Document:

Paying and Conversion Agency Agreement relating to Tranche A U.S.$20,000,000

 EXHIBIT 4.10 
 PAYING AND CONVERSION AGENCY AGREEMENT 
 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 
 ASIA SILICON
TECHNOLOGY HOLDINGS INC. 
 as Issuer 
 DEUTSCHE BANK AG, HONG KONG BRANCH 
 as Principal Agent 
 DEUTSCHE BANK LUXEMBOURG S.A. 
 as
Registrar 
 and 
 DB TRUSTEES (HONG KONG) LIMITED 
 as Trustee 
 

 

 CONTENTS 
  

					
	 Clause
	 	 	  	Page
	1.	 	Definitions	  	2
	2.	 	Appointments	  	2
	3.	 	Authentication; Transfer of Global Certificates	  	2
	4.	 	Payment by the Issuer	  	3
	5.	 	Payment by the Agents	  	4
	6.	 	Conversion	  	6
	7.	 	Early Redemption	  	10
	8.	 	Cancellation of Bonds	  	10
	9.	 	Issue of Replacement Certificates	  	11
	10.	 	Determination and Notification of Rates of Interest, Interest Amounts and Interest Payment Dates	  	13
	11.	 	Notice of any Withholding or Deduction	  	13
	12.	 	Duties of the Transfer Agents in respect of Transfers	  	13
	13.	 	Duties of the Registrar	  	14
	14.	 	Documents and Certificates for the Registrar	  	15
	15.	 	Information and Regulations concerning the Bonds	  	15
	16.	 	Remuneration	  	15
	17.	 	Funds held by Principal Agent	  	16
	18.	 	Miscellaneous	  	17
	19.	 	Changes in Agents	  	19
	20.	 	Notices	  	20
	21.	 	Contracts (Rights of Third Parties) Act 1999	  	21
	22.	 	Governing Law and Jurisdiction	  	22
	23.	 	Counterparts	  	22
	24.	 	Termination of this Agreement	  	22

  

					
	Exhibit A	 	Conversion Notice	  	23
	Exhibit B	 	Non-exercise Notice	  	25
	Exhibit C	 	Conversion Agent Notification	  	26
	Exhibit D	 	Notification from Issuer	  	28
	Exhibit E	 	Regulations concerning the Transfer and Registration of Bonds	  	30
			
	 Signatories
	 		  	

 THIS AGREEMENT is made on 10 September 2007 
 BETWEEN: 
  

	 (1)
	 ASIA SILICON TECHNOLOGY HOLDINGS INC., an exempted company incorporated with limited liability in the Cayman
Islands whose registered office is at the offices of Offshore Incorporations (Cayman) Limited, Scotia Centre, 4th Floor, P.O. Box 2084, George Town,
Grand Cayman KY1-1112, Cayman Islands (the Issuer); 

  

	 (2)
	 DEUTSCHE BANK AG, HONG KONG BRANCH at its specified office at 55th Floor, Cheung Kong Center, 2 Queen’s Road Central, Hong Kong, as principal paying, conversion and transfer agent (the Paying Agent, Conversion Agent, Transfer Agent, as
applicable, and collectively, the Principal Agent which expression shall, unless the context otherwise requires, include its successors as such principal paying, conversion and transfer agents, which expression shall, unless the context
otherwise requires, include any future agents appointed in accordance with this Agreement); 

  

	(3)	DEUTSCHE BANK LUXEMBOURG S.A. at its specified office at 2, Boulevard Konrad Adenauer, L-1115, Luxembourg, as registrar (the Registrar, which expression shall, unless
the context otherwise requires, include its successors as such registrar); and 

  

	 (4)
	 DB TRUSTEES (HONG KONG) LIMITED at its specified office at 55th Floor, Cheung Kong Center, 2 Queen’s Road Central, Hong Kong, as trustee for the persons for the time being holding the Bonds referred to below (the Trustee, which
expression shall include its successors as such trustee or any joint trustee). 

 WHEREAS: 
  

	(A)	The Issuer has agreed to issue Tranche A U.S.$20,000,000 Floating Rate Secured Bonds due 2009 (the Tranche A Bonds) and Tranche B U.S.$40,000,000 Floating Rate Secured
Convertible Bonds due 2009 (the Tranche B Bonds, and together with the Tranche A Bonds, the Bonds). Each Tranche B Bond is convertible into fully paid shares of the Issuer (the Shares). 

  

	(B)	The Bonds are to be constituted by a trust deed (the Trust Deed) dated 10 September 2007 and made between the Issuer, the Trustee and the Security Agent (as defined
below). 

  

	(C)	The Bonds will be issued in registered form in denominations of U.S.$100,000 and integral multiples of U.S.$1,000 in excess thereof. 

  

	(D)	The obligations of the Issuer under the Bonds, this Agreement and the Trust Deed are secured by way of (a) a charge over the assets of the Issuer pursuant to a Security
Agreement dated 10 September 2007 between DB Trustees (Hong Kong) Limited as security agent (the Security Agent) and the Issuer (the Security Agreement); (b) a mortgage of shares in Asia Silicon Technology Holdings Limited
(AST (HK)) owned by the Issuer pursuant to a Share Mortgage dated 10 September 2007 between the Security Agent and the Issuer (the Share Mortgage); (c) a charge over the assets of AST (HK) pursuant to a Security Agreement
dated 10 September 2007 between the Security Agent and AST (HK) (the Security Agreement (AST (HK)); (d) a pledge of equity interest of AST (HK) in Opco on the Issue Date pursuant to a Pledge of Equity dated 10 September 2007
between the Security Agent and AST (HK) and (e) a pledge of equity interest of AST (HK) in Opco acquired as a result of an increase in the registered capital of Opco after the Issue Date pursuant to a Pledge of Equity to be entered into between
the Security Agent and AST (HK), each in favour of the Security Agent for the benefit of the holders of the Bonds. 

  

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 NOW IT IS HEREBY AGREED as follows: 
  

	1.	DEFINITIONS 

 Terms defined or construed in the
Bonds or the Trust Deed shall, unless the context otherwise requires, have the same meanings when used herein. In addition: 
 Agents
means the Principal Agent, the Registrar and the other paying, conversion and transfer agents referred to above; 
 Alternative
Clearing System means a clearing system as shall have been designated by the Issuer and approved by the Trustee; 
 Business Day
means a day (other than a Saturday or a Sunday) on which banks are open for general business in Hong Kong, the city in which the specified office of the Principal Agent is located and (in relation to any date for payment or purchase of US.$) New
York City; 
 Register has the meaning set out in Clause 13.1; and 
 any successor to an Agent means a successor to that Agent appointed at its specified office in accordance with the terms of this Agreement.

  

	2.	APPOINTMENTS 

 The Issuer appoints the Agents as its
agents in respect of the Bonds in accordance with the provisions of the Conditions and this Agreement at their respective offices referred to in this Agreement and the Agents accept such appointments. Subject as provided in Clause 19, references to
the Agents are to them acting solely through their respective specified offices. The obligations and duties of the Agents under this Agreement are several and not joint. 
  

	3.	AUTHENTICATION; TRANSFER OF GLOBAL CERTIFICATES 

  

	3.1	The Global Certificates 

  

	(a)	Immediately before issue, the Issuer shall deliver to the Registrar a duly executed Global Certificate representing the Tranche A Bonds and a duly executed Global Certificate
representing the Tranche B Bonds. The Registrar (or its agent on its behalf) shall authenticate the Global Certificates upon the written order of the Issuer and arrange for its delivery to a common depositary for Euroclear and Clearstream,
Luxembourg. 

  

	(b)	Title to the Bonds evidenced by each Global Certificate may be registered in the name of, and each Global Certificate be deposited with, such Alternative Clearing System other than
Euroclear or Clearstream, Luxembourg (or a nominee thereof) as the Issuer may from time to time designate with the prior written approval of the Trustee, and shall bear such legend as may be appropriate. 

  

	3.2	Transfers of interests in the Global Certificates 

 Any transfer or exchange of an interest in the Bonds evidenced by a Global Certificate shall be effected in accordance with the rules and procedures of Euroclear or Clearstream, Luxembourg or any relevant Alternative Clearing System, as
applicable. 
  

	3.3	Exchange of interests in the Global Certificates for definitive Certificates 

  

	(a)	Definitive Certificates in respect of interests in any Bonds will not be issued in exchange for interests in the Bonds evidenced by a Global Certificate except in the circumstances
provided in paragraph (b) below, provided that, in the event that the Issuer designates an Alternative Clearing System and such designation is approved in writing by the Trustee, title to all or some of the Bonds may be transferred to an
Alternative Clearing System or its nominee and definitive Certificates may be issued to evidence such transfer. 

  

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	(b)	In the event that either Euroclear or Clearstream, Luxembourg (or any Alternative Clearing System on behalf of which the Bonds evidenced by a Global Certificate may be held) is
closed for business for a continuous period of 14 days (other than by reason of holidays, statutory or otherwise) or announces an intention permanently to cease business or does in fact do so, the Issuer will cause sufficient definitive Certificates
to be executed and delivered to the Registrar in sufficient quantities as advised by the Registrar and the Registrar will authenticate the same for despatch to individual Bondholders in accordance with the Conditions, paragraphs (c) and
(d) below and Exhibit E hereto. 

  

	(c)	Upon one of the events set forth in paragraph (b) above occurring, a holder of Bonds represented by a Global Certificate will provide the Registrar with a written order
containing instructions and such other information as the Issuer and the Registrar may require to complete, execute and deliver such definitive Certificates. 

  

	(d)	Upon receipt of the definitive Certificates and the written order referred to in paragraph (c) above, the Registrar shall arrange for the execution and delivery to or upon the
order of the person or persons named in such order of an individual definitive Certificate representing Bonds registered in the name or names requested by such person or persons and the Registrar shall alter the entries in the Register in respect of
the Bonds accordingly. Payment will only be made to the person whose name appears on the Register. 

  

	3.4	Transfer or exchange of definitive Certificates 

 Subject to the provisions of this Clause 3, Exhibit E hereto and the Conditions, the holder of Bonds represented by definitive Certificates may transfer or exchange such Bonds. Subject to compliance with such provisions, the relevant
Transfer Agent and the Registrar shall register the transfer of Bonds represented by definitive Certificates in accordance with Clauses 12 and 13 below. 
  

	3.5	Proxies and authorisations 

 Subject to the
provisions of this Agreement, the registered holder of Bonds represented by a Global Certificate may grant proxies and otherwise authorise any person, including participants in Euroclear and Clearstream, Luxembourg and persons that may hold
interests through such participants, to take any action that a holder is entitled to take under this Agreement or the Bonds. 
  

	3.6	No transfer periods 

 Notwithstanding anything
herein to the contrary, no Bondholder may require the transfer of any Bond during the periods set forth in Condition 4.5. 
  

	4.	PAYMENT BY THE ISSUER 

  

	4.1	Payment to the Principal Agent 

 In order to provide
for the payment of the principal, premium and/or interest in respect of the Bonds as the same shall become due, the Issuer shall, by 10.00 a.m. (New York City time), unconditionally pay or procure to be paid, to the Principal Agent: 
  

	 	(a)	 on maturity or early redemption of any Bonds in an account specified by the Principal Agent for value at least one Business Day prior to the redemption date thereof
(or, in the case of the Bonds becoming due and payable pursuant to Condition 12, forthwith upon being required by the Trustee so to make such payment), an amount sufficient (together 

  

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with any funds then held by the Principal Agent which are available for such purpose) to pay the amount due on redemption of all Bonds so to be redeemed (or
the amount due pursuant to Condition 12); and 

  

	 	(b)	for value at least one Business Day before each due date for the payment of interest or other sums payable in respect of the Bonds in accordance with the Conditions, other than sums
referred to in paragraph (a) above, an amount sufficient (together with any funds then held by the Principal Agent which are available for such purpose) to pay the interest (if any) or other sums payable then becoming due on the outstanding
Bonds. 

