Document:

Exhibit 4(u)

 

 

 

 

 

SYNDICATED
LOAN AGREEMENT

 

 

 

 

 

 

 

	BORROWER:	ASE TECHNOLOGY HOLDING CO., LTD.
	 	 	 
	ARRANGERS:	BANK OF TAIWAN
	 	MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD.
	 	CITIBANK TAIWAN LTD.
	 	 	 
	AGENTS:	BANK OF TAIWAN	 
	 	MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD.
	 	 	 
	AMOUNT:	NT$90 BILLION PRINCIPAL
	DATE:	APRIL 30, 2018	 

 

 

 

 

 

     

     

    

CONTENTS

 

 

	1.	Definitions.	 1
	2.	Facility.	 5
	2.1.	Commitment and Purpose.	 5
	2.2.	Term of Commitment, Availability Period and Repayment Schedule.	 5
	2.3.	Drawdown.	 6
	2.4.	Repayment, Reduction and Cancellation of Commitment.	 6
	3.	Loans.	 8
	3.1.	Loan Commitment.	 8
	3.2.	Drawdown.	 8
	4.	Interest, Fees, Payment Terms and Yield Guarantee.	 10
	4.1.	Commitment Fee.	 10
	4.2.	Loan Interest.	 10
	4.3.	Other Fees.	 11
	4.4.	Payment Terms and Default Interest.	 12
	4.5.	Cost Increase, Taxes and Change of Law.	 13
	4.6.	Repayment Sequence.	 14
	4.7.	Facility Records.	 14
	4.8.	Liability Limitation.	 15
	5.	Relationship Between the Parties.	 15
	5.1.	Several Obligations of the Banks.	 15
	5.2.	Joint and Several Claims of the Banks and the Agent.	 15
	5.3.	Risk Sharing.	 16
	6.	Conditions Precedent to Drawdown.	 16
	6.1.	Conditions Precedent to Drawdown.	 16
	6.2.	Other Conditions Precedent to Drawdown.	 17
	6.3.	Conditions Subsequent to Maintaining Commitment.	 18
	7.	Representations and Warranties of Borrower and Guarantor.	 18
	8.	Covenants by Borrower and Guarantor.	 21
	9.	Joint Guarantee.	 28
	10.	DEFAULT.	 29
	10.1.	Event of Default.	 29
	10.2.	Determination of Default.	 31
	10.3.	Consequences of Default.	 31
	11.	ARRANGERS, AGENT AND BANKS.	 32
	12.	SET-OFF.	 36
	13.	EXPENSES.	 38
	14.	NOTICES AND PAYMENTS.	 38
	15.	NON-WAIVER.	 40
	16.	Others.	 40
	17.	GOVERNING LAW.	 44
	18.	JURISDICTION.	 44
	19.	PLACE OF CONTRACT PERFORMANCE.	 44
	20.	EU BAIL-IN ACTIONS.	 44

 

 

     

     

    

Syndicated
Loan Agreement

 

This
Syndicated Loan Agreement (this “Agreement”) is entered into by and among the following parties on April 30, 2018:

 

		(1)	ASE
                                         Technology Holding Co., Ltd., a company organized and incorporated under the laws of
                                         the Republic of China (the “ROC”) (“Borrower”),

 

		(2)	Advanced
                                         Semiconductor Engineering, Inc., a company organized and incorporated under the laws
                                         of the ROC, acting as joint guarantor (“Guarantor”),

 

		(3)	Banks
                                         and financial institutions set out in Schedule I hereto (individually a “Bank”,
                                         and collectively the “Banks”),

 

		(4)	Bank
                                         of Taiwan, Mega International Commercial Bank Co., Ltd. and Citibank Taiwan Ltd. and
                                         other banks listed under Item I of Exhibit I hereto, acting as lead arrangers of this
                                         syndicated loan to lead the Banks ( “Arrangers”), and

 

		(5)	Bank
                                         of Taiwan (BOT) and Mega International Commercial Bank Co., Ltd. (Mega ICBC), acting
                                         as facility agents in connection with this syndicated loan and all related issues according
                                         to the provisions of this Agreement (“Agents”).

 

Whereas,
to facilitate the Borrower’s payment of transaction price and related fees under the ASE-SPIL Joint Share Exchange (see
definition below), the Borrower has requested the Arrangers to arrange, and the Banks to extend to the Borrower, an extended facility
in an aggregate principal amount of NT$ 90,000,000,000 ( “Facility”).

 

Now,
the Arrangers have arranged, and the Banks have agreed, according to the provisions of this
Agreement, to extend to the Borrower the loan facility requested by the Borrower to the extent of their respective Commitment,
therefore, the parties hereto agree as follows:

 

		1.	Definitions.

 

Except
as otherwise defined in this Agreement, the following terms shall have the meanings set forth below:

 

		1)	“Total
                                         Commitment” shall mean the total amount of Commitments the Banks commit to provide
                                         to the Borrower under this Facility. Nonetheless, if there is any cancellation or reduction
                                         of any Commitment, the Total Commitment shall refer to the then actual total amount of
                                         Commitments the Banks commit to provide.

 

		2)	“Commitment”
                                         shall mean, with respect to each Bank, the amount such Bank commits to provide to the
                                         Borrower, as shown in Schedule I hereto, as may be cancelled or reduced in accordance
                                         with the applicable provisions hereof.

 

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		3)	“Majority
                                         Banks” shall mean Banks whose then aggregate outstanding principal balance hereunder
                                         exceed 2/3 of the then aggregate principal balance of all the Banks under this Agreement
                                         or, if the Borrower has not drawn down any of the Commitments yet, Banks whose aggregate
                                         Commitments exceed 2/3 of the Total Commitment under this Agreement.

 

		4)	“Commitment
                                         Ratio” shall mean, with respect to each Bank, the ratio of the Commitment undertaken
                                         by such Bank hereunder to the Total Commitment, in each case as shown om Schedule I hereto.
                                         Such ratio is subject to adjustment in accordance with applicable provisions of this
                                         Agreement upon further change of each Bank’s Commitment.

 

		5)	“Loan
                                         Commitment” shall mean the commitment made by the Banks to advance Loans to the
                                         Borrower up to its respective Commitment in accordance with this Agreement.

 

		6)	“Loan”
                                         shall mean the funds extended by each Bank up to its Commitment in accordance with this
                                         Agreement upon the drawdown request made by the Borrower.

 

		7)	“Interest
                                         Period” shall mean the period commencing on the Drawdown Date and having a duration
                                         of one, two, three or six months and each period of one, two, three or six months thereafter;
                                         provided, that (i) the Interest Period commencing prior to any Repayment Date shall end
                                         on such Repayment Date, (ii) if any Interest Period would otherwise end on a day which
                                         is not a Business Day, such Interest Period shall be extended to the next succeeding
                                         Business Day unless such next succeeding Business Day falls in another calendar month,
                                         in which case such Interest Period shall end on the immediately preceding Business Day;
                                         and with respect to any overdue payment, the relevant Interest Period shall be determined
                                         by the Agent. The duration of each Interest Period shall be one, two, three or six months
                                         as elected by the Borrower by written notice (in the form and content as set forth in
                                         Exhibit I-A) to the Agent not later than the date falling three (3) Business Days prior
                                         to the first day of the relevant Interest Period or, failing such election, three months.

 

		8)	“Reference
                                         Rate” shall mean the annual interest rate calculated based on the Taipei Interbank
                                         Offered Rate (“TAIBOR”) with a tenor equal to (or, if such tenor does not
                                         appear, the tenor which is the next longer tenor than) the tenor of such Interest Period
                                         as shown, in all cases, on Reuters, screen page TAIBOR at approximately 11:30 a.m. on
                                         the date falling two (2) Business Day prior to the first day of such Interest Period
                                         ( “Determination Date”); or if the TAIBOR is not available on the Determination
                                         Date, the Reference Rate shall be calculated based on the TAIBOR published on the Business
                                         Day immediately prior to the Determination
Date. The Borrower and the Banks agree not to object the rate so determined by the Agent.

 

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		9)	“Margin”
                                         shall mean 0.55% per annum.

 

		10)	“Interest
                                         Rate” shall mean the per annum interest rate which is the Reference Rate plus the
                                         Margin, provided that, if the Interest Rate so calculated is lower than 1.7% p.a. before
                                         business tax and stamp duty, the Interest Rate shall be determined as 1.7% (“Interest
                                         Rate Floor”). The business tax and stamp duty shall be added to the interest and
                                         be borne by the Borrower. The Interest Rate for the Loans, once determined, shall be
                                         fixed during the same Interest Period thereof and, notwithstanding any change of the
                                         Reference Rate, shall not change until the first day of the next succeeding Interest
                                         Period.

 

		11)	“Business
                                         Day” shall mean a full-day banking business day in Taipei City and Kaohsiung City.

 

		12)	“Interest
                                         Payment Date” shall mean each of the dates on which interest on the Loans under
                                         this Agreement are payable by the Borrower, i.e., the last day of each Interest Period,
                                         provided that, in case of a six-month Interest Period as selected by the Borrower, the
                                         Interest Payment Date shall be the last day of the third month and the last day of the
                                         Interest Period, i.e. the interest is paid every three months. If any Interest Payment
                                         Date is a non-business day, the Borrower shall pay the interest on the next Business
                                         Day, unless such succeeding Business Day falls in another calendar month, in which case
                                         the Borrower shall make the payment on the immediately preceding Business Day.

 

		13)	“Drawdown
                                         Date” shall mean any date that the Borrower draws down any Commitment pursuant
                                         to this Agreement, which shall be a Business Day excluding any half-day Business Day;
                                         “Drawdown” shall mean the Borrower’s drawdown of any Commitment pursuant
                                         to this Agreement.

 

		14)	“Availability
                                         Period” shall mean the period in which the Borrower may draw down the Commitments
                                         pursuant to this Agreement, i.e. one month after the execution of this Agreement; “Commitment
                                         Termination Date” shall mean the date of expiration of the Availability Period
                                         provided under this Agreement.

 

		15)	“Default
                                         Rate” shall mean the per annum interest rate which is the applicable Reference
                                         Rate plus 2% upon the occurrence of any circumstance to which the Default Rate is applicable
                                         pursuant to this Agreement. The Borrower and the Banks agree not to object the rate so
                                         determined by the Agent. Such rate shall change accordingly if the Reference Rate changes.

 

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		16)	“Risk
                                         Sharing Ratio”, with respect to each Bank, shall mean the ratio of the outstanding
                                         principal extended by such Bank under this Facility to the total outstanding principal
                                         extended by the Banks under this Facility.

 

		17)	“ASE-SPIL
                                         Joint Share Exchange” shall mean the joint share exchange transaction (“Share
                                         Exchange”) carried out pursuant to the joint share exchange agreement entered into
                                         between the Guarantor (Advanced Semiconductor Engineering, Inc.) and Siliconware Precision
                                         Industries Co. Ltd. (“SPIL”) on June 30, 2016, and the Supplemental Agreement
                                         of the Joint Share Exchange executed on December 14, 2017 (the supplemented joint share
                                         exchange agreement is hereinafter referred to as the “Joint Share Exchange Agreement”)
                                         .

 

		18)	“Borrower
                                         Group” shall mean the Borrower and its current and future Subsidiaries.

 

		19)	“Subsidiary”
                                         shall mean a local and/or offshore company with a paid-in capital of not less than NT$
                                         2,000,000,000 or equivalent thereof in any other currency that is at least 50% owned,
                                         directly and/or directly, by the Borrower.

 

		20)	“Note”
                                         and “Note Authorization” shall have meanings set forth in Article 8.1 hereto.

 

		21)	“Event
                                         of Default” shall mean any event as listed in Article 10.1 hereof; and “Prospective
                                         Event of Default” shall mean any event which with the giving of notice or passage
                                         of time or both would become an Event of Default.

 

		22)	“FATCA”
                                         shall mean (i) Section 1471 through 1474 of the Foreign Account Tax Compliance Act and
                                         related provisions; (ii) relevant provisions established by competent authorities of
                                         different countries and treaties or tax agreements entered into by different countries
                                         with the United States in compliance with the provisions described in the preceding item
                                         (i); or (iii) related treaties or agreements with the U.S. government, the U.S. Internal
                                         Revenue Service, or other countries’ governments or competent authorities in compliance
                                         with the provisions described in the preceding items (i) and (ii).

 

		23)	“FATCA
                                         Withholding” shall mean withholdings applicable to the payments under this Agreement
                                         in accordance with FATCA provisions.

 

		24)	“FATCA
                                         Exempt Entity” shall mean any entity that is not subject to the FATCA Withholding
                                         requirements at the time of receiving any payment.

 

		25)	“FATCA
                                         FFI” shall mean Foreign Financial Institution as defined in Section 1471(d)(4)
                                         of the Foreign Account Tax Compliance Act.

 

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		26)	“U.S.
                                         Taxpayer” shall mean (i) any legal or natural person that is a U.S. citizen for
                                         the purpose of the U.S. tax law, or (ii) any person whose source of payment is U.S. source
                                         of income as determined by the U.S. tax law.

 

		2.	Facility.

 

		2.1.	Commitment
                                         and Purpose.

 

This
Facility is in Total Commitment of NT$90,000,000,000 of principal amount for the purposes of financing the Borrower’s transaction
price and related fees in connection with the ASE-SPIL Joint Share Exchange.

 

		2.2.	Term
                                         of Commitment, Availability Period and Repayment Schedule.

 

		2.2.1.	The
                                         Facility has a five-year term, commencing on the Drawdown Date (if the day falling five
                                         years after the Drawdown Date is not a Business Day, the Facility shall expire on the
                                         preceding Business Day thereof); provided, that:

 

		2.2.1.1.	The
                                         Commitment may only be drawn down prior to the expiration of the Availability Period.
                                         Any portion of the Commitment that have not been drawn down prior to the Commitment Termination
                                         Date shall be cancelled automatically and will not be available any more.

 

		2.2.1.2.	This
                                         Facility is not revolving, and the Borrower may only make a one-time lump sum Drawdown
                                         of Commitment.

 

		2.2.2.	The
                                         Borrower shall repay the aggregate principal of Loans actually drawn down (“Aggregate
                                         Principal”) in five installments, once per annum, starting from the date of expiration
                                         of the first year after the Drawdown Date (due date of first installment). The amount
                                         payable of each installment shall be: 10% of the Aggregate Principal for the first installment,
                                         15% for the second and third installments, 20% for the fourth installment and 40% (or
                                         all remaining outstanding Aggregate Principal) for the fifth installment (each of such
                                         principal repayment date, a “Repayment Date”) ; If any Repayment Date does
                                         not fall on a Business Day, such repayment shall take place on the next preceding Business
                                         Day but the repayment schedule for the other installments shall not otherwise be affected,
                                         and all outstanding loan principal and interest thereon and other due payments shall
                                         be paid in full on the fifth (last) Repayment Date.

 

		2.2.3.	The
                                         Borrower shall make all necessary payments on such Repayment Dates and in such ratios
                                         as scheduled hereunder to reduce, pro rata, the balance of the Loans.

 

		2.2.4.	Except
                                         otherwise specified herein, with respect to each Bank’s Commitment to be reduced
                                         as a result of repayment by the Borrower under this Agreement, each such Commitment shall
                                         be reduced on a pro-rata basis in accordance with
the Risk Sharing Ratio (i.e. the ratio of the outstanding principal extended by such Bank to the total outstanding loan principal).
If it is technically impossible for each such Commitment to be reduced strictly in accordance with the Risk Sharing Ratio, the
Agent may determine the actual reduction with respect to each Bank’s Commitment based on its reasonable judgment, and no
objection from the Borrower or any Bank shall be made. The Borrower may not draw down any Commitment so reduced.

 

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		2.3.	Drawdown.

 

The
Borrower shall effect the Drawdown pro-rata to the Commitment Ratio of each Bank; provided, that if it is technically impossible
to have such Drawdown strictly in accordance with the Commitment Ratio, the Agent may determine the actual allocation amongst
the Banks of such Drawdown amount based on its reasonable judgment, and no objection from the Borrower or any Bank shall be made.

 

		2.4.	Repayment,
                                         Reduction and Cancellation of Commitment.

 

		2.4.1.	The
                                         Commitment under this Agreement shall be repaid, reduced or cancelled in accordance with
                                         applicable provisions of this Agreement.

 

		2.4.2.	Each
                                         Bank shall perform its Commitment and obligations under this Agreement to provide the
                                         Loan based on its Commitment Ratio; provided, that a Bank shall not be required to maintain
                                         or perform the Commitment under this Agreement if it discovers prior to performing such
                                         Commitment that the maintenance or performance of the same will result in its violation
                                         of laws or regulations, or if such Bank is precluded by other applicable laws or regulations
                                         from maintaining or performing such obligations under this Agreement (in which case,
                                         the Bank shall immediately notify the Borrower and the Agent). If a Bank discovers after
                                         performing its Commitment that its maintenance of the same constitutes or will constitute
                                         a violation of law or regulation on its part, such Bank shall immediately notify the
                                         Borrower and the Agent, and the Borrower shall then make repayment with respect to such
                                         Commitment or otherwise resolve to relieve such Bank of the relevant obligation(s) within
                                         five (5) Business Days of its receipt of the notice from such Bank (or a longer period
                                         permitted by laws and regulations for cure), and such Bank's Commitment shall immediately
                                         be cancelled or reduced to the extent permitted by laws and regulations. If the Bank
                                         is responsible for such violation of laws or regulations mentioned above, such Bank shall
                                         make other arrangements for the Borrower for substitute financing under terms comparable
                                         to those offered by this Agreement. In failing to do so, Such Bank shall reimburse the
                                         additional financing costs incurred by the Borrower in obtaining funds at an interest
                                         rate higher that that under this Facility, provided that, the Borrower shall provide
                                         relevant receipts or proofs of the claimed
additional costs. If the above-mentioned violation of laws or regulations is not attributable to the Bank, such Bank shall negotiate
with the Borrower and use reasonable efforts to, arrange for, or assist the Borrower in obtaining other financing to the extent
permissible by laws and regulations; provided, that neither the Agent nor any such Bank shall guarantee that such other financing
may be procured.

 

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		2.4.3.	Except
                                         otherwise specified herein, without prior written consent by the Banks and the Borrower,
                                         the Commitments under this Agreement may not be cancelled or paid off in advance.

 

		2.4.4.	The
                                         Borrower may at any time, with not less than five (5) Business Days’ prior written
                                         notice, cancel the Commitments in whole or in part without premium or penalty; provided
                                         that:

 

		2.4.4.1.	With
                                         respect to each such cancellation, the amount to be cancelled shall be in the minimum
                                         amount of NT$100,000,000, and any portion of such cancellation in excess of NT$100,000,000
                                         shall be in multiples of NT$50,000,000 ; and

 

		2.4.4.2.	Cancellation
                                         may only be made with respect to the undrawn portion of the Commitments.

 

		2.4.5.	Any
                                         Commitment, once cancelled according to this Agreement, may not be drawn down again.
                                         Following any cancellation, each Bank’s Commitment shall be reduced pro rata based
                                         on its corresponding Commitment Ratio. If it is technically impossible for each Bank’s
                                         Commitment to be reduced in accordance with such ratio, the Agent may determine the allocation
                                         of such reduction of Commitments amongst the Banks based on its reasonable judgment,
                                         and no objection from the Borrower or any of the Banks shall be made.

 

		2.4.6.	Except
                                         otherwise specified herein, the Borrower may at any time, with not less than five (5)
                                         Business Days’ prior written notice, prepay its outstanding Loans in whole or in
                                         part without premium or penalty; provided that:

 

		2.4.6.1.	With
                                         respect to each such prepayment, the amount to be paid shall be in the minimum amount
                                         of NT$100,000,000, and any portion of such prepayment in excess of NT$100,000,000 shall
                                         be in multiples of NT$50,000,000, unless the entire outstanding balance of the Borrower’s
                                         Loans is less than NT$100,000,000, or the portion of the Borrower’s outstanding
                                         Loans in excess of NT$100,000,000 is not a multiple of NT$50,000,000, in which case the
                                         Borrower must prepay the entire outstanding balance of its Loans; and

 

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		2.4.6.2.	Prepayment
                                         may only be made on an Interest Payment Date, no matter how many days in advance a notice
                                         is given.

