restricted Account or to the Security Agent in the same funds as received or recovered. 

  

 13 

	(c)	The moneys standing to the credit of each Restricted Account may be applied by the Security Agent towards payment of any amount of principal, interest and premium (if any) due and
owing in respect of the Bonds or any other amount due and owing by an Obligor under a Finance Document. 

  

	(d)	No Secured Party is responsible or liable to the Chargor for: 

  

	 	(i)	any non-payment of any liability of the Chargor which could be paid out of moneys standing to the credit of an Restricted Account; or 

  

	 	(ii)	any withdrawal wrongly made, if made in good faith. 

  

	(e)	The Chargor must, within five Business Days of any request by the Security Agent, supply the Security Agent with the following information in relation to any payment received in a
Restricted Account: 

  

	 	(i)	the date of payment or receipt; 

  

	 	(ii)	the payer; and 

  

	 	(iii)	the purpose of the payment or receipt. 

  

	7.7	Miscellaneous Shareholder’s Loan provisions 

 The Chargor must procure that proceeds of the Shareholder’s Loan may only be used for financing: 
  

	 	(a)	first, payment of the balance of the purchase price for the Equity Interest in the amount of U.S.$17,000,000 and the increase in the registered share capital of Opco in the
amount of U.S.$28,000,000; and 

  

	 	(b)	secondly, its and its Subsidiaries’ general working capital purposes in accordance with the Trust Deed and the Conditions. 

  

	8.	INTELLECTUAL PROPERTY 

  

	8.1	General 

 In this Clause Intellectual Property
Rights means: 
  

	 	(a)	any know-how, patent, trade mark, service mark, design, business name, topographical or similar right; 

  

	 	(b)	any copyright or other intellectual property monopoly right; 

  

	 	(c)	any interest (including by way of licence) in any of the above; or 

  

	 	(d)	any application for any of the above, 

 in each case,
whether registered or not, and included in the definition of Security Assets in Clause 1.1 (Definitions). 
  

	8.2	Representations 

 The Chargor represents to the
Security Agent that it does not, in carrying on its business, infringe any Intellectual Property Rights of any third party. 
  

 14 

	8.3	Preservation 

  

	(a)	The Chargor must: 

  

	 	(i)	make such registrations and pay such fees, registration taxes and similar amounts as are necessary to keep its Intellectual Property Rights in force; 

  

	 	(ii)	take all other steps which are reasonably practicable to maintain and preserve its interests in its Intellectual Property Rights; 

  

	 	(iii)	if requested to do so by the Security Agent, make entries in any public register of its Intellectual Property Rights which either record the existence of this Deed or the
restrictions on disposal imposed by this Deed; and 

  

	 	(iv)	take such steps as are necessary (including the institution of legal proceedings) to prevent third parties infringing those Intellectual Property Rights. 

 

	(b)	The Chargor must ensure that, except with the prior consent of the Security Agent, none of its Intellectual Property Rights which is registered is abandoned or cancelled, lapses or
is liable to any claim of abandonment for non-use or otherwise. 

  

	9.	RELEVANT CONTRACTS 

  

	9.1	General 

 In this Clause: 
 Relevant Contract means: 
  

	 	(a)	an agreement specified in Schedule 1 (Security Assets) under the heading Relevant Contracts; and 

  

	 	(b)	any other agreement to which the Chargor is a party and which the Security Agent has designated a Relevant Contract. 

  

	9.2	Representations 

 The Chargor represents to the
Security Agent that: 
  

	 	(a)	all payments to it by any other party to a Relevant Contract which is a loan agreement or a similar document are not subject to any right of set-off or similar right; and

  

	 	(b)	there is no prohibition on assignment in any Relevant Contract. 

  

	9.3	Preservation 

 The Chargor must not, without the
prior consent of the Security Agent: 
  

	 	(a)	amend or waive any term of, or terminate, any Relevant Contract; or 

  

	 	(b)	take any action which might jeopardise the existence or enforceability of any Relevant Contract. 

  

 15 

	9.4	Other undertaking 

 The Chargor must: 
  

	 	(a)	duly and promptly perform its obligations, and diligently pursue its rights, under each Relevant Contract; and 

  

	 	(b)	supply the Security Agent and any Receiver with copies of each Relevant Contract and any information and documentation relating to any Relevant Contract requested by the Security
Agent or any Receiver. 

  

	9.5	Notices of assignment 

 The Chargor must:

  

	 	(a)	immediately serve a notice of assignment, substantially in the form of Part 1 of Schedule 3 (Forms of Letter for Relevant Contracts), on each counterparty to a Relevant Contract;
and 

  

	 	(b)	use its reasonable endeavours to procure that each such party acknowledges that notice, substantially in the form of Part 2 of Schedule 3 (Forms of Letter for Relevant Contracts).

  

	10.	WHEN SECURITY BECOMES ENFORCEABLE 

  

	10.1	Event of Default 

 This Security will become
immediately enforceable if an Event of Default is subsisting and the Security Agent (as any applicable number of Bondholders in accordance with the Trust Deed may direct and subject to the Security Agent being indemnified and/or secured to its
satisfaction) gives notice to the Chargor that this Security is enforceable. 
  

	10.2	Discretion 

 After this Security has become
enforceable, the Security Agent may in its absolute discretion enforce all or any part of this Security in any manner it sees fit or as any applicable number of Bondholders in accordance with the Trust Deed direct (subject to the Security Agent
being indemnified and/or secured to its satisfaction). 
  

	10.3	Power of sale 

  

	(a)	After this Security has become enforceable, the Security Agent may, without prior notice to the Chargor or prior authorisation from any court, sell or otherwise dispose of all or
any part of the Security Assets at the times, in the manner and on the terms it thinks fit. 

  

	(b)	The power of sale and other powers conferred (or deemed by this Deed to be conferred) by the Property Ordinance, as amended by this Deed, will be immediately exercisable at any time
after this Security has become enforceable. 

  

	11.	ENFORCEMENT OF SECURITY 

  

	11.1	General 

  

	 	(a)	For the purposes of all powers implied by statute, the Secured Liabilities are deemed to have become due and payable on the date of this Deed. 

  

	 	(b)	Paragraph 11 of the Fourth Schedule to the Property Ordinance does not apply to this Security. 

  

 16 

	11.2	No liability as mortgagee in possession 

 Neither
the Security Agent nor any Receiver will be liable, by reason of entering into possession of a Security Asset, to account as mortgagee in possession or for any loss on realisation or for any default or omission for which a mortgagee in possession
might be liable. 
  

	11.3	Privileges 

 Each Receiver and the Security Agent is
entitled to all the rights, powers, privileges and immunities referred to in the Property Ordinance as if it were such a mortgagee or receiver (and so that the statutory power of sale shall be exercisable without regard to paragraph 11 of the Fourth
Schedule to the Property Ordinance). 
  

	11.4	Protection of third parties 

 No person (including a
purchaser) dealing with the Security Agent or a Receiver or its or his agents will be concerned to enquire: 
  

	 	(a)	whether the Secured Liabilities have become payable; 

  

	 	(b)	whether any power which the Security Agent or a Receiver is purporting to exercise has become exercisable or is being properly exercised; 

  

	 	(c)	whether any money remains due under the Finance Documents; or 

  

	 	(d)	how any money paid to the Security Agent or to that Receiver is to be applied. 

  

	11.5	Redemption of prior mortgages 

  

	(a)	At any time after this Security has become enforceable, the Security Agent may: 

  

	 	(i)	redeem any prior Encumbrance against any Security Asset; and/or 

  

	 	(ii)	procure the transfer of that Encumbrance to itself; and/or 

  

	 	(iii)	settle and pass the accounts of the prior mortgagee, chargee or encumbrancer; any accounts so settled and passed will be, in the absence of manifest error, conclusive and binding on
the Chargor. 

  

	(b)	The Chargor must pay to the Security Agent, immediately on demand, the costs and expenses incurred by the Security Agent in connection with any such redemption and/or transfer,
including the payment of any principal or interest. 

  

	11.6	Contingencies 

 If this Security is enforced at a
time when no amount is due under the Finance Documents but at a time when amounts may or will become due, the Security Agent (or the Receiver) may pay the proceeds of any recoveries effected by it into a suspense account. 
  