 All amounts deposited with the Trustee or any Paying Agent for the payment of Bonds to the Bondholders but which have
not been so paid due to the subsequent conversion of such Bonds (in the case of the Tranche B Bonds) or otherwise shall be immediately returned to the Issuer upon the Issuer’s written request, provided that no interest shall accrue on such
amounts and be payable to the Issuer by the Trustee or any Paying Agent. 
  

	4.2	Tax 

 All payments by the Issuer under this
Agreement are to be made without set-off, counterclaim, deduction or withholding unless compelled by law in which event the Issuer will pay such additional amounts as will result in receipt of the amounts which would otherwise have been payable by
the Issuer under this Agreement in the absence of any such set-off, counterclaim, deduction or withholding. 
  

	4.3	Notification of payment 

 The Issuer shall procure
that on or before 10:00 a.m. (New York City time) on the second Business Day prior to each due date for payment of principal, premium and/or interest in respect of the Bonds, the bank through which such payment is to be made will send to the
Principal Agent confirmation that it has received from the Issuer an irrevocable instruction to make the relevant payment (by SWIFT). 
  

	4.4	Notification in the event of non-payment 

 The
Principal Agent shall forthwith notify the Trustee, the other Agents and the Issuer if it has not, by the due date for payment of principal, premium and/or interest on the Bonds or any of them, received unconditionally in the manner provided in this
Clause 4 the full amount of the moneys payable on such due date on or in respect of all such Bonds, as the case may be. 
  

	4.5	Interpretation 

 In this Clause 4, the date on which
a payment in respect of the Bonds becomes due means the first date on which the holder of a Bond could claim the relevant payment by transfer to an account under the Conditions, but disregarding the necessity for it to be a Business Day in any
particular place of presentation. 
  

	5.	PAYMENT BY THE AGENTS 

  

	5.1	Payment 

 Unless they receive a notification from
the Principal Agent under Clause 4 the Paying Agents will, subject to and in accordance with the Conditions, pay or cause to be paid on behalf of the Issuer on and after each due date therefor the amounts due in respect of the Bonds and will be
entitled to claim any amounts so paid from the Principal Agent. If any 

  

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payment provided for in Clause 4.1 is made late but otherwise in accordance with this Agreement the Paying Agents will nevertheless make such payments in
respect of the Bonds. However, unless and until the full amount of any such payment has been made to the Principal Agent none of the Paying Agents will be bound to make such payments until either the Principal Agent has received the full amount of
moneys then due and payable in respect of the Bonds or other arrangements satisfactory to the Principal Agent have been made. If payment of any amount is made to the Principal Agent later than the due date for payment of such amount to the
Bondholders, the Principal Agent shall as soon as practicable after receipt thereof give notice to the Bondholders in accordance with Condition 19 that such payment has been made. All payments to be made by the Paying Agents hereunder shall be made
without charging any commission or fee to the Bondholders. Nothing contained herein shall require a Paying Agent to make a payment unless and until the Paying Agent has received immediately available funds sufficient to make said payment.

  

	5.2	Reimbursements of Agents 

 The Principal Agent will
on demand promptly reimburse each Paying Agent for payments in respect of the Bonds made by it in accordance with the Conditions and this Agreement. The Issuer shall on demand by the Principal Agent reimburse the Principal Agent for the relevant
amount and pay interest to the Principal Agent on such amount that is outstanding from the date on which it is paid out by that Paying Agent to the date of reimbursement by the Issuer at the rate per annum then prevailing at the date of such funding
equal to the cost to the relevant Paying Agent of funding the amount paid out plus two per cent. per annum as certified by the Principal Agent. 
  

	5.3	Method of payment to Principal Agent 

 All sums
payable to the Principal Agent hereunder will be paid in U.S.$ and in immediately available funds to such account, with such bank in New York City as the Principal Agent may from time to time notify in advance to the Issuer in writing. 

 

	5.4	Surrender of Certificates to Paying Agents 

 The
Paying Agents shall accept surrender of Certificates from Bondholders as a condition precedent to payment of principal and premium (if any) where such surrender is required in accordance with the Conditions. At close of business on the second
business day (as defined in Condition 9.6) before the due date for payment in respect of the Bonds, and, if Certificates are surrendered later than that, on any business day (as defined in Condition 9.6) thereafter on which Certificates are
surrendered, each Paying Agent to whom Certificates have been surrendered will notify the Registrar and the Principal Agent of the identifying numbers of Certificates surrendered to it at that time. Each Paying Agent will cancel Certificates
surrendered to it and forward the cancelled Certificates to the Principal Agent for destruction. 
  

	5.5	Fees and expenses of the Agents 

 The Principal
Agent will account to each of the other Agents for their fees and expenses in respect of the services performed by them under this Agreement promptly after receipt thereof from the Issuer and the Issuer shall have no responsibility for the
apportionment of any such payments. 
  

	5.6	Agents of the Trustee 

 The Principal Agent, the
Registrar or the other Agents shall, on demand by the Trustee by notice in writing given to them at any time after any Event of Default or Potential Event of Default has occurred, until notified by the Trustee to the contrary, so far as permitted by
applicable law: 
  

	 	(a)	act thereafter as agents of the Trustee under the Trust Deed and the Bonds on the terms of this Agreement (with consequential amendments as necessary and except that the
Trustee’s liability for the indemnification, remuneration and all other expenses of the Agents and the Registrar will be limited to the amounts for the time being held by the Trustee in respect of the Bonds on the trusts of the Trust Deed) and
thereafter hold all Certificates and all moneys, documents and records held by them in respect of the Bonds to the order of the Trustee; and/or 

  

 5 

	 	(b)	deliver up all Certificates and all moneys, documents and records held by them in respect of the Bonds to the Trustee or as the Trustee shall direct in such notice or subsequently,
provided that this Clause 5.6(b) shall not apply to any documents or records which the Principal Agent, the Registrar or the relevant Agent is obliged not to release by any law or regulation to which it is subject. 

  

	5.7	Notices of change of the Trustee 

 The Issuer shall
forthwith give notice to the Principal Agent of any change in the person or persons who act as the Trustee under the Trust Deed. 
  

	6.	CONVERSION 

  

	6.1	Conversion duties of Conversion Agents 

 Each
Conversion Agent shall during normal business hours (local time in the place where the specified office of the relevant Conversion Agent is located) (a) accept deposit on behalf of the Issuer of any Conversion Notice (which may, in such case,
be delivered by facsimile transmission); and (b) require the Issuer to pay all Conversion Taxes (as defined in Condition 8.3(c) of the Conditions for the Tranche B Bonds). 
  

	6.2	Global Certificate representing the Tranche B Bonds 

 The Tranche B Bonds represented by the relevant Global Certificate shall be converted in the manner set out herein and in the Conditions for the Tranche B Bonds, provided that: 
  

	 	(a)	the relevant Global Certificate need not be deposited with the relevant Conversion Agent together with the relevant Conversion Notice; 

  

	 	(b)	the Conversion Notice for the Tranche B Bonds represented by the relevant Global Certificate may be completed and deposited by or on behalf of an account holder of Clearstream,
Luxembourg or Euroclear or an Alternative Clearing System in which the Tranche B Bonds to be converted are held at the time of conversion, which has an interest in such Tranche B Bonds; 

  

	 	(c)	the Tranche B Bonds which have been converted will be rendered void forthwith and the relevant Global Certificate shall be annotated accordingly without cancellation of that Global
Certificate; and 

  

	 	(d)	the holding of an interest in the Tranche B Bonds by an account holder of Clearstream, Luxembourg or Euroclear or an Alternative Clearing System in which the Tranche B Bonds are
held at the time of conversion will be confirmed by the relevant clearing system with the relevant Conversion Agent. 

  

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	6.3	Non-exercise Notices 

  

	(a)	A Bondholder may elect not to exercise the Conversion Right in accordance with Condition 8.3(a) by completing, executing and depositing at its own expense during business hours at
the specified offices of any Conversion Agent a notice in the form specified in Exhibit B hereto (a Non-exercise Notice) in duplicate. That Conversion Agent shall verify that the Non-exercise Notice (in duplicate) has been duly completed in
accordance with its terms and purports to have been signed by or on behalf of the Bondholder named therein and endorse the Non-exercise Notice to that effect. 

  

	(b)	A Non-exercise Notice, once deposited, may not be withdrawn without the written consent of the Issuer (with a copy of such consent together with a copy of the relevant Non-exercise
Notice sent to the relevant Conversion Agent at the same time). 

  

	(c)	Upon receipt of original Non-exercise Notices in accordance with this Clause 6.3, and notwithstanding the provisions of Clause 6.3(e) below, the Principal Agent will send by post
(at the cost and expense of the Issuer) to the Issuer the original Non-exercise Notice (if applicable) as soon as reasonably practicable following any such request by the Issuer. 

  

	(d)	Following receipt of the Non-exercise Notice by a Conversion Agent other than the Principal Agent and the fulfilment of Clause 6.3(a), such Conversion Agent shall:

  

	 	(i)	as soon as reasonably practicable send by facsimile transmission a copy of such Non-exercise Notice to the Principal Agent; and 

  

	 	(ii)	as soon as practicable and in any event within five Business Days after receipt by it of the Non-exercise Notice despatch by post (at the cost and expense of the Issuer), the
original Non-exercise Notice (if applicable) to the Principal Agent. 

  

	(e)	Upon receipt of a Non-exercise Notice and in any event no later than five Business Days following such receipt by the Principal Agent (either as a result of deposit of the original
by a Bondholder with the Principal Agent in its capacity as Conversion Agent or as a result of receipt of the facsimile of such Non-exercise Notice pursuant to Clause 6.3(d)(i) above) and fulfilment of the conditions in Clause 6.3(a), the Principal
Agent in its capacity as Conversion Agent shall despatch as soon as practicable and in any event within five Business Days after receipt by it of the Non-exercise Notice, the original Non-exercise Notice (if applicable) to the Issuer.

  

	6.4	Conversion Notices held by Conversion Agents 

 On
deposit of a Conversion Notice (in duplicate) in accordance with Clause 6.1, the Conversion Notice so deposited shall be deemed to be held by the relevant Conversion Agent as the agent of the Issuer. A Conversion Notice, once deposited, may not be
withdrawn without the written consent of the Issuer (with a copy of such consent together with the relevant Conversion Notice sent to the relevant Conversion Agent at the same time). 
  

	6.5	Notification by Conversion Agents 

  

	(a)	Immediately following deposit of a Conversion Notice in accordance with Clause 6.1, the Conversion Agent with which they were deposited shall verify that the Conversion Notice (in
duplicate) has been duly completed in relation to the Tranche B Bonds, which are the subject of the purported conversion, in accordance with its terms and purports to have been signed by or on behalf of the Bondholder named therein and endorse the
Conversion Notice to that effect. Following receipt of original Conversion Notices in accordance with this Clause 6.5, and notwithstanding the provisions of Clause 6.5(c)(ii) below, the Principal Agent will send by post (at the cost and expense of
the Issuer) to the Issuer the original Conversion Notice (if applicable) as soon as reasonably practicable following any such request by the Issuer. 

  

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	(b)	As soon as reasonably practicable following receipt of the Conversion Notice by a Conversion Agent other than the Principal Agent and the fulfilment of the conditions in Clause
6.5(a), such Conversion Agent shall: 

  

	 	(i)	send by facsimile transmission a copy of such Conversion Notice to the Principal Agent; and 

  

	 	(ii)	despatch as soon as practicable and in any event within five Business Days after the Conversion Date by post (at the cost and expense of the Issuer), the original Conversion Notice
(if applicable) to the Principal Agent. 

  

	(c)	Upon receipt of the Conversion Notice and in any event no later than five Business Days following such receipt by the Principal Agent (either as a result of deposit of the original
by a Bondholder with the Principal Agent in its capacity as Conversion Agent or as a result of receipt of the facsimile of such Conversion Notice pursuant to Clause 6.5(b)(i) above) and fulfilment of the conditions in Clause 6.5(a), the Principal
Agent in its capacity as Conversion Agent shall: 

  

	 	(i)	notify the Issuer in the manner specified in Exhibit C hereto (a Conversion Agent Notification) of the name and address of the person in whose name the Shares issuable upon
conversion are to be registered and, if applicable, details of the securities account to be credited with the Shares issuable upon conversion (together with a copy of the Conversion Notice(s)); 

  

	 	(ii)	despatch as soon as practicable and in any event within five Business Days after the Conversion Date the original Conversion Notice (if applicable) to the Issuer; and

  

	 	(iii)	without any further notice or confirmation from the Issuer, and in any event no later than the Conversion Date, instruct the Registrar to remove the name of each Bondholder of the
Tranche B Bonds from the Register. 