 

		2.4.6.3.	All
                                         sums (principal, interest or fee) payable in connection with the portion of Loans to
                                         be repaid shall be paid in full upon such prepayment.

 

If
the Borrower makes any prepayment in violation of the above, the Borrower shall indemnify the Banks for and against any and all
losses related to interest spread, if any, arising therefrom (the Banks making such claims shall provide written description of
calculation signed by the Banks’ respective authorized representatives).

 

		2.4.7.	Any
                                         Commitment, once prepaid, may not be drawn down again. Following each prepayment, each
                                         Bank’s Commitment shall be reduced pro rata based on the ratio of each Bank's outstanding
                                         loan principal to the Borrower to the sum of all the Banks' outstanding loan principal
                                         to the Borrower. If it is technically impossible for each Bank’s Commitment to
                                         be reduced in accordance with the aforesaid ratio, the Agent may determine the allocation
                                         of such reduction of Commitment amongst the Banks based on its reasonable judgment, and
                                         no objection from the Borrower or any of the Banks shall be made.

 

		2.4.8.	The
                                         Borrower shall effect the Prepayment pro-rata to the ratio of Loans to be paid in each
                                         installment, i.e. the scheduled Repayment Dates for each installment will not change,
                                         while the ratio of Loans to be paid each time will be reduced pro rata.

 

		3.	Loans.

 

		3.1.	Loan
                                         Commitment.

 

		3.1.1.	Subject
                                         to the Borrower having complied with the conditions precedent set out in this Agreement,
                                         the Borrower may, prior to the Commitment Termination Date and up to the Total Commitment,
                                         draw down the Loans pursuant to this Agreement. Each Drawdown shall be effected pro-rata
                                         to the Commitment Ratio of each Bank.

 

		3.1.2.	The
                                         Commitment must be drawn down within the Availability Period in lump-sum way (not revolving)
                                         according to this Agreement, and will be extended in NT Dollars.

 

		3.1.3.	Each
                                         Bank agrees to advance the Loan to the Borrower pursuant to the terms and conditions
                                         of this Agreement.

 

		3.2.	Drawdown.

 

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		3.2.1.	Subject
                                         to the Borrower having fully complied with or performed the conditions precedent to Drawdown
                                         as set out in this Agreement, the Borrower may, at any time, with at least two (2) Business
                                         Days’ prior written notice to the Agent in the form of Exhibit I hereto ("Drawdown
                                         Request"), request a Drawdown in accordance with the terms and conditions hereunder.
                                         Each Bank shall, upon such request and to the extent of its respective Commitment, make
                                         such Loan to the Borrower in accordance with its Commitment Ratio; provided, that its
                                         obligation to make such Loan is subject to the condition that none of the following circumstances
                                         shall have occurred prior to such request for Drawdown: (a) such Drawdown will cause
                                         the total Loans outstanding hereunder to exceed the total available Commitments; (b)
                                         the Drawdown will cause the Loan outstanding with respect to any Bank hereunder to exceed
                                         its then available Commitment or to exceed its Commitment Ratio; (c) the Drawdown Date
                                         will be later than the Commitment Termination Date; or (d) the Drawdown otherwise does
                                         not comply with the terms and conditions of this Agreement.

 

		3.2.2.	Provided
                                         that the conditions described above have been met with respect to the requested Drawdown,
                                         the Agent shall immediately accept the Drawdown Request on behalf of the Banks. The Drawdown
                                         Request, once accepted by the Agent, shall be irrevocable and binding on the Borrower
                                         and the Banks. Following the acceptance of such Drawdown Request, if the Borrower is
                                         unable to maintain or satisfy the conditions precedent to Drawdown as specified in Article
                                         6 hereof, resulting in the Banks unable to advance in whole or in part the requested
                                         Drawdown, the Borrower shall, at the demand of the Agent, reimburse the Banks for all
                                         reasonable and necessary expenses and direct losses (the Banks making such claims shall
                                         provide relevant calculation description, proofs or receipts) in connection therewith.

 

		3.2.3.	Upon
                                         its receipt by fax of a Drawdown Request from the Borrower, the Agent shall notify each
                                         Bank in writing (in form of Exhibit I-B hereto) before 12:00 noon Taipei time on the
                                         succeeding Business Day, stating the date on which each Bank is to make available its
                                         Loan and the amount to be advanced by each Bank in accordance with its respective Commitment
                                         Ratio. Each Bank shall, pursuant to such notice and this Agreement, make available such
                                         Loan in immediately available funds not later than 11:00 a.m. Taipei time on the Drawdown
                                         Date as specified in the Drawdown Request to the Agent or to the account designated by
                                         the Agent by wire transfer. Unless notified by any Bank prior to the Drawdown Date that
                                         such Bank is unable to make the Loan, the Agent may assume that each Bank is capable
                                         of advancing payment pursuant to this Agreement and, on the basis of such assumption,
                                         may (but is not obligated to) timely make available the funds to the Borrower.

 

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Notwithstanding
the above, the Agent is under no obligation to make available or advance any sum to the Borrower on behalf of the Banks unless
and until the Agent actually receives the funds made available by the Banks pursuant to this Agreement. If the Agent makes available
to the Borrower the funds required under the Agreement to be advanced by any Bank, but such Bank fails to actually make available
to the Agent such funds, the Borrower shall at any time, upon the Agent’s demand, refund such funds to the Agent together
with interest thereon, which shall be calculated based on the floating overnight rates the Agent bears for obtaining such funds
on a daily basis for the period from the Drawdown Date to the date the Agent actually receives the refunds (the Agent shall provide
the Borrower with receipts or proofs of any such interest payment).

 

	 	3.2.4	Failure by any Bank to make available its Loan pursuant to this
    Agreement shall not relieve other Banks of their obligations to make Loans pursuant to this Agreement and shall not relieve
    the Borrower of its obligations under this Agreement. The other Banks or the Agent shall not be liable for the failure of
    any Bank to make the required Loan. Any Bank which fails to make such Loan shall reimburse and indemnify the Borrower for
    and against (a) any and all overnight interest paid to the Agent and (b) any loss or additional funding cost incurred by the
    Borrower in obtaining funds at an interest rate higher that that under this Facility (subject to relevant supporting documents
    or evidence presented by the Borrower to substantiate its claim).

 

		4.	Interest,
                                         Fees, Payment Terms and Yield Guarantee.

 

		4.1.	Commitment
                                         Fee.

 

No
Commitment fee is payable in respect of this Facility.

 

		4.2.	Loan
                                         Interest.

 

		4.2.1.	The
                                         Borrower shall pay interest on the principal of Loans extended by the Banks at the Interest
                                         Rates applicable to each Interest Period, calculated on the basis of a 365-day year and
                                         the actual number of days elapsed, on such Interest Payment Dates as scheduled in this
                                         Agreement. The principal of Loans shall be repaid in installments, and the total amount
                                         of principal and all payable interest must be paid off at the maturity of the Loans.
                                         Except otherwise specified herein, with respect to each Loan, the applicable Interest
                                         Rate for each Interest Period, once determined, shall be fixed and shall not change during
                                         the same Interest Period, notwithstanding any change of the Reference Rate.

 

		4.2.2.	The
                                         Agent shall calculate interest periodically and notify the Borrower such interest. The
                                         Borrower shall make such interest payments to the Agent in immediately available funds
                                         in the same currency of the Loans (i.e. NT Dollars) on each Interest Payment Date, for
                                         distribution by the Agent to the Banks in accordance with this Agreement.

 

		4.2.3.	The
                                         business tax and stamp duty arising out of the above interest payments shall be grossed
                                         up and borne by the Borrower.

 

		4.2.4.	The
                                         Borrower acknowledges that, the business tax rate is set at 5% as of July 1, 2014 for
                                         banks, therefore the business tax to be borne and paid by the Borrower in connection
                                         with this Agreement is calculated at a rate of 5%. In the event the business tax rate
                                         changes, the changed rate will apply; however, the
Borrower will still be liable to pay taxes on any provision for bad debt in connection with the Loans (if any).

 

    10 

     

    

 

		4.2.5.	(a)
                                         In the event that, prior to any Interest Period, (i) the Agent is unable to fix a Reference
                                         Rate (TAIBOR), or (ii) the Majority Banks give written notice to the Agent, claiming
                                         that the TAIBOR cannot reflect their real cost of funds or that the Majority Banks are
                                         no longer be able to benefit from the Margin by using the interest calculation method
                                         set forth in this Agreement, and provide evidence for the claim regarding their cost
                                         of funds, the Agent shall immediately notify the Borrower and the Banks about such claim.
                                         Upon such notice, the Agent shall negotiate with the Borrower in good faith taking into
                                         consideration of the Banks’ claim to determine an alternative interest rate agreed
                                         by both the Borrower and the Banks. If the Borrower reaches agreement with the Agent
                                         (on behalf of the Banks) regarding the alternative interest rate within thirty (30) days
                                         after the notice given by the Agent (“Negotiation Period”), such agreed alternative
                                         interest rate shall apply to (and only to) the then current Interest Period from the
                                         first day of such Interest Period. If the Borrower only reaches agreement with several
                                         (but not all) Banks regarding the loan interest within the Negotiation Period, the Borrower
                                         may give notice to the Agent prior to the expiration of the Negotiation Period, and prepay
                                         the Loans advanced by the Banks with which no agreement is reached in full (not partially),
                                         while reaching agreements with the other Banks.

 

(b)
With respect to the Banks with which no agreement on the alternative interest rate could be reached, the Borrower shall prepay
the Loans advanced by such Banks in full (not partially) within ten (10) Business Days after the expiration of the Negotiation
Period, and the corresponding Commitments shall be cancelled without any premium or compensation. The applicable interest rate
on the prepaid amount of the Loans under this Article 4.2.5 shall be calculated based on the cost of funds indicated by the Banks
to the Agent plus a Margin of 0.55%, provided, that the Banks shall provide reasonable evidence for such costs. Upon any prepayment
under this Article 4.2.5, the Commitment Ratios of the Banks shall be adjusted accordingly.

 

(c)
The provision of Article 2.4.6 shall not apply to the prepayment conducted in accordance with this Article 4.2.5.

 

		4.3.	Other
                                         Fees.

 

The
Borrower shall pay the Arrangers and the Agent fees for the Arrangers' organization of the Banks and the Agent’s management
of affairs pertaining to this Agreement. The terms and conditions of such payment will be separately agreed upon in writing between
the Borrower and the Arrangers/Agent.

 

    11 

     

    

		4.4.	Payment
                                         Terms and Default Interest.

 

		4.4.1.	The
                                         Borrower/Guarantor shall pay to such location or account designated by the Agent all
                                         sums (such as principal, interests or fees) required to pay by this Agreement or related
                                         documents, in immediately available funds and in NT Dollars before 12:00 noon Taipei
                                         time on the maturity or due date in accordance with applicable provisions of this Agreement.
                                         Any calculated interest rate or fee rate under this Agreement shall be rounded to four
                                         decimal places with rounding up if the fifth decimal place is 5 or more, and any amount
                                         of interest or fee shall be rounded to the nearest whole NT Dollar.

 

		4.4.2.	If
                                         the Borrower/Guarantor makes any payment in a currency other that the currency specified
                                         herein, such repayment shall not be deemed effectively made under this Agreement, and
                                         the Borrower/Guarantor will still be subject to relevant repayment obligation and exchange
                                         risk, unless all of the amount paid has been converted into the currency specified herein
                                         and paid to the account or location designated by the Agent. The Borrower/Guarantor shall
                                         timely obtain all necessary approvals (including foreign exchange approvals) for each
                                         payment required under this Agreement, and shall not excuse itself from complying with
                                         applicable provisions of this Agreement on the pretext of failing to obtain any approval.

 

		4.4.3.	Unless
                                         otherwise specified herein, any sum payable hereunder may be paid on the next Business
                                         Day if the due date thereof is not a Business Day, unless such Business Day falls in
                                         another calendar month, in which case the payment shall be made on the Business Day immediately
                                         preceding the due day.

 

		4.4.4.	If
                                         any of the payments required under this Agreement is not paid when due, the Borrower/Guarantor
                                         shall immediate cure such nonpayment pursuant to the Agreement, and pay interests thereon
                                         to the Banks and/or the Agent at the Default Rate (on floating rate basis), calculated
                                         on the basis of a 365-day year and the actual number of days elapsed, for the period
                                         from the due date to the date of actual receipt by the Banks and/or the Agent of such
                                         payment. If any such nonpayment pertains to interest payments, a penalty equal to 5%
                                         of the overdue nonpayment shall be levied for the first 6 months, and a penalty equal
                                         to 10% of the overdue amount shall be levied if such nonpayment remains outstanding for
                                         more than six months.

 

		4.4.5.	Except
                                         otherwise specified herein, all payments to the Banks from the Borrower/Guarantor under
                                         this Agreement shall be paid to the Agent for distribution to the Banks in accordance
                                         with this Agreement. Payments not so made will not relieve the Borrower/Guarantor of
                                         its obligations hereunder. Save for payments payable solely to the Arrangers or the Agent,
                                         the Agent shall,
upon receipt from the Borrower of payments due to the Banks, distribute and forward such payments to each Bank for repayment.
Each Bank, the Arrangers and the Agent shall issue and deliver receipts directly to the Borrower/Guarantor for payment received.

 

    12 

     

    

 

		4.4.6.	Except
                                         otherwise specified herein, the Banks shall transfer any payment in connection with this
                                         Agreement to the Agent immediately upon receipt of such payment from the Borrower/Guarantor,
                                         for the Agent to process in accordance with Article 4.6 or other applicable provisions
                                         of this Agreement.

 

		4.5.	Cost
                                         Increase, Taxes and Change of Law.

 

		4.5.1.	In
                                         the event of a change in law or regulation or relevant interpretation by any competent
                                         authority thereof, or a request by relevant authority, which result in: (a) the Banks
                                         having to pay taxes for transactions hereunder, or a change in the rate or bases of the
                                         taxes payable by the Borrower to the Banks pursuant to this Agreement (except for changes
                                         in the mandatory tax rate imposed on the net income of the Banks by the ROC government
                                         or government authorities of jurisdictions in which the Banks are incorporated), (b)
                                         an increase or change in application of any reserve, special deposit or similar regulations
                                         with respect to the Facility, or (c) an increase in the costs for the Banks to perform
                                         or maintain Commitments hereunder, or a decrease in the amounts otherwise receivable
                                         by the Banks under this Agreement, the Borrower shall, upon demand of the Banks, pay
                                         such additional sums to the Agent for further distribution to the Banks as indemnity
                                         for the increase in costs or decease in revenue to the Banks. The impact of the above
                                         change of law shall be determined based upon the relevant documentary evidence so presented
                                         by the affected Banks.

 

		4.5.2.	The
                                         Borrower/Gurantor shall neither make any withholdings or deductions on any payment which
                                         is payable under this Agreement, nor offset any payment payable by it against its indebtedness
                                         with any Bank. If the Borrower/Guarantor shall be required by law to make any such withholding
                                         or deduction from any payment under this Agreement, the sum payable by the Borrower/Guarnator
                                         shall be increased so that after all required withholdings or deductions, (including
                                         additional withholdings or deductions in response to the increase in the sum paid hereunder),
                                         the Banks, the Agent and/or the Arrangers will receive an amount equal to the sum they
                                         would have received had no such withholdings or deductions been made, and the Borrower/Guarantor
                                         shall provide the original (or copy certified by the Borrower) of the evidence for such
                                         payment to the Banks, the Agent and/or the Arrangers within thirty (30) days after such
                                         payment.

 

    13 

     

    

		4.5.3.	Unless
                                         otherwise expressly provided by this Agreement, any and all present and future taxes
                                         and fees payable or arising in connection with this Agreement or this Facility shall
                                         be borne by the Borrower. If any Bank or the Agent pays such taxes on the Borrower’s
                                         behalf, the Borrower shall reimburse such amount upon demand, otherwise, the Borrower
                                         shall also pay interest at the Default Rate (on floating rate basis) on such sums for
                                         the period from the date such Bank or the Agent makes such payment to the date the Borrower
                                         actually makes such reimbursement in full.

 

		4.6.	Repayment
                                         Sequence.

 

		4.6.1.	All
                                         sums received by the Agent under this Agreement and all other related documents shall
                                         be applied in the following order of priority:

 

		4.6.1.a	first,
                                         to all expenses and fees payable to or incurred by the Agent under this Agreement, the
                                         Note and all other related documents, and which are not reimbursed or paid by the Borrower
                                         or any Bank (including the agency fee payable to the Agent);

 

		4.6.1.b	then
                                         to all outstanding fees and interests (including penalties or default interests payable
                                         at the Default Rate) payable by the Borrower to the Agent and the Banks under this Agreement;
                                         and

 

		4.6.1.c	then
                                         to the distributions by the Agent to each Bank pursuant to the provisions of this Agreement
                                         (or in the absence of an express agreement, at the discretion of the Agent), in accordance
                                         with the ratio of each Bank's outstanding Loan under the Facility to the sum of all the
                                         Banks' outstanding Loans under the Facility (the “Risk Sharing Ratio”).

 

		4.6.2.	Unless
                                         otherwise provided for in this Agreement, the Agent shall forward to the Banks all sums
                                         received from the Borrower/Guarantor and payable to the Banks, upon its actual receipt
                                         of such sums, for the Banks to apply towards the indebtedness due from the Borrower to
                                         the Banks in the order of priority prescribed by this Agreement or laws and regulations.
                                         In the event that the sums actually received by the Agent are insufficient to pay all
                                         sums in a specific category to the relevant Banks in the same order of priority, the
                                         Agent shall distribute such sums to each Bank on a pro-rata basis in accordance with
                                         the Risk Sharing Ratio.

 

		4.7.	Facility
                                         Records.

 

The
Agent shall maintain records relevant to the Facility and shall document the Drawdowns of the Commitment by the Borrower and the
payments made by the Borrower to each Bank. Details of the outstanding sums due from the Borrower under this Agreement shall be
evidenced by such records, unless the Borrower can present specific evidence of
manifest errors in such records. The Borrower/Guarantor further agrees to issue such new negotiable instruments or certificate
of claims to the Agent according to the Agent’s records if any negotiable instrument or certificate of claims provided by
the Borrower/Guarantor to the Agent pursuant to the Agreement is lost, damaged or destroyed, and the Borrower/Guarantor shall
at all times unconditionally cooperate with the Agent in the event the Agent is required by laws or regulations to report loss
and/or proceed with other relevant formalities due to the loss, damage or destruction of any negotiable instrument or other certificate
of claims, provided that, the Agent shall bear the costs for such formalities if the loss, damage or destruction is attributable
to the Agent. In respect of the Agent’s payment to each Bank, so long as the fund is remitted by the Agent to the bank account
designated by each Bank in accordance with this Agreement, the Agent shall have no further obligation with respect to such payment.

 

    14 

     

    

 

		4.8.	Liability
                                         Limitation. 

 

Notwithstanding
any provision herein, absent willful misconduct or gross negligence, no Bank or any of its employees or affiliates shall be liable
to the Borrower/Guarantor under this Agreement; and under no circumstances would any of them be liable for any indirect damages,
loss of profit or punitive damages.

 

		5.	Relationship
                                         Between the Parties.

 

		5.1.	Several
                                         Obligations of the Banks.

 

The
obligations of the Banks under this Agreement are separate and independent. Each Bank shall perform its own Commitment to extend
the Loans in accordance with this Agreement. No action or inaction on the part of any Bank will result in any right or obligation
on the part of another Bank. The Banks are not jointly liable with one another for the obligations under this Agreement.