 17 

	12.	RECEIVER 

  

	12.1	Appointment of Receiver 

  

	(a)	The Security Agent may appoint any one or more persons to be a Receiver of all or any part of the Security Assets if: 

  

	 	(i)	this Security has become enforceable; or 

  

	 	(ii)	the Chargor so requests the Security Agent in writing at any time. 

  

	(b)	Any appointment under paragraph (a) above may be by deed, under seal or in writing under its hand. 

  

	12.2	Removal 

 The Security Agent may by writing under
its hand remove any Receiver appointed by it and may, whenever it thinks fit, appoint a new Receiver in the place of any Receiver whose appointment may for any reason have terminated. 
  

	12.3	Remuneration 

 The Security Agent may fix the
remuneration of any Receiver appointed by it. 
  

	12.4	Agent of the Chargor 

  

	(a)	A Receiver will be deemed to be the agent of the Chargor for all purposes and accordingly will be deemed to be in the same position as a Receiver duly appointed by a mortgagee under
the Property Ordinance. The Chargor alone is responsible for the contracts, engagements, acts, omissions, defaults and losses of a Receiver and for liabilities incurred by a Receiver. 

  

	(b)	No Secured Party will incur any liability (either to the Chargor or to any other person) by reason of the appointment of a Receiver or for any other reason.

  

	12.5	Relationship with Security Agent 

 To the fullest
extent allowed by law, any right, power or discretion conferred by this Deed (either expressly or impliedly) or by law on a Receiver may after this Security becomes enforceable be exercised by the Security Agent in relation to any Security Asset
without first appointing a Receiver and notwithstanding the appointment of a Receiver. 
  

	13.	POWERS OF RECEIVER 

  

	13.1	General 

  

	(a)	A Receiver has all of the rights, powers and discretions set out below in this Clause in addition to those conferred on it by any law; this includes all the rights, powers and
discretions conferred on a receiver (or a receiver and manager) under the Property Ordinance. 

  

	(b)	If there is more than one Receiver holding office at the same time, each Receiver may (unless the document appointing him states otherwise) exercise all of the powers conferred on a
Receiver under this Deed individually and to the exclusion of any other Receiver. 

  

	13.2	Possession 

 A Receiver may take immediate
possession of, get in and collect any Security Asset and without prejudice to the foregoing, cause to be registered all or any part of the Security Assets in his own name or in the name of his nominee(s) or in the name of any purchaser(s) thereof.

  

	13.3	Carry on business 

 A Receiver may carry on any
business of the Chargor in any manner he thinks fit. 
  

 18 

	13.4	Employees 

  

	(a)	A Receiver may appoint and discharge managers, officers, agents, accountants, servants, employee, workmen and others for the purposes of this Deed upon such terms as to remuneration
or otherwise as he thinks fit. 

  

	(b)	A Receiver may discharge any person appointed by the Chargor. 

  

	13.5	Borrow money 

 A Receiver may raise and borrow money
either unsecured or on the security of any Security Asset either in priority to this Security or otherwise and generally on any terms and for whatever purpose which he thinks fit. 
  

	13.6	Sale of assets 

  

	(a)	A Receiver may sell, exchange, convert into money and realise any Security Asset by public auction or private contract and generally in any manner and on any terms which he thinks
fit. 

  

	(b)	The consideration for any such transaction may consist of cash, debentures or other obligations, shares, stock or other valuable consideration and any such consideration may be
payable in a lump sum or by instalments spread over any period which he thinks fit. 

  

	(c)	Fixtures, other than landlord’s fixtures, may be severed and sold separately from the property containing them without the consent of the Chargor. 

  

	13.7	Leases 

 A Receiver may let any Security Asset for
any term and at any rent (with or without a premium) which he thinks fit and may accept a surrender of any lease or tenancy of any Security Asset on any terms which he thinks fit (including the payment of money to a lessee or tenant on a surrender).

  

	13.8	Compromise 

 A Receiver may settle, adjust, refer to
arbitration, compromise and arrange any claim, account, dispute, question or demand with or by any person who is or claims to be a creditor of the Chargor or relating in any way to any Security Asset. 
  

	13.9	Legal actions 

 A Receiver may bring, prosecute,
enforce, defend and abandon any action, suit or proceedings in relation to any Security Asset which he thinks fit. 
  

	13.10	Receipts 

 A Receiver may give a valid receipt for
any moneys and execute any assurance or thing which may be proper or desirable for realising any Security Asset. 
  

	13.11	Subsidiaries 

 A Receiver may form a Subsidiary of
the Chargor and transfer to that Subsidiary any Security Asset. 
  

	13.12	Delegation 

 A Receiver may delegate his powers in
accordance with this Deed. 
  

 19 

	13.13	Lending 

 A Receiver may lend money or advance
credit to any customer of the Chargor. 
  

	13.14	Protection of assets 

 A Receiver may: 

 

	 	(a)	effect any repair or insurance and do any other act which the Chargor might do in the ordinary conduct of its business to protect, preserve, maintain, manage or improve any Security
Asset; 

  

	 	(b)	commence and/or complete any building operation; and 

  

	 	(c)	apply for and maintain any planning permission, building regulation approval or any other authorisation, 

 in each case as he thinks fit. 
  

	13.15	Other powers 

 A Receiver may: 
  

	 	(a)	do all other acts and things which he may consider desirable or necessary for realising any Security Asset or incidental or conducive to any of the rights, powers or discretions
conferred on a Receiver under or by virtue of this Deed or law; 

  

	 	(b)	exercise in relation to any Security Asset all the powers, authorities and things which he would be capable of exercising if he were the absolute beneficial owner of that Security
Asset; and 

  

	 	(c)	use the name of the Chargor for any of the above purposes. 

  

	14.	APPLICATION OF PROCEEDS 

 Save as otherwise provided
in this Deed, all moneys received or recovered by the Security Agent or any Receiver after this Security has become enforceable must be applied in or towards discharge of the Secured Liabilities in accordance with the provisions on clause 11 of the
Trust Deed. 
 This Clause is subject to the payment of any claims having priority over this Security. This Clause does not prejudice the
right of any Secured Party to recover any shortfall from the Chargor. 
  

	15.	EXPENSES AND INDEMNITY 

 The Chargor must:

  

	 	(a)	immediately on demand pay all costs and expenses (including legal fees) incurred in connection with this Deed by any Secured Party, Receiver, attorney, manager, agent or other
person appointed by the Security Agent under this Deed including any arising from any actual or alleged breach by any person of any law or regulation, whether relating to the environment or otherwise; and 

  

	 	(b)	keep each of them indemnified against any failure or delay in paying those costs or expenses. 

  

 20 

	16.	DELEGATION 

  

	16.1	Power of attorney 

 The Security Agent or any
Receiver may delegate by power of attorney or in any other manner to any person any right, power or discretion exercisable by it under this Deed. 
  

	16.2	Terms 

 Any such delegation may be made upon any
terms (including power to sub-delegate) which the Security Agent or any Receiver may think fit. 
  

	16.3	Liability 

 Neither the Security Agent nor any
Receiver will be in any way liable or responsible to the Chargor for any loss or liability arising from any act, default, omission or misconduct on the part of any delegate or sub-delegate. 
  

	17.	FURTHER ASSURANCES 

 The Chargor must, at its own
expense, take whatever action the Security Agent or a Receiver may reasonably require for: 
  

	 	(a)	creating, perfecting or protecting any security intended to be created by this Deed; or 

  

	 	(b)	facilitating the realisation of any Security Asset, or the exercise of any right, power or discretion exercisable, by the Security Agent or any Receiver or any of its delegates or
sub-delegates in respect of any Security Asset. 

 This includes: 
  

	 	(i)	the execution of any transfer, conveyance, assignment or assurance of any property, whether to the Security Agent or to its nominee; or 

  

	 	(ii)	the giving of any notice, order or direction and the making of any registration, 

 which, in any such case, the Security Agent may think expedient. 
  

	18.	POWER OF ATTORNEY 

 The Chargor, by way of security,
irrevocably and severally appoints the Security Agent, each Receiver and any of its delegates or sub-delegates to be its attorney to take any action which the Chargor is obliged to take under this Deed. The Chargor ratifies and confirms whatever any
attorney does or purports to do under its appointment under this Clause. 
  

	19.	PRESERVATION OF SECURITY 

  

	19.1	Continuing security 

 This Security is a continuing
security and will extend to the ultimate balance of the Secured Liabilities regardless of any intermediate payment or discharge in whole or in part. 
  

