Asus 2007 Annual Report Download - page 108

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104
ASUSTEK COMPUTER INC.
Notes to Non-Consolidated Financial Statements (Unaudited)
(In New Taiwan thousand dollars unless otherwise stated)
20
D. Main terms of conversion:
(a) Each Holder has the right to convert all or from time to time any portion (in
principal amount of US$1,000 or any integral multiple thereof) of his/her ECB I
into Common Shares during the Conversion Period (up to 31 days after the
Original issued date to 10 days before the Maturity date).
(b) The Conversion Price will initially be NT$100.86 per Common Share, and the
Fixed Rate will apply to the conversion of the ECB I. The Conversion Price
will be adjusted upon the occurrence of certain events set out in the indenture,
including but not confined to (1) Common Shares as a dividend (2) subdivision,
reclassification or combination of Common Shares (3) granting the shareholders
with rights of subscribing for Common Shares with price lower than the market
price defined in the indenture (4) the value of cash dividend per share is greater
than 5% of the market price in the indenture (5) purchase price of the
Company’s (including subsidiaries’) shares is higher than the market price (6)
issuance of the Company’s (including subsidiaries’) convertible (exchangeable)
securities with the Conversion Price lower than 95% of the market price and (7)
the value of newly issued Common Shares is lower than 95% of the market price
(other than (1), (2), (3) or (6)). Such events will not include, among other
things, the issue of the Common Shares to the Company’s employees as
employee bonuses.
In consideration of capital increasing from retained earnings, which excluded the
issuance of common shares to employees as employee bonuses, the conversion
price was diluted to NT$72.2 per common share.
(c) Conversion Price Reset at the Company’s option:
The Company may (but is not obligated to), within 30 days prior to each of the
Holders’Put Dates and the Maturity Date, by giving notice thereof to the
holders of the ECB I, offer such holders the option to convert their ECB I for a
period of seven Trading Days, which period shall start on a day determined by
the Company, at the “Special Conversion Price Reset”specified in the indenture.
The “Special Conversion Price Reset”equals to 92.30%, 93.23% or 95.12% of
market price which is determined by using the lowest average Closing Prices of
the Common Shares of the Company for 10, 15 and 20 Trading Days
immediately preceding special reset day.