 

		5.2.	Joint
                                         and Several Claims of the Banks and the Agent.

 

		5.2.1.a.	The
                                         Borrower and the Banks agree that, all rights and claims of the Banks and the Agent under
                                         this Agreement and the related documents against the Borrower are joint and several claims
                                         under Article 283 of the ROC Civil Code. Each of the Banks and the Agent are entitled
                                         by law to claim performance in whole or in part of the above rights and claims against
                                         the Borrower.

 

		5.2.2.b.	If
                                         any Bank or the Agent assigns the aforesaid creditor’s rights in accordance with
                                         Article 16.5 hereof, all rights to claim payments and fees against the Borrower assigned
                                         to the assignee, and all rights and claims of the other Banks and the Agent under this
                                         Facility are joint and several claims under Article
283 of the ROC Civil Code as well. Each Bank is entitled to claim performance in whole or in part of the other Banks’ rights
and claims against the Borrower.

 

    15 

     

    

 

		5.3.	Risk
                                         Sharing.

 

Each
of the Banks acknowledges and agrees that, all rights and claims of the Banks against the Borrower under this Agreement are joint
and several claims, while each of the Banks shall, pursuant to this Agreement, share the losses and risks under this Facility,
in accordance with the Risk Sharing Ratio and other provisions of this Agreement.

 

		6.	Conditions
                                         Precedent to Drawdown.

 

		6.1.	Conditions
                                         Precedent to Drawdown.

 

The
Borrower’s Drawdown of the Facility under this Agreement is subject to the conditions precedent that, at least three Business
Days (at 6:00 pm) prior to the requested date for such Drawdown, the Agent shall have received all of the following documents
in form and substance satisfactory to the Agent (in this regard, photocopies presented must have been certified by the document
provider as true, accurate and complete copies):

 

		6.1.1.	Evidence,
                                         including, without limitation, resolutions and minutes of board of directors' meetings,
                                         that the Borrower/Guarantor has completed all necessary internal corporate acts and is
                                         duly authorized to enter into, deliver and perform the this Agreement, the Note, the
                                         Note Authorization and other related documents, as well as evidence that the person(s)
                                         signing this Agreement, the Note, the Note Authorization and other related documents
                                         on behalf of the Borrower/Guarantor have been duly authorized by the Borrower/ Guarantor;

 

		6.1.2.	Copies
                                         of the corporate documents of the Borrower and the Guarantor, including the effective
                                         Articles of Incorporation, company registration card (including roster of directors and
                                         supervisors), procedures for extending loans and procedures for endorsement and guarantee;

 

		6.1.3.	Copy
                                         of the Joint Share Exchange Agreement entered into by and between the Guarantor and SPIL
                                         (including the supplemental agreement thereto);

 

		6.1.4.	With
                                         respect to the ASE-SPIL Joint Share Exchange,

 

		6.1.4.a.	Evidence
                                         that all necessary merger approvals (or evidence that such merger is not prohibited)
                                         by competent authorities of the ROC, the United States, Korea, German and mainland China
                                         have been obtained in accordance with applicable laws (such evidencing documents shall
                                         be issued by the Borrower in format and content acceptable to the Agent,
and be accompanied by written confirmation/certification of the aforesaid issues made by the lawyer engaged by the Borrower for
the ASE-SPIL Joint Share Exchange), and

 

    16 

     

    

 

		6.1.4.b.	Evidence
                                         that all conditions precedent to the Share Exchange have been satisfied, or with respect
                                         to any unsatisfied condition that is waived by relevant party, evidence that such waiver
                                         does not have any adverse impact on the share exchange transaction.

 

		6.1.5.	Evidence
                                         that the Borrower/Guarantor has opened the deposit account required under this Facility
                                         in the form indicated by the Agent (“Account”);

 

		6.1.6.	(a)
                                         Evidence that the Borrower has obtained all necessary funds to support the ASE-SPIL Joint
                                         Share Exchange (including details of sources and uses of funds necessary for conducting
                                         the ASE-SPIL Joint Share Exchange other than the funds available under this Facility
                                         (“Self-raised Funds”)); and

 

(b)
Evidence that the Self-raised Funds paid in cash have been deposited in the Account opened by the Borrower/Guarantor in the bank
designated by the Agent in full before 3:00 pm on the Business Day immediately preceding the Drawdown Date (the Agent will transfer
such funds, together with the funds extended under this Facility to the payment account designated by the stock transfer agent
of SPIL (i.e. the CTBC Bank) for the ASE-SPIL Joint Share Exchange);

 

		6.1.7.	The
                                         Note and the Note Authorization jointly signed by the Borrower and the Guarantor in accordance
                                         with this Agreement;

 

		6.1.8.	A
                                         positive legal opinion issued by the legal counsel retained by the Banks in connection
                                         with this Facility;

 

		6.1.9.	The
                                         Drawdown Request submitted by the Borrower in accordance with this Agreement; and

 

		6.1.10.	Other
                                         documents or evidence reasonably required by the Agent.

 

		6.2.	Other
                                         Conditions Precedent to Drawdown.

 

With
respect to the Drawdown by the Borrower, the obligations of the Banks to perform their Commitments pursuant to this Agreement
are subject to the following conditions precedent:

 

		6.2.1.	The
                                         Drawdown is made with in the Availability Period, and the amount drawn down does not
                                         exceed the available Commitments under this Agreement.

 

		6.2.2.	As
                                         of the Drawdown Date, (a) no Event of Default or Prospective Event of Default (e.g. actual
                                         default to be cured within a cure period) has occurred, (b) all
representations and warranties made by the Borrower and the Guarantor in this Agreement are still true and accurate, (c) all fees
and other payments to be paid by the Borrower to the Banks in accordance with this Agreement have been fulfilled in full, (d)
no circumstance that entitles the Banks to suspend this Facility exists, and (e) there is no material adverse change in domestic
and international financial and security markets and political and economic situations that impedes the extension of funds by
the Majority Banks.

 

    17 

     

    

 

		6.3.	Conditions
                                         Subsequent to Maintaining Commitment.

 

The
obligations of the Banks to keep their Commitments effective are subject to the receipt within five (5) Business Days by the
Agent of the evidence that the share exchange and all relevant formalities have been completed in accordance with the Joint
Share Exchange Agreement and relevant announcements made by the Guarantor and SPIL, and all amounts payable in connection
with the Share Exchange have been paid off (including relevant payment certificates provided by the stock transfer agents of
the Guarantor and SPIL (including their stock transfer agent in Taiwan and depository institution in the United States) with
respect to the share exchange price processed by such agents).

 

		7.	Representations
                                         and Warranties of Borrower and Guarantor. 

 

The
Borrower and the Guarantor hereby represent and warrant as follows:

 

		7.1.	The
                                         Borrower and the Guarantor are duly incorporated and legally existing companies under
                                         the laws of the ROC with all lawful power and authority to own their assets and conduct
                                         their businesses. The Borrower is a public company listed on the Taiwan Stock Exchange
                                         (TWSE); the Guarantor is not a TWSE-listed company.

 

		7.2.	The
                                         Borrower and the Guarantor have obtained all necessary authorizations in accordance with
                                         all their internal procedures to effect the Loans set forth in this Agreement as for
                                         the Borrower and the joint guarantee for the Loans hereunder as for the Guarantor, and
                                         to execute, deliver and perform this Agreement and all other documents relevant to this
                                         Agreement.

 

		7.3.	(a)
                                         The execution, delivery and performance by the Borrower and the Guarantor of this Agreement
                                         and all other relevant documents will not violate any law or regulation, their articles
                                         of incorporation, procedures for endorsement and guarantee or other internal rules and
                                         guidelines, nor have material adverse effect on the obligations of the Borrower and the
                                         Guarantor under any other contract, and will not result in any breach by the Borrower
                                         and the Guarantor under any other contract.

 

    18 

     

    

(b)
The Guarantor has completed all necessary procedures for providing guarantee for the Loans under this Agreement in accordance
with applicable laws and regulations, its articles of incorporation and procedures for endorsement and guarantee, and is able
to provide guarantee in the amount required under this Facility to the Borrower.

 

		7.4.	This
                                         Agreement and all other relevant documents each constitutes legal, valid and binding
                                         obligations of the Borrower and the Guarantor.

 

		7.5.	(a)
                                         The Borrower and the Guarantor have obtained all necessary authorizations in accordance
                                         with all their internal procedures to effect the ASE-SPIL Joint Share Exchange in accordance
                                         with the Joint Share Exchange Agreement and relevant announcement made by the Guarantor.

 

(b)
The Borrower and the Guarantor have obtained all necessary approvals and permits (include, but not limited to merger approvals
or evidence that such merger is not prohibited given by domestic and foreign competent authorities such as authorities of the
ROC, the United States, Korea, German and mainland China) in accordance with applicable laws. Such approvals and permits are still
in effect. Besides the approvals and permits that are already obtained, no other approvals or permits are required to be obtained
from relevant governments or competent authorities by the Borrower and the Guarantor with respect to the ASE-SPIL Joint Share
Exchange.

 

(c)
The ASE-SPIL Joint Share Exchange conducted by the Borrower and the Guarantor will not violate any law or regulation; all procedures
relating thereto are in compliance with applicable legal requirements. The Share Exchange has no material adverse effect on the
obligations of the Borrower and the Guarantor under any other contract, and will not result in any breach by the Borrower and
the Guarantor under any other contract.

 

		7.6.	The
                                         Borrower and the Guarantor have procured all approvals, permits, licenses required for
                                         the operation of their current businesses pursuant to applicable laws and regulations,
                                         and such approvals, permits, licenses all continue to be in force and effect and nothing
                                         has occurred which may result in a revocation or cancellation of the above approvals,
                                         permits, licenses by the competent authority.

 

		7.7.	The
                                         Borrower and the Guarantor have sufficient capital and operation ability to conduct their
                                         businesses and the ASE-SPIL Joint Share Exchange, with reasonably assessed value of assets
                                         higher than their total liabilities and are capable of repaying all liabilities and performing
                                         all of their obligations at the maturity of this Facility.

 

    19 

     

    

		7.8.	All
                                         statements and information in connection with the Borrower, the Guarantor, major shareholders
                                         of the Borrower and the ASE-SPIL Joint Share Exchange as contained in the information
                                         statement furnished by the Borrower and the Guarantor to the Arrangers with respect to
                                         the Facility (a copy of which was forwarded by the Arrangers to each Bank) are true and
                                         accurate, without omission of any material facts regarding the Borrower, the Guarantor
                                         or this Facility; provided, that the Borrower and the Guarantor’s financial projections
                                         and explanations, investment plan, current market condition and prospects and all relevant
                                         opinions, are made on the basis of facts as understood by the Borrower and the Guarantor
                                         and in reasonable judgment of the Borrower and the Guarantor.

 

		7.9.	Except
                                         as disclosed in writing to the Arrangers and the Banks prior to the execution hereof,
                                         there is no litigious or non-litigious proceeding, arbitration, enforcement, or administrative
                                         dispute proceeding involving the Borrower or the Guarantor which (a) is reasonably expected
                                         to have or will have a material adverse effect on the financial business operation or
                                         prospect of the Borrower, the Guarantor, Subsidiaries of the Borrower or the Borrower
                                         Group as a whole, or (b) may impair the exercise or performance of any rights or obligations
                                         by the Borrower and the Guarantor under this Agreement.

 

		7.10.	(a)
                                         No Event of Default on the part of the Borrower/Guarantor has occurred under this Agreement,
                                         nor the Facility will result in an Event of Default or Prospective Event of Default,
                                         (b) the Borrower or the Guarantor is not in default of any other contract where such
                                         default may affect this Facility, and (c) there is no other event which may have a material
                                         adverse effect on this Facility or the business, financial and operational conditions,
                                         assets or prospect of the Borrower, the Guarantor, Subsidiaries of the Borrower or the
                                         Borrower Group.

 

		7.11.	There
                                         is no petition by or against the Borrower or the Guarantor for windup, dissolution and
                                         liquidation, bankruptcy, reconciliation under bankruptcy law, corporate reorganization,
                                         suspension from stock trading (in respect of the Borrower), bail-in situation, debt negotiation
                                         or other similar legal proceeding;

 

		7.12.	Unless
                                         otherwise disclosed by the Borrower and the Guarantor in the financial statements furnished
                                         to the Agent, or otherwise disclosed by the Borrower and the Guarantor to the Banks and
                                         the Agent in writing prior to the execution of this Agreement, the claims of each Bank
                                         against the Borrower and the Guarantor under this Agreement rank at least pari passu
                                         in priority of payment with all claims of any other person against the Borrower and the
                                         Guarantor (except for claims mandatorily preferred by law).

 

    20 

     

    

		7.13.	The
                                         audited financial statements of the Guarantor as at December 31, 2017 are correct in
                                         all material respects and have been prepared in accordance with guidelines for the preparation
                                         of financial reports by securities issuers and international financial reporting standards,
                                         international accounting standards, interpretation and interpretation announcements accepted
                                         by Financial Supervision Committee (T-IFRS) and fairly present the financial condition
                                         and operations of the Guarantor as of the date thereof and for the period then ended.
                                         Except for those which have been otherwise disclosed to the Banks and the Agent in writing,
                                         there are no direct, indirect, or contingent material liabilities of the Guarantor as
                                         of the date of such financial statements that are not reflected therein or in the footnotes
                                         thereto. Since the date of such financial statements, there has been no material adverse
                                         change in the financial, business and operational conditions of the Guarantor and other
                                         entities consolidated in such financial statements as a whole.

 

		7.14.	The
                                         pro forma consolidated financial statements of the Borrower as at December 31, 2017,
                                         which are issued/verified by the Borrower’s accountant for use in the application
                                         for listing of stocks by the Borrower are complete and accurate in all aspects, and are
                                         prepared in accordance with the T-IFRS, and fairly present the pro forma financial conditions
                                         as at and for the period ended on the date of such financial statements, and that there
                                         are no direct, indirect, or contingent material liabilities of the Borrower that are
                                         not reflected therein or in the footnotes thereto.

 

		7.15.	All
                                         written information delivered to the Agent, the Arrangers and the Banks pursuant to this
                                         Agreement are true, complete and correct; and at such time the written information was
                                         so delivered there were no material mistake or omission which may negatively impact the
                                         Arrangers, the Agent, or the Banks.

 

		7.16.	Neither
                                         the Borrower nor the Guarantor is terrorist or terrorist organization targeted or investigated
                                         by any economic sanction programs, local or foreign government authorities or international
                                         anti-money laundering organizations.

 

		7.17.	The
                                         representations and warranties of the Borrower and the Guarantor made in this Agreement
                                         and other related documents will be true, accurate and complete throughout the term of
                                         this Facility.

 

		8.	Covenants
                                         by Borrower and Guarantor.

 

In
addition to other undertakings made under this Agreement, the Borrower and the Guarantor undertake and agree that, as of the date
of this Agreement and until such time that all of their liabilities and obligations under this Agreement and all other relevant
documents have been fully discharged and performed, they shall duly perform the following obligations:

 

    21 

     

    

		8.1.	After
                                         execution of this Agreement and prior to the Drawdown, the Borrower and the Guarantor
                                         shall jointly issue and deliver to the Agent a Note in an amount of the Total Commitment
                                         payable to the Agent (in the form and substance of Exhibit II  hereto, the
                                         “Note”) and an authorization for exercising the Note (in the form and substance
                                         of Exhibit III hereto, the “Note Authorization”).  The Borrower
                                         and the Guarantor hereby unconditionally and irrevocably authorize the Agent, subject
                                         to occurrence of an Event of Default, to insert the maturity date, interest rate (being
                                         the Default Rate) and the commencement date of the interest period of such Note in accordance
                                         with relevant provisions of this Agreement and to exercise all rights under the Note.
                                         The Borrower and the Guarantor shall issue and deliver to the Agent another Note identical
                                         in all substantive respects with the existing Note to replace the existing Note on a
                                         regular basis (every two years) as required by the Agent, or issue and deliver renewed
                                         Note and Note Authorization in the event of any resignation or replacement of the Agent
                                         as required by the succeeding Agent save that the face amount may be reduced in accordance
                                         with the then effective amount of Commitments (upon issue of new Note, the original Note
                                         shall be returned to the Borrower). The Agent and the Banks agree that the Note and the
                                         Note Authorization held by the Agent shall be immediately and unconditionally returned
                                         to the Borrower upon complete discharge of the Borrower’s obligations hereunder.

 

		8.2.	The
                                         Borrower and the Guarantor shall at all times: (a) maintain the existence, nature of
                                         business and scope of business of their companies, and maintain all approvals, licenses
                                         and permits necessary for the conduct of their businesses and operations and for the
                                         timely performance of this Agreement; (b) conduct business in a regular manner; (c) comply
                                         with all laws, regulations and requirements issued by all government authorities with
                                         jurisdiction over such matters (including without limitation to those relating to trading
                                         of securities, environment, pollution or waste disposal); (d) comply with all terms of
                                         approvals/permits granted and conditions added thereto (if any) by competent authorities
                                         of all relevant countries with respect to the ASE-SPIL Joint Share Exchange; (e) keep
                                         and maintain proper books and records; and (f) pay all taxes, assessments and governmental
                                         charges or levies imposed upon them, their incomes or properties; provided, that slight
                                         non-conformance with no material adverse effect on the Borrower or the Guarantor’s
                                         operation as a whole or their ability to perform this Agreement shall not be deemed a
                                         breach of this Article 8.2,

 

		8.3.	The
                                         Borrower and the Guarantor shall ensure at all times that the Agent’s and the Banks’
                                         claims against the Borrower and the Guarantor under this Agreement shall rank at least
                                         pari passu in priority of payment with all unsecured
claims of any other person against the Borrower and the Guarantor (except for those preferred by operation of law).

 

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		8.4.	In
                                         the event of any of the following, the Borrower/Guarantor shall promptly notify the Agent
                                         in writing thereof and inform the Agent the measures that they have adopted: (a) any
                                         substantive or material change to the Borrower/Guarantor’s business operation,
                                         (b) any material change to the major shareholders, directors, supervisors (excluding
                                         replacement of proxies appointed by corporate shareholders), major management (general
                                         manager (inclusive) and above), financial conditions or major assets of the Borrower/Guarantor;
                                         (c) occurrence of any Event of Default or Prospective Event of Default; or (d) occurrence
                                         of any other event which could affect this Facility, the Borrower/Guarantor’s creditworthiness
                                         or ability to perform.

 

		8.5.	During
                                         the term of this Facility and until such time that the Borrower has completely discharged
                                         all its liabilities under this Agreement, the Borrower and the Guarantor shall not, without
                                         prior written consent of the Majority Banks (which consent shall not be unreasonably
                                         withheld):

 

		(a)	sell,
                                         lease, transfer or otherwise dispose of their assets or income in amounts equal to 20%
                                         or more of their then total assets, whether in a single transaction or on an aggregate
                                         basis (calculated based on the latest verified/reviewed consolidated financial statements
                                         provided by the Borrower/Guarantor), except for (i) those disposals prior to the date
                                         of this Agreement which have been disclosed to the Banks in written form, and (ii) asset
                                         transfers or disposals between the Borrower and any member of the Borrower Group under
                                         regular commercial terms in line with the market situation (including restructuring by
                                         the Borrower of shares held by it in Subsidiaries within the Borrower Group).

 

		(b)	make
                                         any material change to the scope or nature of their businesses;

 

		(c)	conduct any transaction
which is not at arms length basis;

 

		(d)	create,
                                         incur, increase or suffer or permit to exist any security interest or encumbrances in
                                         favor of any third party on any of its currently exiting and/or future assets or income,
                                         except for (i) those established with financial institutions which are existing and have
                                         been disclosed to the Agent and the Banks in writing prior to the date hereof, and (ii)
                                         those required during the ordinary course of business with respect to their assets;

 

		(e)	provide
                                         loans to any other parties, except for those provided in accordance with their articles
                                         of incorporation or other internal rules governing the extension of loans;

 

    23 

     

    

		(f)	assume
                                         direct or indirect liabilities for others’ debts by providing guarantee, endorsement
                                         or otherwise, except for those provided in accordance with the procedures for endorsement
                                         and guarantee and in compliance with their relevant rules; or

 

		(g)	enter
                                         into liquidation or dissolution.