 21 

	19.2	Reinstatement 

  

	(a)	If any discharge (whether in respect of the obligations of any Obligor or any security for those obligations or otherwise) or arrangement is made in whole or in part on the faith of
any payment, security or other disposition which is avoided or must be restored on insolvency, liquidation, administration or otherwise without limitation, the liability of the Chargor under this Deed will continue or be reinstated as if the
discharge or arrangement had not occurred. 

  

	(b)	Each Secured Party may concede or compromise any claim that any payment, security or other disposition is liable to avoidance or restoration. 

  

	19.3	Waiver of defences 

 The obligations of the Chargor
under this Deed will not be affected by any act, omission or thing which, but for this provision, would reduce, release or prejudice any of its obligations under this Deed (whether or not known to the Chargor or any Secured Party). This includes:

  

	 	(a)	any time or waiver granted to, or composition with, any person; 

  

	 	(b)	the release of any person under the terms of any composition or arrangement; 

  

	 	(c)	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any person;

  

	 	(d)	any non-presentation or non-observance of any formality or other requirement in respect of any instruments or any failure to realise the full value of any security;

  

	 	(e)	any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of any person; 

  

	 	(f)	any amendment (however fundamental) of a Finance Document or any other document or security; 

  

	 	(g)	any unenforceability, illegality, invalidity or non-provability of any obligation of any person under any Finance Document or any other document or security; or

  

	 	(h)	any insolvency or similar proceedings. 

  

	19.4	Immediate recourse 

  

	(a)	The Chargor waives any right it may have of first requiring any Secured Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or
claim payment from any person before claiming from the Chargor under this Deed. 

  

	(b)	This waiver applies irrespective of any law or provision of a Finance Document to the contrary. 

  

	19.5	Appropriations 

 Each Secured Party (or any trustee
or agent on its behalf) may at any time during the Security Period without affecting the liability of the Chargor under this Deed: 
  

	 	(a)	(i) refrain from applying or enforcing any other moneys, security or rights held or received by that Secured Party (or any trustee or agent on its behalf) against those
amounts; or 

  

 22 

	 	(ii)	apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise); and 

  

	 	(b)	hold in a suspense account any moneys received from the Chargor or on account of the liability of the Chargor under this Deed. 

  

	19.6	Non-competition 

 Unless: 
  

	 	(a)	the Security Period has expired; or 

  

	 	(b)	the Security Agent otherwise requests, 

 the Chargor will
not, after a claim has been made under this Deed or by virtue of any payment or performance by it under this Deed: 
  

	 	(i)	be subrogated to any rights, security or moneys held, received or receivable by any Secured Party (or any trustee or agent on its behalf); 

  

	 	(ii)	be entitled to any right of contribution or indemnity in respect of any payment made or moneys received on account of the Chargor’s liability under this Deed;

  

	 	(iii)	claim, rank, prove or vote as a creditor of any Obligor or its estate in competition with any Secured Party (or any trustee or agent on its behalf); or 

  

	 	(iv)	receive, claim or have the benefit of any payment, distribution or security from or on account of any Obligor, or exercise any right of set-off as against any Obligor.

 The Chargor must hold in trust for and immediately pay or transfer to the Security Agent for the Secured Parties any payment
or distribution or benefit of security received by it contrary to this Clause or in accordance with any directions given by the Security Agent under this Clause. 
  

	19.7	Additional security 

 This Security is in addition
to and is not in any way prejudiced by any other security now or subsequently held by any Secured Party. 
  

	20.	MISCELLANEOUS 

  

	20.1	Covenant to pay 

 The Chargor must pay or discharge
the Secured Liabilities in the manner provided for in the Finance Documents. 
  

	20.2	New accounts 

  

	(a)	If any subsequent charge or other interest affects any Security Asset, the Security Agent may open a new account with the Chargor. 

  

	(b)	If the Security Agent does not open a new account, it will nevertheless be treated as if it had done so at the time when it received or was deemed to have received notice of that
charge or other interest. 

  

 23 

	(c)	As from that time all payments made to the Security Agent or any other Secured Party will be credited or be treated as having been credited to the new account and will not operate
to reduce any Secured Liability. 

  

	20.3	Time deposits 

 Without prejudice to any right of
set-off any Secured Party may have under any other Finance Document or otherwise, if any time deposit matures on any account the Chargor has with any Secured Party within the Security Period when: 
  

	 	(a)	this Security has become enforceable; and 

  

	 	(b)	no Secured Liability is due and payable, 

 that time
deposit will automatically be renewed for any further maturity which that Secured Party considers appropriate. 
  

	20.4	Notice of assignment 

 This Deed constitutes notice
in writing to the Chargor of any charge or assignment of a debt owed by the Chargor to the Issuer or Opco and contained in any other Security Document. 
  

	20.5	Certificates and determinations 

 Any certification
or determination by a Secured Party of an amount under this Deed will be, in the absence of manifest error, conclusive evidence of the matters to which it relates. 
  

	21.	RELEASE 

  

	(a)	At the end of the Security Period, the Security Agent must, at the written request and cost of the Chargor and subject to it being indemnified and/or secured to its satisfaction,
take whatever action is necessary to release its Security Assets from this Security. 

  

	(b)	Any release in relation to the Chargor will be conditional upon no security or payment to the Security Agent by or on behalf of the Chargor and/or any other Obligor being avoided or
reduced by virtue of any bankruptcy, insolvency, liquidation or similar laws of general application and will in those circumstances be void. 

  

	22.	NOTICES 

  

	(a)	Any notice or other communication hereunder shall be in writing. It shall be served by letter sent by registered post or courier or by fax: 

  

	 	(i)	in the case of the Chargor, to it at: 

 Asia Silicon
Technology Holdings Limited 
 36/F, Two Exchange Square 
 Central 
 Hong Kong 
 Fax no.:         +852 2526 7638 
 Attention:      Richard Li / David Fung 
  

 24 

	 	(ii)	in the case of the Security Agent, to it at: 

 DB Trustees
(Hong Kong) Limited 
 55th Floor 
 Cheung Kong Center 
 2 Queen’s Road Central 
 Hong Kong 
 Fax no.:         +852 2203 7320 
 Attention:      The Managing Director 
  

	(b)	Communications will take effect, in the case of a letter sent by registered post, on the seventh business day in Hong Kong receipt after posting; in the case of a letter sent by
courier, at the time of delivery; in the case of fax, at the time of despatch if the correct error-free transmission report is received; provided that if such communication would take effect outside business hours then it shall be deemed to be
received on the next business day in the place of receipt. 

  

	(c)	For the purposes of this Clause 22, business day means a day on which commercial banks and foreign exchange markets are open for business in the relevant location(s).

  

	23.	LANGUAGE 

 Any notice given in connection with this
Deed must be in English. 
  

	24.	SEVERABILITY 

 If a term of this Deed is or becomes
illegal, invalid or unenforceable in any respect under any jurisdiction, that will not affect: 
  

	 	(a)	the legality, validity or enforceability in that jurisdiction of any other term of this Deed; or 

  

	 	(b)	the legality, validity or enforceability in any other jurisdiction of that or any other term of this Deed. 

  

	25.	AMENDMENTS AND WAIVERS 

  

	25.1	Procedures 

 The Chargor agrees to any amendment or
waiver allowed by clause 16 or 18 (as the case may be) of the Trust Deed (which is agreed to by the Issuer where the Issuer’s consent is required pursuant to the Trust Deed). This includes any amendment or waiver which would, but for this
paragraph, require the consent of the Chargor if this Deed is to remain in full force and effect. 
  

	25.2	Waivers and remedies cumulative 

 The rights of the
Security Agent under this Deed: 
  

	 	(a)	may be exercised as often as necessary; 

  

	 	(b)	are cumulative and not exclusive of its rights under the general law; and 

  

	 	(c)	may be waived only in writing and specifically. 

 Delay in
exercising or non-exercise of any right is not a waiver of that right. 
  

 25 

	26.	CHANGES TO THE PARTIES 

  

	26.1	The Chargor 

 The Chargor may not assign or transfer
any of its rights or obligations under this Deed. 
  

	26.2	The Security Agent 

 The Security Agent may assign
or otherwise dispose of all or any of its rights under this Deed in accordance with the provisions contained in the Trust Deed or the Conditions. 
  