  

	(d)	Where a Conversion Notice is received which requires the Shares (or other securities, property or cash) issuable on conversion of the Tranche B Bonds to which it relates to be dealt
with in different ways for specified principal amounts (which must be U.S.$100,000 each and integral multiples of U.S.$1,000 in excess thereof) of the Tranche B Bonds, the Principal Agent receiving the Conversion Notice may, and if requested by the
Bondholder depositing the Conversion Notice, shall, treat each specified principal amount of the Tranche B Bonds as if it were subject to its own Conversion Notice and prepare and send the details referred to in Clause 6.5(c) separately for each
such specified principal amount (and, for the avoidance of doubt so they are not aggregated for the purpose of calculating the number of Shares, or amount of other property, issuable on conversion). 

  

	6.6	Delivery by the Issuer 

  

	(a)	On the Business Day immediately following the Conversion Date, the Issuer will send a notification (in the manner specified in Exhibit D hereto) by facsimile to the Conversion Agent
which has initially received the relevant Conversion Notice or (if no Conversion Notice has been given) the Principal Agent (and will send a copy to the Principal Agent (if it is not the Agent which received the relevant Conversion Notice and has
not received notice under this paragraph) and the Registrar), confirming that delivery, despatch or payment in accordance with such Conversion Notice (or otherwise in accordance with the relevant Bondholder’s instructions or the Conditions) of
the certificate or certificates for the relevant Shares and/or securities, property or cash required to be delivered and/or paid upon conversion has been made. 

  

 8 

	(b)	In addition, upon delivery and despatch of the certificate(s) for the relevant Shares issued on conversion to the relevant Bondholder, the Issuer shall send confirmation by
facsimile to the Conversion Agent which has sent the relevant Conversion Notice or (if no Conversion Notice has been given) the Principal Agent (and will send a copy to the Principal Agent (if it is not the Agent which received the relevant
Conversion Notice and has not received notice under this paragraph) and the Registrar) that the relevant Bondholder or other person nominated in the Conversion Notice has been registered as the owner of the relevant Shares issued on conversion.

  

	(c)	Promptly upon receipt of the confirmation referred to in Clause 6.5(b) of registration in the register of shareholders or notification that cash has been paid upon conversion (but
not before), the Registrar shall remove the name of the relevant Bondholder from the Register. 

  

	6.7	Issuer to provide Conversion Notices, Non-exercise Notices and IPO Certificate 

  

	(a)	As soon as is practicable following a request from time to time, the Issuer will provide the Conversion Agents with copies of the form of Conversion Notice. If required by any
Bondholder, the Conversion Agents shall make Conversion Notices in the current form available to Bondholders. 

  

	(b)	As soon as is practicable following a request from time to time, the Issuer will provide the Conversion Agents with copies of the form of Non-exercise Notice. If required by any
Bondholder, the Conversion Agents shall make Non-exercise Notices in the current form available to Bondholders. 

  

	(c)	The Issuer will provide the Conversion Agents and the Trustee with an original or, as the case may be, a copy of the IPO Certificate (as defined in the Conditions for the Tranche B
Bonds) in accordance with Condition 8.1(b) of the Conditions for the Tranche B Bonds. If required by any Bondholder, the Conversion Agents shall make the IPO Certificate available to Bondholders for inspection. 

  

	6.8	Identification codes 

 Each Conversion Notice
deposited with a Conversion Agent and each facsimile transmission sent and letter delivered in respect of a Conversion Notice pursuant to the foregoing provisions of this Clause by any Conversion Agent shall indicate the identification code
designated below for that Conversion Agent, followed by the words “Tranche B Asia Silicon Technology Holdings Inc. Floating Rate Secured Convertible Bonds due 2009 (US$)”, and shall bear the lowest number
previously unused by that Conversion Agent in the sequence of whole numerals starting from one and continuing in uninterrupted sequence upwards, for identification. All confirmatory or subsequent communications (regardless of the identity of the
sender or the recipient thereof) with regard to the conversion, receipt, delivery and/or payment of Shares and/or any other securities, property and cash relating to such Conversion Notice shall bear the same identifying number as well as the
identification code of the relevant Conversion Agent. 
 The identification codes of the Conversion Agents shall be as
follows: 
  

	
	Deutsche Bank AG, Hong Kong Branch                    DBHK

 Thus, by way of example, the reference to be used for the fifth Conversion Notice deposited with
the Principal Agent and for each facsimile transmission and letter relating thereto would be “DBHK 05/Tranche B Asia Silicon Technology Holdings Inc. Floating Rate Secured Convertible Bonds due 2009 (US$)/05”. 
  

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	6.9	Fees and expenses of conversion 

 The Issuer shall
pay all stamp, issue, registration, excise, and similar taxes and duties and transfer costs (if any) payable with respect to the deposit of the Tranche B Bonds for conversion and the issue and delivery of Shares (other than those taxes and duties
payable by the relevant Bondholder as expressly provided in the Conditions for the Tranche B Bonds), all expenses arising in the Cayman Islands on the issue of Shares on conversion of the Tranche B Bonds and all charges and expenses of the
Conversion Agents in connection therewith. 
  

	6.10	Taxes and duties 

 The Conversion Agent is not under
any obligation to determine whether a Bondholder of Tranche B Bonds is liable to pay any taxes or duties, including stamp, issue, registration or similar taxes and duties upon the conversion of the Tranche B Bonds. 
  

	7.	EARLY REDEMPTION 

  

	7.1	Notice of redemption 

 If the Issuer intends to
redeem all but not some only of the Bonds under Condition 10.2 of the Conditions, Condition 10.3(b) of the Conditions for the Tranche A Bonds or Condition 10.3 of the Conditions for the Tranche B Bonds it shall, at least five days before the latest
date for the publication of the notice of redemption required to be given to Bondholders in accordance with Condition 19, give prompt notice in writing of its intention to the Principal Agent and the Trustee stating the date on which such Bonds are
to be redeemed and the price of redemption the Bonds. 
  

	7.2	Redemption notice 

 On behalf of and at the request
and expense of the Issuer, the Principal Agent shall publish the notice in accordance with Condition 19, in the form approved by the Issuer, required in connection with such redemption. Such notice shall specify the details in accordance with
Condition 10.6. The Principal Agent shall forthwith notify the other Paying Agents of the contents of such notice. 
  

	7.3	Effect of notice of redemption 

 Once a notice of
redemption is provided in accordance with Condition 19, Bonds called/put for redemption become due and payable on the date fixed for redemption of the Bonds at the redemption price stated in the relevant notice. Upon surrender of any Certificate in
respect of such Bond for redemption in accordance with said notice, such Bond shall be paid by the Issuer at the redemption price in accordance with the Conditions. 
  

	8.	CANCELLATION OF BONDS 

  

	8.1	Cancellation by Agents 

 All Bonds which are
redeemed, converted or purchased by the Issuer or any of its Subsidiaries shall be cancelled by the removal of the relevant Bondholder’s name from the Register by the Registrar and cancellation of the corresponding Certificates (or appropriate
amendment of the relevant Global Certificate if the Bonds are represented thereby) by the Agent to which they were surrendered or with which they were deposited. 
  

 10 

	8.2	Cancelled Certificates 

 Each Agent shall (unless it
is itself the Principal Agent) give all relevant details for the purposes of Clause 8.3 to, and shall forward Certificates cancelled by it promptly to, the Principal Agent or, as the case may be, its designated agent. 
  

	8.3	Certification of payment details 

 Subject to
receipt of the information described in Clause 8.2, the Principal Agent shall as soon as reasonably practicable, upon a request in writing from any of the Issuer, the Trustee and the Registrar, furnish the Issuer and the Trustee and the Registrar
with a certificate signed by its duly authorised officer stating (as applicable) (a) the aggregate amounts paid in respect of Bonds redeemed or paid and cancelled, (b) the aggregate principal amount of Tranche B Bonds converted and
cancelled, (c) the identifying numbers of such Bonds and (d) that such Bonds have been cancelled. Such certification may be accepted by the Trustee without further enquiry as conclusive evidence of repayment or discharge pro
tanto of the Bonds, of payment of interest thereon (if any) or (as the case may be) of the issue of replacement Certificates. 
  

	8.4	Destruction of cancelled Certificates 

 Unless
otherwise instructed by the Issuer, the Principal Agent or its designated agent shall destroy the cancelled Certificates in its possession or held to its order and furnish to the Issuer and the Trustee upon request, a certificate of such destruction
duly signed by its authorised officer. 
  

	8.5	Records 

 Subject to receipt of the relevant
information, the Principal Agent shall keep a full and complete record of all Bonds and of their redemption, conversion, payment, cancellation, despatch to the Issuer and replacement (as appropriate) and shall make such record available at all
reasonable times during office hours to the Issuer, the Trustee and the other Agents. Notwithstanding the foregoing, the Principal Agent shall not be required to keep a record of the Register. 
  

	8.6	Identifying numbers 

 The Registrar shall notify the
Principal Agent of the identifying numbers of the Bonds and the definitive Certificates which are issued and the same shall form the basis of the records to be kept by the Principal Agent. 
  

	9.	ISSUE OF REPLACEMENT CERTIFICATES 

  

	9.1	Stocks of Certificates 

 From time to time after
such time (if ever) as Bonds may be transferred into a name other than that of the holder of a Global Certificate, the Issuer will cause a sufficient quantity of additional blank Certificates (other than the Global Certificates) to be available,
upon request, to the Registrar at its specified office in Luxembourg for the purpose of delivering replacement Certificates as provided below. The Issuer will promptly notify the Trustee and the Registrar (and the Paying Agents, if applicable) if
the authorised officer of the Issuer whose facsimile signature appears on such stocks of replacement Certificates ceases to be so authorised. In such circumstances the Issuer will promptly, properly and validly appoint a replacement authorised
officer and upon the request of the Registrar or the Trustee promptly deliver to the Registrar such number of replacement Certificates as it may reasonably request, duly signed manually or in facsimile by such replacement authorised officer. Upon
receipt of such replacement Certificates, the Registrar or its agent will be deemed to have been authorised by the Issuer to destroy any previous replacement Certificates and will notify the Issuer of such destruction. 
  

 11 

	9.2	Replacement 

 The Registrar will, subject to and in
accordance with Condition 17 and the following provisions of this Clause, authenticate and deliver or cause to be authenticated and delivered (directly or, if applicable, through the relevant Agent) any replacement Certificates which the Issuer may
determine to issue or deliver in place of Certificates which have been mutilated, defaced, lost, stolen or destroyed. The Registrar will inform the Issuer upon receiving any request from a Bondholder (directly or, if applicable, through the relevant
Agent) for the issue of a replacement Certificate. 
  

	9.3	Conditions of replacement 

 The Registrar will
verify with the relevant Agent, in the case of an allegedly lost, stolen or destroyed Certificate in respect of which the identifying number is known or believed to be known, that the Bond in respect of which such Certificate is issued has not been
redeemed or converted or purchased by the Issuer and cancelled and the Registrar shall not deliver or cause to be delivered any replacement Certificate unless and until the applicant therefor shall have: 
  

	 	(a)	paid such costs, taxes and duties as may be incurred in connection therewith; 

  

	 	(b)	furnished the Registrar (directly or, if applicable, through the relevant Agent) with such evidence (including evidence as to the identifying number of the Certificate in question
if known) and indemnity as the Issuer and the Registrar may reasonably require; and 

  

	 	(c)	surrendered to the Registrar (directly or, if applicable, through the relevant Agent) any mutilated or defaced Certificate to be replaced. 

  

	9.4	Cancellation of replaced Certificates 

 The
Registrar shall cancel or procure the cancellation of any mutilated or defaced Certificates surrendered to it for replacement. Unless otherwise instructed by the Issuer, the Registrar shall destroy or procure the destruction of such cancelled
Certificates and upon request by the Issuer or the Trustee, furnish the Issuer, the Trustee and the Principal Agent with a certificate confirming such destruction and containing the information specified in Clause 8.3. 
  