 

		8.6.	During                                          the term of
                                                                                                      this Facility, and until such time that the Borrower has completely discharged                                          all
                                                                                                      its liabilities under this Agreement, the Borrower/Guarantor shall not, without prior
                                                                                                      written consent of the Majority Banks, (a) enter into any merger with others or otherwise
                                                                                                      undertake consolidation, merger and acquisition (including without limitation to share
                                                                                                      exchange or swap), (b) effect any spin-off or capital reduction (excluding cancellation
                                                                                                      of repurchased treasury stocks), or (c) commencing from the date hereof, make any investment
                                                                                                      (total investment made by the Borrower and the Guarnator) in any other companies in an
                                                                                                      accumulative aggregate amount of more than NT$20,000,000,000 or 20% of the net worth of the Borrower (based on the
                                                                                                      Borrower’s latest financial statements) at                                          the time of making such investment
                                                                                                      (whichever is higher) or equivalent thereof; provided,                                          that no Majority Banks
                                                                                                      consent shall be required for the following:

 

		(i)	investment
                                         by the Borrower in any Subsidiary existing prior to the date hereof;

 

		(ii)	entering
                                         into a merger under which the Borrower is the surviving entity;

 

		(iii)	merger
                                         or consolidation between the Borrower and its Subsidiary(ies) within the Borrower Group;

 

		(iv)	effecting a spin-off under
which the assignee of the assets is a Subsidiary and would not cause a violation to Section 8.5 (a) hererof;

 

		(v)	acquiring
                                         assets form any company other than a Subsidiary of the Borrower in ordinary course of
                                         business; or

 

		(vi)	possessing
                                         any financial assets held for trading for investment purposes;

 

so
long as any of the above shall not cause any material adverse impact on the Borrower/Guarantor’s business operation, financial
condition or ability to perform hereunder.

 

		8.7.	As
                                         of the record date of the share exchange under the ASE-SPIL Joint Share Exchange:

 

		8.7.a.	The
                                         Borrower shall maintain its 100% shareholding in the Guarantor and SPIL respectively
                                         at all times, except that any holders of the fourth overseas convertible
corporate bonds recently issued by SPIL (“SPIL Overseas Convertible Bonds”) convert their bonds to SPIL’s stocks
after the record date of the share exchange under the ASE-SPIL Joint Share Exchange, in which case, the Borrower shall purchase
such SPIL’s stocks immediately upon their conversion, and hold 100% equity interest of SPIL at least as of the maturity
of the SPIL Overseas Convertible Bonds (October 31, 2019) or such later date agreed by the Agent; and

 

    24 

     

    

 

		8.7.b.	If
                                         SPIL submit any proposal for approval by its shareholders’ meeting according to
                                         Article 185 of the Companies Act regarding any sale, transfer, lease, lend, trust or
                                         any other disposal of its assets or income in amounts equal to 20% or more of its then
                                         total assets, whether in a single transaction or on an aggregate basis (calculated based
                                         on the latest audited/reviewed consolidated financial statements of SPIL), unless previously
                                         approved by the Majority Banks, the Borrower shall not wave its voting rights or act
                                         in favor of such proposal in no matter what form in the shareholders’ meeting,
                                         except for (i) those disposals prior to the date of this Agreement which have been disclosed
                                         to the Banks in written form, and (ii) asset transfers or disposals between SPIL and
                                         any member of the Borrower Group under regular commercial terms in line with the market
                                         situation.

 

		8.8.	The
                                         Borrower and the Guarantor shall from time to time upon request by the Agent provide
                                         information, records and documents in respect of this Agreement or related agreements
                                         and their ability to perform the same, to the extent it does not interfere with the normal
                                         operations of the Borrower/Guarantor, and shall permit the representatives or agents
                                         of the Agent to enter the premises of the Borrower/Guarantor to review (or make copies
                                         or extracts of) the various accounts, records or documents that are relevant to the Borrower/Guarantor’s
                                         ability to perform under this Agreement or other related agreements. To the extent deemed
                                         to be necessary by the Majority Banks, the Agent may retain outside persons to conduct
                                         such inspection provided that such persons shall be subject to confidentiality obligations.

 

		8.9.	(a)
                                         Within 45 days after the end of each second fiscal quarter of the Borrower and the Guarantor,
                                         the Borrower and the Guarantor shall provide to the Agent and the Banks  with
                                         copies of their half-year reports, prepared and reviewed on consolidated basis, including
                                         therein the balance sheet, income statement and cash flow statement.  Each
                                         of such reports shall reviewed by a creditable independent public accounting firm in
                                         accordance with applicable generally accepted audit standards.

 

    25 

     

    

(b)
Within 90 calendar days after the end of each fiscal year of the Borrower the Guarantor, the Borrower and the Guarantor shall
separately provide to the Agent and the Banks with copies of their annual report (including footnotes) for such year, including
therein the consolidated balance sheet, statement of income, statement of cash flow and statement of changes in shareholders'
equity as of the end of such fiscal year. Each of such audited reports shall be prepared and certified by a creditable independent
public accounting firm in accordance with applicable generally accepted audit standards.

 

(c)
Each of the second-quarter and annual financial statements provided by the Borrower to the Agent in accordance with the above
shall be accompanied by a compliance certificate (in the form of Exhibit IV hereto), which must be signed and confirmed by the
Borrower.

 

(d)
At the request of the Agent from time to time, the Borrower shall provide all relevant information relating to the finance, business,
operation, major shareholder structure and assets of the Borrower to the Agent. Upon providing the various financial statements,
the Borrower shall provide both original and electronic copies of such financial statements, so that the Agent may distribute
an electronic copy to each Bank (without distributing original copies separately). The Borrower and the Guarantor hereby authorize
the Agent to provide each Bank with the various financial statements and information provided by them.

 

(e)
The Borrower and the Guarantor shall ensure that the contents of the financial statements prepared by them are in compliance with
the laws of the ROC and generally accepted accounting principles, and that the substantive contents of the documents and information
provided to the Agent are true, correct and complete in all material respects.

 

		8.10.	The
                                         Borrower shall, during the term of this Facility and until such time that the Borrower
                                         has completely discharged all of its liabilities under this Agreement, maintain the following
                                         financial ratios (to be tested semi-annually as of the end of 2018 based on the audited
                                         consolidated second-quarter and annual financial statements prepared in accordance with
                                         this Agreement):

 

		(a)	Its
                                         current ratio (i.e. ratio of current assets to current liabilities) shall not be less
                                         than 100%.

 

		(b)	Its
                                         debt ratio (i.e. ratio of total liabilities to net worth) shall not exceed 180% in the
                                         years of 2018 and 2019, and shall not exceed 160% after 2020.

 

		(c)	Its
                                         interest coverage ratio (i.e. (pre-tax income + interest expense + depreciation + amortization)/interest
                                         expense) shall not be less than 280%.

 

    26 

     

    

		(d)	Its
                                         net worth shall not be less than NT$90,000,000,000.

 

For
the purposes of the calculation above,

 

		i.	“net
                                         worth” shall mean total capital amount represented by shareholders’ equity
                                         (including minority shareholders’ equity).

 

		ii.	“total
                                         liabilities” shall mean total debts including contingent liabilities.

 

		iii.	“contingent liabilities”
shall mean the outstanding obligations in respect of endorsements/guarantees provided by the borrower.

 

In
addition, unless otherwise expressly specified herein, all accounting terms used herein shall be defined in accordance with the
roc generally accepted accounting principles.

 

		8.11.	The
                                         Borrower and the Guarantor shall keep their general properties and businesses insured
                                         with financially sound and reputable insurance companies acceptable to the Agent in the
                                         manner and with such coverage and amount to the extent customary for companies of a size
                                         comparable to it engaging in businesses of a like character.

 

		8.12.	All
                                         proceeds of the Loans under this Facility shall be used for the purposes as specified
                                         in this Agreement and shall not be used for any other purpose; provided, that neither
                                         the Agent nor the Banks shall have any obligation to monitor the Borrower’s actual
                                         application thereof.

 

		8.13.	As
                                         of the date of this Agreement, no advance or similar debt is owed by the Borrower to
                                         any of its shareholder. If any shareholder provides an advance or other shareholder’s
                                         loan to the Borrower thereafter, (a) the interest rate applied to such shareholder’s
                                         loan shall not be higher than the Interest Rate hereof, (b) the Borrower shall not repay
                                         any portion of such shareholder’s loan unless and until all of its liabilities
                                         under this Agreement have been released, and (c) the Borrower shall ensure that the repayment
                                         claim under this Facility are preferred to the claim under such shareholder’s loan,
                                         and shall sign and submit a subordination agreement (in the form and content as set forth
                                         in Exhibit V)

 

		8.14.	The
                                         Borrower and the Guarantor do not enjoy any exemption under law with respect to this
                                         Facility, and hereby agree to waive the same with respect to any issue in connection
                                         with this Facility if they are entitled to any of such right in the future due to any
                                         reason.

 

		8.15.	The
                                         Borrower and the Guarantor shall ensure that the Borrower, the Guarantor and their Subsidiaries
                                         act in compliance with all laws and regulations enacted by applicable government authorities
                                         of the ROC (including without limitation, the Ministry of Economic Affairs), and all
                                         applicable rules and requirements made by different countries or international organizations
                                         against money laundering,
sanction violation, terrorism, bribery and corruption. If the Borrower is aware of any violation thereof or any action, investigation
or proceeding relating to any violation of the above mentioned rules, the Borrower shall immediately notify the Agent who will
provide such information to each Bank, except for any circumstances otherwise specified by law.

 

    27 

     

    

 

		8.16.	The
                                         Borrower shall keep its stocks listed and regularly traded on the Taiwan Stock Exchange
                                         at all times, except for trade suspension no longer than 14 days in accordance with applicable
                                         laws and rules due to material information.

 

		8.17.	All
                                         representations and warranties made by the Borrower in this Agreement shall remain correct,
                                         true and complete throughout the term hereof.

 

		9.	Joint
                                         Guarantee.

 

The
Guarantor hereby unconditionally and irrevocably agrees to provide joint guarantee to the Borrower, assuming joint and several
liabilities for the Borrower’s debts under this Agreement and fees incurred by the Agent and the Banks in exercising or
preserving their rights under this Agreement (for the purpose of this Article 9, such debts and fees are collectively referred
to as the “Liabilities”). To the maximum extent permitted by applicable laws, the Guarantor agrees, represents and
confirms as follows:

 

		9.1.	If
                                         the Borrower fails to repay any Liabilities on due date, upon notice by the Agent, the
                                         Guarantor shall immediately deposit to the account designated by the Agent an amount
                                         equal to the Liabilities payable under the guarantee, plus applicable interest calculated
                                         based on the Default Rate for a period from the due date of the default amount to the
                                         date of actual repayment of such amount and corresponding default penalty; The amount
                                         to be paid by the Guarantor shall be subject to evidence provided by the Banks with respect
                                         to the unpaid due Liabilities of the Borrower.

 

		9.2.	The
                                         Guarantor hereby agrees to (a) exempt the Agent and the Banks from the obligations of
                                         preparing any pretest, reminder or any other notice with respect to the notes, and (b)
                                         waive the benefit of discussion, so that the Agent and the Banks do not need to first
                                         claim against the Borrower or securities provided under the facility agreement or other
                                         documents. The Guarantor represents that it is not a guarantor in the capacity of director,
                                         supervisor or other representative of the Borrower, therefore, Article 753-1 of the Civil
                                         Code does not apply to the obligations of the Guarantor under this Agreement.

 

		9.3.	The
                                         obligation of joint guarantee hereunder shall not be released or affected in any way
                                         for any reason whatsoever (including without limitation, with respect to the borrower,
                                         bankruptcy, reconciliation under bankruptcy law, reorganization, liquidation,
wind up or other legal proceedings), unless and until the Liabilities have been paid off by the Borrower or the Guarantor.

 

    28 

     

    

 

		9.4.	The
                                         Guarantor shall not claim against the Borrower for any Liabilities it repaid on behalf
                                         of the Borrower or enforce any right or security under the guarantee provided herein
                                         before the paying off of the Liabilities under this Facility; the Guarantor agrees that,
                                         in any case, its claim against the Borrower shall be subordinated to the claims of the
                                         Agent and the Banks against the Borrower.

 

		9.5.	These
                                         guarantee provisions shall have binding effect on the Guarantor and its successors and
                                         assignees, provided, that the Guarantor shall not transfer its obligations hereunder
                                         to others in any way without the consent by all of the Banks.

 

		9.6.	The
                                         Guarantor shall, upon request by the Agent or any Bank, immediately pay all expenses
                                         (including without limitation, attorney’s fee) reasonably incurred by the Agent
                                         or the Banks in exercising, enforcing or preserving their rights and interests under
                                         this Agreement (including these guarantee provisions).

 

		10.	DEFAULT.

 

		10.1.	Event
                                         of Default.

 

The occurrence of
any of the following shall constitute an Event of Default under this Agreement:

 

		(1)	The
                                         Borrower fails to make any payment, when due, of principal or interest under this
                                         Agreement or make any other payment due to any Bank, any Arranger or the Agent under
                                         this Agreement or any other related agreement (regardless of whether or not such payment
                                         becomes due by acceleration or otherwise).

 

		(2)	The
                                         Borrower or the Guarantor fails to perform or violate any condition, covenant, undertaking
                                         or obligation towards any Bank, any Arranger or the Agent stipulated under this Agreement,
                                         or performance of any such condition, undertaking, covenant or obligation hereunder shall
                                         become invalid or illegal, and such default is not cured within 14 days after the occurrence
                                         thereof.

 

		(3)	(i)
                                         The Borrower, the Guarantor or any Subsidiary, whether as a primary obligor or a guarantor,
                                         fails to make timely payment of any sums under any other agreement (with any Bank,
                                         any Arranger, the Agent or any third party); or (ii) the occurrence of any event which
                                         accelerates or permits acceleration of the maturity of any debt obligations of the Borrower,
                                         the Guarantor or any Subsidiary with any such creditors in an accumulated amount of NT$350,000,000
                                         or more.

 

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		(4)	Any
                                         representation or warranty made by the Borrower or Guarantor under this Agreement is
                                         found to be false or untrue when made or is reasonably deemed by the Majority Banks as
                                         having become false or untrue.

 

		(5)	The
                                         Borrower, the Guarantor or any Subsidiary ceases doing business as an ongoing concern;
                                         admits in writing its inability to pay its debts as they become due; files a petition in
                                         bankruptcy (or has any such petition filed against it); be adjudicated bankrupt or insolvent;
                                         files a petition (or has any such petition filed against it) seeking any reorganization,
                                         composition, liquidation, dissolution, delisting of shares of stock, suspension of trading
                                         or similar arrangement under any statute, law or regulation for the relief of debts;
                                         files an answer admitting the material allegations of a petition filed against it in any
                                         such proceeding; and cause material adverse changes to its financial conditions.

 

		(6)	The
Borrower fails to maintain any of the financial ratios stipulated in Article 8.10 hereof, or fails to maintain regular trading
of its stock on the Taiwan Stock Exchange.

 

		(7)	The
                                         Borrower, the Guarantor or any Subsidiary fails to pay any tax in accordance with
                                         applicable laws and regulation, causing material impact on it business operation or financial
                                         condition, except if the Borrower, the Guarantor or such Subsidiary has filed a petition
                                         therefor in accordance with applicable laws and regulations.

 

		(8)	The
                                         Borrower, the Guarantor or any Subsidiary incurring rejected checks due to insufficient
                                         deposit or being rejected by the clearing house in such matters that, could adversely affect the Borrower's, the Guarantor's or any Subsidiary's ability to
                                         perform hereunder.

 

		(9)	The revocation or expiration of any
                                         government consent, licenses or approval required in connection with the operations of
                                         the Borrower, the Guarantor or any Subsidiary which could
                                         adversely affect  the Borrower's, the Guarantor's or any Subsidiary's ability to perform hereunder.

 

		(10)	Any
                                         agreement, conversant, undertaking or obligation of the Borrower hereunder becomes
                                         invalid or unenforceable which could adversely affect its ability to perform hereunder.

 

		(11)	Any
                                         government or governmental authority nationalize, take custody or control over
                                         or otherwise expropriate all or a substantial part of the property or assets of the Borrower,
                                         the Guarantor or any Subsidiary which, in the reasonable judgment of the Majority Banks,
                                         will cause material adverse impact on the operation of the Borrower, the Guarantor or
                                         any Subsidiary.

 

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		(12)	Any
                                         attachment, compulsory execution, disposal restriction or similar legal process shall
                                         be initiated against any assets of the Borrower, the Guarantor or any Subsidiary, which
                                         will cause material impact on its business operation of financial condition and is not
                                         discharged within 14 days upon occurrence thereof.

 

		(13)	The
Borrower, the Guarantor or any Subsidiary fails to pay any fine relating to adverse judgments rendered against the Borrower, the
Guarantor or any Subsidiary.

 

		(14)	The
                                         Borrower, the Guarantor or any Subsidiary  becomes subject to any material adverse litigation, arbitration,
                                         or other disputes, or is subject to any ruling or order issued by the court or competent
                                         authority which could adversely affect the Borrower's, the Guarantor's or any Subsidiary's ability to perform hereunder.

 

		(15)	The occurrence of a material adverse change in the Borrower's,
                                                                                                      Guarantor's, or the Subsidiary's business operations, financial condition or ability
                                                                                                      to perform or any material adverse change in the major shareholding or assets structure
                                                                                                      of the Borrower or the Guarantor, which in the professional judgment of the Majority
                                                                                                      Banks, gives reasonable grounds   to believe that the Borrower’s or the Guarantor’s
                                                                                                      ability to perform the obligations hereunder or under any related agreement would be
                                                                                                      affected.

 

		10.2.	Determination
                                         of Default.

 

In
the event of any dispute between the Banks and the Borrower or amongst the individual Banks, as to whether an Event of Default
has occurred, any disputing party may request the Agent in writing to seek clarification from the Banks and obtain the determination
of the Majority Banks.

 

		10.3.	Consequences
                                         of Default.

 

		10.3.1.	Where
                                         an Event of Default has occurred, should the Majority Banks decide to take actions and
                                         so instruct the Agent in writing, the Agent shall, upon the instruction of the Majority
                                         Banks, (a) by written notice to the Borrower, declare the entire unpaid principal amount
                                         of all the outstanding Loans, all unpaid interest, fees and all other sums payable hereunder
                                         to be immediately due and payable, whereupon the Borrower shall immediately repay such
                                         amounts (“Acceleration of Maturity”); and/or (b) present the Note to the
                                         Borrower or the Guarantor and request payment; and/or (c) request the payment of Guarantor
                                         for joint and several liability; and/or (d) take all such other actions as may be permitted
                                         by law or contract. Demand, protest or notice of any kind, other than the notice specifically
                                         required by this article, are hereby waived by the Borrower or the Guarantor to the extent
                                         permitted by law.

 

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		10.3.2.	Where
                                         an Event of Default occurs, the Borrower shall also make payment of interest (on a floating
                                         rate basis) to the Banks and/or the Agent in respect of any amounts due and outstanding,
                                         calculated from the date that such amounts becomes due until such time that the amounts
                                         are actually paid (such payments do not affect other compensation the Banks or the Agent
                                         may have right to); and if any Bank and/or the Agent incur any other costs or direct
                                         losses as a result of such default, the Borrower shall also indemnify such Bank and/or
                                         Agent for and against such costs or losses (such Bank or Agent shall provide relevant
                                         evidence). Unless otherwise provided herein, the Borrower or the Guarantor shall not
                                         be liable to the Bank or its employees or affiliates for any indirect damages, loss of
                                         profit or punitive damages.

