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Article 41
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The following items shall be provided in the terms and conditions when issuing corporate bonds with equity warrants:
- Issue date.
- Coupon rate and payment of interest.
- Date of interest payment.
- Type of corporate bonds, the amount of each bond and the aggregate amount of this issuance.
- The units of warrant represented by each corporate bond with warrant.
- For corporate bonds with detachable warrants, the total number of the issued units of the warrants and the method of calculation of the price per unit of the warrants.
- The availability of security or guarantee.
- Name of trustee and material covenants.
- Terms of repayment (e.g. repayment of principal upon maturity, payment of principal prior to maturity, terms of call or redemption, etc.).
- The listing or trading at the business places of securities firms of listed or OTC companies' corporate bonds with equity warrants.
- Procedures regarding request for exercising warrant; payment for stock price shall be made either in cash or by corporate bonds of the issuer.
- Criteria for setting terms and conditions of exercising warrant (including exercise price, exercise period, the classes/types of shares with which to exercise warrant, and the number of shares represented by each unit of warrant).
- Adjustment of exercise price.
- The disposition of interests and dividends in the year of exercising warrant.
- Rights and obligations after exercising warrant.
- Performance of contract shall be made only by issuing new shares.
- The number of times and date for the bondholder to acquire new stocks by submitting certificates of payment for shares.
- Procedure for obtaining the corporate bond with equity warrant.
- Other stipulations.
Secured corporate bonds with equity warrants are backed by the stocks of another company held by the issuer, the provisions of Article 25 shall apply mutatis mutandis.
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