	9.5	Notification 

 The Registrar shall, on delivering
(either directly or, if applicable, through the relevant Agent) any replacement Certificate, forthwith inform the Issuer and each of the other Agents, of the identifying number of such replacement Certificate and (if known) of the identifying number
of the definitive Certificate and the relevant Bonds in place of which such replacement Certificate has been delivered. 
  

	9.6	Records 

 The Registrar shall keep a full and
complete record of all replacement Certificates delivered (either directly or, if applicable, through the relevant Agent) and shall make such record available during office hours at all reasonable times to the Issuer, the Trustee and the Principal
Agent. 
  

	9.7	Notice of presentation of replaced Certificates 

 Whenever any Certificates alleged to have been lost, stolen or destroyed in replacement for which a new Certificate has been issued shall be surrendered or delivered to an Agent prior to payment or for conversion, the Agent shall
immediately send notice thereof to the Issuer, the Registrar and the Principal Agent. 
  

 12 

	10.	DETERMINATION AND NOTIFICATION OF RATES OF INTEREST, INTEREST AMOUNTS AND INTEREST PAYMENT DATES 

  

	10.1	The Principal Agent shall determine the Rate of Interest applicable to each Interest Period, the Interest Amount payable in respect thereof and the relevant Interest Payment Date
all subject to and in accordance with the Conditions. 

  

	10.2	The Issuer undertakes that, for so long as it is required to do so in accordance with the Conditions, it shall ensure that there shall at all times be four Reference Banks.

  

	10.3	The Principal Agent shall not be responsible to the Issuer or any third party for any failure of the Reference Banks to fulfil their duties or meet their obligations as Reference
Banks or (except in the event of its own fraud, gross negligence or wilful default) as a result of the Principal Agent having acted on any certificate given by any Reference Bank which subsequently may be found to be incorrect.

  

	10.4	The Principal Agent shall notify the Issuer, the Trustee and the Paying Agents by telex or fax of each Rate of Interest, Interest Amount and Interest Payment Date as soon as
practicable after the determination thereof, and the Principal Agent shall promptly notify the Registrar thereof. 

  

	10.5	The Principal Agent shall use its reasonable endeavours to cause each Rate of Interest, Interest Amount and Interest Payment Date to be published in accordance with
Condition 19 as soon as possible after their determination but in no event later than the second Business Day (as defined in Condition 7) in Hong Kong thereafter. 

  

	10.6	If the Principal Agent does not for any reason determine and/or publish the Rate of Interest, Interest Amount and/or Interest Payment Date in respect of any Interest Period as
provided in this Clause 10, it shall forthwith notify the Issuer, the Trustee and the Paying Agents of such fact. 

  

	11.	NOTICE OF ANY WITHHOLDING OR DEDUCTION 

 If the
Issuer is, in respect of any payment in respect of the Bonds, compelled to withhold or deduct any amount for or on account of any Taxes as contemplated by Condition 11, the Issuer shall give notice to the Paying Agents as soon as it becomes aware of
the requirement to make the withholding or deduction and shall give to the Paying Agents such information as the Paying Agents shall require to enable them to comply with the requirement. 
  

	12.	DUTIES OF THE TRANSFER AGENTS IN RESPECT OF TRANSFERS 

 If and to the extent specified by the Conditions and in accordance therewith and the terms of this Agreement or if otherwise requested by the Issuer, each Transfer Agent will: 
  

	 	(a)	receive requests for the transfer of Bonds, inform the Registrar, forward the deposited Certificate(s) to the Registrar and assist in the issue of a new Certificate in accordance
with the Regulations referred to in Clause 15 and in particular forthwith notify the Registrar of (i) the name and address of the holder of the Bond, (ii) the identifying number of the relevant Certificate and the relevant Bonds,
(iii) (where not all Bonds in respect of which a Certificate was issued are to be transferred) the number of Bonds transferred and their identifying numbers, and (iv) the name, address and account for payments (if any) of the transferee to
be entered on the Register; 

  

 13 

	 	(b)	keep the Registrar informed of all transfers; and 

  

	 	(c)	carry out such other acts as may be necessary to give effect to the Conditions and the other provisions of this Agreement. 

  

	13.	DUTIES OF THE REGISTRAR 

  

	13.1	The Register 

 The Registrar shall maintain a
register (the Register) outside the United Kingdom and Hong Kong in accordance with the Conditions and the Regulations referred to in Clause 15. The Register shall: 
  

	 	(a)	show the amount of Bonds and the date of issue and all subsequent transfers and changes of ownership in respect thereof and the names and addresses of the holders of Bonds;

  

	 	(b)	at all reasonable times during office hours be made available to the Issuer, the Trustee, the other Agents or any person authorised by any of them for inspection at the
applicant’s expense and for the taking of copies thereof or extracts therefrom and the Registrar shall deliver to such persons all such lists of holders of Bonds, their addresses, registered accounts, holdings and other details as they may
request; and 

  

	 	(c)	include a record of the identifying number allocated to each Bond and the identifying number allocated to each definitive Certificate which is issued. Each Certificate will carry
the identifying number of the Bond or Bonds in respect of which it is issued, as well as its own identifying number. 

 The
Registrar will maintain proper records in relation to the title to any of the Bonds including all forms of transfer, probates, letters of administration and powers of attorney. The provisions set forth in Exhibit E hereto shall apply in relation to
the maintenance of the Register and the transfer of Bonds. The Registrar will enter in the Register the details of all redemptions or conversions or purchases and cancellation of Bonds notified to it as aforesaid and the Registrar will comply with
the proper and reasonable requests of the Issuer with respect to the maintenance of the Register and will provide to the Issuer, the Trustee and other Agents such information with respect thereto as may be requested by the Issuer or may be
reasonably required by the Trustee or the other Agents for the proper performance of their respective duties. 
  

	13.2	Transfers 

 Upon receipt of any requests for the
transfer of Bonds the Registrar shall, so long as the definitive Certificates have been deposited with a Transfer Agent, effect the necessary entries, authenticate and issue new Certificates in accordance with the Regulations referred to in Clause
15 and deliver the new Certificate(s) to the relevant Agent. 
  

	13.3	Replacement 

 The Registrar will also have certain
duties in connection with the replacement of certificates, which duties are set out in Clause 9. 
  

 14 

	14.	DOCUMENTS AND CERTIFICATES FOR THE REGISTRAR 

  

	14.1	Supply of Certificates 

 From time to time after
such time (if ever) as Bonds may be transferred to a name other than that of the holder of a Global Certificate, the Issuer will deliver to the Registrar and each Transfer Agent in reasonably sufficient time for the performance of its duties
hereunder: 
  

	 	(a)	a supply of blank definitive Certificates sufficient to meet the Registrar and each Transfer Agent’s anticipated requirements as specified by the Registrar for Certificates
upon effecting the transfers required by the holder of a Global Certificate; and 

  

	 	(b)	from time to time, so long as any Bond is outstanding, sufficient additional blank definitive Certificates as may be required by the Registrar for the performance of the
Registrar’s and each Transfer Agent’s duties. 

  

	14.2	Safekeeping of Certificates 

 Each Transfer Agent
and the Registrar shall maintain in safekeeping all Certificates and blank Certificates delivered to and held by it and shall ensure that Certificates are issued only in accordance with the Conditions (including the provisions of each Global
Certificate) and the provisions of this Agreement. 
  

	14.3	Information 

 Within seven Business Days of any
request therefor by the Issuer or any Agent, so long as any of the Bonds are outstanding, each Transfer Agent and the Registrar shall certify to the Issuer and the relevant Agent the number of blank Certificates held by it hereunder. 
  

	15.	INFORMATION AND REGULATIONS CONCERNING THE BONDS 

  

	15.1	Provision of information 

 Each Agent will give to
the other Agents such further information with regard to their activities hereunder as may reasonably be required by them for the proper carrying out of their respective duties. 
  

	15.2	Regulations 

 The Issuer may, subject to the
Conditions, from time to time with the approval of the Registrar and the Trustee promulgate regulations (the Regulations) concerning the carrying out of transfers of Bonds and the forms and evidence to be provided. All such transfers will be
made subject to the Regulations. The initial Regulations are set out in Exhibit E. The Registrar shall, at the expense of the Issuer, provide copies of the current Regulations to Bondholders (free of charge) upon request in accordance with Condition
4.6. 
  

	16.	REMUNERATION 

  

	16.1	Fees 

 The Issuer will, in respect of the services
to be performed by the Principal Agent and the Registrar and the other Agents under this Agreement, the Conditions and the Trust Deed pay to the Principal Agent the commissions, fees and expenses as separately agreed in writing with the Principal
Agent and the Issuer need not concern itself with the apportionment of such moneys as between the Principal Agent, the Registrar and the other Agents. The Principal Agent’s receipt of such monies shall be a complete discharge of the
Issuer’s obligation to pay the same. 
  

 15 

	16.2	Costs 

 The Issuer will pay to the Principal Agent
all out-of-pocket expenses (including, without limitation, advertising and insurance expenses and the fees and expenses of legal advisers) properly incurred by any Agent and the Registrar in connection with its services performed under this
Agreement, the Conditions and the Trust Deed promptly upon receipt from the Principal Agent of notification of the amount of such expenses together with the relevant invoices and/or receipts. 
  

	16.3	Distribution to Agents 

 The Principal Agent will be
responsible for distributing the remuneration of the Agents and the Registrar and their relevant costs and expenses promptly upon receipt of the moneys therefor from the Issuer. The Issuer need not be concerned with the appointment of such moneys as
between the Agents. 
  

	16.4	Stamp duties 

 The Issuer will pay or reimburse all
stamp, registration and other similar taxes, fees or duties, if any, to which this Agreement may be subject on execution, issue, payment or enforcement. 
  

	16.5	Obligations to survive 

 Any outstanding obligations
of the Issuer to the Agents and the Registrar under this Clause 16 shall survive the termination of this Agreement, the Conditions and the Trust Deed and the resignation or removal of any of the Agents or the Registrar. 
  

	17.	FUNDS HELD BY PRINCIPAL AGENT 

  

	17.1	Repayment 

 Any sums paid by, or by arrangement
with, the Issuer to the Principal Agent pursuant to the terms of this Agreement shall not be required to be repaid to the Issuer unless and until the Bonds in respect of which such sums were paid shall have been converted or redeemed or purchased
and cancelled or claims in respect of such sums shall have become prescribed under Condition 13, but in any of these events the Principal Agent shall (provided that all other amounts due under this Agreement shall have been duly paid), save as
mentioned below, forthwith repay to the Issuer upon its written request sums (without interest) equivalent to the amounts which would otherwise have been payable on the relevant Bonds together with any fees previously paid (except for any
commissions, fees and expenses paid by the Issuer pursuant to Clause 16) to the Principal Agent in respect of such Bonds. 
  

	17.2	Use of moneys 

 The Principal Agent shall be
entitled to deal with moneys paid to it by the Issuer for the purposes of this Agreement in the same manner as other moneys paid to a banker by its customers and shall not be liable to account to the Issuer (or any other Person) for any interest
thereon, save as otherwise agreed between the Issuer and the Principal Agent. No Agent shall exercise any right of set-off or lien or similar claim over moneys paid to it or by it under this Agreement. Unless required by law, moneys held by the
Principal Agent need not be segregated. 
  

 16 

	18.	MISCELLANEOUS 

  

	18.1	Publication of notices 

 On behalf and at the
written request and expense of the Issuer, the Principal Agent will as soon as practicable cause to be published any notices required to be given by the Issuer or the Trustee in accordance with this Agreement, the Trust Deed or any of the
Conditions. The Issuer shall provide the Principal Agent with signed copies of any notices to be published at least five Business Days prior to the date of publication. 
  

	18.2	Notices to the Trustee 

 Upon each occasion that the
Issuer gives to the Trustee any notice in connection with the Bonds, the Issuer shall at the same time give a similar notice to the Principal Agent. 
  