 

		10.3.3.	The
                                         costs and expenses incurred by the Agent in relation to the exercise of the various rights
                                         and actions taken pursuant to the Agreement shall be shared by the Banks on a pro-rata
                                         basis (by the Risk Sharing Ratio), except where such costs have been paid by the Borrower
                                         or the Guarantor. If the Borrower or the Guarantor fails to pay such costs or expenses,
                                         the Agent is not obliged to make such payments, and may require the Banks to advance
                                         such payments in accordance with the Risk Sharing Ratio.

 

		11.	ARRANGERS,
                                         AGENT AND BANKS.

 

		11.1.	Each
                                         Bank hereby appoints the BOT and Mega ICBC to act as agents hereunder (BOT to act as
                                         Agent since the signing date of this Agreement and automatically change to Mega ICBC
                                         upon the third anniversary of the payment this Commitment) and irrevocably authorizes
                                         the Agent to take such action on its behalf under the provisions of this Agreement and
                                         any other agreements and instruments referred to herein and therein. In performing its
                                         functions and duties hereunder, the Agent shall act solely on behalf of the Banks and
                                         not in the capacity as trustee of the Banks or the Borrower or in the capacity as agent
                                         of the Borrower. The Agent (a) shall have no duties or responsibilities except those
                                         expressly set forth in this Agreement; (b) shall not be responsible to the Banks for
                                         any failure by the Borrowers, the Guarantor or any other person to perform any of its
                                         obligations under this Agreement or any other document referred to herein; (c) shall
                                         not be required to initiate or conduct any litigation or collection proceedings hereunder;
                                         and (d) shall not be required to take any action that the Agent deems in good faith to
                                         be contrary to any applicable law. The Agent may employ agents, consultants and accountants
                                         and shall not be responsible for the negligence or misconduct of any such person selected
                                         by the Agent in good faith save for its gross negligence or willful misconduct in such
                                         selection.

 

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		11.2.	Each
                                         Bank acknowledges and agrees that it shall independently assess, inspect and be responsible
                                         for the credit worthiness or records of both the Borrower and the Guarantor, and other
                                         relevant information. Relevant risks applicable to each Bank as a result of making available
                                         the Loans shall be independently borne by such Bank. The Agent and the Arrangers do not
                                         make any representations or warranties regarding, and shall not be responsible for, the
                                         credit worthiness, ability to perform of the Borrower and the Guarantor or any other matters relating to
                                         this Agreement.

 

		11.3.	The
                                         Agent may not take any action that is contrary to the written instructions of the Majority
                                         Banks, and shall take the legal actions in accordance with this Agreement, based on the
                                         written instructions of the Majority Banks. Except as instructed in writing by Majority
                                         Banks, the Agent may refuse to take any actions. The Agent may, but is not obligated
                                         to, seek approval of the Majority Banks for actions taken by it pursuant to the Agreement.
                                         Absent willful misconduct or gross negligence, the Agent shall not be responsible in
                                         any way to any Bank in respect of actions taken in accordance with the written instructions
                                         of the Majority Banks, or actions subsequently approved by the Majority Banks. Unless
                                         the Majority Banks have issued a written instruction to the Agent to take a specific
                                         action, the Agent shall not be held responsible in any way for failing to take such action.
                                         Irrespective of any other provisions to the contrary in this Agreement, the Agent may
                                         refuse to take any action on behalf of the Banks if the legitimacy of the instructions
                                         from the Banks are in doubt or until it has received confirmation that it will be satisfactorily
                                         reimbursed for the related costs. In addition, except for exercising the set-off right
                                         hereunder, no Bank may take any action individually without the written consent of the
                                         Majority Banks, nor take any action or make any omission that would conflict or be inconsistent
                                         with the decisions of the Majority Banks (decisions made by the Majority Banks pursuant
                                         to relevant provisions of this Agreement shall be binding on all of the Banks).

 

		11.4.	The
                                         Agent shall handle matters relating to this Agreement in accordance with the provisions
                                         of this Agreement, and shall handle matters relating to the Commitment and exercise the
                                         rights under this Agreement in accordance with relevant provisions of this Agreement.
                                         In handling such matters, the Agent shall act in accordance with the provisions of this
                                         Agreement and/or the written instructions of the Majority Banks, and may (but is not
                                         obliged to) exercise the same degree of care as if it were handling facilities granted
                                         by the Agent alone.

 

		11.5.	In
                                         respect of documents submitted to the Agent by the Borrower or the Guarantor in accordance
                                         with this Agreement, the Agent shall verify the signatures
and chops in accordance with normal procedures, but is not required to further examine the contents or any other aspect of such
documents. In executing matters in relation to this Agreement, the Agent may rely on the validity, authenticity and correctness
of the signatures and contents of relevant documents received and may rely on the advice received from its legal counsel. The
Agent shall not be liable for any actions taken based on such reliance. In addition, in making remittances to the Banks, the Agent
may rely upon the correctness of the addresses and remittance accounts stipulated in respect of each Bank in Schedule A of this
Agreement (or such modifications subsequently notified in writing).

 

    33 

     

    

 

		11.6.	In
                                         handling matters relating to the Commitments (such as advance, repayment, reduction,
                                         etc.), the Agent shall allocate the Commitments in accordance with the proportions stipulated
                                         in this Agreement; provided, that where actual calculations do not permit allocation
                                         to be made in such a manner/ratio, the Agent may use its reasonable judgment in making
                                         the allocation, and no Bank shall raise any objection thereto.

 

		11.7.	Unless
                                         otherwise stipulated in this Agreement, communications by the Agent in relation to this
                                         Agreement may be carried out by fax, and the Agent may rely upon the authenticity and
                                         correctness of the contents of the faxed documents it receives. The Agent shall not be
                                         responsible in any way for the disruption or delay of any transmissions or receptions
                                         of communication (by telephone, fax or courier) or for any defect, error or consequences
                                         in the transmission or reception process, except where such is caused by the willful
                                         misconduct or gross negligence of the Agent.

 

		11.8.	Upon
                                         receiving any notices from the Borrower or the Guarantor, the Agent shall notify each
                                         of the Banks. Except for notices, reports, financial statements and other documents required
                                         to be delivered by the Agent to each of the Banks under this Agreement, the Agent is
                                         not obliged to provide the Banks with any other information in its possession concerning
                                         the credit record, general business and financial status of the Borrower.

 

		11.9.	During
                                         the term of this Agreement, the Agent, the Arrangers or any of the Banks may enter into
                                         other transactions unrelated to the Facility with the Borrower in capacities other than
                                         as the Agent, an Arranger or a Bank. Such transactions shall not be affected by this
                                         Agreement.

 

		11.10.	(a)
                                         BOT will act as Agent since the signing date of this Agreement and automatically change
                                         to Mega ICBC upon the third anniversary of the payment of Commitment; the two banks shall
                                         cooperate with each other to handle the transition and hand over the workload (including
                                         but not limiting to documents re-issuance,
handover and filing) to ensure the performance of this agreement will not be affected.

 

    34 

     

    

 

(b)
The Agent may notify the Borrower and each of the Banks in writing at any time that it shall resign from the position of the Agent.
The Majority Banks are also entitled to replace the Agent at any time. Upon the resignation or replacement of an Agent, the Majority
Banks are entitled to elect a new Agent. If within 60 days after the resignation of the Agent or the replacement of the Agent
by the Majority Banks, the Majority Banks fails to elect a new Agent or the newly elected Agent does not agree to take the office,
the original resigning Agent may select a Bank as its successor if the selected Bank agrees to take the office. The successor
shall assume this agreement by written confirmation. The resigning Agent may continue to collect any sums falling due but uncollected
during the period of its office and this provision shall remain applicable to any acts taken by the resigning Agent prior to its
duties being terminated.

 

(c)
The resignation of Agent stipulated in 11.10(b) shall not in any way affect the automatic change of Agent stipulated in 11.10(a).

 

(d)
Upon replacement of Agent in accordance with the above 11.10 (a) and (b), the Parties to this Agreement shall renew or amend documents
in connection with this Facility to the extent necessary as required by the succeeding Agent.

 

(e)
For the purpose of this agreement, the Agent shall mean the Bank then acting as the agent hereunder.

 

		11.11.	All
                                         the payments received by the Agent from the Borrower or the Guarantor for the common
                                         interest of the Banks and payments from the Banks to be distributed to the Borrower,
                                         shall after being applied for payment of various fees and expenses in accordance with
                                         this Agreement, be distributed or allocated in accordance with this Agreement (for payments
                                         to be distributed amongst the Banks, the distribution shall be made in accordance with
                                         the Risk Sharing Ratio), and shall deliver such payments to each Bank by the Business
                                         Day following actual receipt thereof. The Agent’s obligation to distribute the
                                         said payments shall be limited to the amounts that it actually receives, and the Agent
                                         is not obliged to advance any amounts therefor. The Agent may assume that the relevant
                                         persons with obligation to pay will make the relevant payments to the Agent in accordance
                                         with the Agreement, and may (but is not obliged to) distribute or pay such amounts to
                                         each of the Banks on the basis of such assumption and in the aforementioned manner. However,
                                         where the Agent relies on such assumption in making the payment, but subsequently finds
                                         that it has not actually received the relevant payment, the Bank or the Borrower which
                                         receives the said amount from the Agent shall refund the payment immediately upon receiving
                                         the notice from the Agent, and shall pay interest
to the Agent from the date that it receives the payment and until the date that refund is actually made to the Agent, calculated
at the PIBC overnight Rate in accordance to Article 3.2.3

 

    35 

     

    

 

		11.12.	Unless
                                         the Agent has received the notice from any Bank or the Borrower and the Guarantor concerning the occurrence
                                         of an Event of Default, which notice expressly states that it is a “notice of Event
                                         of Default”, the Agent shall not be deemed to have known or has been informed as
                                         to the occurrence of an Event of Default. Upon receiving the said notice, the Agent shall
                                         notify each of the Banks as soon as possible.

 

		11.13.	Any
                                         damage, if any, caused to the Borrower or the Guarantor as a result of any act or omission
                                         to act of a Bank shall be the responsibility of that relevant Bank, and the Arrangers,
                                         the Agent or any other Banks shall not be responsible therefor.

 

		11.14.	In
                                         the event of any damage or loss to the Agent or a Bank in the course of performance of
                                         this Agreement by the Borrower or the Guarantor or their agent or employee, as a result
                                         of causes attributable to the Borrower, the Guarantor or its agent or employee, the Borrower
                                         or the Guarantor shall be liable for full indemnification against such damage or loss.

 

		11.15.	Unless
                                         otherwise provided hereunder, in respect of their performance hereunder, neither the
                                         Agent nor its agents or employees shall be held liable in whatever respect to the Banks
                                         except for those as a result of its willful misconduct or gross negligence.

 

		11.16.	Each
                                         Bank agrees that before all the claims hereunder are fully settled, even if an Event
                                         of Default has occurred, the Agent still has the right to collect management fee according
                                         to its original agreement with the Borrower.

 

		12.	SET-OFF.

 

		12.1.	In
                                         the event that the Borrower/Guarantor fails to perform its obligations under this Agreement
                                         or any other relevant agreement in connection with the Facility, each of the Banks and
                                         the Agent, in addition to exercising the various rights of claim under this Agreement,
                                         shall also be entitled to (but are not obliged to) offset any sums in accounts (irrespective
                                         of whether such sum is of the same currency and, in case of different currencies, such
                                         Bank or the Agent may convert same to the same currency as the Borrower/Guarantor’s
                                         obligations hereunder) held by the Borrower/Guarantor at the said Banks or the Agent
                                         (including their headquarters and all branches) and all claims of the Borrower/Guarantor
                                         against the Bank or the Agent, against the obligations of the Borrower/Guarantor to the
                                         Banks and/or the Agent under this Agreement (the Borrowers further agrees that such accounts
                                         or other claims shall be deemed
to mature automatically upon such time that the offset is exercised by the relevant Bank or the Agent). Where an account held
by the Borrower/Guarantor is a time deposit account, the relevant Bank or the Agent may directly terminate the time deposit account
agreement prematurely and offset funds in the said account against the obligations under this Agreement, notwithstanding that
the deposit term has not expired; where such an account is a checking account, the Borrower/Guarantor agrees that an announcement
by the Banks of the acceleration of the obligations under this Facility shall be a condition for termination of the checking account
agreements and upon such announcement, the checking account agreement shall cease to be effective, and the Banks or the Agent
may directly exercise its right of offset and notify the Borrower/Guarantor thereof. To the greatest extent permitted by law,
the exercise of such setoff right shall be deemed to take effect at the time that such offset is recorded on the books of the
relevant Bank. Where the offset amount is insufficient to satisfy the full amount of the outstanding obligations of the Borrower/Guarantor
hereunder, the Borrower/Guarantor shall remain liable for repaying the insufficiency thereof.

 

    36 

     

    

 

		12.2.	In
                                         order to maintain the pro-rata repayments to each Bank, where any payments received by
                                         a Bank in respect of the Facility (whether as a result of voluntary or involuntary offset
                                         or otherwise) exceeds the pro-rata amount due to that Bank in accordance with this Agreement,
                                         such Bank shall (a) forward such sums to the Agent for distribution to all Banks in accordance
                                         with this Agreement or (b) if necessary and to the extent required by law, purchase from
                                         the other Banks a right of claim equivalent to the amount of the excess, so that such
                                         Bank may, in substance, share with the other Banks the proceeds of the additional repayment.
                                         However, if the benefiting Bank is subsequently required to return all or part of such
                                         repayment, the aforementioned purchase of claim shall be unwind immediately, and the
                                         consideration paid for such purchase shall also be refunded without interest. The Borrower
                                         further agrees that the Banks may exercise all rights (including the right of offset),
                                         in the same manner as for other rights hereunder, in respect of the claims so purchased.

 

		12.3.	If
                                         any other creditor of the Borrower/Guarantor effects a compulsory execution against any
                                         account of the Borrower/Guarantor with a Bank or the Agent, and the executing court issues
                                         an attachment order, collection order, or transfer order to the Bank or the Agent in
                                         respect of such account, the said Bank or the Agent shall be entitled to declare that
                                         the Borrower/Guarantor’s obligations under this Agreement in an amount equal to
                                         the amount of such deposit (the higher amount) to be subject to compulsory execution
                                         shall become due and payable immediately, and to offset same against such deposit in
                                         the account.

 

    37 

     

    

		13.	EXPENSES.

 

		13.1.	All
                                         reasonable legal costs and other costs and expenses incurred by the Arrangers in arranging
                                         for the Banks and preparing this Agreement, or any other related documents, as well as
                                         costs and expenses to be incurred for any subsequent amendments or modification to this
                                         Agreement, shall be borne by the Borrower.

 

		13.2.	All
                                         reasonable fees and legal costs incurred by a Bank and/or the Agent arising from occurrence
                                         of an Event of Default in exercising the rights under this Agreement and other relevant
                                         agreements, shall be borne by the Borrower.

 

		13.3.	If
                                         the Borrower fails to pay the costs and expenses in accordance with this Agreement, the
                                         Agent has no obligation to advance same and may require each of the Banks to advance
                                         same in accordance with the Risk Sharing Ratio (or if the Borrower has not yet made any
                                         Drawdown at such time, in accordance with the Commitment Ratio), and the Agent may take
                                         the relevant action only upon receipt of such payments in full from the Banks. If the
                                         Agent has advanced such payment, the Banks shall reimburse the Agent immediately upon
                                         demand, and if any Bank fails to make such reimbursement timely, the Agent may directly
                                         deduct such payment against sums to be paid to the Banks under this Agreement. The Banks
                                         reimbursement obligations hereunder shall not be affected by any assignment of such Bank’s
                                         right or obligation hereunder, and to the extent such payment is not paid, the assignee
                                         bank shall assume same accordingly.

 

		13.4.	Neither
                                         the Banks, the Arrangers nor the Agent is obliged to advance any payment(s) on behalf
                                         of the Borrower. However, if a Bank, an Arranger or the Agent has done so, the Borrower
                                         shall reimburse them for same immediately upon demand, failing which interest at the
                                         Default Rate (on a floating rate basis) shall be payable on such payment commencing from
                                         the date of advance by the Bank(s), the Arranger(s) or the Agent until such reimbursement
                                         is actually made by the Borrower.

 

		14.	NOTICES
                                         AND PAYMENTS.

 

		14.1.	Notices
                                         made under this Agreement shall be made in writing (by letter, fax or email) in accordance
                                         with relevant provisions of this Agreement; in addition: (a) notices made to the Borrower,
                                         the Guarantor or the Agent shall be delivered to the address, fax number or email address
                                         set out below in this Agreement (or such other address, fax number or email address subsequently
                                         notified in writing); (b) notices made to a Bank shall be delivered to the address, fax
                                         number or email address of the relevant Bank as set out in SCHEDULE I of this Agreement
                                         (or such other address, fax number or email address subsequently
notified); (c) monies payable by the Borrower/the Guarantor to the Agent/the Banks under this Agreement, if made by electronic
transfer, shall be remitted to the relevant Banks/the Agent by the inter-bank remittance system to the account detailed in SCHEDULE
I of this Agreement or detailed below (or such other account subsequently notified in writing). Notices delivered in person shall
be deemed duly delivered when so delivered; notices sent by prepaid registered post shall be deemed duly delivered five (5) days
after posting; notices sent by fax shall be deemed duly delivered when the written confirmations thereto have been received: notices
sent by email shall be deemed duly delivered when no abnormal message of the recipient is received.

 

    38 

     

    

 

		14.2.	(a)
                                         To Borrower: ASE Technology Holding Co., Ltd

 

Address:
__________________________________

 

Telephone
No.: _____________________________

 

Fax
No. : __________________________________

 

Contact:
___________________________________

 

A/C
No.:___________________________________

 

(b)
To Guarantor: Advanced Semiconductor Engineering, Inc.

 

Address:
__________________________________

 

Telephone
No.: _____________________________

 

Fax
No. : __________________________________

 

Contact:
___________________________________

 

(c)
To Agents: (i) Bank of Taiwan

 

Address:
__________________________________

 

Telephone
No.: _____________________________

 

Fax
No. : __________________________________

 

Contact:
___________________________________

 

A/C
No.:___________________________________

 

(ii) Mega International
Commercial Bank Co., Ltd.

 

Address:
__________________________________

 

Telephone
No.: _____________________________

 

Fax
No. : __________________________________

 

Contact:
___________________________________

 

A/C
No.:___________________________________

 

    39 

     

    

		14.3.	Any
                                         party that changes its address, telephone number, fax number or remittance account shall
                                         immediately notify the Agent and other parties under this Agreement in writing. In the
                                         absence of such notice, the change shall not be binding as against the Agent or the other
                                         parties of this Agreement.

 

		15.	NON-WAIVER.

 

The
rights and remedies of the Arrangers, the Agent, and the Banks under this Agreement and the related agreements shall be in addition
to, and not exclusive of, any rights or remedies which the Agent, any Arranger or any Bank has under the law, and no delay by
the Agent, any Arranger or any Bank in exercising any power, privilege or right shall operate as a waiver thereof, nor shall any
single or partial exercise of any power, privilege or right preclude other or further exercise thereof or the exercise of any
other power, privilege or right.

 

		16.	Others.

 

		16.1.	An
                                         amendment or modification to this Agreement shall be made in writing and shall be agreed
                                         to by the Borrower, the Guarantor, the Arrangers, the Agent and the Banks; provided,
                                         that, amendments relating to those matters which are not directly related to the Borrower
                                         or the Guarantor shall require only the consent of the Agent and the Majority Banks and
                                         shall be made in writing without the consent of the Borrower (although the Borrower and
                                         the Guarantor shall be notified of such amendment in writing).

