1.Date of the board of directors resolution:2006/05/29
2.Name 【__nth issue of (secured, unsecured) corporate bonds of ___ Co.】:
Hon Hai Precision Ind. Co., Ltd. 2006 1st domestic unsecured convertible
bond (convertible debenture)
3.Total amount of the issue:proposed at NT$ 18 billion
4.Face value:NT$ 1 million
5.Issue price:face value
6.Issue period:5 year
7.Issue coupon/interest rate:proposed at 0%
8.Types, names, monetary amounts of security or collateral and stipulations
thereupon:na
9.Use of the funds raised by the offering and utilization plan:working
capital
10.Underwriting method:public offering
11.Trustees for the bonds:na
12.Underwriter or distributing agent institution:na
13.Guarantor(s) for the issue:na
14.Institution serving as agent for payment of the principal and interest:na
15.Certifying institution:na
16.Where convertible into shares, the rules for conversion:
Under the following conditions, between the period between one month after
the issuance of the convertible bond to ten days prior to its maturity date,
bond holder is not entitled to convert the instrument to company ordinary shares;
(1) the third business date prior to the date of the Company's notification
to the TSE of the record date for the determination of Shareholders entitled
to the receipt of dividends, subscription of the new ordinary shares due to
capital increase or other benefits and bonuses to such record date
(2)other regulatory closure of register/book period (60 days period prior to
shareholder meeting or 30 days period prior to extraordinary shareholder meeting
17.Resale conditions: Putability: this convertible instrument is putable back to
the issurer on the very date that is third anniversary of the issurance of
the instrument. The put price is the face value. The put can only be exercise
once and on such date. In the case instrument holder fails to submit request
in writing in time forfeit the right to put.
18.Repurchase conditions: Callability: This convertible instrument can be
called by issuer under following scenarios between one month after issuance
of the instrument to 40 days prior to maturity date;
(1) If company's consecutive 30 days average
share closing price (in case of ex-dividend need to calculate based on adjusted price) is
50% higher than the conversion price; or
(2) If the outstanding amount of the instrument is less than 10% of the total
issued amount;
19.The record date for share conversion, if conversion, exchange, or
subscription rights are attached:na
20.Possible dilution of equity, if conversion, exchange, or subscription
rights are attached:total dilution under full conversion is 1.46%
21.Any other matters that need to be specified:The chairman is authorized to
determine the actual amount, pricing, timing and all other related terms based
on the market and industry condition of the time.