	18.3	Voting 

 Each of the Agents shall perform the
functions described as being performed by it in schedule 3 to the Trust Deed and shall keep a full and complete record of forms of proxy issued by it. 
  

	18.4	No implicit duties 

 The Agents shall be obliged to
perform such duties, and only such duties, as are herein and in the Conditions specifically set forth, and no implied duties or obligations shall be read into this Agreement or the Conditions against any of them. 
  

	18.5	No agency or trust 

 In acting hereunder and in
connection with the Bonds, the Agents shall act solely as agents of the Issuer (or, where a notice given by the Trustee pursuant to Clause 5.6 shall not have been withdrawn, the Trustee) and will not thereby assume any obligations towards, or
relationship of agency or trust for, any of the Bondholders and shall not be concerned with the interests of any Bondholders. 
  

	18.6	Taking of advice 

 Any of the Agents (at the expense
of the Issuer) may consult with legal or other professional advisers satisfactory to it, and the opinion of such advisers shall be full and complete protection in respect of any action taken, omitted or suffered hereunder in good faith and in
accordance with the opinion of such advisers. 
  

	18.7	Liability 

 Subject to Clause 18.8, the Agents shall
be protected and shall incur no liability for or in respect of any action taken, omitted or suffered in reliance upon any instruction, request or order from the Issuer or the Trustee, or any Bond, Certificate, form of transfer, Conversion Notice,
resolution, direction, consent, certificate, affidavit, statement, facsimile transmission, electronic message or other paper or document reasonably believed by it to be genuine and to have been delivered, signed or sent by the proper party or
parties. The Agents shall not be under any obligation to take any action hereunder which may involve it in any expense or liability, the payment of which within a reasonable time is not, in its opinion, assured to it, or would be contrary to
applicable law or regulation. 
  

 17 

	18.8	Indemnity by the Issuer 

 The Issuer will indemnify
each of the Agents against any losses, liabilities, costs, claims, actions, demands, damages or expenses which any of them may incur or which may be made against it as a result of or in connection with its appointment or the exercise or non-exercise
by it of its powers, discretions and duties, except such as may result from its own fraud, wilful default or gross negligence or that of its directors, officers, employees or agents. Except in the case of fraud, wilful default or gross negligence,
no Agent shall be liable either for any act or omission under this Agreement, or if any Bond, Certificate, form of transfer or Conversion Notice shall be lost, stolen, destroyed or damaged. Notwithstanding the foregoing, under no circumstances will
the Agents be liable to the Issuer or any other party to this Agreement for any consequential loss (being loss of business, goodwill, opportunity or profit) or any special or punitive damages of any kind whatsoever; in each case however caused or
arising and whether or not foreseeable, even if advised of the possibility of such loss or damage except in the case of fraud, gross negligence, or will default on the part of the Agents. The provisions of this Clause 18.8 shall survive the
resignation or removal of any Agent or the Registrar and the termination of this Agreement. 
  

	18.9	Entitlement to treat holder as owner 

 Except as
ordered by a court of competent jurisdiction or may be required by law, each of the Agents shall (whether or not the relevant Bond is overdue and regardless of any notice of ownership, trust or any interest, or writing on, or the loss or theft of,
the Certificate issued in respect of it) be entitled to treat the registered holder of any Bond as the absolute owner for all purposes. 
  

	18.10	Copies of documents 

 So long as any of the Bonds
remains outstanding, the Issuer shall upon request provide the Agents with a sufficient number of copies of the Trust Deed and of each of the documents which are sent to the Trustee or which are required to be made available by stock exchange
regulations relating to the Bonds, to be available and, subject to being provided with such copies, each of the Agents will procure that such copies shall be available at its specified office during normal office hours for examination by Bondholders
and that copies thereof will be furnished to Bondholders upon request at their own expenses. 
  

	18.11	Acquisition of Bonds 

 Any Agent, their affiliates
and each of their respective officers, directors and employees, may become the owner of, or acquire any interest in, any Bonds or Shares with the same rights that it or they would have if it or they were not appointed hereunder, and may engage or be
interested in any financial or other transaction with the Issuer and may act on, or as depositary, trustee or agent for, any committee or body of holders of Bonds or other obligations of the Issuer as freely as if it were not appointed hereunder.

  

	18.12	Merger 

 Any corporation into which any Agent may be
merged or converted or any corporation with which any Agent may be consolidated or any corporation resulting from any merger, conversion or consolidation to which any Agent shall be a party or any corporation succeeding to all or substantially all
of the corporate trust business of any Agent shall, to the extent permitted by applicable law, be the successor Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto.
Notice of any such merger, conversion or consolidation shall forthwith be given to the Issuer, the Trustee and the Bondholders. 
  

 18 

	18.13	Authorised signatories 

 Upon the execution of this
Agreement and thereafter as soon as practicable upon any change of the same, the Issuer shall deliver to each Agent a list of the authorised signatories of the Issuer for the purposes of this Agreement, together with certified specimen signatures of
the same. 
  

	19.	CHANGES IN AGENTS 

  

	19.1	Appointment and termination of appointment 

 The
Issuer may appoint further or other Agents. The Issuer may also terminate the appointment of any Agent at any time subject to the prior written approval of the Trustee (which shall not be unreasonably withheld or delayed). Such termination shall be
effective by giving: 
  

	 	(a)	to the Trustee; 

  

	 	(b)	in the case of any Agent other than the Principal Agent, to the Principal Agent; and 

  

	 	(c)	to the Agent whose appointment is to be terminated, 

 at
least 30 days’ written notice to that effect. However, no such notice relating to the termination of the appointment of the Principal Agent or the Registrar shall take effect until a new Principal Agent or, as the case may be, Registrar
approved in writing by the Trustee has been appointed on terms approved (such approval not to be unreasonably withheld or delayed) in writing by the Trustee. The Issuer shall procure that there are at all times (i) a Principal Agent,
(ii) (if requested by the Trustee) a Paying Agent with a specified office in an European Union member state that will not be obliged to withhold or deduct tax pursuant to European Council Directive 2003/48/EC or any law implementing or
complying with, or introduced in order to conform to, such Directive and (iii) a Registrar which will maintain a register of Bondholders outside Hong Kong and the United Kingdom. The termination of the appointment of any Agent shall not take
effect (A) until notice thereof shall have been given to the Bondholders in accordance with Condition 19 and (B) within the period commencing 45 days immediately preceding any due date for a payment in respect of the Bonds and ending 15
days after such date. 
  

	19.2	Resignation 

 Any Agent may resign its appointment
hereunder at any time by giving to the person(s) referred to in Clauses 19.l(a) and 19.l(b) and the Issuer at least 30 days’ written notice to that effect, provided that (a) in the case of the resignation of the Principal Agent or the
Registrar, no such resignation shall take effect until a new Principal Agent or, as the case may be, Registrar approved (such approval not to be unreasonably withheld or delayed) in writing by the Trustee has been appointed by the Issuer on terms
approved (such approval not to be unreasonably withheld or delayed) in writing by the Trustee, (b) no such resignation shall take effect unless upon the expiry of the notice period there are Agents as required by Clause 19.1 and the Conditions,
(c) no such resignation shall take effect until notice thereof shall have been given to the Bondholders in accordance with Condition 19 and (d) no such notice shall be given so as to expire within a period commencing 30 days immediately
preceding any due date for a payment in respect of the Bonds and ending 15 days after such date. Notwithstanding the above, the Issuer agrees with each Agent that if, by the day falling 10 days before the expiry of any notice referred to above, the
Issuer has not appointed a replacement Agent, then the relevant Agent shall be entitled, on behalf and at the expense of the Issuer, to appoint in its place any reputable financial institution of good standing on terms approved by the Trustee.

 Notwithstanding any other provision of this Clause 19, the appointment of any Agent shall forthwith terminate if such Agent becomes
incapable of acting, is adjudged bankrupt or insolvent, files a voluntary petition in bankruptcy, makes an assignment 

  

 19 

 
for the benefit of its creditors, consents to the appointment of a receiver, administrator or other similar official of all or a substantial part of its
property or assets or admits in writing its inability to pay or meet its debts as they mature or suspends payment thereof, or if a resolution is passed or an order made for the winding up or dissolution of such Agent or any analogous event occurs
under any applicable law. 
  

	19.3	Delivery of records by Principal Agent on termination 

 If the appointment of the Principal Agent hereunder is terminated or the Principal Agent resigns its appointment hereunder, the Principal Agent shall, subject to payment of all outstanding fees and expenses, on the date on which such
termination or resignation takes effect, pay to the successor Principal Agent the amounts held by it in respect of the Bonds, the Certificates relating thereto which have not been presented for payment and any other amounts held by it in respect of
the Bonds and shall deliver to the successor Principal Agent Bonds surrendered to it but not yet destroyed, Conversion Notices held by it, all records concerning Bonds and the Certificates maintained by the Principal Agent pursuant to this
Agreement, but shall have no other duties or responsibilities to provide services as Principal Agent hereunder. 
  

	19.4	Delivery of records by Registrar on termination 

 If
the appointment of the Registrar is terminated or the Registrar resigns its appointment hereunder, the Registrar shall subject to payment of all outstanding fees and expenses, on the date on which such termination or resignation takes effect,
deliver to the successor Registrar, the Register, all Certificates and blank Certificates held by it and all other records concerning the Bonds maintained by it pursuant to this Agreement, but shall have no other duties or responsibilities to
provide services as Registrar hereunder. 
  

	19.5	Delivery of records by Agents on termination 

 If
the appointment of any Agent is terminated or any Agent or the Registrar resigns its appointment hereunder, such Agent or the Registrar shall subject to payment of all outstanding fees and expenses, on the date on which such termination or
resignation takes effect, deliver to any successor Agent or the Registrar or, if none, the Principal Agent any records or other documents concerning the Bonds maintained by it pursuant to this Agreement, but shall have no other duties or
responsibilities hereunder. 
  

	19.6	Change of office 

 If any Agent shall change its
specified office, it shall give to the Issuer, the Principal Agent and the Trustee not less than 30 days’ prior written notice to that effect giving the address of the new specified office. As soon as practicable thereafter, the Principal Agent
shall give to the Bondholders, on behalf of and at the expense of the Issuer, notice of such change and the address of the new specified office in accordance with Condition 19. 
  

	20.	NOTICES 

 Any communication shall be by letter sent
by pre-paid registered post or courier or facsimile transmission: 
  

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

  

 20 

					
	to the Trustee:	  	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
		
	to the Registrar:	  	Deutsche Bank Luxembourg S.A.
		  	2, Boulevard Konrad Adenauer
		  	L-1115
		  	Luxembourg
			
		  	Fax no.:	  	+352 437 136
		  	Attention:	  	Coupon Paying Department
		
	and, in the case of any of the Paying Agents,	  	Deutsche Bank AG, Hong Kong Branch
	to the Principal Paying Agent care of:	  	55th Floor
		  	Cheung Kong Center
		  	2 Queen’s Road Central
		  	Hong Kong
			
		  	Fax no.:	  	+852 2203 7320
		  	Attention:	  	Trust and Security Services

 Any notice or demand sent by post as provided in this Clause shall be deemed (unless any relevant
part of the postal service is affected by industrial action) to have been given, made or served three days (in the case of inland post) or seven days (in the case of overseas post) after despatch and any notice sent by fax as provided in this Clause
shall be deemed to have been given, made or served 24 hours after despatch and receipt of confirmation of error-free transmission (if received during business hours and, if not, on the next business day in the place of receipt). Subject thereto,
neither the non-receipt of, nor the time of receiving, any such confirmation of a notice given by fax as is referred to above shall invalidate or affect such notice or the time at which it is deemed as provided above to have been given. 

Any of the parties named above may change its address for the purpose of this Clause by giving notice of such change to the other parties to this
Agreement. 
  

	21.	CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 

 A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act of 1999 to enforce any term of this Agreement. 
  

 21 

	22.	GOVERNING LAW AND JURISDICTION 

  

	22.1	Governing law 

 This Agreement shall be governed by
and construed in accordance with English law. 
  