	27.	COUNTERPARTS 

 This Deed may be executed in any
number of counterparts. This has the same effect as if the signatures on the counterparts were on a single copy of this Deed. 
  

	28.	GOVERNING LAW 

  

	28.1	Governing law 

 This Deed is governed by Hong Kong
law. 
  

	28.2	Jurisdiction 

 Subject to the following sentence,
the Chargor agrees for the benefit of the Security Agent that the courts of Hong Kong are to have non-exclusive jurisdiction to settle any disputes which may arise out of or in connection with this Deed and accordingly submit to the non-exclusive
jurisdiction of the courts of Hong Kong. The Security Agent may take any suit, action or proceedings (together referred to as Proceedings) against the Chargor in any other court of competent jurisdiction and concurrent Proceedings in any
number of jurisdictions. 
  

	28.3	Immunity 

 The Chargor hereby waives with respect to
this Deed any right to claim sovereign or other immunity from jurisdiction or execution and any similar defence, and irrevocably consents to the giving of any relief or the issue of any process, including, without limitation, the making, enforcement
or execution against any property whatsoever (irrespective of its use or intended use) of any order or judgment made or given in connection with any Proceedings. 
 This Deed has been entered into as a deed on the date stated at the beginning of this Deed. 
  

 26 

 SCHEDULE 1 
 SECURITY ASSETS 
 REAL PROPERTY 
 NIL 
 RESTRICTED ACCOUNTS 
 NIL 
 SPECIFIC INTELLECTUAL PROPERTY RIGHTS

 NIL 
 RELEVANT CONTRACTS

 NIL 
  

 27 

 SCHEDULE 2 
 FORMS OF LETTER FOR ACCOUNT BANK 
 PART 1 
 NOTICE TO ACCOUNT BANK 
 [On the
letterhead of the Chargor] 
  

	To:	[Account Bank] 

  

	Copy:	DB Trustees (Hong Kong) Limited 

 [Date] 
 Dear Sirs, 
 Security Agreement dated 10 September
2007 between Asia Silicon Technology Holdings Limited 
 and DB Trustees (Hong Kong) Limited (the Security Agreement) 
 This letter constitutes notice to you that under the Security Agreement we (the Chargor) have charged (by way of a first fixed charge) in favour of DB Trustees
(Hong Kong) Limited (the Security Agent) all our rights in respect of any amount standing to the credit of the account maintained by us with you (Account no. [            ] sort code
[            ]) (the Restricted Account) and the debt represented by it. 
 We irrevocably
instruct and authorise you to: 
  

	(a)	disclose to the Security Agent any information relating to the Restricted Account requested from you by the Security Agent; 

  

	(b)	comply with the terms of any written notice or instruction relating to the Restricted Account received by you from the Security Agent; 

  

	(c)	hold all sums standing to the credit of the Restricted Account to the order of the Security Agent; and 

  

	(d)	pay or release any sum standing to the credit of the Restricted Account in accordance with the written instructions of the Security Agent. 

 We are not permitted to withdraw any amount from the Restricted Account without the prior written consent of the Security Agent. 
 We acknowledge that you may comply with the instructions in this letter without any further permission from us or enquiry by you. 
 The instructions in this letter may not be revoked or amended without the prior written consent of the Security Agent. 
 This letter is governed by Hong Kong law. 
  

 28 

 Please confirm your agreement to the above by sending the attached acknowledgement to the Security Agent at [—] with a copy to us. 
  

	
	Yours faithfully,
	
	  
	 (Authorised Signatory)
 Asia Silicon Technology
Holdings Limited

  

 29 

 PART 2 
 ACKNOWLEDGEMENT OF ACCOUNT BANK 
 [On the letterhead of the Account Bank] 
  

	To:	DB Trustees (Hong Kong) Limited 

  

	Copy:	Asia Silicon Technology Holdings Limited 

 [Date]

 Dear Sirs, 
 Security Agreement dated
10 September 2007 between Asia Silicon Technology Holdings Limited 
 and DB Trustees (Hong Kong) Limited (the Security Agreement)

 We confirm receipt from Asia Silicon Technology Holdings Limited (the Chargor) of a notice dated
[            ] of a charge upon the terms of the Security Agreement over all the rights of the Chargor to any amount standing to the credit of its account with us (Account no.
[            ], sort code [            ]) (the Restricted Account) and the debt represented by it. 
 We confirm that we: 
  

	(a)	accept the instructions contained in the notice and agree to comply with the notice; 

  

	(b)	have not received notice of the interest of any third party in the Restricted Account; 

  

	(c)	have neither claimed nor exercised, nor will claim or exercise, any security interest, set-off, counter-claim or other right in respect of the Restricted Account; and

  

	(d)	will not permit any amount to be withdrawn from the Restricted Account without your prior written consent. 

 This letter is governed by Hong Kong law. 
  

	
	Yours faithfully,
	
	  
	 (Authorised Signatory)
 [Account
Bank]

  

 30 

 SCHEDULE 3 
 FORMS OF LETTER FOR RELEVANT CONTRACTS 
 PART 1 
 NOTICE TO COUNTERPARTY 
  

	To:	[Contract party] 

 [Date] 
 Dear Sirs, 
 Security Agreement dated 10 September
2007 between Asia Silicon Technology Holdings Limited 
 and DB Trustees (Hong Kong) Limited (the Security Agreement) 
 This letter constitutes notice to you that under the Security Agreement we have assigned by way of security to DB Trustees (Hong Kong) Limited (the Security Agent)
all our rights in respect of [insert details of Contract] (the Contract). 
 We confirm that: 
  

	(a)	we will remain liable under the Contract to perform all the obligations assumed by us under the Contract; and 

  

	(b)	none of the Security Agent, its agents, any receiver or any other person will at any time be under any obligation or liability to you under or in respect of the Contract.

 We will also remain entitled to exercise all our rights, powers and discretions under the Contract, and you should continue to give notices
under the Contract to us, unless and until you receive notice from the Security Agent to the contrary stating that the security has become enforceable. In this event, all the rights, powers and discretions will be exercisable by, and notices must be
given to, the Security Agent or as it directs. 
 Please note that we have agreed that we will not amend or waive any provision of or terminate the Contract
without the prior consent of the Security Agent. 
 This letter is governed by Hong Kong law. 
 Please acknowledge receipt of this letter by sending the attached acknowledgement to the Security Agent at [—] with a copy to us. 
  

	
	Yours faithfully,
	
	  
	 (Authorised Signatory)
 Asia Silicon Technology
Holdings Limited

  

 31 

 PART 2 
 ACKNOWLEDGEMENT OF COUNTERPARTY 
  

	To:	DB Trustees (Hong Kong) Limited as Security Agent 

  

	Copy:	Asia Silicon Technology Holdings Limited 

 [Date]

 Dear Sirs, 
 Security Agreement dated
10 September 2007 between Asia Silicon Technology Holdings Limited 
 and DB Trustees (Hong Kong) Limited (the Security Agreement)

 We confirm receipt from Asia Silicon Technology Holdings Limited (the Chargor) of a notice dated [—] of an
assignment on the terms of the Security Agreement dated 10 September 2007 of all the Chargor’s rights in respect of [insert details of the Contract] (the Contract). 
 We confirm that we will pay all sums due, and give notices, under the Contract as directed in that notice. 
 This letter is
governed by Hong Kong law. 
  

	
	Yours faithfully,
	
	  
	 (Authorised Signatory)
 [Counterparty]

  

 32 

 SIGNATORIES 
 Chargor 
  

					
	 The COMMON SEAL of
 ASIA SILICON TECHNOLOGY

 HOLDINGS LIMITED
 was affixed to this deed
 in the presence of:
	  	 )
 )
 )
 )
 )
	  	

 

 
 Director/Secretary 
 Name: 

Security Agent 
 DB TRUSTEES (HONG KONG) LIMITED

 By: 

 SIGNATORIES 
 Chargor 
  

			
	 The COMMON SEAL of
 ASIA SILICON TECHNOLOGY

 HOLDINGS LIMITED
 was affixed to this deed
 in the presence of:
	  	 )
 )
 )
 )
 )

 Director 
 Name:

 Director/Secretary 
 Name: 
 Security Agent 
  

			
	DB TRUSTEES (HONG KONG) LIMITED
		
	By:	 	

		 	 Aric Kay-Russell
 Director

		
		 	

		 	 Choi Siu Ling
 DirectorEnglish Translation of Agreement of Pledge Over Shares

 Exhibit 4.13 
 AGREEMENT OF PLEDGE OVER SHARES 
 IN JIANGSU ZHONGNENG PHOTOVOLTAIC INDUSTRY DEVELOPMENT CO., LTD.