 

		16.2.	The
                                         Banks, the Arrangers and the Agent agree that: for those matters otherwise provided for
                                         in this Agreement, or those matters which have been expressly stipulated hereunder, the
                                         relevant provisions or stipulations will apply separate such provisions or stipulations,
                                         as well as all matters relating to: (a) amendment to the validity period, availability
                                         or Commitment Termination Date of this Facility, (b) amendment to the currency, amount,
                                         the interest/fee rate or due date of a payment, (c) increase of the Total Commitment
                                         under this Agreement, (d) amendment to Article 9 including dismissal of joint responsibility
                                         and change of Guarantor, (e) amendment to the definition of “Majority”, (f)
                                         amendment to Articles 16.1, 16.2 or 16.3 of this Agreement, or (g) the removal of all
                                         or part of the financial ratios (not including the amendments thereof) which shall be
                                         subject to the written consent of all of the Banks, all other amendments or modifications
                                         to the Agreement, waiver of an Event
of Default, or modification to other matters relating to this Agreement may be amended, waived or revised based on the written
consent of the Majority Banks (a decision by the Majority Banks in accordance with such provision shall be binding on all of the
Banks and the Arrangers).

 

    40 

     

    

 

		16.3.	In
                                         respect of a waiver, amendment or modification to be made by the written consent of all
                                         of the Banks or the Majority Banks, each of the Banks, the Arrangers and the Agent hereby
                                         agree and unconditionally authorize the Agent to execute the relevant documents, for
                                         and on behalf of all of the Banks, the Arrangers and the Agent, in accordance with the
                                         written consent of all of the Banks or the Majority Banks, as applicable (acts of the
                                         Agent in accordance with this provision shall be binding on all of the Banks and the
                                         Arrangers). For confirmation stipulated in Article 16.5 hereof, each of the Banks hereby
                                         authorize Agent to issue confirmation letter on behalf of all relevant Banks and the
                                         confirmation letters shall be binding on all of the Banks.

 

		16.4.	This
                                         Agreement shall be binding on the assignees or successors of each party to this Agreement,
                                         or any other person who assumes or succeeds to the rights or obligations of such party
                                         according to law; provided, that the Borrower or the Guarantor may not assign its rights
                                         or obligations under this Agreement without the prior written consent of the Agent and
                                         all of the Banks.

 

		16.5.	(a)
                                         A Bank may at any time with notice to (but without the consent of) the Borrower, the
                                         Guarantor, the Agent or any other Bank change its lending office for this Facility, but
                                         shall not increase the burden of the Borrow or the Guarantor hereunder.

 

(b)
A Bank may, by prior written notice to the Agent, the Borrower and the Guarantor, assign or transfer its rights and/or obligations
hereunder (in form of Exhibit VI Form A hereto for transfer all obligations and Form B for transfer part of the obligations),
without the consent of the Agent, the Borrower, the Guarantor or any other Banks; provided, (a) such shall not cause any additional
cost to the Borrower and (b) the assignee shall agree in writing to the Agent to be bound by this Agreement. When transferring
part of the obligations, the transferee shall perform the transferred obligations, and the transferring Bank shall perform any
residual obligations in accordance with this Agreement that was not transferred. However, the claims against the Borrower arising
after the transfer shall still be treated as joint and several liabilities as stipulated in Article 5.2.2 of the Facility Agreement.

 

(c)
When A bank transfers its rights and/or obligations hereunder to a third-party, the Borrower and other Banks shall cooperate to
issue confirmation letters in form of Exhibit VII to the Agent and shall also assist in executing other relevant documents.

 

(d)
In respect of each such transfer/assignment, the Bank proposing to assign its rights and/or obligations shall pay the Agent a
processing fee of NT$100,000 for each assignment, except for the transfer/assignment caused by merger, split, acquisition or other
similar situations in accordance with ROC Corporate
Mergers and Acquisitions Act or ROC Financial Institutions Merger Act.

 

    41 

     

    

 

		16.6.	If
                                         a Bank is securitized or merged, split, taken over or other similar circumstances in
                                         accordance with ROC Corporate Mergers and Acquisitions Act or ROC Financial Institutions
                                         Merger Act to become asset trust or transfer/assign of its rights, the Borrower and the
                                         Guarantor agree to let the Bank to give notification in way of public announcement rather
                                         than notice, although the Borrower, the Guarantor and the Agent shall be notified or
                                         delivered certification of announcement.

 

		16.7.	A
                                         Bank may enter into a risk participation agreement with other person(s) in respect of
                                         its claim under this Agreement, without being required to notify the Borrower, the Guarantor,
                                         the Agent or any other Bank; provided, that such other party may not assert any right
                                         of claim against the Borrower, the Guarantor or any other party under this Agreement.

 

		16.8.	For
                                         the aforementioned risk participation agreement, the participants who request reference
                                         or review the Agreement, waiver, amendments hereof, shall reach out to the corresponding
                                         Bank for such material, and the Agent shall have no additional responsibilities in providing
                                         such materials.

 

		16.9.	In
                                         addition to disclosure of information according to relevant laws and regulations, the
                                         Agent and the Bank may from time to time provide contents of this Agreement, or information
                                         held by it concerning the Borrower, the Guarantor or the parties related to this Agreement,
                                         to its head office, parent, affiliate or an assignee of the rights under this Facility
                                         or a person sharing the risks (including potential assignee or participant), the Joint
                                         Credit Information Center, a credit assessment institution, a trustee for asset securitization
                                         program, a credit rating institution, or other institutions that provides outsourcing
                                         services to the Agent or the Banks without consent of the Borrower, the Guarantor or
                                         the relevant parties. When disclosing such information, the Agent and the Bank should obligate the information recipient, the party that shares
the risks or the outsourcing services provider to bear a comparable duty of confidentiality.

 

		16.10.	The
                                         Borrower and the Guarantor understand and acknowledge that communications made by the
                                         Agent may be made by email, fax, email or other electronic means which may not be secure
                                         or reliable. The Agent will not be liable for any such security or reliability issues.
                                         Also, the Agent may, if it deems necessary to do so, monitor, record or retain communications.

 

		16.11.	Each
                                         Bank shall inform the Agent of any merger or change of its name or organization structure
                                         and, if required by the Agent, shall provide the Agent such legal opinion acceptable
                                         to the Agent to prove that its legal capacity remain unchanged. Otherwise, the Bank shall,
                                         upon request by Agent, execute and deliver to the Agent, at its own costs, such assignment
                                         document transferring
rights and obligations to the entity surviving the name change, reorganization or merger.

 

    42 

     

    

 

		16.12.	The
                                         Borrower and the Guarantor hereby agree (and shall cause their relevant executive officers
                                         to agree) that, the Agents and the Banks may collect, process, transfer abroad and
                                         use personal data, information recorded in the Joint Credit Information Center and financial
                                         service-related information pertaining to the Borrower, the Guarantor and their respective
                                         executive officers, in a way and to the extent permitted by applicable laws and directives,
                                         for purposes in connection with this Facility. The Borrower and the Guarantor agree to,
                                         as requested by the Banks from time to time, execute or obtain additional documents necessary
                                         for the Banks to comply with applicable personal data protection requirements. In addition,
                                         the Borrower and the Guarantor agree to obtain any necessary consent or document with
                                         respect to the aforesaid issues from their respective executive officers (or their successors).

 

		16.13.	The
                                         Borrower and the Guarantor agree that, each of the Banks may outsource the debt collection
                                         with respect to this Facility to a third party in accordance with “Rules Governing
                                         the Internal Operational System and Procedures for Outsourcing Services By the Financial
                                         Institutions” promulgated by the competent authority and other relevant laws and
                                         regulations.

 

		16.14.	(a)
                                         The Borrower and the Guarantor understand that compliance with applicable anti-money
                                         laundering (“AML”) and combating the financing of terrorism (“CFT”)
                                         laws and regulations (collectively, “AML & CFT Compliance”) is the responsibility
                                         of each Bank, and agree to promptly upon the request of any Bank supply such documentation
                                         (including originals and certified true copy) as is reasonably requested by any Bank
                                         in order for such Bank to carry out and be satisfied with the results of all AML &
                                         CFT Compliance or other checks in relation to any person that it is required (under any
                                         applicable law or regulation) to carry out in respect of the transactions contemplated
                                         hereby. Other than specified by applicable laws or regulations, the Agent shall not be
                                         responsible for any Bank's AML Compliance and will not provide any such documentation.

 

(b)
The Banks may disclose to any relevant tax authority the information or materials of the Borrower or the Guarantor in respect
of this Agreement or make any other necessary disclosure after giving notice to the Borrower or the Guarantor.

 

		16.15.	As
                                         far as the Borrower and the Grantor know, neither the Borrower nor the Guarantor is FATCA
                                         FFI or US taxpayer, nor will the payment hereunder be withheld
by FATCA. The Borrower or the Guarantor shall immediately inform the Agent if it knows to become, or may become a FATCA FFI or
US taxpayer.

 

    43 

     

    

 

		17.	GOVERNING
                                         LAW.

 

This
Agreement shall be governed by the laws of the ROC. Any matters not fully stipulated within this Agreement shall be in accordance
with relevant laws of the ROC.

 

		18.	JURISDICTION.

 

All
of the parties hereto agree that with respect to litigation in connection with this Agreement, the Taipei District Court of Taiwan
shall have jurisdiction as the court in the first instance; provided, that this article does not preclude any rights of the Agent
or the Banks to undertake any other legal proceedings against the Borrower in any other courts or any other jurisdiction in pursuit
of repayment.

 

		19.	PLACE
                                         OF CONTRACT PERFORMANCE.

 

Unless
otherwise provided herein, the place of contract performance hereof shall be the place where the Agent resides.

 

		20.	EU
                                         BAIL-IN ACTIONS.

 

		20.1.	The
                                         Parties hereto acknowledge and accept that:

 

		(a)	Any
                                         Bank organized and incorporated in a Member State of European Economic Area (“EU
                                         Bank”) is subject to regulation by EU Supervisory Authorities (see definition below)
                                         and applicable laws and directives enacted by the Supervisory Authorities. According
                                         to Article 55 of Directive 2014/59/EU and regulations and orders related thereto, if
                                         an EU Bank faces financial problems and lack of capability to perform contractual obligations,
                                         Supervisory Authorities are authorized to exercise the Write-down and Conversion Powers,
                                         and take Bail-in Actions (see definition below) including without limitation to:

 

		i.	reduce
                                         all or a portion of the EU Bank’s liabilities both in terms of principal and interest;

 

		ii.	convert
                                         all or a portion of the liabilities into the EU Bank’s equity shares or vouchers
                                         exchangeable for shares;

 

		iii.	cancel
                                         such liabilities, and/or

 

		iv.	amend
                                         relevant debt agreements to the extent necessary to effect the Bail-in Actions.

 

		(b)	The
                                         Bail-in Actions taken by Supervisory Authorities shall have binding effect to all counterparties
                                         of such EU Bank, and have priority over relevant agreements between the EU Bank and any
                                         counterparty.

 

    44 

     

    

		(c)	For
                                         the purpose of the foregoing:

 

		i.	“Member
                                         States of European Economic Area” refer to all EU member states, Iceland, Liechtenstein
                                         and Norway.

 

		ii.	“Supervisory
                                         Authorities” refer to authorities that are authorized to exercise the Write-down
                                         and Conversion Powers under Article 55 of Directive 2014/59/EU and regulations and orders
                                         related thereto.

 

		iii.	“Bail-in
                                         Actions” refer to measures taken by competent Supervisory Authorities by exercising
                                         the Write-down and Conversion Powers.

 

		iv.	“Write-down
                                         and Conversion Powers” are specified in relevant mechanisms/schemes and directives
                                         concerning debt troubles of financial institutions issued by EU member states in accordance
                                         with Article 55 of Directive 2014/59/EU and regulations and orders related thereto.

 

		20.2.	The
                                         Borrower, the Guarantor and other Parties hereto have acknowledged the Article 20.1 above
                                         and agree that this Agreement is subject to such Bail-in Actions.

 

    45 

     

    

[Signature
pages, translation omitted]

 

 

 

 

 

 

 

 

 

 

 

 

 

    46 

     

    

 

Schedule
I

 

		1.	Arrangers

 

Bank
of Taiwan

 

Mega
International Commercial Bank Co., Ltd.

 

DBS
Bank Limited Taipei Branch (Singapore)

 

Chinatrust
Commercial Bank Co., Ltd.

 

Taipei
Fubon Commercial Bank Co., Ltd.

 

Cathay
United Bank Co., Ltd.

 

Standard
Chartered Bank (Hong Kong) Limited

 

Hongkong
and Shanghai Banking Corporation Limited, Taipei Branch (Hong Kong)

 

Citibank
Taiwan Ltd.

 

Bank
of China Taipei Branch (mainland China)

 

Bank
of Communications Taipei Branch (mainland China)

 

Bank
of Tokyo-Mitsubishi UFJ, Taipei Branch (Japan)

 

Crédit
Agricole Corporate and Investment Bank S.A., Taipei Branch (France)

 

China
Construction Bank Corporation, Taipei Branch

 

Oversea-Chinese
Banking Corporation Limited, Taipei Branch (Singapore)

 

Sumitomo
Mitsui Banking Corporation, Taipei Branch (Japan)

 

Taiwan
Cooperative Bank Co., Ltd.

 

First
Commercial Bank, Ltd.

 

Hua
Nan Commercial Bank, Ltd.

 

Chang
Hwa Commercial Bank, Ltd.

 

Bank
Sinopac Ltd.

 

E.Sun
Commercial Bank, Ltd.

 

Bank
of East Asia Limited, Taipei Branch (Hong Kong)

 

BNP
Paribas Taipei Branch (France)

 

Land
Bank of Taiwan Co., Ltd.

 

Shanghai
Commercial & Savings Bank, Ltd.

 

Yuanta
Commercial Bank Co., Ltd.

 

Taishin
International Bank Co., Ltd.

 

    47 

     

    

2.
Banks, Commitment and Commitment Ratio

 

(NT
Dollars) 

	Banks	Commitment	Commitment
    Ratio
	Bank
    of Taiwan	4,600,000,000	46/900
	Mega
    International Commercial Bank Co., Ltd.	4,300,000,000	43/900
	DBS
    Bank Limited Taipei Branch (Singapore)	4,200,000,000	42/900
	Chinatrust
    Commercial Bank Co., Ltd.	4,100,000,000	41/900
	Taipei
    Fubon Commercial Bank Co., Ltd.	4,000,000,000	40/900
	Cathay
    United Bank Co., Ltd.	4,000,000,000	40/900
	Standard
    Chartered Bank, Taipei Branch (the UK)	3,500,000,000	35/900
	HSBC
    Taipei Branch (Hong Kong)	2,200,000,000	22/900
	HSBC
    Bank (Taiwan) Limited 	800,000,000	8/900
	Citibank
    Taiwan Ltd.	2,800,000,000	28/900
	Bank
    of China Taipei Branch (mainland China)	2,800,000,000	28/900
	Bank
    of Communications Taipei Branch (mainland China)	2,800,000,000	28/900
	Bank
    of Tokyo-Mitsubishi UFJ, Taipei Branch (Japan)	2,800,000,000	28/900
	Crédit
    Agricole Corporate and Investment Bank S.A., Taipei Branch (France)	2,800,000,000	28/900
	China
Construction Bank Corporation, Taipei Branch	2,800,000,000	28/900
	Oversea-Chinese
    Banking Corporation Limited, Taipei Branch (Singapore)	2,800,000,000	28/900
	Sumitomo
    Mitsui Banking Corporation, Taipei Branch (Japan)	2,800,000,000	28/900
	Taiwan
    Cooperative Bank Co., Ltd.	2,800,000,000	28/900
	First
    Commercial Bank, Ltd.	2,800,000,000	28/900
	Hua
    Nan Commercial Bank, Ltd.	2,800,000,000	28/900
	Chang
    Hwa Commercial Bank, Ltd.	2,500,000,000	25/900
	Bank
    Sinopac Ltd.	2,400,000,000	24/900
	E.Sun
    Commercial Bank, Ltd.	2,100,000,000	21/900
	Bank
    of East Asia Limited, Taipei Branch (Hong Kong)	2,000,000,000	20/900
	BNP
    Paribas Taipei Branch (France)	2,000,000,000	20/900

 

    48 

     

    

 

 

	Land Bank of Taiwan Co., Ltd.	2,000,000,000	20/900
	Shanghai
    Commercial & Savings Bank, Ltd.	1,900,000,000	19/900
	Yuanta
    Commercial Bank Co., Ltd.	1,900,000,000	19/900
	Taishin
    International Bank Co., Ltd.	1,900,000,000	19/900
	O-Bank	1,400,000,000	14/900
	KGI
    Bank	1,200,000,000	12/900
	Taiwan
    Business Bank, Ltd.	1,100,000,000	11/900
	Taiwan
    Shin Kong Commercial Bank Co., Ltd.	1,000,000,000	10/900
	Far
    Eastern International Bank	1,000,000,000	10/900
	ANZ
    Bank (Taiwan) Ltd.	800,000,000	8/900
	Entie
    Commercial Bank	700,000,000	7/900
	Agricultural
    Bank of Taiwan	600,000,000	6/900
	Bangkok
    Bank	500,000,000	5/900
	Taichung
    Commercial Bank Co., Ltd.	500,000,000	5/900
	Total	90,000,000,000	 

 

 

 

 

 

 

 

 

    49 

     

    

 

[Schedule
I-C, translation omitted]

 

 

 

 

 

 

 

 

 

 

 

 

    50 

     

    

 [Exhibits
I-VII, translation omitted]

 

 

 

 

 

 

 

 

 

 

 

 

    51Exhibit

Exhibit 10.1
EMPLOYMENT AGREEMENT
This Employment Agreement (this “Agreement”) by and between Employers Holdings, Inc., a Nevada corporation (the “Company”) and Tracey Berg (the “Employee”) is entered into as of the 24th day of April, 2019, effective as of May 1, 2019 (the “Effective Date”).  Effective as of the Effective Date, this Agreement amends, restates and supersedes, in its entirety, the Employment Agreement effective January 1, 2018, by and between the Employee and the Company (the “Prior Employment Agreement”).  In addition, effective as of the Effective Date, this Agreement shall replace and supersede, in its entirety, any other prior employment agreement or agreements between the Employee and the Company (these agreements, together with the Prior Employment Agreement, the “Prior Agreements”) and the Prior Agreements shall be of no force or effect.  Notwithstanding the foregoing, if the Employee’s employment terminates for any reason prior to the Effective Date, then this Agreement shall be null and void and shall not become effective.

RECITALS
A. The Employee has knowledge and experience applicable to the position of Executive Vice President, Chief Innovation Officer. 
B. The Company desires to continue to employ the Employee to perform certain services for the Company, its parent, if any, and their respective subsidiaries and affiliates (the “Company Affiliates”), as may be required or requested of the Employee in her position or positions with the Company and the Company Affiliates, and the Employee desires to continue to be so employed by the Company and to perform such services for the Company and the Company Affiliates.
In consideration of the premises above and mutual covenants and promises set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are mutually acknowledged, the parties agree as follows: 

TERMS
		
	1.
	Employment. 

The Company agrees to continue to employ the Employee and the Employee accepts such continued employment upon the terms and conditions specified herein. The Employee agrees to continue to devote substantially all of her time and effort during working hours in the performance of the duties called for herein and agrees that any other non-employment related duties (i.e., industry related groups, service on boards, etc.) will not be allowed to materially interfere with the performance of the duties called for herein. 

		
	2.
	Term. 

The term of this Agreement shall commence on the Effective Date, and continue until December 31, 2021 (the “Initial Term”), and, thereafter, shall automatically terminate unless the Company gives written notice to the Employee no later than six (6) months prior to the expiration of the Initial Term or any Additional Term (as defined below), as applicable, of an intent to renew this Agreement for successive two (2) year periods (each two (2) year period, an “Additional Term;” the Initial Term and any Additional Terms, collectively the “Term”); subject, however to earlier termination of the Employee's employment with the Company in accordance with this Agreement (the date of termination of this Agreement or, if earlier, termination of the Employee’s employment, the “Termination Date”).  The expiration of this Agreement at the end of the Term, in and of itself, shall not constitute, nor be construed or interpreted as, a termination of the Employee's employment that would make her eligible for benefits or payments under this Agreement.  This Agreement shall expire upon the termination of the Employee's employment for any reason, subject to the provisions of subsection 10(h) below.