	22.2	Jurisdiction 

  

	(a)	Subject to paragraph (b) below, the Issuer irrevocably agrees for the benefit of the Agents and the Trustee that the courts of England are to have non-exclusive jurisdiction to
settle any dispute which may arise out of or in connection with this Agreement and accordingly submit to the non-exclusive jurisdiction of the English courts. The Issuer waives any objection to any legal action or proceedings arising out of or in
connection with this Agreement (Proceedings) in such courts whether on the ground of venue or on the ground that the Proceedings have been brought in an inconvenient forum. 

  

	(b)	Nothing in this Clause 22 shall limit the right of any of the Agents or the Trustee to take Proceedings against the Issuer in any other court of competent jurisdiction nor shall the
taking of Proceedings in one or more jurisdictions preclude any of the Agents or the Trustee from taking Proceedings in any other jurisdiction, whether concurrently or not. 

  

	22.3	Service of process 

 The Issuer irrevocably appoints
Brandmine 3 Limited (Company Registration No. 05575723) of 8 Lower John Street, Golden Square, London, W1F 9AU as its authorised agent for service of process in England. The Issuer will procure that, so long as any of the Bonds are outstanding,
there shall be in force an appointment of such a person with an office in England with authority to accept service as aforesaid on behalf of the Issuer and, failing such appointment within 15 days after demand by or on behalf of the Trustee, the
Trustee shall be entitled by notice to the Issuer to appoint such person. Nothing herein shall affect the right to serve process in any other manner permitted by law. 
  

	23.	COUNTERPARTS 

 This Agreement may be executed in
counterparts which when taken together shall constitute one and the same instrument. 
  

	24.	TERMINATION OF THIS AGREEMENT 

 This Agreement shall
terminate forthwith when none of the Bonds remain outstanding. 
  

 22 

 EXHIBIT A 
 CONVERSION NOTICE 
 ASIA SILICON TECHNOLOGY HOLDINGS INC. 
 Tranche B U.S.$40,000,000 Floating Rate Secured Convertible Bonds due 2009 (the Bonds) 
 (Please read the notes overleaf before completing this Notice.) 
  

							
	Name:	 	  
	    	Date:	 	  

				
	Address:	 	  
	    	Tel No:	 	  

				
	*Euroclear/Clearstream Account No.:	 	  
	    	Fax No:	 	  

  
 (*delete as appropriate) 
 Signature1 :

  

			
		
	  
	    	

  

			
	To:	  	[Conversion Agent]
		
	Cc:	  	Asia Silicon Technology Holdings Inc. (the Issuer)

 I am/We are the holder of the Bonds specified below. 
  

	1	Total principal amount, number and identifying numbers of Bonds: 

  

			
	Total principal amount:	 	  

			
		
	Total number of Bonds:	 	  

			
		
	Identifying numbers of Bonds (if relevant)*	 	  

			
	
	N.B. If necessary, the identifying numbers of the Bonds can be attached separately.

  

	*	Not required for Bonds represented by a Global Certificate. 

  

	2	Name(s) and address(es) of person(s) in whose name(s) the Shares required to be delivered on conversion are to be registered: 

  

			
	Name:	  	  

			
		
	Address:	  	  

	
	  

			
		
	Telephone Number:	  	  

			
		
	Fax Number:	  	  

  

	1	Where the Bonds to be converted are evidenced by a Global Certificate, the Conversion Notice need not be signed. In such a case, delivery of the Conversion Notice will constitute
confirmation by the beneficial owner of the Bonds to be converted that the information in the Conversion Notice is true and accurate on delivery. 

  

 23 

	3	I/We hereby request that the certificates for the Shares together with any other securities, property or cash, including any U.S. Dollar cheque in respect of payment of an
Equivalent Amount pursuant to Condition 8.3(e) required to be delivered upon conversion, be despatched to the person whose name, contact person, telephone numbers, fax number and address is given below and in the manner specified below:

  

					
	Name:	 	  
	 	
			
	Contact Person:	 	  
	 	
			
	Address:	 	  
	 	
			
		 	  
	 	
			
		 	  
	 	
			
	Account No.:	 	  
	 	
			
	Account Name:	 	  
	 	
			
	Telephone Number/Fax Number:	 	  
	 	
			
	Manner of despatch:	 	  
	 	

  

	4	[The Issuer has notified the Conversion Agents that the Issuer’s register of shareholders will be closed on the following dates: 

  

			
		
	  
	 	
		
	  
	 	]

 N.B. 
  

	(i)	This Conversion Notice will be void unless the introductory details and Sections 1 to 4 are completed. 

  

	(ii)	Your attention is drawn to Condition 8 of the Conditions for the Bonds with respect to the conditions precedent which must be fulfilled before the Bonds specified above will be
treated as effectively eligible for conversion. 

  

	(iii)	The converting Bondholder will be required to submit any necessary documents required in order to effect despatch of share certificates or other securities or property in the manner
specified. 

 For Agent’s use only: 
  

							
	1	 	(A)	    	Bond conversion identification reference:
			
		 	(B)	    	Deposit Date:                          

		
	2	 	Number of Shares issuable:
		
	  
	    	

 The Conversion Agent must complete items 1 and 2. 
  

 24 

 EXHIBIT B 
 NON-EXERCISE NOTICE 
 ASIA SILICON TECHNOLOGY HOLDINGS INC. 
 Tranche B U.S.$40,000,000 Floating Rate Secured Convertible Bonds due 2009 (the Bonds) 
  

									
	Name:	 	  
	 		  	Date:	  	  

					
	Address:	 	  
	 		  	Tel No:	  	  

					
	Fax No:	 	  
	 		  		  	
					
	Signature:	 		 		  		  	
				
	  
	 		  		  	

  

			
	To:	  	[Conversion Agent]
		
	Cc:	  	Asia Silicon Technology Holdings Inc. (the Issuer)

 I am/We are holder of the Bonds described below: 
  

			
	Total principal amount, number and identifying numbers of Bonds to be converted:

			
		
	Total principal amount:	 	  

			
		
	Total number of Bonds:	 	  

			
		
	Identifying numbers of Bonds (if relevant)*	 	  

			
	
	N.B. If necessary, the identifying numbers of the Bonds can be attached separately.

  

	*	Not required for Bonds represented by a Global Certificate. 

 I/We hereby
elect not to exercise the Conversion Right pursuant to Condition 8.3(a) of the Bonds. 
  

 25 

 EXHIBIT C 
 CONVERSION AGENT NOTIFICATION 
 Form of notification to be sent by facsimile transmission by an Agent to the Issuer,
and, if different, the Principal Agent—see Clause 6.5. 
 ASIA SILICON TECHNOLOGY HOLDINGS INC. 
 Tranche B U.S.$40,000,000 Floating Rate Secured Convertible Bonds due 2009 (the Bonds) 
  

			
	To:	  	Asia Silicon Technology Holdings Inc. (the Issuer) (attention: [—])
		
	To:	  	Principal Agent (attention: [—])

 Bonds conversion identification
reference:              /Tranche B Asia Silicon Technology Holdings Inc. Floating Rate Secured Convertible Bonds due 2009
(US$)/             
 (A) 
 (B) 
 (C) 
 (D) 
 (E) 
 (F) 
 Regards 
 [name of agent] 
 [Identifying symbol and number] 
 Explanation 
 Against the letters (A) to (F) inclusive will be inserted the following information with respect to the relevant Conversion Notice: 
  

					
	(A)	  	=	  	name and address of converting holder of the Bonds or accountholder of Euroclear or Clearstream, Luxembourg or other clearing system in which the Bond is held at such time;
			
	(B)	  	=	  	identifying numbers of the Bonds;
			
	(C)	  	=	  	number of Shares issuable to such holder of the Bonds;
			
	(D)	  	=	  	name(s) and address(es) of person(s) in whose name(s) the Shares issuable upon conversion are to be registered;
			
	(E)	  	=	  	the date of deposit of the Conversion Notice; and

  

 26 

					
	(F)	  	=	  	name and address of person to whom, and the manner in which, share certificates and, if applicable, a cheque in respect of an Equivalent Amount pursuant to Condition 8.3(f) are to be despatched.

  

 27 

 EXHIBIT D 
 NOTIFICATION FROM ISSUER 
 Form of notification to be sent by facsimile transmission by the Issuer to the Agent which
has sent the relevant Conversion Notice—see Clause 6.5. 
 ASIA SILICON TECHNOLOGY HOLDINGS INC. 
 Tranche B U.S.$40,000,000 Floating Rate Secured Convertible Bonds due 2009 (the Bonds) 
  

							
	To:	  	[	 	                                        
                ]	  	
		  	as Agent	  	
				
	Cc:	  	[	 	]	  	
		  	Fax: [	 	]	  	
				
	To:	  	[	 	]	  	(attention:        [                              
      ])
				
		  	[	 	]	  	(attention:        [                              
      ])

 Bond conversion identification reference 
 (A) 
  

	(B)	(i)

  

	    	(ii) 

 (C) 
 (D) 
 Regards 
 Asia Silicon
Technology Holdings Inc. 
 Explanation 
 Against the
letters (A) to (D) inclusive will be inserted the following information with respect to the delivery of Shares upon conversion: 
  

							
	(A)	 	=	  	the identification code and number of the Agent who forwarded the copy of the Conversion Notice in respect of the Bonds that have been converted;
				
	(B)	 	=	  	(i)	  	the number of Shares delivered upon conversion; and
				
		 		  	(ii)	  	the amount of any cash (including any Equivalent Amount) received upon conversion;

  

 28 

					
	(C)	 	=	  	the date on which the certificate or certificates for Shares and any securities, property or cash were made available for collection; and
			
	(D)	 	=	  	if applicable, the name and address of the person to whom or to whose order the certificate or certificates for Shares and/or cash, if any, were despatched and the address to which and the
manner in which they were despatched.

  

 29 

 EXHIBIT E 
 REGULATIONS CONCERNING THE TRANSFER AND REGISTRATION OF BONDS 
  

	1.	Each Bond shall be in the denomination of U.S.$100,000 each and integral multiples of U.S.$1,000 in excess thereof. Certificates, each evidencing entitlement to one or more Bonds,
shall be issued in accordance with the Conditions. 

  

	2.	Subject to the provisions of the regulations set forth herein and in this Agreement, the Bonds are transferable by execution of the form of transfer on each Certificate endorsed
under the hand of the transferor or, where the transferor is a corporation, under its common seal or under the hand of two of its officers duly authorised in writing. In this Exhibit transferor shall where the context permits or requires
include joint transferors and be construed accordingly. 

  

	3.	At the time of transfer of a Bond, the holder of that Bond must also (a) transfer the Tranche A Bond or Tranche B Bond (as the case may be) held by it to the same transferee in
the same proportion as that for the Bond (or any part of it) being transferred and (b) assign to the transferee the rights of the holder of that Bond under the Registration Rights Agreement in respect of that Bond, and provided further that so
long as no Event of Default is subsisting, a Bond may not be transferred, without the prior consent of the Issuer, to a person specified in a letter dated the Issue Date addressed by the Issuer to, and accepted by, the Manager in respect of
Condition 4.2. 

  

	4.	The Certificate issued in respect of the Bond to be transferred must be delivered for registration to the office of a Transfer Agent or the Registrar accompanied by such other
evidence (including certificates and/or legal opinions) as the Transfer Agent or the Registrar may reasonably require to prove the title of the transferor or his right to transfer the Bond and his identity and, if the form of transfer is executed by
some other person on his behalf or in the case of the execution of a form of transfer on behalf of a corporation by its officers, the authority of that person or those persons to do so. The signature of the person effecting a transfer of a Bond
shall conform to any list of duly authorised specimen signatures supplied by the registered holder or be certified by a recognised bank, notary public or in such other manner as the Agent or Registrar may require. 

  

	5.	The executors or administrators of a deceased holder of Bonds (not being one of several joint holders) and, in the case of the death of one or more of joint holders, the survivor or
survivors of such joint holders, shall be the only persons recognised by the Issuer as having any title to such Bonds. 