 (NOW “JIANGSU ZHONGNENG POLYSILICON TECHNOLOGY DEVELOPMENT CO., 
 LTD”) 
 Dated: September, 10, 2007 
 ASIA SILICON TECHNOLOGY HOLDINGS LIMITED 
 (as the “Pledgor”) 
 and 
 DB TRUSTEES (HONG KONG) LIMITED 
 (as the “Guarantee agency”) 
 ALLEN & OVERY 
 Allen & Overy 

 TABLE OF CONTENTS 
  

					
	 Terms and conditions
	  	Page
	1.	 	 DEFINITIONS AND INTERPRETATIONS
	  	2
	2.	 	 PLEDGE
	  	4
	3.	 	 PERFECTION OF GUARANTEE AND FURTHER ASSURANCE
	  	5
	4.	 	 REPRESENTATIONS AND UNDERTAKINGS
	  	6
	5.	 	 WARRANTIES
	  	7
	6.	 	 COMPLEMENTARY GUARANTEE
	  	9
	7.	 	 REALIZATION OF PLEDGE
	  	9
	8.	 	 RIGHT AND POWER OF GUARANTEE AGENCY
	  	10
	9.	 	 USE OF PROCEEDS
	  	10
	10.	 	 POWER OF ATTORNEY
	  	11
	11.	 	 PROTECTION FOR ANY THIRD PARTY
	  	11
	12.	 	 VALIDITY OF GUARANTEE
	  	11
	13.	 	 INDEPENDENCE OF TERMS AND CONDITIONS AND PARTIAL INVALIDITY
	  	13
	14.	 	 MODIFICATION AND WAIVER
	  	13
	15.	 	 ASSIGNMENT
	  	13
	16.	 	 NOTICE
	  	14
	17.	 	 COUNTERPART
	  	15
	18.	 	 INDEMNIFICATION
	  	15
	19.	 	 APPLICABLE LAW AND FORUM
	  	15
		 	 ANNEX 1 GUARANTEED DEBTS
	  	16
		 	 Signature Page
	  	17

  

 1 

 THIS AGREEMENT is dated on September 10, 2007 and is concluded by and between: 
  

	 	(1)	ASIA SILICON TECHNOLOGY HOLDINGS LIMITED, a corporation incorporated and established under the laws of Hong Kong, with corporation number 1087124, as the pledgor (hereinafter
referred to as the Pledgor); and 

  

	 	(2)	DB TRUSTEES (HONG KONG) LIMITED, as the guarantor (hereinafter referred to as the Guarantee agency) of rights and interests of the Secured parties.

 (Separately, referred to as a Party while collectively, the Parties) 
 WHEREAS, 
 For the purpose of the Trust Deed (as defined below), the
Pledgor is entering into this Agreement. 
 Terms and conditions of the Agreement are hereby set forth as follows:  
 1. DEFINITIONS AND INTERPRETATIONS 
 1.1 Definitions 
 “Guarantee period” refers to the period as of the date of formulation of the Agreement up to the date of unconditionally and irrevocably full discharge
of any and all Guaranteed debts. 
 “Guarantee agreement” refers to the guarantee agreement dated September 10, 2007 as
concluded by and between the Issuer as the guarantor and the Guarantee agency. 
 “Guaranteed debts” refers to any and all
obligations and debts payable and/or to be payable to any Secured party under any Finance document to which the Debtor as a party, actually and/or potentially, and/or jointly and/or of any other forms, except for any obligation which
may bring to a contravention of the Agreement to provisions of Section 47A of Company Ordinance, Chapter 32 of the Laws of Hong Kong. 
 “Issuer” refers to Asia Silicon Technology Holdings Inc., a corporation duly organized in Cayman Islands, with corporation number as 187165. 
 “Industrial and Commercial Bureau” refers to State Administration for Industry and Commerce of PRC and any of its branches in any place. 
  

 2 

 “Company” refers to Jiangsu Zhongneng Photovoltaic Industry Development Co., Ltd. (now “Jiangsu
Zhongneng Polysilicon Technology Development Co., Ltd.) (Chinese name as “

”), a Chinese-foreign equity joint venture duly organized and exists under the laws of PRC, with legal address as the Northern side of 310 State Highway, Economic Development Zone, Xuzhou City, Jiangsu
Province, original Registered capital as RMB 320,000,000 Yuan and paid-up capital as RMB 320,000,000 Yuan, and existing Registered capital as RMB 620,000,000 Yuan after pooling more as approved by Department of Foreign Trade & Economic
Cooperation, Jiangsu Provincial Government. 
 “State Administration of Foreign Exchange” refers to the State Administration of Foreign
Exchange of PRC and any of its branches in any place. 
 “Equity” refers to the amount RMB 204,800,000 Yuan possessed by the Pledgor as the
registered capital contribution of the Company (accounting for sixty four percent (64%) of the paid-up registered capital RMB 320,000,000 Yuan) as well as related rights and interests (including any and all dividends and/or any other rights and
interests). 
 “Department of Foreign Trade & Economic Cooperation” refers to the Department of Foreign Trade & Economic
Cooperation, Jiangsu Provincial Government. 
 “Terms and conditions” refer to the terms and conditions regarding debentures as set forth in
Annex 1 of the Trust Deed. 
 “Trust Deed” refers to the trust deed dated on September 10, 2007 as executed by and between the Issuer,
DB Trustees (Hong Kong) Limited as the trustor and the Guarantee agency. 
 “Debentures” refers to those issued by the Issuer, namely,

  

	 	(a)	A shares of USD 20,000,000 guaranteed debentures with floating interest rate, and mature in 2009; and 

  

	 	(b)	B shares of USD 40,000,000 convertible debentures with floating interest rate, and mature in 2009. 

 “Debtor” refers to the Pledgor and the Issuer. 
 “Articles of Association” refers to the
latest and valid articles of association of the Company, including any amendments as may be made by the Company from time to time. 
 “China or
PRC” refers to the People’s Republic of China (for the purpose of the Agreement, excluding Hong Kong SAR, Macao SAR and Taiwan province). 
  

 3 

	1.2	Successor and Assignee 

 If otherwise permitted by context, Pledgor,
Issuer, Company, Debtor, Guarantee agency and Secured party shall include their respective agent, successor, approved assignee and any other personnel obtaining rights and interests from them. 
  

	1.3	Miscellaneous 

  

	(a)	Unless otherwise defined herein, any words or expressions in upper case defined or construed in the Trust Deed shall have the same definition or construction when used herein.

  

	(b)	Unless otherwise defined herein or in the Trust Deed, any words or expressions in upper case defined or construed in the Terms and conditions shall have the same definition or
construction when used herein. 

  

	(c)	Provisions set forth in the article 1.2 of the Trust Deed shall be applicable to the Agreement to extent that such provisions were stipulated in the Agreement. Notwithstanding the
previous stipulations, when the “Trust Deed” is referred to, it shall be construed as the “Agreement” and when “England” is referred to, it shall be construed as “PRC”. 

  

	(d)	Provisions set forth in the article 1.2(g) of the Guarantee agreement shall be applicable to the Agreement to extent that such provisions were stipulated in the Agreement.
Notwithstanding the previous stipulations, when the “Guarantee agreement” is referred to, it shall be construed as the “Agreement”. 

  

	(e)	Event of default exists refers to the circumstance where the event of default has caused and no remedy has been made against such event of default or such event of default
has not yet been exempted in writing as per provisions stipulated in the Finance documents. 

 2. PLEDGE 
 2.1 Establishment of pledge 
  

	(a)	in order to guarantee the punctual payment, performance and discharge of any and all Guaranteed debts, in full amount, the Pledgor hereby establishes the first priority pledge right
(hereinafter referred to as the “Pledge”), in favor of the Guarantee agency (for the rights and interests of the Secured parties). 

  

	(b)	The Guarantee agency, acting as the agent of the Secured parties and for the rights and interests of the Secured parties, shall hold any and all rights and interests of the Pledge
and the Secured parties under the Agreement. 