		
	3.
	Services and Duties. 

The Employee shall continue to serve as Executive Vice President, Chief Innovation Officer and/or such other position or positions as may be mutually agreed upon by the parties from time to time, and shall perform such duties as may be assigned by the Chief Executive Officer from time to time.  At the request of the Board of Directors of the Company (the “Board”), the Employee shall also serve as a director of the Company and/or one or more of the Company Affiliates at no additional compensation.  The Employee agrees that upon the termination of her employment with the Company, she shall resign from the Board and any and all boards of the Company Affiliates effective on the Termination Date. 

		
	4.
	Compensation and Benefits. 

		
	(a)
	During the Term, the Company shall pay to the Employee an annual salary of not less than $475,000 (“Base Salary”), which amount shall be paid according to the Company’s regular payroll practices. The Company agrees to review the Base Salary on an annual basis and adjust the salary to comply with the executive 

compensation policy in effect at the time of the review.  Any adjustment made to the annual salary will establish the new Base Salary for the Employee.  All payments made pursuant to this Agreement, including but not limited to this subsection 4(a), shall be reduced by and subject to withholding for all federal, state, and local taxes and any other withholding required by applicable laws and regulations. 
		
	(b)
	The Company will provide an annual incentive (the “Annual Incentive”) to the Employee during the Term based on the Employee’s and the Company’s performance, as determined by the Board (or a committee thereof) in its sole discretion.  In this regard, the Board (or a committee thereof) shall set an annual incentive target of not less than sixty-five percent (65%) of Base Salary, and the Annual Incentive shall be paid in accordance with the Company’s regular practice for its senior officers, as in effect from time to time.  To the extent not duplicative of the specific benefits provided herein, the Employee shall be eligible to participate in all incentive compensation, retirement, supplemental retirement and deferred compensation plans, policies and arrangements that are provided generally to other senior officers of the Company at a level (in terms of the amount and types of benefits and incentive compensation that the Employee has the opportunity to receive and the terms thereof) determined in the sole discretion of the Board (or a committee thereof).

		
	(c)
	The Employee agrees that the amounts payable and benefits provided under this Agreement, including but not limited to any amounts payable or benefits provided under this Section 4 and Section 7 constitute good, valuable and separate consideration for the non-competition, assignment and release of liability provisions contained herein. The Employee acknowledges that she is aware of the effect of the non-competition, assignment and release of liability provisions contained herein and agrees that the amounts payable and benefits provided under this Agreement, including but not limited to the amounts payable and benefits provided under this Section 4 and Section 7, if any, constitute sufficient consideration for her agreement to these provisions. 

		
	(d)
	In addition to the compensation called for in this Agreement, the Employee shall be entitled to receive any and all employee benefits and perquisites as the Company from time to time in its discretion determines to offer.  In addition, the Employee shall be entitled to the applicable relocation and moving benefits described in Appendix A attached hereto.

		
	5.
	Insurance. 

The Employee agrees to submit to physical examinations at a reasonable time as requested by the Company for the purpose of the Company’s obtaining life insurance on the life of the Employee for the benefit of the Company; provided, however, that the Company shall bear the costs for such examinations and shall pay all premiums on any life insurance obtained as a result of such examinations.  The Employee further agrees to submit to drug testing in accordance with the Company's policies and procedures. 

		
	6.
	Termination. 

		
	(a)
	The Company, at any time, may terminate this Agreement and the Employee's employment immediately for “Cause.”  Cause is defined as: 

		
	(i)
	A material breach of this Agreement by the Employee; 

		
	(ii)
	Failure or inability of the Employee to obtain or maintain any required licenses or certificates; 

		
	(iii)
	Willful violation by the Employee of any law, rule or regulation, including but not limited to any material insurance law or regulation, which violation may, as determined by the Company, adversely affect the ability of the Employee to perform her duties hereunder or may subject the Company to liability or negative publicity; or

		
	(iv)
	Conviction or commission of or the entry of a guilty plea or plea of no contest to any felony or to any other crime involving moral turpitude. 

		
	(b)
	The Employee may terminate this Agreement and her employment with the Company immediately for “Good Reason,” which shall mean the occurrence of any of the following events with respect to which the Employee has notified the Company of the existence thereof within no more than ninety (90) days of the initial existence thereof and which is not cured by the Company within thirty (30) days of the Company’s receipt of written notice from the Employee of the events alleged to constitute such Good Reason: 

		
	(i)
	A material diminution in the Employee’s base compensation;

		
	(ii)
	A material diminution in the Employee’s authority, duties or responsibilities; or

		
	(iii)
	Any other action or inaction that constitutes a material breach by the Company of this Agreement.

		
	(c)
	The Company may also terminate this Agreement and the Employee's employment upon the occurrence of one or more of the following events or reasons, subject to applicable law (or, in the case of subsection 6(c)(i) below, termination of this Agreement and the Employee's employment will be automatic): 

		
	(i)
	Death of the Employee; 

		
	(ii)
	The Employee is deemed to be disabled in accordance with the policies of the Company or the law or if the Employee is unable to perform the essential job functions of the Employee’s position with the Company, with or without reasonable accommodation, for a period of more than 100 business days in any 120 consecutive business day period. The Employee is entitled to any and all short term or long term disability programs, like any other employee, in accordance with the terms of such programs and the policies of the Company; or

		
	(iii)
	At any time for any other reason or no reason in the sole and absolute discretion of the Company.

		
	7.
	Payments Upon Termination.

		
	(a)
	Qualifying Termination and Severance Pay.  If the Company terminates the Employee's employment prior to the expiration of the Term but other than during the CIC Period (as defined below) for any reason other than as specified above in subsection 6(a) for Cause, subsection 6(c)(i) by reason of the death of the Employee, or subsection 6(c)(ii) for disability, or if the Employee terminates her employment for Good Reason pursuant to subsection 6(b), the Employee shall receive the following severance pay (the “Severance Pay”):

		
	(i)
	In lieu of any further salary payments to the Employee for periods subsequent to the Termination Date and in lieu of any severance benefit otherwise payable to the Employee, an amount equal to two (2) times Base Salary, payable in equal bi-weekly installments on the Company’s regular payroll dates as in effect on such Termination Date, for twenty-four (24) months following the Termination Date, with payments commencing on the payroll date applicable to the first full payroll period occurring following the Applicable Release Period (as defined below), which first payment date shall be no later than sixty (60) days following the Termination Date; provided, however, that (A) such payments shall be delayed to the extent required under subsection 7(c)(iv) or Section 26 below and (B) the amount of the first payment shall be equal to the total amount of bi-weekly installments that would have been paid had the first payment been made on the first full payroll date occurring following the Termination Date, with each subsequent payment equal to the bi-weekly installment.  The payments shall be subject to normal payroll deductions.  

		
	(ii)
	Continuation of the medical, dental and vision insurance coverage in effect on the Termination Date for a period of eighteen (18) months following the Termination Date with the Company paying the employer portion of the premium and the Employee paying the employee portion, including dependents if applicable, of the premium during such eighteen (18) month period, provided that the Employee elects to continue such insurance coverage under the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended (“COBRA”). The Employee is solely responsible for taking the actions necessary to exercise her rights under COBRA for the insurance coverage the Employee has in effect, including coverage for dependents if applicable, on the Termination Date. 

		
	(b)
	Severance Pay as Liquidated Damages.  The parties agree, in the event of a material breach of this Agreement by the Company with respect to which the Employee has given notice and that is not cured, in either case, in accordance with subsection 6(b), following which the Employee terminates her employment for Good Reason, that actual damages are speculative and that the amount of the Severance Pay or, if applicable, the CIC Severance Pay (as defined below) set forth herein is liquidated damages and is a reasonable estimate of what damages would be for a material breach of this Agreement. 

		
	(c)
	Conditions to Severance Pay or CIC Severance Pay; the Applicable Release Period.  The Employee agrees and acknowledges that the following must be satisfied by the Employee before she is entitled to the Severance Pay or, if applicable, the CIC Severance Pay, as provided in subsections (i), (ii) and (iii) herein:

		
	(i)
	That the Employee returns any and all equipment, software, data, property and information of the Company or the Company Affiliates, including documents and records or copies thereof relating in any way to any proprietary information of the Company or any of the Company Affiliates whether prepared by the Employee or any other person or entity.  That the Employee further agrees that she shall not retain any proprietary information of the Company or any of the Company Affiliates after the Termination Date; 

		
	(ii)
	That the Employee executes a separation agreement and release of claims, in a form to be determined by the Company in its sole discretion, which releases the Company and the Company Affiliates from liability for any and all claims, complaints and causes of action, whether based in 

law or equity, arising from, related to or associated with the Employee’s employment by the Company or under this Agreement and that such release has become effective and non-revocable no later than sixty (60) days following the Termination Date (such deadline, the “Release Deadline”).  If the release of claims does not become effective by the Release Deadline, the Employee will forfeit any rights to severance or benefits under this Agreement.  In no event will severance payments or benefits be paid or provided until the release of claims becomes effective and irrevocable.  That the Employee further acknowledges and agrees that she has not made and will not make any assignment of any claim, cause or right of action, or any right of any kind whatsoever, arising from, related to or associated with the employment of the Employee by the Company; and
		
	(iii)
	That the Employee reaffirms the covenants contained herein, in writing, including, but not limited to, the covenants set forth in Section 10.  

		
	(iv)
	Notwithstanding anything in this Agreement to the contrary, in any case where the first and last days of the applicable release and nonrevocability periods provided for in the separation agreement and release of claims (the “Applicable Release Period”) are in two separate taxable years, any payments required to be made to the Employee under this Agreement that are treated as deferred compensation for purposes of section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and guidance promulgated thereunder (“Section 409A”) shall be made in the later taxable year, as soon as practicable, but in no event later than thirty (30) days following the conclusion of the Applicable Release Period.  In addition to the foregoing, the Applicable Release Period shall conclude no later than sixty (60) days following the Termination Date.

		
	(d)
	Voluntary Termination by the Employee.  The Employee may terminate her employment and this Agreement for reasons other than those identified in subsection 6(b) upon not less than sixty (60) days prior written notice.  If the Employee terminates her employment and this Agreement pursuant to this subsection 7(d), she shall be entitled only to the following: 

		
	(i)
	Any unpaid salary through the Termination Date; and 

		
	(ii)
	Payment for any accrued and unused vacation as of the Termination Date. 

		
	(e)
	Qualifying Change in Control Termination.  If, before the expiration of the Term, the Company terminates the Employee's employment within the period commencing six (6) months prior to and ending eighteen (18) months following a Change in Control (as defined below), such period referred to herein as the “CIC Period,” for any reason other than as specified above in subsection 6(a) for Cause, subsection 6(c)(i) for the death of the Employee, or subsection 6(c)(ii) for disability, or if the Employee terminates her employment and this Agreement for Good Reason pursuant to subsection 6(b), the Employee shall receive the severance pay set forth in subsections (i) and (ii) below (the “CIC Severance Pay”), provided that if the Employee’s employment is terminated during the six (6) month period prior to a Change in Control, the Employee shall be entitled to CIC Severance Pay only if such termination (x) was by the Company other than for Cause but at the request or direction of any person that has entered into an agreement with the Company the consummation of which would constitute a Change in Control, (y) was by the Employee for Good Reason and the circumstance or event that constitutes Good Reason occurred at the request or direction of such person or (z) was by the Company without Cause and the Employee reasonably demonstrates that such termination was otherwise in connection with or in anticipation of a Change in Control; and if the Employee is not entitled to CIC Severance Pay hereunder, then the Employee's termination of employment will not be deemed to have occurred during the CIC Period for purposes of subsection 7(a):

		
	(i)
	In lieu of any further salary payments to the Employee for periods subsequent to the Termination Date and in lieu of any severance benefit otherwise payable to the Employee, a lump sum cash payment equal to two (2) times the sum of (A) Base Salary and (B) (i) if the Change in Control occurs in 2019, the average of the annual bonus amounts earned by the Employee for the two (2) years preceding the year in which the Change in Control occurs, (ii) if the Change in Control occurs in 2020 or thereafter, the average of the annual bonus amounts earned by the Employee for the three (3) years preceding the year in which the Change in Control occurs.  Such payment shall be made as soon as practicable (but in no event later than sixty (60) days) following the Termination Date; provided, however, that such payments shall be delayed to the extent required under subsection 7(c)(iv) or Section 26 below; and

		
	(ii)
	Continuation of the medical, dental and vision insurance coverage in effect on the Employee's Termination Date for a period of eighteen (18) months following the Termination Date with the Company paying the employer portion of the premium and the Employee paying the employee portion, including dependents if applicable, of the premium during such eighteen (18)-month period, provided that the Employee elects to continue such insurance coverage under COBRA. The 

Employee is solely responsible for taking the actions necessary to exercise her rights under COBRA for the insurance coverage the Employee has in effect, including coverage for dependents if applicable, on the Termination Date.
		
	(f)
	Definition of Change in Control.  For purposes of this Agreement, a “Change in Control” shall be deemed to have occurred if the event set forth in any one of the following paragraphs shall have occurred:

		
	(i)
	Any one person, or more than one person acting as a group, acquires ownership of stock of the Company that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company; or

		
	(ii)
	Any one person, or more than one person acting as a group, acquires (or has acquired during the twelve (12)-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company possessing 35% or more of the total voting power of the stock of the Company; or

		
	(iii)
	A majority of members of the Board is replaced during any twelve (12)-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board before the date of the appointment or election; or

		
	(iv)
	Any one person or group acquires (or has acquired during the immediately preceding twelve (12)-month period ending on the date of the most recent acquisition) assets of the Company with an aggregate gross fair market value of not less than forty percent (40%) of the aggregate gross fair market value of the assets of the Company immediately prior to such acquisition.  For this purpose, gross fair market value shall mean the fair value of the affected assets determined without regard to any liabilities associated with such assets.  

Notwithstanding the foregoing, (1) a “Change in Control” shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the holders of the common stock of the Company immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity that owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions, and (2) a “Change in Control” shall not be deemed to have occurred as result of any secondary offering of Company common stock to the general public through a registration statement filed with the Securities and Exchange Commission.  The Board shall determine whether a Change in Control has occurred hereunder in a manner consistent with the provisions of Section 409A.  
		
	(g)
	No Duplication of Payments or Benefits.  Notwithstanding any provision of this Agreement to the contrary, the Employee shall not be eligible to receive any payments or benefits under both subsections 7(a) and 7(e); but rather, to the extent the conditions set forth in subsection 7(a) and subsection 7(e) are satisfied, the Employee shall be eligible to receive payments and benefits under only subsection 7(e).

		
	(h)
	Golden Parachute (Section 280G) Safe Harbor.  

		
	(i)
	If it is determined that any payment or benefit received or to be received by the Employee, whether pursuant to this Agreement or otherwise (the “Severance Payments”), is a “parachute payment” within the meaning of section 280G of the Code (all such payments and benefits, including the Severance Payments as applicable hereinafter called the “Total Payments”) that will be subject (in whole or part) to the tax imposed under section 4999 of the Code (the “Excise Tax”), then if (A) the Total Payments exceed the largest amount that would result in no portion of the Total Payments being subject to the Excise Tax (the “Safe Harbor”), and (B) the reduction of the Total Payments to an amount equal to the Safe Harbor would provide the Employee with a greater after-tax amount than would be provided to the Employee if the Total Payments were not reduced, then the amounts payable to the Employee under this Agreement shall be reduced (but not below zero) to the Safe Harbor.  If the Severance Payments are reduced pursuant to this subsection, then the non-cash portion of the Total Payments shall first be reduced, and the cash portion of the Total Payments shall thereafter be reduced (in each case in reverse order beginning with payments or benefits that are to be paid or provided the farthest in time from the Change in Control), so that the amount of the Total Payments is equal to the Safe Harbor.  Any reduction pursuant to the preceding sentence shall take precedence over the provisions of any other plan, program, agreement or arrangement governing the Employee’s rights and entitlements to any benefits or compensation.

		
	(ii)
	For purposes of determining whether any of the Total Payments will be subject to the Excise Tax and the amount of such Excise Tax, (A) no portion of the Total Payments shall be taken into account which, in the opinion of tax counsel (“Tax Counsel”) selected by the Board in existence immediately prior to the Change in Control, does not constitute a “parachute payment” within the meaning of section 280G(b)(2) of the Code, including by reason of section 280G(b)(4)(A) of the Code, (B) the 

Severance Payments shall be reduced only to the extent necessary so that the Total Payments (other than those referred to in clause (A)) in their entirety constitute reasonable compensation for services actually rendered within the meaning of section 280G(b)(4)(B) of the Code or are otherwise not subject to disallowance as deductions by reason of section 280G of the Code, in the opinion of Tax Counsel, and (C) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Company's independent auditor in accordance with the principles of sections 280G(d)(3) and (4) of the Code.  If the Employee disputes the Company's calculations (in whole or in part), the reasonable opinion of Tax Counsel with respect to the matter in dispute shall prevail. 
		
	(iii)
	In the event that a change is finally determined to be required in the amount of taxes paid by, or withheld on behalf of, the Employee, then appropriate adjustments will be made under this Agreement such that the net amount that is payable to the Employee reflects the intent of the parties pursuant to this Agreement.  If the Company owes the Employee an additional payment under this subsection, such payment shall be made to the Employee promptly, but in no event more than sixty (60) days following the date the underpayment is finally determined, but no later than the calendar year following the calendar year in which the underpayment is finally determined.  If the Employee owes an amount to the Company pursuant to this Section, then the Employee shall repay such amount to the Company promptly, but in no event more than sixty (60) days following the date that the overpayment by the Company is finally determined, but no later than the calendar year following the calendar year in which the overpayment is finally determined.  Any repayment pursuant to this subsection (either by the Company or the Employee) shall include applicable interest on the amount of such repayment at 120% of the rate provided in section 1274(b)(2)(B) of the Code.

		
	(iv)
	The Employee and the Company shall each reasonably cooperate with the other in connection with any administrative or judicial proceedings concerning the existence or amount of liability for Excise Tax with respect to the Total Payments.  The Company also shall pay to the Employee all legal fees and expenses incurred by the Employee in connection with any tax audit or proceeding to the extent attributable to the application of section 4999 of the Code to any payment or benefit provided hereunder. Such payments shall be made within sixty (60) business days after delivery of the Employee's written request for payment accompanied with such evidence of fees and expenses incurred as the Company reasonably may require (but in no event shall any such payment be made after the end of the calendar year following the calendar year in which the expenses were incurred), provided that no such payment shall be made in respect of fees or expenses incurred by the Employee after the later of the tenth (10th) anniversary of the effective date of the Employee's termination with the Company or the Employee's death and, provided further, that, upon the Employee’s “separation from service” (as such term is defined under Section 409A) with the Company, in no event shall any additional such payments be made prior to the date that is six (6) months after the date of the Employee’s “separation from service” to the extent such payment delay is required under section 409A(a)(2)(B) of the Code.

		
	8.
	Licensing. 

The Employee has obtained and possesses, or will obtain and possess, and will maintain throughout the Term hereof, all licenses, approvals, permits, and authorization (the “Licenses”) necessary to perform the Employee’s duties hereunder.  Any costs, attorneys’ fees, investigation fees or other expenses incurred in connection with obtaining or maintaining such Licenses shall be borne by the Company, provided that payment of such fees or costs by the Company shall be made no later than the end of the year following the year in which the expenses were incurred.  The Employee warrants that the Employee is fully eligible, under all standards and requirements, to obtain, possess, and maintain such Licenses and that the Employee will commit no acts during the Term hereof that would jeopardize or eliminate the Employee’s ability to possess or maintain such Licenses. 