  

	6.	Any person becoming entitled to Bonds in consequence of the death or bankruptcy of the holder of such Bonds may, upon producing such evidence that he holds the position in respect
of which he proposes to act under this paragraph or of his title as the Transfer Agent or the Registrar shall require (including certificates and/or legal opinions), be registered himself as the holder of such Bonds or, subject to the preceding
paragraphs as to transfer, may transfer such Bonds. The Issuer and the Agents or Registrar may retain any amount payable upon the Bonds to which any person is so entitled until such person shall be so registered or shall duly transfer the Bonds.

  

	7.	Unless otherwise requested by him and agreed by the Issuer, a holder of Bonds shall be entitled to receive only one Certificate in respect of his holding. 

 

	8.	The joint holders of a Bond shall be entitled to one Certificate only in respect of their joint holding which shall, except where they otherwise direct, be delivered to the joint
holder whose name appears first in the Register in respect of the joint holding. 

  

 30 

	9.	The Issuer, the Registrar and the Transfer Agents shall make no charge to the holders for the registration of any holding of Bonds or any transfer of Bonds or for the issue of any
Certificates or for the delivery of Certificates at the specified office of the Agent to whom the request for registration, transfer or delivery was delivered or by uninsured post to the address specified by the holder. If any holder entitled to
receive a Certificate wishes to have it delivered to him otherwise than at the specified office of such Agent or the Registrar, such delivery shall be made upon his written request to such Agent or the Registrar, at his risk and (except where sent
by uninsured post to the address specified by the holder) at his expense. 

  

	10.	Each Transfer Agent will within five business days in Hong Kong of a request to effect a transfer of a Bond (or within 21 days if the transfer is of a Bond represented by a Global
Certificate) deliver at its specified office to the transferee or despatch by mail (at the risk of the transferee) to such address as the transferee may request, a new Certificate in respect of the Bond or Bonds transferred. In the case of a
transfer, conversion or redemption of fewer than all the Bonds in respect of which a Certificate is issued, a new Certificate in respect of the Bonds not transferred, converted or redeemed will be so delivered to the holder to its address appearing
on the register of holders of Bonds. 

  

	11.	Notwithstanding any other provisions of this Agreement, the Registrar shall register the transfer of any Bond only upon presentation of an executed and duly completed form of
transfer substantially in the form set forth in the Form of Certificate for Definitive Bonds in schedule 1 or the Form of Global Certificate in schedule 2 to the Trust Deed together with any other documents thereby required.

  

	12.	The Issuer may, with the prior approval of the Registrar and the Trustee, promulgate any other regulations that they may deem necessary for the registration and transfer of the
Bonds. 

  

 31 

 SIGNATORIES 
 IN WITNESS whereof the parties hereto have executed this Paying and Conversion Agency Agreement as of the date first above written. 
  

			
	ASIA SILICON TECHNOLOGY HOLDINGS INC. as Issuer
		
	By:	 	

	
	DEUTSCHE BANK AG, HONG KONG BRANCH as Principal Agent
		
	By:	 	

	
	DEUTSCHE BANK LUXEMBOURG S.A. as Registrar
		
	By:	 	

	
	DB TRUSTEES (HONG KONG) LIMITED as Trustee
		
	By:Security Agreement relating to Tranche A U.S.$20,000,000 Floating Rate Secured

 EXHIBIT 4.11 
 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 INC. 
 and 
 DB TRUSTEES (HONG KONG) LIMITED 
 

 

 CONTENTS 
  

					
	Clause	  	Page
	1.	  	Interpretation	  	1
	2.	  	Creation of Security	  	3
	3.	  	Representations and Warranties - General	  	6
	4.	  	Restrictions on Dealings	  	6
	5.	  	Land	  	7
	6.	  	Investments	  	11
	7.	  	Accounts	  	12
	8.	  	Intellectual Property	  	15
	9.	  	Relevant Contracts	  	16
	10.	  	When Security becomes Enforceable	  	17
	11.	  	Enforcement of Security	  	18
	12.	  	Receiver	  	19
	13.	  	Powers of Receiver	  	20
	14.	  	Application of Proceeds	  	22
	15.	  	Expenses and Indemnity	  	22
	16.	  	Delegation	  	22
	17.	  	Further Assurances	  	23
	18.	  	Power of Attorney	  	23
	19.	  	Preservation of Security	  	23
	20.	  	Miscellaneous	  	25
	21.	  	Release	  	26
	22.	  	Language	  	26
	23.	  	Severability	  	26
	24.	  	Waivers and Remedies Cumulative	  	26
	25.	  	Changes to the Parties	  	27
	26.	  	Counterparts	  	27
	27.	  	Governing Law	  	27
	
	Schedule
	1.	  	Security Assets	  	28
	2.	  	Forms of Letter for Account Bank	  	29
	3.	  	Forms of Letter for Relevant Contracts	  	32
	4.	  	Form of Withdrawal Request	  	34
		
	Signatories	  	35

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

	 (1)
	 ASIA SILICON TECHNOLOGY HOLDINGS INC., a company incorporated under the laws of the Cayman Islands, with its
registered office at the offices of Offshore Incorporations (Cayman) Limited, Scotia Centre, 4th Floor, P.O. Box 2804, George Town, Grand Cayman
KY1-1112, Cayman Islands (Company number 187165) (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. 
 Act means the Law of Property Act 1925. 
 Bonds means: 
  

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

  

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

 issued by the Chargor. 
 Escrow Account means an account in the name of the Chargor designated as the
Escrow Account. 
 Interest Reserve Account means an account in the name of the Chargor designated as the Interest Reserve Account.

 IPO Contracts means any agreement to which the Chargor is a party and which relates to the Complying IPO. 
 Party means a party to this Deed. 
 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)	the Escrow Account; 

  

	 	(b)	the Interest Reserve Account; 

  

	 	(c)	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 

  

	 	(d)	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. 

 RMB means Renminbi, the lawful currency of the PRC.

 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 151 of the Companies Act
1985 or any equivalent or applicable provisions under the laws of the Cayman Islands. 
 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. 
 Share
means the one ordinary share of HK$1.00 in the issued share capital of AST (HK), constituting the entire issued share capital of AST (HK). 
 Trust Deed means the trust deed dated 10 September 2007 between the Chargor 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. 

  

					
	(d)	  	(i)	  	The term Finance Document includes all amendments and supplements including supplements providing for further
advances; and
			
		  	(ii)	  	the term this Security means any security created by this Deed.

  

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

  

 2 

	(f)	The terms of the other Finance Documents and of any side letters between any Parties in relation to any Finance Document are incorporated in this Deed to the extent required to
ensure that any purported disposition of any freehold or leasehold property contained in this Deed is a valid disposition in accordance with Section 2(1) of the Law of Property (Miscellaneous Provisions) Act 1989. 

  

	(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 or
administration 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; 

  

	 	(iii)	is security for the payment of all the Secured Liabilities; and 

  

	 	(iv)	is made with full title guarantee in accordance with the Law of Property (Miscellaneous Provisions) Act 1994. 

  

	(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 charges: 

  

	 	(i)	by way of a first legal mortgage all estates or interests in any freehold or leasehold 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 freehold or leasehold
property. 

  

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

  

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

  

 3 

	 	(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. 

  

	2.3	Investments 

  

	(a)	The Chargor charges by way of a first fixed charge its interest in all shares, stocks, debentures, bonds or other securities and investments other than the Share 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 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 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 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 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, 

 other than an IPO Contract. 
  

	2.8	Intellectual property 

 The Chargor 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; 

  

 4 

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

  

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

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

	2.9	Miscellaneous 

 The Chargor 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 may not be converted into a fixed charge solely by reason of: 

  

	 	(i)	the obtaining of a moratorium; or 

  

	 	(ii)	anything done with a view to obtaining a moratorium, 

 under the Insolvency Act 2000. 
  

	(d)	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). 

  

 5 

	(e)	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. 

  

	(f)	The floating charge created by this Subclause is a qualifying floating charge for the purpose of paragraph 14 of Schedule B1 to the Insolvency Act 1986.

  

	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	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. 

  

	3.3	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 or administration of the Chargor or otherwise. 
  

	3.4	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 representation and warranty 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. 
  

 6 

	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. 
 Insured Property Assets means the Premises and all the Chargor’s other assets of an insurable nature in the Premises. 
 Mortgaged Property means all freehold or leasehold 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. 
  

 7 

	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. 

  

	(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. 

  

 8 

	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 

  

	(a)	If the Chargor acquires any freehold or leasehold property after the date of this Deed it must: 

  

	 	(i)	notify the Security Agent immediately; 

  

	 	(ii)	immediately on request by the Security Agent and at the cost of the Chargor, execute and deliver to the Security Agent a legal mortgage in favour of the Security Agent of that
property in any form which the Security Agent may require; 

  

	 	(iii)	if the title to that freehold or leasehold property is registered at H.M. Land Registry or required to be so registered, give H.M. Land Registry written notice of this Security; and

  

	 	(iv)	if applicable, ensure that this Security is correctly noted in the Register of Title against that title at H.M. Land Registry. 

  

	(b)	If the consent of the landlord in whom the reversion of a lease is vested is required for the Chargor to execute a legal mortgage over it, the Chargor will not be required to
perform that obligation unless and until it has obtained the landlord’s consent. The Chargor must use its reasonable endeavours to obtain the landlord’s consent. 

  

	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. 
  

	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. 
  

 9 

	5.11	H.M. Land Registry 

 The Chargor consents to a
restriction in the following terms being entered into on the Register of Title relating to any Mortgaged Property registered at H.M. Land Registry: 
 “No disposition of the registered estate by the proprietor of the registered estate is to be registered without a written consent signed by the proprietor for the time being of the security agreement dated 10 September 2007 in
favour of DB Trustees (Hong Kong) Limited as security trustee for the Secured Parties referred to therein referred to in the charges register or, if appropriate signed on such proprietor’s behalf by its conveyancer. (Standard Form P)”

  

	5.12	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 H.M. Land Registry search certificates and similar documents received by or on behalf of the Chargor.

  

	5.13	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. 
  

	5.14	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. 

  

	5.15	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. 
  

	5.16	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 

  

	 	(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. 
  

 10 

	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, 

 but excluding the Share. 
  

	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. 
  

	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 the 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. 

  

 11 

	(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	Designation of account 

 The Chargor must maintain
each of the Escrow Account and the Interest Reserve Account with Deutsche Bank AG, Hong Kong Branch. 
  

	7.2	Account Bank 

 Each Restricted Account must be
maintained at a branch of an Account Bank approved by the Security Agent or, in the case of each of the Escrow Account and the Interest Reserve Account, Deutsche Bank AG, Hong Kong Branch. 
  

	7.3	Escrow Account and Interest Reserve Account 

 On the
Issue Date, the Chargor must: 
  

	 	(a)	deposit into the Interest Reserve Account an amount equal to U.S.$4,200,000; and 

  

	 	(b)	deposit into the Escrow Account all of the proceeds from the issue of the Bonds less the amount referred to in paragraph (a) above. 

  

 12 

	7.4	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.

  

	7.5	Withdrawals – Restricted Accounts 

 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. 
  

	7.6	Withdrawals – Escrow Account 

  

	(a)	Subject to the receipt by the Security Agent of all of the documents and evidence set out in Condition 6.21(b), the amount standing to the credit of the Escrow Account may only be
withdrawn by the Chargor for the purposes as described in Condition 6.21(a) (other than sub-paragraph (i) of Condition 6.2 1(a)). 

  

	(b)	The Chargor may make a withdrawal from the Escrow Account in accordance with paragraph (a) above only if no Event of Default or Potential Event of Default is subsisting.