 2.2 Recession of Pledge 
  

	(a)	The Guarantee agency shall after expiry of the Guarantee period take all measures as necessary for recession of the Equity pledge upon request of the Pledgor at expenses of the
Pledgor in line with satisfaction degree of compensation and/or guarantee as achieved by the Guarantee agency. 

  

 4 

	(b)	The Pledgor shall not rescind the Pledge if any Guaranteed rights and interests should be released or decreased, or payment to the Guarantee agency from any Pledgor and/or any other
Debtors or and personnel on behalf of them should be exempted or reduced, due to any bankruptcy, insolvency, liquidation or generally applicable and similar laws, and any and all exemptions made out of any of circumstance as aforesaid shall be null
and void. 

 3. PERFECTION OF GUARANTEE AND FURTHER ASSURANCE 
 3.1 Agreement of the Company and other equity owner 
 Subsequent to execution of the Agreement, The Pledgor shall at its own
expenses submit an agreement document to the Guarantee agency, the form and content of which meet the requirement of the Guarantee agency, and with consent of the Company and other equity owners of the Company, the Pledgor shall enter into the
Agreement and any other supplementary pledge agreement and give its consent so that the Guarantee agency may exercise any and all rights and interests under the Agreement (including any and all rights and interests under article 7 “Realization
of Pledge right”). 
 3.2 Approval of Department of Foreign Trade & Economic Cooperation 
 The Pledgor shall within the period as specified in the Terms and conditions after execution of the Agreement and at expenses of the Pledgor apply with the Department of
Foreign Trade & Economic Cooperation for approval of the Pledge under the Agreement and shall submit a copy of related approval certificate verified as true and accurate in contents to the satisfaction (both in form and in contents) of the
Guarantee agency to the Guarantee agency. 
 3.3 Filing with the Industrial and Commercial Bureau 
 The Pledgor shall at its own expenses, subsequent to approval of the Department of Foreign Trade & Economic Cooperation, file the Agreement with the Industrial
and Commercial Bureau within the period as stipulated in the Terms and conditions without delay and shall submit a copy of related filing certificate verified as true and accurate in contents to the satisfaction (both in form and in contents) of the
Guarantee agency to the Guarantee agency. 
  

 5 

 3.4 Shareholders roll 
 The
Pledgor shall at its own expenses, subsequent to approval of the Department of Foreign Trade & Economic Cooperation, record the Pledge under the Agreement in the Shareholders roll without delay and upon completion of such recording submit a
copy of such Shareholders roll to the satisfaction (both in form and in contents) of the Guarantee agency to the Guarantee agency. 
 3.5 Other perfection
measures 
 The Pledgor shall at its own expenses immediately submit the Guarantee agency with or ensure that the Guarantee agency may obtain (for
safeguarding rights and interests of the Secured parties) any and all necessary consent, approval and any other similar documents as held by the Pledgor and with regard to the Pledge as established under the Agreement and issued to the Pledgor by
any competent state authority, provincial and/or local governments. For the purposes of prevention of having discrepancies, approvals of the Department of Foreign Trade & Economic Cooperation and records of the Industrial and Commercial
Bureau shall be obtained in the light of the provisions of the Terms and conditions only. 
 3.6 Further security measures 
 The Pledgor shall as per requirements of the Guarantee agency, within the scope of provisions of the Trust Deed and at expenses of the Pledgor take any measure (including
registration or filing any agreement, notification, promise or any other document as may be designated by the Guarantee agency with any central government authority, any provincial and/or local government) from time to time, or as per instructions
and format as specified by the Guarantee agency and within the applicable extent under PRC laws for the purposes of rights and interests of the Guarantee execute relevant documents so as to establish, perfect and maintain the guarantee as
established under the Agreement and further exercise the guarantee as per the Agreement or facilitate to realization of the guarantee conferred by the Agreement, or further contribute to exercise any and all rights and interests, power, authority
and discretionary power as conferred by the Agreement by the Guarantee agency (for the purpose of rights and interests of the Secured parties). 
 4.
REPRESENTATIONS AND UNDERTAKINGS 
 4.1 Pledgor hereby states and undertakes as follows: 
  

	(a)	Pledgor is the sole legal owner of Equity and the holder of actual rights and interests; no secured interest on any Equity has been established by the Pledgor or being permitted to
be established by the Pledgor, and no Equity has been sequestrated, mortgaged or is under any legal proceedings; the Pledgor has and will continue to have any and all legal proprietorship of any and all Equity held by the Pledgor and such
proprietorship is not restricted or affected by any secured interest (other than those secured interests duly established as per the Security documents) or rights and interests of any third party (other than those rights and interests from any
universally applicable laws to the Company); 

  

 6 

	(b)	Equity represents the portion of the registered capital contribution of the Company, namely RMB 204,800,000, which accounts for sixty four (64%) of the paid-up registered
capital contribution of the Company, namely, RMB 320,000,000, and corresponding rights and interests; such portion of registered capital contribution has already been fully paid off. 

  

	(c)	Before issuance of debentures and providing loans to the Pledgor with the sum from such issuance of debentures by the Issuer in order to realize the purpose that the Pledgor may pay
the remaining amount of equity transferring price for transfer of Equity, the equity transferring price for transfer of Equity payable by the Pledgor has not bee fully paid off; and 

  

	(d)	Pledgor has not concluded any agreement (other than the Security documents) for the purposes of selling, conferring, assignment or otherwise handling of any Equity, in whole or in
part, or any right, interest or benefit. 

 4.2 Any and all statements and undertakings so made by the Pledgor under the Agreement shall be
deemed to exist all the time and in any time during the Guarantee period and are made in the light of the de facto practices then. 
 5. WARRANTIES 

 Till the end of the Guarantee period, the Pledgor warrants that: 
 5.1 the Pledgor will take any and all necessary measures in order to ensure the full validity of the Articles of Association and to safeguard any and all rights of the Pledgor itself and the Guarantee agency (for the purposes of rights and
interests of the Secured parties) under the Articles of Association; 
 5.2 should any issue which may materially affect the Equity or values of such Equity
or which may interfere, impair or otherwise cause proper performance of any obligation of the Pledgor under the Agreement and/or under the Articles of Association occur, the Pledgor shall so notify the Guarantee agency without delay; 
 5.3 upon receipt of any notification pertaining to the Equity by the Pledgor, the Pledgor shall provide a copy of such notification to the Guarantee agency without
delay; 
 5.4 the Pledgor shall fully observe any and all PRC laws and regulations in connection with the Equity and handle and complete all formalities as
may be necessary for establishment of the Pledge, including without limitation to acquisition of any and all approvals, registrations, recordings and consents as set forth from article 3.2 (inclusive) to article 3.4 (inclusive); 
  

 7 

 5.5 the Pledgor shall not establish, maintain or update any guarantee of the Equity of any nature or permit the same to
be established, maintained or updated except for the guarantee as established under the Agreement; 
 5.6 without prior written consent of the Guarantee
agency, the Pledgor shall not sell, confer, assign or otherwise dispose the Equity; 
 5.7 the Pledgor shall subsequent to completion of perfection
formalities for the guarantee under the Agreement establish premier priority pledge right for the Equity; 
 5.8 except for any legal preferential debt
universally applicable for the Company, the Pledgor shall ensure that the obligations of the Pledgor under the Agreement shall be at least in the equivalent compensational rank with other obligations non-guaranteed of the Pledgor at present and in
the future; 
 5.9 unless otherwise specified by the Trust Deed, the Pledgor shall ensure that there is not any restriction with regard to the Company’s
paying dividends to shareholders of the Company except for such restrictions as provided by applicable laws; 
 5.10 the Pledgor shall not out of any act or
omission derogate values of the Equity or impair any rights and interests of the Guarantee agency in such Equity (for the purposes of the Secured parties); 
 5.11 in case of any material adverse effect caused in any form (as defined in article 5 of the Terms and conditions), the Pledgor shall not without prior written consent of the Guarantee agency 
  

	(a)	modify the Articles of Association of any other duly established documents; or 

  

	(b)	enact any agreement with any shareholder or any investor; 