		
	9.
	Rules and Regulations. 

The Employee shall observe, enforce, and comply with the policies, philosophies, strategies, rules, and regulations of the Company, as they may be promulgated and/or modified from time to time, and shall carry out and perform the orders, directions, and policies of the Company, as they may be stated and/or amended from time to time, either orally or in writing.  A violation of this Section 9 by the Employee is a material breach of this Agreement. 

		
	10.
	Restrictive Covenants. 

In consideration of the amounts payable and benefits provided under Section 4, and, if applicable, Section 7, the other compensation paid hereunder, and other good and valuable consideration, the receipt and sufficiency of which is acknowledged by the parties, the parties agree to the following provisions of this Section 10:
		
	(a)
	Non-Competition. The Employee understands and agrees that the Company and the Company Affiliates do business throughout the State of Nevada and other states.  The Employee further understands and agrees that she is a high ranking officer of the Company and will have access to confidential and trade secret information and goodwill of the Company and the Company Affiliates that will allow the Employee to unfairly compete with the Company and the Company Affiliates justifying this restriction.  If the Employee's employment is terminated (by either the Employee or the Company), during the Term, for any reason other than as specified above in subsection 6(c)(i) by reason of the death of the Employee, then for a period of eighteen (18) months commencing on the Termination Date, the Employee agrees that, without the written permission of the Company, she will not hold the same or a similar position (whether as owner, partner, controlling stockholder, controlling investor, employee, adviser, consultant, or otherwise) in any business that is in direct competition with the business  being conducted by the Company or any of the Company Affiliates as of the Termination Date, in Nevada or in any other state in which the Company is conducting such business (the “Non-Compete Area”) as of the Termination Date.  

		
	(b)
	Non-Solicitation. Without limiting the generality of the foregoing, the Employee agrees that for a period of eighteen (18) months following the Employee's termination of employment (for any reason, by either the Employee or the Employer), she will not, without the prior written consent of the Company, directly or indirectly solicit or attempt to solicit, within the Non-Compete Area, (i) any business from any person or entity that the Company or any of the Company Affiliates called upon, solicited, or conducted business with as of such Termination Date, provided that the Employee was aware of the Company’s business with such person or entity, (ii) any persons or entities that have been customers of the Company or any of the Company Affiliates or (iii) recruit or solicit any person who has been or is an employee of the Company or any of the Company Affiliates, during the preceding one (1)-year period from the Termination Date.  Nothing in this Section 10(b) prohibits the Employee from the placement of general advertisements and/or participation at job fairs or recruiting workshops that are not specifically targeted toward any employee or customer of the Company. 

		
	(c)
	In the event the Employee violates subsection 10(a) or 10(b), the applicable period of time during which the respective restriction applies will automatically be extended for the period of time from which the Employee began such violation until she permanently ceases such violation.  If any provision of these covenants is invalid in whole or in part, it will be limited, whether as to time, area covered, or otherwise as and to the extent required for its validity under the applicable law and as so limited, will be enforceable. 

		
	(d)
	Confidential Information. The Employee acknowledges that she has had or will have access to the  confidential information of the Company and the Company Affiliates (including, but not limited to, records regarding sales, price and cost information, marketing plans, customer names, customer lists, sales techniques, distribution plans or procedures, and other material relating to the business conducted by the Company and the Company Affiliates), proprietary, or trade secret information (the “Confidential Information”), and agrees, subject to her right to engage in Protected Activity as defined herein, never to use the Confidential Information other than for the sole benefit of the Company and the Company Affiliates and further agrees to never disclose such Confidential Information (except as may be required by regulatory authorities or as may be required by law) to any entity or person that is not an officer of the Company or a Company Affiliate at the time of such disclosure, without the prior written consent of the Company.  The Employee further acknowledges that this covenant to maintain Confidential Information is necessary to protect the goodwill and proprietary interests of the Company and the Company Affiliates and the restriction against the disclosure of Confidential Information is reasonable in light of the consideration and other value the Employee has received or will receive pursuant to this Agreement and otherwise pursuant to her employment by the Company. 

		
	(e)
	From and following the Employee's termination of employment, the Employee agrees to cooperate with the Company and the Company Affiliates in any litigation, administrative proceeding, investigation or audit involving any matters with which the Employee has knowledge of from her employment with the Company.  The Company shall reimburse the Employee for reasonable expenses, including reasonable compensation for services rendered at her hourly rate of compensation as of the Termination Date, incurred in providing such assistance and approved by the Company.  The Company shall reimburse the Employee for such expenses incurred in accordance with the policies and procedures of the Company, but in no event no later than the end of the year following the year in which the expenses were incurred.  

		
	(f)
	In the event of a violation of this Section 10, the Company and the Company Affiliates shall be entitled to any form of relief at law or equity, and the parties agree and acknowledge that injunctive relief is an appropriate, but not exclusive, remedy to enforce the provisions hereof.  The existence of any claim or cause of action of the Employee against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense of the Company’s enforcement of the covenants set forth in this Section 10.  The Employee hereby submits to the jurisdiction of the courts of the State of Nevada and federal courts therein for the purposes of any actions or proceedings instituted by the Company to enforce its rights under this Agreement, to seek money damages or seek injunctive relief.  The Employee further acknowledges and agrees (i) that the obligations contained in Section 10 of this Agreement are necessary to protect the interests of the Company and the Company Affiliates, (ii) that the restrictions contained herein are fair, do not unreasonably restrict the Employee's further employment and business opportunities, and are commensurate with the compensation arrangements set out in this Agreement and (iii) that such compensation arrangements constitute separate consideration for the obligations set forth in this Section 10.  The covenants contained in Section 10 shall each be construed as an agreement independent of any other provisions of this Agreement.  Both parties intend to make the covenants of Section 10 binding only to the extent that it may be lawfully done under existing applicable laws.  If a court of competent jurisdiction decides any part of any covenant is overly broad, thereby making the covenant unenforceable, the parties agree that such court shall substitute a reasonable, judicially enforceable limitation in place of the offensive part of the covenant and as so modified the covenant shall be as fully enforceable as set forth herein by the parties themselves in the modified form. 

		
	(g)
	The Employee acknowledges that it is possible that the corporate structure of the Company could change during the Term.  The Employee hereby acknowledges and affirms that the Company may assign its rights under this Agreement, including but not limited to its rights to enforce the covenants set forth in this Section 10, to a third-party without the approval of or additional consideration to the Employee.  The Employee acknowledges and agrees that the consideration called for herein is good and sufficient consideration for the Company's right to assign its rights under this Agreement.

		
	(h)
	 Subsections 10(a) through (g), inclusive, of this Agreement shall survive either termination of the employment relationship and/or termination of this Agreement for the full period set forth in subsections 10(a) through (g), inclusive. 

		
	11.
	Work for Hire. 

The Employee agrees that any work, invention, idea or report that she produces or that results from or is suggested by the work the Employee does on behalf of the Company or any of the Company Affiliates is “work for hire” (hereinafter referred to as “Work”) and will be the sole property of the Company.  The Employee agrees to sign any documents, during or after employment that the Company deems necessary to confirm its ownership of the Work, and the Employee agrees to cooperate with the Company to allow the Company to take advantage of its ownership of such Work. 

		
	12.
	Assignment of Agreement. 

The Employee agrees that her services are unique and personal and that, accordingly, the Employee may not assign her rights or delegate her duties or obligations under this Agreement. The Company may assign its rights, duties, and obligations under this Agreement to any successor to its business.  This Agreement shall inure to the benefit of and be binding upon the Company’s successors and assigns. 

		
	13.
	Indemnification of the Employee. 

The Company shall indemnify the Employee and hold him harmless for acts or decisions made by him in good faith while performing services for the Company or any of the Company Affiliates to the maximum extent allowed by law.  The Company shall also use its reasonable efforts to obtain coverage for him under any insurance policy now in force or hereinafter obtained during Term covering the officers and directors of the Company against lawsuits, subject to the business judgment of the Board.  The Company shall pay all expenses, including attorneys’ fees of an attorney selected and retained by the Company to represent the Employee, actually and necessarily incurred by the Employee in connection with the defense of such act, suit, or proceeding and in connection with any related appeal, including the cost of court settlements, provided that, to the extent required by Section 409A, any such payment by the Company shall be made no later than the end of the year following the year in which the expenses were incurred.

		
	14.
	Notices. 

Any notice, document, or other communication that either party may be required or may desire to give to the other party shall be in writing, and any such notice may be given or delivered personally or by mail or facsimile.  Any such notices given or delivered personally shall be given or delivered by hand to an officer of the entity to which they are being given or delivered or the individual, as the case may be, and shall be deemed given or delivered when so given or delivered by hand.  Any such notices given or delivered by facsimile will be deemed given or delivered upon receipt by the sender of a successful facsimile transmission to the facsimile number below, and any such notices given or delivered by mail shall be deemed given or delivered three (3) days after it is deposited in the U.S. mail, certified or registered mail, return receipt requested, with all postage and fees prepaid, addressed to the person or entity in question as follows: 

If to the Employee: 
Tracey Berg
To the address (or facsimile number, if applicable) on record with the Company

If to the Company: 
Chief Executive Officer
Employers Holdings, Inc. 
10375 Professional Circle
Reno,  Nevada  89521-4802
Fax:  (775) 886-5499

or, in either case, to such other address as either party may have previously notified the other pursuant to the provisions of this Section 14. 

		
	15.
	Severability. 

In the event that any provision hereof shall be declared by a court of competent jurisdiction to be void or voidable as contrary to law or public policy, such declaration shall not affect the continuing validity or enforceability of any other provisions hereof insofar as it may be reasonable and practicable to continue to enforce such other provision in the absence of the provision which shall have been declared to be void and voidable. 

		
	16.
	Remedy for Breach. 

Both parties recognize that the services to be performed by the Employee are special and unique.  The Company will have the right to seek and obtain damages and any available equitable remedies for the Employee’s breach of this Agreement.  The Employee's remedy for any breach of this Agreement is strictly limited to the Severance Pay or CIC Severance Pay, as the case may be, called for herein. 

		
	17.
	Mitigation of Damages. 

The Employee shall not be required to mitigate damages or the amount of any payment provided under this Agreement by obtaining other employment or otherwise after the termination of employment hereunder, and any amounts earned by the Employee, whether from self-employment or other employment shall not reduce the amount of any Severance Pay or CIC Severance Pay, as the case may be, called for herein. 

		
	18.
	Attorneys' Fees and Costs. 

In any claim or dispute between the parties arising out of or associated with this Agreement or the breach thereof or otherwise arising out of or associated with the Employee’s employment by the Company, the prevailing party shall be entitled to recover all reasonable attorneys' fees, expenses, and costs thereof or associated therewith, provided that, to the extent required by Section 409A, any such payment by the Company shall be made no later than the end of the year following the year in which such fees, expenses and costs were incurred.  The term “prevailing party” means the party obtaining substantially the relief sought via litigation or through an action in arbitration. 

		
	19.
	Integration, Amendment, and Waiver. 

This Agreement and such other written agreements referenced in this Agreement (other than the Prior Agreements), constitute the entire agreement between the parties pertaining to the subject matter contained in it except as expressly provided herein, and supersedes all prior agreements, representations, assurances, and understandings of the parties, including the Prior Agreements.  No amendment of, addition to, or modification of this Agreement shall be binding unless executed in writing by the parties.  Any term or provision of this Agreement may be waived in a signed writing at any time by the party that is entitled to the benefit thereof, provided, however, that any waiver shall apply only to the specific event or omission waived and shall not constitute a continuing waiver.  Any term or provision of this Agreement may be amended or supplemented at any time by a written instrument executed by all the parties hereto.

		
	20.
	Captions. 

The captions and section headings of this Agreement are for convenience and reference only, and shall have no effect on the interpretation or construction of this Agreement. 

		
	21.
	Applicable Law. 

The substantive laws of the State of Nevada shall govern the validity, construction, interpretation, performance, and effect of this Agreement, without regard to the conflicts of laws provisions thereof. 

		
	22.
	Arbitration. 

Any controversy, cause of action or claim related to or arising out of or in connection with the Employee’s employment with the Company, including but not limited to termination of such employment or under this Agreement, other than an action to enforce the provisions of Section 10 herein or the breach thereof, shall be settled by arbitration according to the rules of the American Arbitration Association applicable to disputes arising in Nevada and under Nevada law.  Any party to the arbitration may enter judgment upon the award rendered by the arbitrator in any court having jurisdiction thereof.  The arbitrator shall not be entitled to amend or alter the terms of this Agreement.  Notwithstanding this Section 22, the Company shall be entitled to seek any available equitable remedy for enforcement of provisions of this Agreement. 

		
	23.
	Authorization.

The Company and the Employee, individually and severally, represent and warrant to the other party that it has the authorization, power and right to deliver, execute and fully perform the obligations under this Agreement in accordance with its terms. The Employee represents and warrants to the Company that there is no restriction or limitation, by reason of this Agreement or otherwise, upon the Employee’s right or ability to enter into this Agreement and fulfill her obligations under this Agreement. 

		
	24.
	Acknowledgment.

The Employee acknowledges that she has been given a reasonable period of time to study this Agreement before signing it.  The Employee certifies that she has fully read, and has received an explanation of, and completely understands the terms, nature, and effect of this Agreement.  The Employee further acknowledges that she is executing this Agreement freely, knowingly, and voluntarily and that the Employee’s execution of this Agreement is not the result of any fraud, duress, mistake, or undue influence whatsoever.  In executing this Agreement, the Employee does not rely on any inducements, promises, or representations by the Company or any person other than the terms and conditions of this Agreement.

		
	25.
	Protected Activity Not Prohibited.  

The Employee understands that nothing in this Agreement shall in any way limit or prohibit the Employee from engaging in any Protected Activity. For purposes of this Agreement, “Protected Activity” shall mean filing a charge, complaint, or report with, or otherwise communicating, cooperating, or participating in any investigation or proceeding that may be conducted by, any federal, state or local government agency or commission, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, and the National Labor Relations Board (the “Government Agencies”). The Employee understands that in connection with such Protected Activity, the Employee is permitted to disclose documents or other information as permitted by law, and without giving notice to, or receiving authorization from, the Company. Notwithstanding the foregoing, the Employee agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company confidential information to any parties other than the Government Agencies. The Employee further understands that “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications. Any language in any 

other agreement between the Company and the Employee regarding the Employee’s right to engage in Protected Activity that conflicts with, or is contrary to, this paragraph is superseded by this Agreement. In addition, pursuant to the Defend Trade Secrets Act of 2016, the Employee is notified that an individual will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is made in confidence to a federal, state, or local government official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made under seal. In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the individual’s attorney and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.

		
	26.
	Section 409A.

Notwithstanding anything to the contrary in this Agreement, the payment of consideration, compensation, and benefits pursuant to this Agreement shall be interpreted and administered in a manner intended to avoid the imposition of additional taxes under Section 409A.  Notwithstanding any provision to the contrary in this Agreement or otherwise, no payment or distribution under this Agreement or otherwise that constitutes an item of “deferred compensation” under Section 409A and becomes payable by reason of the termination of the Employee’s employment hereunder shall be made to the Employee unless and until the termination of the Employee’s employment constitutes a “separation from service” (as such term is defined in Section 409A). 
In addition, no such payment or distribution of deferred compensation shall be made to the Employee prior to the earlier of (a) the expiration of the six (6) month period (the “Six Month Period”) measured from the date of the Employee’s “separation from service” (as such term is defined in Section 409A), and (b) the date of the Employee’s death, if the Employee is deemed at the time of such separation from service to be a “specified employee” within the meaning of that term under Section 409A (the “Six Month Delay”) and if such delayed commencement is otherwise required to avoid an “additional tax” under section 409A(a)(1)(B) of the Code. All payments and benefits that are delayed pursuant to the immediately preceding sentence shall be paid to the Employee in a lump sum upon expiration of such six (6) month period (or if earlier, upon the Employee’s death).
Notwithstanding the foregoing provisions, to the extent permitted under Section 409A, any separate payment or benefit under this Agreement or otherwise shall not be “deferred compensation” subject to Section 409A and the Six Month Delay to the extent provided in the exceptions in Treasury Regulation section 1.409A-1(b)(4) and (b)(9) and any other applicable exception or provision under Section 409A.  Further, each individual installment payment that becomes payable under this Agreement and each payment of the Severance Pay or if applicable, the CIC Severance Pay shall be a “separate payment” under Section 409A.  Specifically, to the extent the provisions of Treasury Regulation section 1.409A-1(b)(9) are applicable to the Severance Pay or if applicable, the CIC Severance Pay, the portion of such severance pay set forth in respectively, subsection 7(a)(i) or subsection 7(e)(i) above that is less than the limit prescribed under Treasury Regulation section 1.409A-1(b)(9)(iii)(A) (or any successor provision) (the “Separation Pay Amount”) shall be payable to the Employee in the manner prescribed in subsection 7(a)(i) or subsection 7(e)(i), as applicable, without regard to the Six Month Delay.  Following the Six Month Delay, (1) to the extent applicable, the Employee shall receive a lump sum cash payment equal to the Severance Pay or CIC Severance Pay, as applicable, she otherwise would have received during the Six Month Period (absent the Six Month Delay) less the Separation Pay Amount and (2) the Employee shall receive the remainder of her Severance Pay or CIC Severance Pay, as applicable, in the manner prescribed by subsection 7(a) or subsection 7(e), as applicable.

IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the Effective Date. 
	
					
	COMPANY: 
	 
	EMPLOYEE: 

	By: 
	/s/ Douglas D. Dirks
	 
	By: 
	/s/ Tracey Berg

	 
	Name: Douglas D. Dirks 
	 
	 
	Name: Tracey Berg

	 
	Chief Executive Officer

	 
	 
	 

Appendix A:  Relocation Benefits

In connection with your relocation to Austin Texas, and your maintenance of residences in Austin, Texas and Osceola, Wisconsin, the Company will provide you with the following:

		
	•
	Reimbursement of reasonable expenses incurred for movement of household goods and automobiles from either your former Reno residence or a storage facility in Reno, Nevada or Austin, Texas to Austin, Texas and/or Osceola, Wisconsin through a professional mover including packing, unpacking and professional storage of household goods for up to 12 months; 

		
	•
	Reimbursement of reasonable expenses necessary to complete your move, such as hotel, meals and other transportation-related costs for the trip from your former Reno residence to Austin;

		
	•
	Reimbursement of temporary housing living expenses (rent, deposit, utilities) until September 30, 2019;

		
	•
	In connection with the sale of your home in Reno, Nevada in March, 2019, the Company will reimburse you for your realtor fees (not to exceed six percent (6%) of the sales price).  The Company will also reimburse you for closing costs for the sale of your Reno house, in the aggregate up to $5,000; 

		
	•
	If as a result of your relocation you choose to buy a home in the Austin, Texas area, the Company will reimburse you for standard closing costs (excluding financing related costs) for the purchase of a home in the Austin area;

		
	•
	To the extent that the reimbursement of any of the relocation expenses results in taxable income to you (after taking into account any and all offsetting deductions), the Company will pay you an additional amount (the “Relocation Gross-Up”) such that the net after-tax amount of the reimbursement of the Relocation Expenses and the Relocation Gross-Up (at your then-current combined state and federal marginal income tax rates, taking into account the deductibility of  state and local income taxes for federal income tax purposes and all other applicable deductions) is equal to the Relocation Expenses.  

Notwithstanding the foregoing, the Relocation Gross-Up shall not exceed $54,000.  The Company will not gross-up any income associated with any profit resulting from the sale of your current house.  Any tax gross-up payment will be paid to you no later than the end of the taxable year next following the taxable year in which you remit the related taxes.
All relocation expenses must be incurred before December 31, 2020.

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