  

	(c)	In the event the Chargor intends to make a withdrawal from the Escrow Account: 

  

	 	(i)	the Chargor must send the relevant withdrawal instruction in the form of Schedule 4 (Form of Withdrawal Request) to the Security Agent for approval: 

  

	 	(A)	in the case of any withdrawal for each of the purposes specified in sub-paragraphs (ii), (iii) and (iv) of Condition 6.21(a), on or before the Issue Date; and

  

	 	(B)	in the case of any withdrawal for the purpose specified in sub-paragraph (v) of Condition 6.21(a), no later than one Business Day (as defined in Condition 6.21) before the
proposed date of withdrawal; 

  

	 	(ii)	the Chargor must ensure that each withdrawal instruction must be duly signed by the authorised signatories of the Chargor and direct that the proceeds of the withdrawal be
deposited: 

  

	 	(A)	in the account specified in the relevant invoice or fee letter (in the case of payment of the upfront fee referred to in clause 8 of the Subscription Agreement and the costs, fees
and expenses of, or payable by, the Chargor pursuant to clause 9.1 of the Subscription Agreement, including the fees and expenses of the legal, accountancy, technical and any other professional advisers engaged by the Manager in connection with the
issue of the Bonds, the fees and expenses of the legal, accountancy and any other professional advisers instructed by the Chargor in connection with the creation and issue of the Bonds and the creation of each Collateral, the initial fees and
expenses of the Trustee and the agents appointed under the Finance Documents and the legal fees and expenses of the Trustee’s counsel); 

  

 13 

	 	(B)	in the Hang Seng Account (in the case of the amount of U.S.$17,000,000 (or its equivalent in another currency or currencies) for payment of the balance of the purchase price by AST
(HK) for its equity interest in Opco); 

  

	 	(C)	in the Hang Seng Account (in the case of the amount of U.S.$28,000,000 for payment of equity contribution by AST (HK) in Opco); and 

  

	 	(D)	(if the amounts referred to in sub-paragraphs (A) to (C) above have been deposited in accordance with those provisions) in such other accounts as may be designated by the
Chargor; and 

  

	 	(iii)	subject to the other provisions of the Trust Deed and the Conditions, the Security Agent may not refrain from giving its approval if the intended withdrawal falls within the
provisions of paragraph (a) above and is not in contravention of the provisions of paragraph (b) above. The Security Agent may direct the relevant Account Bank to refrain from processing any withdrawal instruction regarding the Escrow
Account which has not been approved by the Security Agent pursuant to this paragraph (c) and such direction is binding on the Chargor. 

  

	(d)	Notwithstanding Clause 7.6(c)(ii)(A), the Security Agent may, at the instruction of the Trustee, withdraw at any time from the Escrow Account to pay the upfront fee referred to in
clause 8 of the Subscription Agreement and the costs, fees and expenses of, or payable by, the Chargor pursuant to clause 9.1 of the Subscription Agreement, including the fees and expenses of the legal, accountancy, technical and any other
professional advisers engaged by the Manager in connection with the issue of the Bonds, the fees and expenses of the legal, accountancy and any other professional advisers instructed by the Chargor in connection with the creation and issue of the
Bonds and the creation of each Collateral, the initial fees and expenses of the Trustee and the agents appointed under the Finance Documents and the legal fees and expenses of the Trustee’s counsel). The Security Agent must, as soon as
reasonably practicable, give notice to the Chargor of the withdrawal. 

  

	7.7	Withdrawals – Interest Reserve Account 

  

	(a)	The Chargor may withdraw from, and apply amounts standing to the credit of, the Interest Reserve Account, only towards payment of any amount of interest payable in respect of any
Interest Periods of the Bonds. However, the Chargor may make a withdrawal from the Interest Reserve Account only if no Event of Default or Potential Event of Default is subsisting. 

  

	(b)	The Security Agent may, at the instruction of the Trustee, withdraw at any time from the Interest Reserve Account to pay any amount due but unpaid under the Finance Documents. The
Security Agent must, as soon as reasonably practicable, give notice to the Chargor of the withdrawal. 

  

	7.8	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. 

  

 14 

	(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.

  

	7.9	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).

  

	7.10	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. 

  

	(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 (as defined in Condition 6.21) 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. 

  

	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; 

  

 15 

	 	(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. 
  

	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, 

 but excluding any IPO 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

  

 16 

	 	(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. 

  

	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). 
  

 17 

	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 by Section 101 of the Act, 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)	Section 103 of the Act (restricting the power of sale) and Section 93 of the Act (restricting the right of consolidation) do not apply to this Security.

  

	(c)	The statutory powers of leasing conferred on the Security Agent are extended so as to authorise the Security Agent to lease, make agreements for leases, accept surrenders of leases
and grant options as the Security Agent may think fit and without the need to comply with any provision of section 99 or 100 of the Act. 

  

	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 conferred by the Act on mortgagees and receivers duly appointed under the Act, except that Section 103 of the Act does not apply. 
  

	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; 

  

 18 

	 	(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. 
  

	12.	RECEIVER 

  

	12.1	Appointment of Receiver 

  

	(a)	Except as provided below, 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. 

  

	(c)	Except as provided below, any restriction imposed by law on the right of a mortgagee to appoint a Receiver (including under section 109(1) of the Act) does not apply to this Deed.

  

	(d)	The Security Agent is not entitled to appoint a Receiver solely as a result of the obtaining of a moratorium (or anything done with a view to obtaining a moratorium) under section
1A of the Insolvency Act 1986. 

  

	(e)	The Security Agent may not appoint an administrative receiver (as defined in section 29(2) of the Insolvency Act 1986) over the Security Assets if the Security Agent is prohibited
from so doing by section 72A of the Insolvency Act 1986 and no exception to the prohibition on appointing an administrative receiver applies. 

  

	12.2	Removal 

 The Security Agent may by writing under
its hand (subject to any requirement for an order of the court in the case of an administrative receiver) 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 and the maximum rate specified in Section 109(6) of the Act will not apply. 
  

 19 

	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 Act. 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: 

  

	 	(i)	in the case of an administrative receiver, all the rights, powers and discretions conferred on an administrative receiver under the Insolvency Act, 1986; and

  

	 	(ii)	otherwise, all the rights, powers and discretions conferred on a receiver (or a receiver and manager) under the Act and the Insolvency Act, 1986. 

  

	(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. 
  

	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. 

  

 20 

	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. 
  

	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; 

  

 21 

	 	(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 of 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. 

  

	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. 
  

 22 

	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; 

  

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

  

	 	(iii)	the making of an entry in its register of mortgages and charges immediately after execution of this Deed in respect of any mortgage or charge over its assets created by this Deed,

 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. 
  

	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. 

  

 23 

	(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 
			
		  	(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. 

  

 24 

	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. 

  

	(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. 

  

 25 

	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 either AST (HK) or Opco and contained in any other Security Document. 
  

	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.	LANGUAGE 

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

	23.	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. 

  

	24.	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. 
  

 26 

	25.	CHANGES TO THE PARTIES 

  

	25.1	The Chargor 

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

	25.2	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. 
  

	26.	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. 
  

	27.	GOVERNING LAW 

  

	27.1	Governing law 

 This Deed is governed by English
law. 
  

	27.2	Jurisdiction 

 Subject to the following sentence,
the Chargor agrees for the benefit of the Security Agent that the courts of England 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 England. 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. 
  

	27.3	Process agent 

 The Chargor irrevocably appoints
Brandmine 3 Limited (Company Registration No.05575723), whose registered office is currently situated at 8 Lower John Street, Golden Square, London, WIF 9AU, as its authorised agent for service of process in England. If for any reason such agent
shall cease to be such agent for service of process, the Chargor shall forthwith, on request of the Security Agent, appoint a new agent for service of process in England and deliver to the Security Agent a copy of the new agent’s acceptance of
that appointment within 30 days. Nothing in this Deed shall affect the right to serve process in any other manner permitted by law. 
  

	27.4	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. 
  

 27 

 SCHEDULE 1- 
 SECURITY ASSETS 
 REAL PROPERTY 
 NIL 
 RESTRICTED ACCOUNTS 
  

					
	 	  	 Account Bank
	  	 Account Number

	 1.
	  	Deutsche Bank AG, Hong Kong Branch	  	0008391-05-0 (Escrow Account)
			
	 2.
	  	Deutsche Bank AG, Hong Kong Branch	  	0008391-05-1 (Interest Reserve Account)

 SPECIFIC INTELLECTUAL PROPERTY RIGHTS 
 NIL 
 RELEVANT CONTRACTS 
  

							
	 	  	 Contract
	  	 Parties
	  	 Date

	 1.
	  	Shareholder’s Loan Agreement, as amended, novated and/or supplemented from time to time, including by the Deed of Assignment and Novation and Release of Shareholder’s Loan	  	The Chargor as lender and AST (HK) as borrower	  	Shareholder’s Loan Agreement: No agreement in writing Deed of Assignment and Novation and Release of Shareholder’s Loan: 21 August 2007
				
	 2.
	  	Paying and Conversion Agency Agreement	  	The Chargor as issuer, Deutsche Bank AG, Hong Kong Branch as principal paying, conversion and transfer agent, Deutsche Bank Luxembourg S.A. as registrar and DB Trustees (Hong Kong) Limited as
trustee	  	10 September 2007

  

 28 

 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 Inc. 
 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 English law. 
  

 29 

 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 Inc.

  

 30 

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

			
	To:	  	DB Trustees (Hong Kong) Limited
		
	Copy:	  	Asia Silicon Technology Holdings Inc.

 [Date] 
 Dear Sirs, 
 Security Agreement dated 10 September 2007 between Asia Silicon Technology Holdings Inc. 
 and DB Trustees (Hong Kong) Limited (the Security Agreement) 
 We confirm receipt from Asia Silicon Technology Holdings Inc. (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 English law. 
 Yours faithfully, 
  

	
	  

	(Authorised Signatory)
	[Account Bank]

  

 31 

 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 Inc. 
 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 English 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 Inc.

  

 32 

 PART 2 
 ACKNOWLEDGEMENT OF COUNTERPARTY 
  

			
	To:	  	DB Trustees (Hong Kong) Limited as Security Agent
		
	Copy:	  	Asia Silicon Technology Holdings Inc.

 [Date] 
 Dear Sirs, 
 Security Agreement dated 10 September 2007 between Asia Silicon Technology Holdings Inc. 
 and DB Trustees (Hong Kong) Limited (the Security Agreement) 
 We confirm receipt from Asia Silicon Technology Holdings Inc. (the Chargor) of a notice dated [—] of an assignment on the terms of the Security Agreement 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 English law. 
 Yours faithfully, 
  

	
	  

	(Authorised Signatory)
	[Counterparty]

  

 33 

 SCHEDULE 4 
 FORM OF WITHDRAWAL REQUEST 
 [On letterhead of the Chargor] 
  

	To:	DB Trustees (Hong Kong) Limited 

 as Security Agent

 [Date] 
 Dear Sirs, 
 Security Agreement dated 10 September 2007 between Asia Silicon Technology Holdings Inc. 
 and DB Trustees (Hong Kong) Limited (the Security Agreement) 
 We refer to the Security Agreement. Words and expressions used in this withdrawal request have the same meanings as in the Security Agreement. 
 This withdrawal request is being provided to you in accordance with clause 7.6(c) of the Security Agreement. 
 Payment date:

 Please make the following transfers from the Escrow Account on the payment date referred to above to: 
 Amount: 
 Payee: 
 Account details: 
 We hereby certify that the amounts being transferred
pursuant to this withdrawal request are to be used for the purposes described in Condition 6.21(a)[(ii) / (iii) / (iv) / (v)]*. 
 This withdrawal request is
irrevocable. 
 This withdrawal request shall be governed by English law. 
 Yours faithfully, 
  

	
	  

	(Authorised Signatory)
	Asia Silicon Technology Holdings Inc.

  

	*	Delete as appropriate 

  

 34 

 SIGNATORIES 
 Chargor 
  

					
	EXECUTED as a DEED by	  	)	  	
		  	)	  	 

	for and on behalf of	  	)	  
	ASIA SILICON TECHNOLOGY	  	)	  
	HOLDINGS INC.	  	)	  	
	in the presence of:	  	)	  	

 

 
  

	
	 Security Agent

	
	DB TRUSTEES (HONG KONG) LIMITED
	
	By:

  

 35 

 SIGNATORIES 
 Chargor 
  

			
	EXECUTED as a DEED by	  	)
	 	  	)
	for and on behalf of	  	)
	ASIA SILICON TECHNOLOGY	  	)
	HOLDINGS INC.	  	)
	in the presence of:	  	)

 Witness signature: 
 Witness name: 
 Witness address: 
  

			
	Security Agent
	
	DB TRUSTEES (HONG KONG) LIMITED
		
	By:	 	

  

 36

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"}]]