 5.12 without
prior consent of the Guarantee agency, the Pledgor shall not increase the registered capital of the Company, and if the Company increases its registered capital with prior consent of the Guarantee agency, the Pledgor shall (a) upon request of
the Guarantee agency immediately pay off the newly added equity from the portion of the registered capital so added; (b) for the purpose of the newly added equity from the portion of the registered capital so added immediately pursuant to a
pledge agreement equivalent to the Agreement in the form and in nature Pledge the same to the Guarantee agency (for the purposes of rights and interests of the Secured parties) so as to secure the discharge of the Guaranteed debts; and
(c) handle and complete any and all formalities for the effectiveness of the Pledge of such new shares, including but not limited to acquiring any and all approvals, registrations, recordings and consents as set forth in article 3.2 to article
3.4; 
  

 8 

 5.13 the Pledgor shall not make any act or omission or permit any act or omission be made by others where such act or
omission may lead to contravention of provisions of the Agreement or the Articles of Association by the Pledgor or may or is probably to impair rights and interests of each Secured party under the Finance documents; 
 5.14 in order to ensure that the Pledgor may perform its obligations under the Agreement or for the purpose of validity and enforceability of any Finance document, for
any authorization in contravention of requirements of any law or regulation, the Pledgor shall immediate 
  

	(a)	acquire and maintain such authorization and be abided by its provisions; and 

  

	(b)	provide a copy of such authorization verified as true and accurate to the Guarantee agency; 

 5.15 if the Pledge under the Agreement can be realized pursuant to article 7.1, the Pledgor shall give the Guarantee agency with any and all assistances as may be necessary for realization of the Pledge as stipulated
in article 7.2 or ensure such assistances be given to the Guarantee agency by the Company as it may be; and 
 5.16 the Pledgor shall ensure that the Company
may as per provisions of applicable laws and regulations approve, replay, negotiate and pay up any and all registered capital. 
 6. COMPLEMENTARY
GUARANTEE 
 The Agreement shall serve as a supplementary of other Finance documents and does not exclude other Finance documents. 
 7. REALIZATION OF PLEDGE 
 7.1 Realization: in case of
any Event of default, the Pledge can be realized when the Guarantee agency (subject to the Guarantee agency’s acquisition of compensation and/or guarantee to the satisfaction of the Guarantee agency) notify the Pledgor as per instructions of
any applicable Bondholders numbers of the Trust Deed that the Pledge can be realized. When the Pledge is realized, the Guarantee may as per a method recognized by the Guarantee agency or (subject to the Guarantee agency’s acquisition of
compensation and/or guarantee to the satisfaction of the Guarantee agency) as per instructions of any applicable Bondholders numbers of the Trust Deed at the Guarantee agency’s own discretion determine to realize the Pledge, whether in whole or
in part. 
 7.2 After realization: after realization of the guarantee under the Agreement pursuant to article 7.1, unless the Guarantee agency
otherwise instructs in writing, the Pledgor shall cease from exercising any rights in connection with the Equity and the Guarantee 

  

 9 

 
agency (for the purpose of rights and interests of the Secured parties) shall be entitled to take any actions permitted by PRC laws or any action permitted
by any adjudication in connection with realization of Equity and guarantee, including without limitation to 
  

	(a)	legally take possession of the Equity or any part of the Equity; 

  

	(b)	legally take actions regarding discount, selling off or auction of the Equity or any party of the Equity; 

  

	(c)	enter into, perform or modify the Articles of Association, and 

  

	(d)	take any and all actions that the Guarantee agency deems to be necessary or crucial for realization of the whole or party Equity, or take any and all actions which may contribute to
the Guarantee agency’s (for the purpose of rights and interests of the Secured parties) discharge of each right as conferred by the agreement. 

 8. RIGHT AND POWER OF GUARANTEE AGENCY 
 8.1 Right and power: any and all rights and powers in connection with the Equity and any part
of the Equity conferred by the Agreement to the Guarantee agency (for the purpose of rights and interests of the Secured parties) shall be a supplementary rather than displacement of rights and powers granted by laws. In case of any discrepancy and
conflict between the rights and interests granted by any applicable laws and the rights and powers granted by the Agreement, provisions of the Agreement with scope of the applicable laws shall prevail. 
 8.2 Non-responsibility provisions: the Guarantee agency shall not be held responsible to the Pledgor for any damage to the Equity or any loss to the Pledgor or
any other personnel due to disposal of the Equity by the Guarantee agency. 
 9. USE OF PROCEEDS 
 9.1 Proceeds: any and all profits (jointly the “profits”) acquired from implementation or realization of the guarantee as established under the Agreement
shall be used for paying the Guaranteed debts as per the sequence provided in article 11 of the Trust Deed, except for the whole or part of profits as otherwise requested by PRC laws (such sequence as stipulated by PRC laws shall be implemented).

 Provisions of this article are subject to the repayment as compulsively claimed in the light of applicable laws. This article shall not impair the rights
to claim for any insufficiency by the Guarantee agency against the Pledgor. 
 9.2 Exchange of currency: basing on precondition of acquisition of
approval of the State Administration of Foreign Exchange, the Guarantee agency may in line with its decision out of its absolute discretionary right purchase other currency with the market rate by employing the Rights and interests so as to realize
its profits distribution as provided in article 9.1. 
  

 10 

 10. POWER OF ATTORNEY 
 Authorization: the Pledgor hereby irrevocably appoint the Guarantee agency (without applying any obligation upon the Guarantee agency) as the Pledgor’s agent and the Guarantee agency may within the scope of provisions of
applicable laws in the name of the Pledgor or on behalf of the Pledgor or in any other manner as may be consider appropriate by the Guarantee agency 
  

	(a)	handle any and all procedures that the Pledgor as the ownership holder of the Equity should handle as well as any and all formalities under the Agreement should have been properly
handled by the Pledgor; and 

  

	(b)	exercise any and all rights conferred to the Pledgor by the Agreement. 

 The Pledgor hereby irrevocably give consent to the Guarantee agency that the Guarantee agency has full right, power and authority to reassign the rights conferred by article 10, provided that such reassignment shall not exclude the
Guarantee agency’s right to exercise such authorization by the Guarantee agency itself, and shall also not exclude the Guarantee agency’s right to reassign such authorization to any other personnel. Any and all reassignment so made shall
be subject to be revoked at any time by the Guarantee agency. 
 11. PROTECTION FOR ANY THIRD PARTY 
 Any and all personnel negotiating with the Guarantee agency shall neither have obligation in verifying and/or inquiring whether the Guarantee agency has been granted with
relevant rights or whether the Guarantee agency may exercise such rights, nor have obligation in verifying and/or inquiring whether the reassignment of the Guarantee agency has become invalid or has been revoked owing to any reason, and nor have
obligation in inquiring the justifiability and/or normative nature of any authorization of the Guarantee agency pertaining to such negotiation. Any and all buying and selling or any other transaction and entrustment regarding the whole or any part
of the Equity shall be deemed to be within the scope of the authority of the implementor. 
 12. VALIDITY OF GUARANTEE 
 12.1 Validity: the guarantee as established by the Agreement shall 
  

	(a)	be a consecutive guarantee against repayment of the whole Guaranteed debts and shall not be satisfied or revoked due to any temporary repayment or repayment of whole or party of the
Guaranteed debts or any other issues regarding interim performance of obligations; and 

  

 11 

	(b)	be a supplementary to and be independent of any other guarantees regarding the whole or part of the Guaranteed debts as may be held at any time by the Guaranteed agency and any
other Secured parties and shall not out of any form in any respect impair and/or affect such other guarantees or be impaired or affected by such other guarantees, nor shall it be affected by revocation, reassignment or exemption of such other
guarantees. 

 The validity of the Agreement and the guarantee under the Agreement shall apply to the validity of any and all payment and other
debts forming part of the Guaranteed debts from time to time, 
 12.2 Independent obligation: any and all expansions or revocations of the guarantee
under the Agreement or exemptions or revocations of any Guaranteed debt shall not exempt or revoke any guarantees or any other obligations for the Guarantee agency or other Secured parties other than under the Agreement of the Pledgor. 

12.3 No-impairment: the guarantee under the Agreement or the right to relief exercisable by the Guarantee agency or by other Secured parties shall not be
impaired by 
  

	(a)	winding up or dissolution of any debtor or any other personnel, or by any change of position, function, right to control or ownership right; 

  

	(b)	unenforceability or invalidity of any other agreement or document; 

  

	(c)	any amendment in any Finance document, or any modification, waiver or revocation of obligations of any Debtor under such Finance documents; 

  

	(d)	any extension in time or any other respects granted by any Secured party to any Debtor or any other personnel; 

  

	(e)	inability in acquiring or acquiring in whole any guarantee specified in any Finance document or inability in acquiring or acquiring in whole any other guarantee (under any Finance
document) as consented by any Debtor; 

  

	(f)	as for any guarantee as provided by any Debtor for the purpose of any obligation under any Finance document, inability to realize or fully realize its original values or inability
to revoke or replace the same; or 

  

	(g)	any other actions, things or issues of any nature which may without such provisions as set forth in the article 12.3 impair or eliminate any right of the Guarantee agency or any
other Secured parties under the Agreement or any other Finance documents. 

 12.4 Exercising of right: unless otherwise specified in the
Agreement, the Guarantee agency or other Secured parties may as per provisions of any Finance document at its own discretion exercise any and all rights exercisable without any necessity to give any cause. Any and all rights, powers or relieves
(collectively the “Secured right(s)”) as provided by the Agreement or by any laws not 

  

 12 

 
exercised or deferred in exercising shall not be deemed as a waiver of such rights, nor shall any exercising of any Secured right solely or partially shall
be deemed as exclusion of further implementation or implementation in other forms of one Secured right or of any other Secured rights. Any and all rights and relieves as provided by the Agreement shall act as a supplementary and shall not exclude
any right or relief as provided any laws. 
 13. INDEPENDENCE OF TERMS AND CONDITIONS AND PARTIAL INVALIDITY 
 In case at any time any term and condition of the Agreement under any law of any jurisdictional region is or becomes illegitimate, invalid or unenforceable, such
illegitimacy, invalidity or unenforceability shall not affect the legitimacy, validity or enforceability of other terms and conditions, the validity of other Secured rights and interests as legally established, and the legitimacy, validity or
enforceability of such terms and conditions or the validity of such Secured rights and interests under any law of any other jurisdictional regions. 
 14.
MODIFICATION AND WAIVER 
  

	14.1	Procedure 

 The Pledgor hereby gives consent to (subject to consent
of the Issuer when requested by the Guarantee agency) any modification or waiver provided by article 16 or article 18 (whichever is applicable) of the Trust Deed, including any modification or waiver which require for consent of the Pledgor in order
to keep the validity of the Agreement should provisions of this article not be made. 
  

	14.2	Waiver and cumulative relief 

 Rights of the Guarantee agency under
the Agreement 
  

	(a)	shall be frequently exercised; 

  

	(b)	shall be of cumulative rights and shall not exclude any other rights exercisable under general laws; and 

  

	(c)	may be waived in the manner in writing and only in specific items. 

 Any
deferred exercising or non-exercising of any right shall not be deemed as a waiver of such right. 
 15. ASSIGNMENT 
 15.1 Successor, assignee and assignor: the Agreement shall be binding upon the Pledgor, the Guarantee agency, each Secured party and their respective successor
(subject to provisions the article 15.2), assignee and assigner. 
  

 13 

 15.2 Assignment of the Pledgor: the Pledgor shall not assign its rights and all/or obligations under the
Agreement, in part or in whole. 
 15.3 Assignment of the Guarantee agency: the Guarantee agency shall be entitled to assign or otherwise dispose in
any other manner any of its rights in part or in whole under the Agreement as per provisions of the Trust Deed and/or the Terms and conditions. 
 16.
NOTICE 
 (a) Any and all notifications and other correspondences served as per provisions of the Agreement shall be in writing. Any and all notifications
or correspondences shall in the manner of a registered mail or express or facsimile be delivered to the addresses provided below: 
 (i) as
for the Pledgor, to 
 ASIA SILICON TECHNOLOGY HOLDINGS LIMITED 
 36/F, Two, Exchange Square, Central, Hong Kong 
 Fax: +852 2526 7638 
 Addressee: Li Jian/Feng Jiaqiang 
 (ii) as for
the Guarantee agency, to 
 DB Trustees (Hong Kong) Limited 
 55/F, Cheung Kong Center, 2 Queens Road, Central, Hong Kong 
 Fax: +852 2203 7320 
 Addressee: Managing Director 
 (b) Validity of such
correspondences: in case of a registered mail, it shall take effect at the seventh working day after delivery (receiving the mail in Hong Kong); in case of express delivery, it shall take effect upon delivery; in case of facsimile, it shall take
effect upon receipt of a true and accurate transmission report. In case such correspondences should take effect after business hours of a day, then the correspondence shall be deemed to be acknowledged on the following working day of the local area
of the addressee. 
 (c) For the purpose of provisions of article 17, a working day shall refer to the day when the local commercial banks and foreign
exchange market have normal businesses. 
  

 14 

 17. COUNTERPART 
 The
Agreement may have several duplicates and signatures made in such duplicates shall be deemed to be made in the Agreement and shall be equally authentic with the Agreement. 
 18. INDEMNIFICATION 
 The Pledgor shall 
  

	(a)	upon request of the Guarantee agency immediately make payments to any takeover-personnel, agent, manager, agency or other personnel as may be designated under the Agreement by any
Secured party and/or the Guarantee agency for any and all costs and expenses (including legal charge), including any and all costs and expenses by any of such personnel incurred from violation or from being regarded as violation of any provision of
any law or regulation; and 

  

	(b)	make such indemnification relating to such costs and expenses and shall not delay such payment. 

 19. APPLICABLE LAW AND FORUM 
 19.1 The Agreement shall be governed and interpreted by PRC laws. 
 19.2 Each party hereto irrevocably accept that any and all discrepancies caused by the Agreement or in connection with the Agreement shall be submitted to the
people’s court of the local area of the Company. 
 19.3 The Pledgor hereby irrevocably and unconditionally accepts 
  

	(a)	if any Secured party lodge any legal proceedings relating to the Finance documents against the Pledgor or property of the Pledgor, the Pledgor shall not for the purpose of such
legal proceedings (including but not limited to lawsuits, preserving before institution of an action, requesting for adjudication, execution or other compulsive measures) claim or in the Pledgor’s name claim for any exemption or any exemption
in connection with the Pledgor’s property; 

  

	(b)	to waive any right of exemption regarding its property possessed or to be possessed in the future; and 

  

	(c)	for the purpose of such legal proceedings, to generally agree to any dissolution or lodging of any measure with regard to such legal proceedings, including but not limited to
submit, execute or compulsively perform any property (regardless of the purposes or aims of such property) under any order or finding as may be made by such legal proceedings. 

 It is hereby proved that the Agreement is formulated by legal representatives of each party hereto as of the date set forth in the first page. 
  

 15 

 ANNEX 1 GUARANTEED DEBTS 
  

			
	 About Trust Deed
	  	
		
	 Trustor:
	  	DB Trustees (Hong Kong) Limited
		
	 Issuer:
	  	Asia Silicon Technology Holdings Inc., a corporation duly
		  	organized in Cayman Islands, with corporation number as
		  	187165
		
	 Debenture:
	  	1. A shares of USD 20,000,000 guaranteed debentures with
		  	floating interest rate, and mature in 2009; and
		
		  	2. B shares of USD 40,000,000 convertible debentures with
		  	floating interest rate, and mature in 2009
	
	 Application of payment from debentures issued:

		
		  	The Issuer shall use such payment for the following
		  	purposes:
		
		  	1. Providing loans for the Pledgor so that the Pledgor may
		  	(a) pay the remaining amount with the same price as the
		  	Equity; and (b) increase the registered capital contribution
		  	to the Company;
		
		  	2. Refunding Happy Genius Holdings Limited;
		
		  	3. Remitting to the Interest reserve account; and
		
		  	4. General uses of current capital for the Issuer and
		  	subsidiaries of the Issuer.

 Annual rate of debentures: for the first 12 months, as LIBOR + 3%; and after that, as LIBOR + 5%; 
  

 16 

 Signature Page 
 Pledgor: ASIA SILICON TECHNOLOGY HOLDINGS LIMITED 
 Authorized signatory: 
 Name: Li Jian 
 Title: Director 
 Address: Suite 3401, Two Exchanging Square, Central, Hong kong 
 Fax:
852-2526-7638 
 Contact: David Fung & Richard Li 
 Guarantee agency: DB TRUSTEES (HONG KONG) LIMITED 
 Authorized signatory: 
 Name: 
 Title: 
 Address:

 Fax: 
 Contract: 
  

 17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00145-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00145-of-00352.parquet"}]]